-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RuYokxaHWJ19Zofh6AR4NbLifKFspJ8/PG3RQ/x8AOchKf6vlQcQENTwTkLUShsF hfU2YGBDPUOH0TyjoNIobg== 0000720671-99-000015.txt : 19990910 0000720671-99-000015.hdr.sgml : 19990910 ACCESSION NUMBER: 0000720671-99-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990909 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HALIFAX CORP CENTRAL INDEX KEY: 0000720671 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370] IRS NUMBER: 540829246 STATE OF INCORPORATION: VA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-08964 FILM NUMBER: 99708608 BUSINESS ADDRESS: STREET 1: 5250 CHEROKEE AVE CITY: ALEXANDRIA STATE: VA ZIP: 22312 BUSINESS PHONE: 7037502202 MAIL ADDRESS: STREET 1: 5250 CHEROKEE AVENUE CITY: ALEXANDRIA STATE: VA ZIP: 22312 FORMER COMPANY: FORMER CONFORMED NAME: HALIFAX ENGINEERING INC/VA DATE OF NAME CHANGE: 19911204 10-Q 1 HALIFAX CORPORATION FORM 10-Q JUNE 30, 1999 FORM 10Q -- QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (As last amended in Rel. No. 312905 eff. 4/26/93.) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ( X) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 1999 ( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________ to__________ Commission file Number 0-12712 1-8964 Halifax Corporation (Exact name of registrant as specified in its charter) Virginia 54-0829246 (State or other jurisdiction of incorporation of organization) (IRS Employer Identification No.) 5250 Cherokee Avenue, Alexandria, VA 22312 (Address of principal executive offices) Registrant's telephone number, including area code (703) 750-2202 N/A (former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ( )Yes (X )No APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 2,013,406 as of September 9, 1999 HALIFAX CORPORATION CONTENTS PART I. FINANCIAL INFORMATION page Item 1.Financial Statements Condensed Consolidated Balance Sheets - June 30, 1999 (Unaudited) and March 31, 1999 3 Condensed Consolidated Statements of Operations - Three Months Ended June 30, 1999 and 1998 (Unaudited) 4 Condensed Consolidated Statements of Cash Flows - Three Months Ended June 30, 1999 and 1998 (Unaudited) 5 Notes to Condensed Consolidated Financial Statements (Unaudited) 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 10 PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 13 Item 1. FINANCIAL STATEMENTS HALIFAX CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS JUNE 30, 1999 AND MARCH 31, 1999
June 30, March 31, 1999 1999* (Unaudited) ASSETS CURRENT ASSETS Cash $ 112,000 $ 0 Accounts receivable 23,207,000 26,648,000 Inventory 4,227,000 3,949,000 Prepaid expenses and other current assets 1,343,000 1,377,000 TOTAL CURRENT ASSETS 28,889,000 31,974,000 PROPERTY AND EQUIPMENT, at cost less accumulated 2,234,000 2,230,000 depreciation and amortization OTHER ASSETS AND GOODWILL, net of accumulated amortization 4,428,000 4,531,000 TOTAL ASSETS $ 35,551,000 $38,735,000 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued $ 21,206,000 $23,518,000 expenses Current portion of long-term debt 5,820,000 7,720,000 TOTAL CURRENT LIABILITIES 27,026,000 31,238,000 LONG-TERM DEBT AND OTHER LIABILITIES 14,047,000 13,135,000 TOTAL LIABILITIES 41,073,000 44,373,000 STOCKHOLDERS' EQUITY Common stock 545,000 545,000 Additional paid-in capital 4,413,000 4,413,000 Retained earnings (10,268,000) (10,384,000) (5,310,000) (5,426,000) Less treasury stock at cost 212,000 212,000 TOTAL STOCKHOLDERS' EQUITY (5,522,000) (5,638,000) TOTAL LIABILITIES AND STOCKHOLDERS' $ 35,551,000 $ 38,735,000 EQUITY *Condensed from March 31, 1999 Audited Financial Statements. See Form 10-K filed September 8, 1999. See notes to Condensed Consolidated Financial Statements.
