Revenues Increase 18%; Net Income Up 34%
ALEXANDRIA, Va., Jan. 29 /PRNewswire-FirstCall/ -- Halifax Corporation
(Amex: HX) today announced its financial results for the quarter ended
December 31, 2003.
Revenues were $13.4 million for the quarter ended December 31, 2003,
versus $11.3 million for the same period of 2002, an increase of 18%. The
revenue growth was primarily due to increases in high-availability maintenance
services related to the Company's recently completed acquisition of Microserv.
In addition, the Company increased secure network services revenues from
certain Department of Defense customers.
Net income for the quarter ended December 31, 2003, was $202,000, or $0.07
per basic and diluted share, versus $151,000 or $0.07 per basic and diluted
share, for the comparable quarter of last year, an increase of 34%. The
Company reported that its total weighted average shares outstanding on a
diluted basis increased to 2,992,000 for the quarter ended December 31, 2003,
versus 2,245,000 for the same period last year, due to the private placement
in late July 2003 and the issuance of shares of common stock associated with
the Microserv acquisition.
Charles McNew, president and chief executive officer, noted, "We are
pleased to report the continued improvement in our financial performance.
This marks the eleventh consecutive quarter of profitability for our Company."
For the nine months ended December 31, 2003, revenues were $36.5 million
compared to $39.4 million for the same period last year. Net income was
$405,000, or $0.16 per basic and diluted share, for the first nine months of
this year compared to $484,000, or $0.22 per basic and diluted share, for the
same period of the prior year. The revenue and earnings decrease for the
current nine month period is primarily related to reductions in non-recurring
hardware orders from governmental customers and is reflective of the Company's
shift towards a model composed primarily of higher-margin services.
Mr. McNew noted, "The enterprise maintenance solutions marketplace
continues to represent a strong growth opportunity for Halifax. Although
competition is intense in certain sectors, our partnering strategy has
generated improvement in our pipeline of opportunities and should continue to
position the Company for ongoing improvement in shareholder value. In
addition, our balance sheet is strong and our evaluation of accretive
acquisition candidates is continuing."
The Company will host a conference call for investors at 11 a.m. EST on
Thursday, January 29, 2004, to review the financial and operational results
for the quarter. The conference call phone number is 888-898-1327 for U.S.
callers and 706-679-5341 for international callers. The conference call
replay will be available from 1 p.m. EST on Thursday, January 29, 2004, to 1
p.m. EST on Friday, January 30, 2004. The replay number is 800-633-8284 for
U.S. callers and 402-977-9140 for international callers. The reservation
number is 21183740.
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 http://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)
For the three For the nine
months ended months ended
Statements of operations December 31, December 31,
2003 2002 2003 2002
Revenues $13,380 $11,348 $36,517 $39,418
Operating income 347 315 849 1,013
Other income 5 3 15 15
Interest expense (130) (152) (419) (499)
Income tax expense (20) (15) (40) (45)
Net income $202 $151 $405 $484
Earnings per common share - basic: $.07 $.07 $.16 $.22
Earnings per common share - diluted: $.07 $.07 $.16 $.22
Weighted average number of common
shares outstanding:
Basic 2,910 2,176 2,548 2,176
Diluted 2,992 2,245 2,598 2,216
Balance Sheets December 31, March 31,
2003 2003
Current assets $14,617 $12,354
Non-current assets 6,465 4,415
Total assets $21,082 $16,769
Current liabilities $7,951 $7,262
Non-current liabilities 9,922 10,138
Total liabilities $17,873 $17,400
Stockholders' equity (deficit) 3,209 (631)
Total liabilities and stockholders'
equity (deficit) $21,082 $16,769
SOURCE Halifax Corporation
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Related links:
http://www.hxcorp.com
Company News On-Call:
http://www.prnewswire.com/comp/391950.html
CONTACT:
Karen Vahouny of Qorvis Communications,
+1-703-744-7809 or kvahouny@qorvis.com, for Halifax Corporation
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