Company Posts Sixth Consecutive Quarter of Sequential
Earnings Growth; Quarterly Revenues Rise 20%
ALEXANDRIA, Va., Oct. 29 /PRNewswire-FirstCall/ -- Halifax Corporation
(Amex: HX) today announced its financial results for the quarter ended
September 30, 2002.
Revenues increased 20% to $14.1 million from $11.7 million in the second
quarter of last year. The increase was principally due to improved recurring
revenue from several long-term enterprise maintenance contracts and
significant growth related to the federal communications services provided to
the U.S. Army.
Net income was $190,000, or $0.09 per basic and diluted share, for the
second quarter of fiscal 2003 compared to $60,000, or $0.03 per basic and
diluted share, for the same quarter of fiscal 2002.
According to Charles McNew, president and CEO, "Our determination to focus
on market penetration and customer satisfaction is having a positive impact on
both revenue and earnings growth. We now have reported six consecutive
quarters of sequential earnings improvement."
For the six months ended September 30, 2002, revenues were $28.1 million
compared to $22.5 million for the same period last year. Net income was
$333,000, or $0.15 per basic and diluted share, for the first six months of
this year compared to $78,000, or $0.04 per basic and diluted share, for the
same period of the prior year.
McNew noted, "We continue to build our portfolio of larger, long-term
contracts, including the $20 million renewal with the Virginia Department of
Transportation announced last week. We're becoming a recognized leader in
providing enterprise maintenance and seat management services, both of which
are major revenue contributors and have enabled us to grow our profit margins
over the past two years.
"Despite the difficult market conditions, Halifax is building a solid base
of business in our targeted IT niches, and we continue to believe that the
Company is well positioned for long-term growth," he concluded.
The Company will host a conference call for investors at 11 a.m. EST on
Tuesday, October 29, 2002, to review the financial and operational results for
the quarter. 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. EST on Tuesday, October 29, 2002, to 1
p.m. EST on Wednesday, October 30. The replay number is 800-633-8284 for U.S.
callers and 402-977-9140 for international callers; the reservation number is
20999317.
Founded in 1967, Halifax Corporation is a managed services company
providing a wide range of information technology services to commercial and
government customers throughout the United States. The Company's principal
products are Enterprise Maintenance Solutions, Seat Management/IT Solutions,
and Federal Communications Services.
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, 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 six months
Statements of operations ended September 30, ended September 30,
2002 2001 2002 2001
Revenues $14,055 $11,672 $28,070 $22,489
Operating income 370 252 709 442
Interest expense (165) (177) (346) (334)
Income tax expense (15) (15) (30) (30)
Net income $190 $60 $333 $78
Earnings per common
share -- basic $.09 $.03 $.15 $.04
Earnings per common
share -- diluted $.09 $.03 $.15 $.04
Weighted average number of
common shares outstanding
Basic 2,175,613 2,065,686 2,175,613 2,065,686
Diluted 2,211,134 2,065,686 2,200,311 2,065,686
September 30, March 31,
Balance Sheets 2002 2002
Current assets $15,380 $14,646
Non-current assets 4,880 5,029
Total assets $20,260 $19,675
Current liabilities $10,745 $9,203
Non- current liabilities 10,462 11,752
Total liabilities $21,207 $20,955
Stockholders' deficit (947) (1,280)
Total liabilities and stockholders'
deficit $20,260 $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, +1-703-744-7809, or
kvahouny@qorvis.com, for Halifax Corporation
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