HALIFAX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998 (UNAUDITED)
Three Months Ended June 30 Restated 1999 1998 Revenues $ 20,970,000 $ 16,163,000 Operating costs and expenses: Cost of services 19,394,000 15,519,000 General and administrative 1,007,000 865,000 Total operating costs and expenses 20,401,000 16,384,000 Operating income (loss) 569,000 (221,000) Interest expense 453,000 355,000 Embezzlement Loss - 1,798,000 Income (loss) before income taxes 116,000 (2,374,000) Income tax (benefit) 46,000 (34,000) Utilization of net loss carryforward (46,000) - Income tax (benefit) - (34,000) Net earnings (loss) $ 116,000 $(2,340,000) Net earnings (loss) per common share -basic $ .06 $ (1.16) Net earnings (loss) per common share - diluted $ .06 $ (1.16) Weighted average number of common shares outstanding - basic 2,013,406 2,010,597 Weighted average number of common shares outstanding - diluted 2,013,406 2,010,597 See notes to Condensed Consolidated Financial Statements.
HALIFAX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED JUNE 30, 1999 AND 1998 (UNAUDITED)
Three Months Ended June 30 Restated 1999 1998 Cash flows from operating activities: Net income (loss) $ 116,000 $(2,340,000) Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 241,000 296,000 Decrease in accounts receivable 3,441,000 538,000 (Increase) in inventory (278,000) (274,000) Decrease (increase) in other 73,000 (397,000) assets (Decrease) increase in accounts payable and accrued expenses (270,000) 252,000 Total adjustments 3,207,000 415,000 Net cash provided (used) by operating activities 3,323,000 (1,925,000) Cash flows from investing activities: Acquisition of property and equipment, net of purchased operations (181,000) (169,000) Net cash used in investing activities (181,000) (169,000) Cash flows from financing activities: Proceeds from borrowing of long- 13,680,000 24,331,000 term debt Retirement of long-term debt (16,710,000) (22,140,000) Cash dividends paid - (101,000) Proceeds from sale of stock upon exercise of stock options - 4,000 Net cash provided (used) by financing activities (3,030,000) 2,094,000 Net increase in cash 112,000 0 Cash at beginning of period 0 0 Cash at end of period $ 112,000 $ 0 See notes to Condensed Consolidated Financial Statements.
Halifax Corporation Notes to Condensed Consolidated Financial Statements (Unaudited) Note 1 - Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended June 30, 1999 are not necessarily indicative of the results that may be expected for the year ending March 31, 2000. For further information refer to the consolidated financial statements and footnotes thereto included in the Halifax Corporation Annual Report on Form 10-K for the year ended March 31, 1999. Note 2 - Embezzlement Matter and Restatement of Consolidated Financial Statements On March 18, 1999, the Company announced that an internal investigation had revealed an apparent material embezzlement by the former controller of one of the Company's subsidiaries. The embezzlement occurred at, and was confined to, the Company's Richmond, VA based Halifax Technology Services Company ("HTSC"). At the time of the embezzlement, HTSC was a wholly owned subsidiary of Halifax Corporation, which resulted from a merger of CMSA (acquired by Halifax on April 1, 1996), and CCI (acquired by Halifax on November 25, 1996). On April 1, 1999, HTSC was merged into Halifax Corporation and is now a division of the Company. The Company believes that a single individual, the former controller of HTSC, perpetrated the embezzlement. She was immediately terminated, has since been indicted, has pleaded guilty, and currently awaits sentencing. Under the terms of an agreement entered into with the Company, she is cooperating with the Company's recovery efforts. The embezzlement occurred over a period of nearly four years and aggregated approximately $15.4 million, of which $15 million was embezzled from the Company and $400,000 from CMSA before it was acquired by Halifax. To conceal the embezzlement in the accounting records, the former controller made fraudulent adjustments totaling more than $21 million. Of the $21 million, the $15.0 million embezzled was recorded in the Company's statements of operations and balance sheets after the acquisition, approximately $2.2 million related to amounts reflected in the acquisition date balance sheet, and approximately $3.8 million related to other overstatements of operating results during the three year period subsequent to the CMSA acquisition. Under the terms of an agreement with the Company, the embezzler has transferred certain assets back to the Company. Some of the recovered assets have been converted into approximately $1.4 million in cash as of August 31, 1999. With an estimated $1.1 million of assets awaiting conversion to cash, the Company estimates approximately $2.5 million will ultimately be recovered from the embezzler. In addition, the full policy amount of $1 million from each of two separate theft insurance polices, or an aggregate of $2 million, has been received to date. Therefore, from these sources, the Company expects a total recovery of $4.5 million (excluding recovery costs) . The Company estimates that, net of recovery costs, approximately $3.5 million will be recovered. At March 31, 1999, the Company had received approximately $670,000 from its recovery efforts and recorded a $2.83 million recovery receivable to recognize its expectation of receiving the estimated $3.5 million of total net recoveries. Due to the corresponding overstatement of taxable income, reported by the Company during the period