Company Expects Profitability for the Upcoming Fiscal Year
ALEXANDRIA, Va., May 3 /PRNewswire-FirstCall/ -- Halifax Corporation
(Amex: HX) today announced that it has signed a six-year extension on a
nationwide contract for enterprise maintenance services with a retailer
that has over 5,500 locations throughout the U.S. The total value of the
contract over the six-year period is expected to exceed $25 million.
Halifax has provided services to this client for the past four years.
In addition, Halifax reported that it resigned a nationwide maintenance
services account with another customer, a national retailer, effective
April 30, 2006. Although revenues were more than $5 million in the last
year, the contract generated significant losses for the Company during the
past two years. Halifax had discussed its plans to resolve this problem in
its last financial press release and conference call, and it took a charge
related to the potential cessation of the contract in the fiscal third
quarter ended December 31, 2005.
The Company also announced that during the fiscal fourth quarter, which
ended March 31, it signed a number of new enterprise maintenance contracts
valued at over $1.5 million annually. As a result of the recent contract
extension and new awards, the Company's backlog at April 30, 2006, stands
at a record $81 million.
Charles McNew, president and chief executive officer, stated, "As a
result of our new business and the cessation of losses associated with the
contract that we've resigned, we are now forecasting profitability for
fiscal 2007, which began on April 1, 2006.
"We are also continuing to aggressively pursue new enterprise
maintenance and managed services business, and there are several major new
opportunities on the horizon. I'm pleased to say that we have a bullish
outlook on our prospects for the coming year."
McNew added, "The record backlog portends well for our future. Although
the market remains challenging and it's difficult to resign existing
business, we are pleased to be signing multiple new profitable agreements
and returning our Company to sustained, long-term profitability."
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. 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 described in the Risk Factors Section in
the Company's Annual Report on Form 10-K 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.
SOURCE Halifax Corporation
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Related links:
http://www.hxcorp.com
http://www.prnewswire.com/comp/391950.html/
CONTACT:
Investor Relations: Karen Vahouny of Qorvis
Communications, +1-703-744-7809, kvahouny@qorvis.com, for Halifax
Corporation
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