Quarterly EPS of $0.06 Represents Three-Fold Increase
Over First Quarter Performance
ALEXANDRIA, Va., Oct. 30 /PRNewswire-FirstCall/ -- Halifax Corporation
(Amex: HX) today announced its financial results for the quarter ended
September 30, 2003.
For the quarter ended September 30, 2003, revenues were $12.5 million
versus $14.1 million for the comparable period of 2002, a decrease of 13%.
The revenue decrease was primarily due to reductions in hardware orders from
government customers, a trend that has continued for several quarters and
reflects the Company's strategy to emphasize a services-oriented model.
Revenues were also negatively affected by pricing adjustments associated with
certain contract extensions.
Net income for the quarter ended September 30, 2003, was $152,000, or
$0.06 per basic and diluted share, versus $190,000, or $0.09 per basic and
diluted share, for the comparable quarter of last year.
Compared to the quarter ended June 30, 2003, revenues increased 17% and
net income rose 198%.
Charles McNew, president and chief executive officer, noted, "We're
pleased with the improvement we've made over the previous quarter, with
revenues and profits up significantly. Our services strategy is visibly
positioning the Company for continued growth in the enterprise maintenance
solutions marketplace.
"Our quarterly earnings results reflect the benefit of reduced overhead
costs, as we continue to refine our cost structure to support effective
service delivery. Our service business continues to grow as is evidenced by
our backlog of $56.3 million, which is up for the third consecutive quarter."
For the six months ended September 30, 2003, revenues were $23.1 million
compared to $28.1 million for the same period last year. Net income was
$203,000, or $0.09 per basic and $0.08 per diluted share, for the first six
months of this year compared to $333,000, or $0.15 per basic and diluted
share, for the same period of the prior year.
McNew added, "We are completing the final phases of the integration of the
Microserv acquisition, and we continue to expect to generate accretive
earnings and improved market positioning as we move forward. Additionally,
our balance sheet continues to improve as a result of sustained profitability,
the recent private placement and a corresponding reduction in debt."
He added, "We are bullish regarding our future prospects, and we believe
that our leadership position in the enterprise maintenance solutions
marketplace will continue to afford ongoing improvement in shareholder value."
The Company will host a conference call for investors at 11 a.m. EST on
Thursday, October 30, 2003, to review the financial and operational results
for the quarter. The conference call phone number is 888-882-0114 for U.S.
callers and 212-346-6468 for international callers. The conference call
replay will be available from 1 p.m. EST on Thursday, October 30, 2003 to 1
p.m. EST on Friday, October 31, 2003. The replay number is 800-633-8284 for
U.S. callers and 402-977-9140 for international callers. The reservation
number is 21164516.
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 per share amounts)
For the three months For the six months
Statements of operations ended September 30, ended September 30,
2003 2002 2003 2002
Revenues $12,461 $14,055 $23,137 $28,070
Operating income 303 360 502 698
Other income 6 11 10 12
Interest expense (142) (166) (289) (347)
Income tax benefit (expense) (15) (15) (20) (30)
Net income $152 $190 $203 $333
Earnings per common
share - basic: $.06 $.09 $.09 $.15
Earnings per common
share - diluted: $.06 $.09 $.08 $.15
Weighted average number of
common shares outstanding:
Basic 2,557 2,176 2,365 2,176
Diluted 2,627 2,211 2,400 2,200
Balance Sheets September 30, March 31,
2003 2003
Current assets $14,862 $12,354
Non-current assets 6,541 4,415
Total assets $21,403 $16,769
Current liabilities $10,074 $7,262
Non- current liabilities 8,347 10,138
Total liabilities $18,421 $17,400
Stockholders' equity
(deficit) 2,982 (631)
Total liabilities and
stockholders' equity
(deficit) $21,403 $16,769
SOURCE Halifax Corporation
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Related links:
http://www.hxcorp.com
CONTACT:
Karen Vahouny of Qorvis Communications,
+1-703-744-7809 or kvahouny@qorvis.com, for Halifax Corporation
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