of the embezzlement, the Company will file for a tax refund of approximately $808,000. The receivable is recorded in "Income Taxes Receivable" in the consolidated financial statements. The embezzlement had a material effect on the Company's financial statements for fiscal years 1999, 1998 and 1997. In addition to the correction for overstated assets and understated liabilities, the Company recorded an embezzlement loss of approximately $2,593,000, $6,044,000 and $2,892,000 for the fiscal years ended March 31, 1999, 1998 and 1997, respectively. The embezzlement loss recorded in fiscal 1999 is net of the actual and projected net recoveries aggregating $3,500,000. In addition to the notification and involvement of the appropriate authorities, and the intensive and ongoing investigative efforts, the Company has taken other important steps as a result of the embezzlement. The Board of Directors appointed a special committee of the Board to focus on the recovery of assets taken from the Company and minimization of the damages sustained as a result of the embezzlement. The employment contract of the HTSC president was not renewed, and he is no longer employed by the Company. Furthermore, new executives have been hired to manage the technology services division and to consolidate the Company's financial and administrative activities. The Company has also transferred key accounting and cash management functions of HTSC to Company headquarters. The Company's financial statements for the three months ended June 30, 1998 have been restated to reflect corrections due to the embezzlement. The effect of the restatement on results of operations for the three months ended June 30, 1998 is as follows:
Three Months Ended June 30, 1998 Previously Statement of Operations: Reported Restated Revenues $ 17,264,000 $ 16,163,000 Cost of services 15,323,000 15,519,000 G&A expenses 1,306,000 865,000 Operating income 635,000 (221,000) Interest expense 355,000 355,000 Embezzlement loss - (1,798,000) Income (loss) before taxes 280,000 (2,374,000) Income taxes 129,000 (34,000) Net income (loss) $ 151,000 $ (2,340,000) Net income (loss) per share- $ .08 $ (1.16) basic Net income (loss) per share- $ .07 $ (1.16) diluted
Note 3 - Subsequent Event The Company signed a new banking agreement on September 1, 1999 which refinances the Company's bank debt as presented at March 31, 1999. The new debt continues to consist of a revolving line of credit ($12,000,000 revised facility) and two term loans ($1,000,000 and $2,500,000 revised facilities), however the principal reduction and interest rate provisions of the term loans have been revised. Standard closing and unused balance fees are included. The revised facilities make $15,500,000 of credit available to the Company. This agreement expires on September 8, 2000. All assets of the Company remain as collateral in accordance with the prior agreement. Financial covenants have been revised to require only prospective operational performance objectives including minimum quarterly net income of $100,000 beginning September 30, 1999 and quarterly increases in tangible net worth of $150,000. The new agreement prohibits the payment of dividends or distributions as well as the payment of principal or interest on Subordinated Debt. Interest expense on Subordinated Debt is accrued on a current basis. In connection with the new banking agreement, the revolving credit agreement was reduced from a maximum credit line of $14,500,000 to $12,000,000. Amounts available are determined by applying stated percentages to the Company's eligible billed and unbilled accounts receivable. Interest now accrues at LIBOR plus 4.25%. The Tier III Term Note principal balance was reduced by $125,000 at closing which reduced the outstanding principal balance on that date to $1,000,000. Interest is payable monthly on the principal at LIBOR plus 5.55%. The Tier II Term Note facility remains $2,500,000. The principal balance is to be reduced by $125,000 on December 15, 1999 and by $500,000 quarterly beginning March 15, 2000. Any unpaid balance is due September 15, 2000. Interest is payable monthly on the principal at LIBOR plus 4.65%. The Company is required to make certain additional term note balance reductions from the future proceeds of various embezzlement recoveries, tax refunds and potential asset sales if any. In addition the Company is required to pay quarterly fees on outstanding term note credit facilities. Such fees will range from .35% to .45%. In addition, on September 2, 1999, the Company entered into an agreement with a major supplier of digital communications switch hardware for the Company's United States Army contract where approximately $5,500,000 of outstanding accounts payable arising since March 31, 1999 and currently due to the supplier will be paid over 18 months with interest at 8.5%. $506,945 was paid on September 2, 1999 and will be paid on October 1, 1999, $299,965 will be paid on the first day of the next ensuing 15 months and a final payment of $299,974 is due on February 1, 2001. At June 30, 1999, $2,042,000 of amounts then outstanding are classified as noncurrent obligations. Note 4 - Tax Matters The Company has a $12.5 million net operating loss carryover virtually all of which expires in fiscal 2019. At June 30, 1999, the balance sheet includes an $808,000 income tax receivable which consists of net operating loss carryback refunds of $682,000 and $126,000 of estimated tax payments made in fiscal 1999. Note 5 - Earnings per Share The following table sets forth the computation of basic and diluted earnings per share.
