Exhibit 99.1
HALIFAX ANNOUNCES FIRST QUARTER
FINANCIAL RESULTS
Company Reports Revenue Growth of 26% and Net Income Growth of 78%;
Thirteenth Consecutive Quarter of Profitability
ALEXANDRIA, VA - August 11, 2004 -Halifax Corporation (AMEX:HX) today
announced its financial results for the quarter ended June 30, 2004.
Revenues were $13.4 million for the quarter ended June 30, 2004,
compared to $10.7 million for the same period in 2003, an increase of
26%. The revenue growth primarily resulted from increases related to
the start-up of several new contracts in both high availability
maintenance services and secure network services. Operating income was
$286,000 for the 2004 first quarter versus $199,000 for last year's
comparable quarter, an increase of 43%.
Net income for the first quarter of 2004 rose 78% to $91,000, or $0.03
per basic and diluted share, versus $51,000 or $0.02 per basic and
diluted share, for the comparable quarter of last year.
Charles McNew, president and chief executive officer, noted, "We are
pleased to deliver another quarter of improving financial results, and
we have continued to strengthen the balance sheet and produce growth in
shareholders' equity. We're proud to report the 13th consecutive
quarter of profitability for our Company.
"We are receiving increased visibility for the unique approach we have
implemented in the Enterprise Maintenance Solutions marketplace, as
we've carefully developed our partner model," he added. "This is
continuing to stimulate meaningful growth opportunities in a market
that has been characterized by intense competition."
McNew concluded, "We are optimistic about our future prospects. We
have a strong pipeline of future business opportunities, an improving
backlog and an extremely busy workforce. We believe we are well
positioned to grow our existing core business, while continuing to
improve profitability and shareholder value."
The Company will host a conference call for investors at 11 a.m. EDT on
Wednesday, August 11, 2004, to review the financial and operational
results for the quarter. The conference call phone number is 888-214-
7567 for U.S. callers and 414-537-1808 for international callers. The
conference call replay will be available from 1 p.m. EDT on Thursday,
August 12, 2004, to 1 p.m. EDT on Friday, August 13, 2004. The replay
number is 800-633-8284 for U.S. callers and 402-977-9140 for
international callers. The reservation number is 21204868.
Founded in 1967, Halifax Corporation is an enterprise maintenance
solutions company providing a wide range of technology services to
commercial and government customers throughout the United States. The
Company's principal products are high availability hardware maintenance
services, technology deployment and integration services, and secure
network program services. More information on Halifax can be found at
www.hxcorp.com.
Certain statements made by the Company which are not historical facts
may be considered forward-looking statements, including, without
limitation, statements as to trends, management's beliefs, views,
expectations and opinions, which are based upon a number of assumptions
concerning future conditions that ultimately may prove to be
inaccurate. Such forward-looking statements are subject to risks and
uncertainties and may be affected by various factors that may cause
actual results to differ materially from those in the forward-looking
statements. For further information that could affect the Company's
financial statements, please refer to the Company's reports filed with
the Securities and Exchange Commission.
Halifax Corporation
Summary Financial Data
(In Thousands, except per share amounts)
Statement of operations For the three months ended June 30
2004 2003
Revenues $ 13,441 $ 10,676
Operating income 286 199
Other income - 4
Interest expense (139) (147)
Income tax expense (56) (5)
Net income $ 91 $ 51
Earnings per common share - basic $ .03 $.02
Earnings per common share - diluted $ .03 $ .02
Weighted average number of common
shares outstanding
Basic 2,913 2,176
Diluted 2,958 2,187
Balance Sheets June 30, 2004 March 31,2004
Current assets
Cash $ 97 $ 430
Trade accounts receivable, net 10,922 9,364
Inventory net 5,806 5,845
Prepaid expenses and other current 664 599
assets
Deferred tax asset 1,149 1,204
Total current assets 18,638 17,442
Property and equipment, net 1,520 1,598
Goodwill and intangibles, net 4,573 4,606
Other assets 142 149
Defered tax asset 2,696 2,696
Total assets $ 27,569 $ 26,491
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $ 6,763 $ 6,723
Deferred maintenance revenue 3,260 2,543
Current portion of long-term debt 523 523
Total current liabilities 10,546 9,789
Long-term bank debt 7,454 7,246
Subordinated debt - affiliate 2,400 2,400
Deferred income 323 337
Total liabilities 20,723 19,772
Stockholders' equity 6,846 6,719
Total liabilities and stockholders' $ 27,569 $ 26,491
equity