ALEXANDRIA, Va., June 2 /PRNewswire-FirstCall/ -- Halifax Corporation
of Virginia (Amex: HX), today announced that its outstanding bank debt has
declined to $1.9 million. The Company's bank debt balance which was $6.9
million on December 31, 2007 has declined by approximately $5.0 million in
the past five months. The Company attributes the decline to aggressive cost
containment actions, focused cash management and certain customer
prepayments. The Company is presently in discussions with several new long
term lending sources, to replace its line of credit which, following the
recent extension, is scheduled to expire on June 30, 2008.
In addition, the Company announced that it has been awarded business
from five new Enterprise Logistics Solutions customers with an aggregate
annual value of $1.5 million per year.
Charles McNew, President and Chief Executive Officer stated, "We have
worked diligently to attain our present level of positive cash flow. It has
been difficult but we are encouraged by the rapid progress and as a result
we are confident that a long term financing solution is on the horizon."
McNew continued, "While our maintenance business hasn't grown in recent
months, we are seeing signs that our revised cost models, which have been
designed to drive down labor costs and minimize parts risk are positioning
the Company for a potential resumption of expansion in this challenging
market."
"The Company is also very pleased with the multiple new wins it has
secured in the Enterprise Logistics Solutions marketplace. These recent
wins coupled with a robust pipeline for future business are providing
highly encouraging indicators regarding the potential for this new service
launch. We are carefully adding sales and programming talent to support the
growth we are experiencing in this exciting global middle market sector."
For additional information regarding the terms of the Company's line of
credit, see the Company's current report on Form 8-K dated April 30, 2008.
Founded in 1967, Halifax Corporation is an enterprise logistics and
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 enterprise logistics solutions and high
availability hardware maintenance 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 of Virginia
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Related links:
http://www.hxcorp.com
http://www.prnewswire.com/comp/391950.html /
CONTACT:
Investors, Tammy Erwin of Halifax Corporation
of Virginia, +1-703-658-2422, terwin@hxcorp.com
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