Three Months Ended June 30, 1999 1998 Numerator: Net earnings $ 116,000 $(2,340,000) Numerator for basic earnings per share - income available to common $ 116,000 $(2,340,000) stockholders Numerator for diluted earnings per share - income available to common stockholders after assumed conversions $ 116,000 $ 2,340,000) Denominator: Denominator for basic earnings per share - weighted-average shares 2,013,406 2,010,597 Effect of dilutive securities: Employee stock options - - Contingent stock-acquisition - - 7% Convertible Subordinated Debenture - - Dilutive potential common shares Denominator for diluted earnings per share - adjusted weighted- average shares and assumed conversions 2,013,406 2,010,597 Basic earnings per share $ .06 $ (1.16) Diluted earnings per share $ $ .06 (1.16)
Note 6 - Selected Financial Date by Business Seqment The Company operates in two principal business segments: technology services and facilities management.
3 Months Ended June 30, Restated Selected Financial Data by 1999 1998 Business Segment Net Sales Technology Services $ 15,514 $ 12,470 Facilities Management 5,456 3,693 $ 20,970 $ 16,163 Operating Income (Loss) Technology Services $ 510 $ (366) Facilities Management 59 145 $ 569 $ (221)
Technology Services sales for the quarter ended June 30, 1999 increased over 1998 as a result of increased levels of business generally. Facilities Management sales increased due to the HUD contract being fully ramped up in 1999. Technology Services operating income increased because of the increased level of sales and improved product mix. Item 2 Management's Discussion and Analysis of Financial Conditions and Results of Operations Forward-Looking Statements Certain statements in this Annual 10-Q Report constitute "forward- looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such forward- looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions in the Company's market area, inflation, continuation of favorable banking arrangements, the availability of capital to finance planned growth, ramifications of the embezzlement referenced herein, changes in government regulations, availability of skilled personnel and competition, which may, among other things impact on the ability of the Company to implement its business strategy. Forward-looking statements are intended to apply only at the time they are made. Moreover, whether or not stated in connection with a forward-looking statement, the Company undertakes no obligation to correct or update a forward-looking statement should the Company later become aware that it is not likely to be achieved. If the Company were to update or correct a forward- looking statement, investors and others should not conclude that the Company will make additional updates or corrections thereafter. The following discussion should be read in conjunction with the consolidated financial statements and notes thereto. (Tabular information: dollars in thousands, except per share amounts).
Three Months Ended June 30, Restated Results of Operations 1999 Change 1998 Revenues $ 20,970 30% $ 16,163 Cost of services 19,394 25% 15,519 Percent of revenues 92% 96% General & Administrative 1,007 16% 865 Percent of revenues 5% 5% Operating cost and expenses: 20,401 24% 16,384 Percent of revenues 97% 101% Three Months Ended June 30, Restated Results of Operations - 1999 Change 1998 Cont'd Operating (loss) income 569 N/A (221) Percent of revenues 3% (1%) Interest expense 453 28% 355 Embezzlement (loss) - N/A 1,798 Income tax (benefit) expense - N/A (34) Net income (loss) $ 116 N/A $ (2,340) Net income (loss) per share - $ .06 $ (1.16) basic Net income (loss) per share - $ .06 $ (1.16) diluted
Revenues Revenues for the three months ended June 30, 1999 increased by 30% over the quarter ended June 30, 1998 principally as a result of increased levels of information technology services business. Operating Costs and Expenses Operating costs and expenses for the quarter ended June 30, 1999 increased by 24% over the comparable period in 1998 primarily as a result of the increase in revenues. Operating Income (Loss) The increased level of revenue and improved product mix resulted in operating income of $569,000 for the three months ended June 30, 1999 as compared to an operating loss of $221,000 for the same period in 1998. Interest Expense Interest expense increased 28% for the quarter ended June 30, 1999 as compared to the quarter ended June 30, 1998 principally due to increases in effective interest rates paid by the Company. Embezzlement Loss Embezzlement losses reflect the cash amounts embezzled from the Company. Embezzlement losses for the quarter ended June 30, 1998 were $1,798,000. There were no embezzlement losses for the quarter ended June 30, 1999. For additional discussion see Note 2 of the consolidated financial statements. Income Taxes The Company did not incur a net income tax expense for the three months ended June 30, 1999 because of application of the net operating loss carryforwards. For the quarter ended June 30, 1998, the Company recorded an income tax benefit of $34,000. Financial