UNITED STATES
                  SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C. 20549

                               FORM 8-K

                            CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report(Date of Earliest Event Reported):October 10, 2007


                    HALIFAX CORPORATION OF VIRGINIA
        (Exact name of registrant as specified in its charter)


      Virginia             1-08964               54-0829246
  (State or other       (Commission File      (I.R.S. Employer
  jurisdiction of           Number)         Identification No.)
   incorporation)

           5250 Cherokee Avenue, Alexandria, Virginia  22312
          (Address of principal executive offices) (Zip Code)


Registrant's telephone number, including area code:(703) 658-2400

                         N/A
Former name, former address, and former fiscal year, if changed since
last report

Check  the appropriate box below if the Form 8-K filing is intended  to
satisfy  the  filing  obligation of the registrant  under  any  of  the
following provisions:

[ ]  Written communications pursuant to Rule 425 under the Securities
     Act (17 CFR 230.425)

[ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange
     Act (17 CFR 240.14a-12)

[ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under
     the Exchange Act (17 CFR 240.14d-2(b))

[ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under
     the Exchange Act (17 CFR 240.13e-4(c))



Item 8.01  Other Events.


     Halifax Corporation of Virginia (the "Company") announced that it
has lost a major contact valued at approximately $3.5 million per year.
The contract was terminated pursuant to its terms upon 30 days notice
to the Company.  The reason for such termination was based strictly on
price of services provided.  The Company believes its SLA performance
on this account has been above expectations throughout.  The contract
work involved site based maintenance services for an aeronautics
company with locations throughout the U.S. and is expected to wind down
in November 2007.  Halifax has provided services to this aeronautics
company since 2006. The Company is taking cost reduction actions to
neutralize the impact of this contract loss.






                               SIGNATURE




Pursuant  to the requirements of the Securities Exchange Act  of  1934,
the  Registrant has duly caused this report to be signed on its  behalf
by the undersigned hereunto duly authorized.

                              HALIFAX CORPORATION OF VIRGINIA



Date:  October 10, 2007       By:   /s/Joseph Sciacca
                                   Joseph Sciacca
                                   Vice President, Finance & CFO