Company Reports Net Income Growth of 115% for the Year
ALEXANDRIA, Va., May 29 /PRNewswire-FirstCall/ -- Halifax Corporation
(Amex: HX) today announced its financial results for the fourth quarter and
fiscal year ended March 31, 2003.
For the year, revenues were $50.4 million versus $49.4 million for fiscal
2002, an increase of 2%. Revenues increased despite a reduction in hardware
sales as the Company continued its migration to a services-driven model. The
Company reported operating income of $1.3 million for fiscal 2003 compared to
$987,000 for the previous year. Net income rose 115% to $648,000, or $0.30
per basic and diluted share, for fiscal 2003 compared to $302,000, or $0.14
per basic and diluted share, for the prior year.
For the quarter ended March 31, 2003, revenues were $11.0 million versus
$13.6 million for the comparable period in 2002, a decrease of 19%. The
revenue decrease was due to reductions in hardware orders principally from
governmental customers and reflective of the Company's strategy to shift to a
model composed primarily of higher-margin services. Net income for the
quarter ended March 31, 2003, was $164,000, or $0.07 per basic and diluted
share, versus $115,000, or $0.05 per basic and diluted share, for the
comparable quarter of 2002.
Charles McNew, president and chief executive officer, stated, "Fiscal 2003
was another successful year for our Company. Despite a difficult economic
environment, we continued to build upon our position as a leader in Enterprise
Maintenance Solutions. Once again, we have increased revenues and improved
profitability, and we also reduced our bank debt by $1.5 million."
He added, "For the coming year, we'll continue to position Halifax as a
leader in Enterprise Maintenance Solutions. Our plan to become the
'Outsourcer's Outsourcer' is resonating with the global service provider
community, and we've built our customer base to include such prestigious
clients as IBM Global Services and Hewlett-Packard. In addition, we are
providing direct services for the Department of Defense, the Commonwealth of
Pennsylvania and the Virginia Department of Transportation.
"Our goals for fiscal 2004 include working to grow these Enterprise
Maintenance Solutions accounts and add new customers; add new partner
relationships; and continue to build our federal and state government
business," noted McNew. "We plan to increase revenues and profitability for
the year, and we hope to see continued gross profit margin improvement as we
build our service delivery capabilities. Additionally, we are reviewing
selective acquisition possibilities that would accelerate growth for our
Enterprise Maintenance Solutions platform."
He concluded, "We continue to believe our Company is well positioned to
grow in today's market while we continue to pursue our long-term objective of
market leadership in our chosen niches."
The Company will host a conference call for investors at 11 a.m. EDT on
Thursday, May 29, 2003, to review the financial and operational results for
the quarter and the year. The conference call phone number is 800-207-3341
for U.S. callers and 415-908-4739 for international callers. The conference
call replay will be available from 1 p.m. EDT on Thursday, May 29, 2003, to 1
p.m. EDT on Friday, May 30. The replay number is 800-633-8284 for U.S.
callers and 402-977-9140 for international callers. The reservation number is
21145735.
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 share data)
Statements of operations For the three months For the years
ended March 31, ended March 31,
2003 2002 2003 2002
Revenues $11,000 $13,613 $50,418 $49,350
Operating income 329 284 1,337 987
Other income - 6 20 9
Interest expense (150) (160) (649) (634)
Income tax expense (15) (15) (60) (60)
Net income $164 $115 $648 $302
Earnings per common
share - basic $.07 $.05 $.30 $.14
Earnings per common
share- diluted $.07 $.05 $.30 $.14
Weighted average number
of common shares
outstanding
Basic 2,176,296 2,175,613 2,175,781 2,100,321
Diluted 2,200,360 2,189,544 2,212,360 2,106,478
Balance Sheets March 31, 2003 March 31, 2002
Current assets $12,354 $14,646
Non-current assets 4,415 5,029
Total assets $16,769 $19,675
Current liabilities $7,262 $9,203
Non- current
liabilities 10,138 11,752
Total liabilities $17,400 $20,955
Stockholders' deficit (631) (1,280)
Total liabilities and
stockholders' deficit $16,769 $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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