Condition, Liquidity and Capital Resources At June 30, 1999, The Company's working capital balance was $1,863,000 and its current ratio 1.07:1. The Company believes that funds generated from operations, bank borrowings, embezzlement recoveries, tax refunds and investing activities should be sufficient to meet its current operating requirements although there can be no assurances that all the aforementioned sources of cash can be realized. Year 2000 Compliance State of Readiness: During fiscal 1999 the Company undertook a formal Year 2000 readiness project assessment of all information technology assets to ensure the compliance of all applications, operating systems and hardware on its PC desktop suites and LAN and WAN server and communications platforms; the compliance of voice and data network software and hardware; to address issues related to non-IT systems in buildings, facilities and equipment which may contain date logic in embedded chips; and to address the compliance of key vendors and other third parties. The phases of the Project are : (i) inventorying Year 2000 items and assigning priorities, (ii) assessing the Year 2000 compliance of items, (iii) remediating or replacing items that are determined not to be Year 2000 compliant; (iv) testing items for year 2000 compliance, and (v) designing and implementing Year 2000 contingency and business continuity plans. To determine that all IT systems (whether internally developed or purchased) are Year 2000 compliant, each system is tested using a standard testing methodology which includes unit testing, baseline testing, and future date testing. Future date testing includes critical dates near the end of 1999 and into the year 2000, including leap year testing. The inventory and assessment phases of the Project were completed in mid fiscal 1999. At March 31, 1999, all of the Company's application systems had been remediated and current date tested. Essentially all critical hardware and software was compliant and tested by March 31, 1999. The remaining items will be resolved, tested and remediated by October 1999. The Company is addressing non-information technology systems readiness through direct contact with our critical supplier chain to validate Year 2000 readiness. As part of the Project, significant service and information providers, external vendors, suppliers, and other third parties (including telecommunication, electrical, security, and HVAC systems), that are believed to be critical to business operations after January 1, 2000, have been identified and contacted. Procedures are being undertaken in an attempt to reasonably ascertain their state of Year 2000 readiness through questionnaires, compliance letters, interviews, on-site visits, and other available means. The Company paid particular attention to suppliers and shippers of the product comprising its hardware inventory. Cost: The estimated total cost of the Year 2000 Project is approximately $90,000, including $30,000 of internal labor costs devoted to the project. Costs incurred to date are approximately $72,000, with the remainder of the estimated total to be incurred during the second quarter of FY 2000. Risk: The Company believes that its Year 2000 readiness program will prepare the Company for Year 2000 compliance in a timely manner. There can be no assurance, however, that the Company's internal systems or equipment or those external parties on which the Company relies will be Year 2000 compliant in a timely manner or that the Company's or external parties contingency plans will mitigate the effects of any noncompliance. Given the current status of the Company's year 2000 Project, management believes that the most probable worst case scenario could result in short term business interruptions. However, failure by the Company and/or external parties to complete year 2000 readiness work in a timely manner could have a materially adverse effect on the Company's financial position and its results of operations. Contingency Plans: The Company is developing a Year 2000 Contingency Plan designed to address problems arising from Year 2000 failures of critical third parties and will be directed towards providing alternate sources of supply to the Company. The Company expects to complete its contingency planning phase for Year 2000 by November 1, 1999. Part II. Other Information Item 6. Exhibits and Reports on Form 8-K (a) Exhibits - Not applicable (b) Reports on Form 8-K - None SIGNATURES 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 thereunto duly authorized. HALIFAX CORPORATION (Registrant) Date: September 9, 1999 By: s/John J. Reis John J. Reis President & CEO Date: September 9, 1999 By: s/John D. D'Amore John D. D'Amore Principal Financial & Accounting Officer EX-27 2 10Q-JUNE-1999
5 10Q-JUNE-1999 1 0 MAR-31-2000 APR-1-1999 JUN-30-1999 3-MOS 1 112,000 0 23,207,000 0 4,227,000 28,889,000 2,234,000 0 35,551,000 27,026,000 0 0 0 545,000 (6,067,000) 35,551,000 20,970,000 20,970,000 19,394,000 20,461,000 0 0 453,000 116,000 0 116,000 0 0 0 116,000 .06 .06
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