ALEXANDRIA, Va., Jan. 30 /PRNewswire-FirstCall/ -- Halifax Corporation
(Amex: HX) today announced its financial results for the quarter ended
December 31, 2002.
Revenues decreased 14% to $11.3 million from $13.2 million in the third
quarter of last year. The decrease was principally due to reductions in low
margin hardware orders, which the Company announced in December.
Net income increased to $151,000 or $0.07 per basic and diluted share, for
the third quarter of fiscal 2003 compared to $109,000 or $0.05 per basic and
diluted share, for the same quarter of fiscal 2002.
According to Charles McNew, president and CEO, "Our hardware marketplace
has been characterized by intense competition, a declining rate of orders and
thinner margins. Our recent decision to de-emphasize hardware sales and focus
on our recurring revenue model for enterprise maintenance services should
improve the potential for long-term growth in both revenue and profitability."
He continued, "Our core services have continued to grow, and this has
positively affected our margins. Operating margins have improved over 30% as
compared to fiscal year 2002."
For the nine months ended December 31, 2002, revenues increased 10% to
$39.4 million from to $35.7 million for the same period in the previous year.
Net income was $484,000, or $0.22 per basic and diluted share, for the first
nine months of this year compared to $187,000, or $0.09 per basic and diluted
share, for the same period of the prior year.
McNew noted, "We are focused on continuing to build our portfolio of long-
term, higher-margin services contracts. The shift away from hardware revenue
dependency is a positive development; our margins should continue to improve
as we increase our services base. We remain confident in our view that the IT
services strategy we've embraced will position the Company for long-term
growth."
The Company will host a conference call for investors at 11 a.m. EST on
Thursday, January 30, 2003, to review the financial and operational results
for the quarter. The conference call phone number is 888-214-7562 for U.S.
callers and 415-537-1916 for international callers. The conference call
replay will be available from 1 p.m. EST on Thursday, January 30, 2003 to 1
p.m. EST on Friday, January 31. The replay number is 800-633-8284 for U.S.
callers and 402-977-9140 for international callers; the reservation number is
21117260.
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 maintenance services, seat management
and deployment 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 share data)
For the three months For the nine months
Statements of operations ended December 31, ended December 31,
2002 2001 2002 2001
Revenues $11,348 $13,249 $39,418 $35,738
Operating income 318 264 1,028 706
Interest expense (152) (140) (499) (474)
Income tax expense (15) (15) (45) (45)
Net income $151 $109 $484 $187
Earnings per common share --
basic $.07 $.05 $.22 $.09
Earnings per common share --
diluted $.07 $.05 $.22 $.09
Weighted average number of
common shares outstanding
Basic 2,175,613 2,087,193 2,175,613 2,072,881
Diluted 2,245,489 2,090,664 2,216,120 2,073,756
Balance Sheets December 31, 2002 March 31, 2002
Current assets $12,500 $14,646
Non-current assets 4,553 5,029
Total assets $17,053 $19,675
Current liabilities $7,396 $9,203
Non- current liabilities 10,452 11,752
Total liabilities $17,848 $20,955
Stockholders' deficit (795) (1,280)
Total liabilities and stockholders'
deficit $17,053 $19,675
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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