EX-99.1 2 v166275_ex99-1.htm Unassociated Document

Exhibit 99.1



HALIFAX ANNOUNCES
SECOND QUARTER  FINANCIAL RESULTS



ALEXANDRIA, VA – November 16, 2009 – Halifax Corporation of Virginia (HALX.PK   OTC) today announced its financial results for the quarter September 30, 2009.

Revenues for of three months ended September 30, 2009 were $7.6 million compared to $8.9 million for the prior year. For the six months ended September 30, 2009, revenues were $15.3 million compared to $17.9 million for the same period last year.  The decrease in revenues in 2009 was attributable to the termination of certain large nation-wide enterprise maintenance contracts.

The Company reported operating income of $105,000 for the three months ended September 30, 2009, compared to operating income of $347,000 for the same period last year.  For the six months ended September 30, 2009 the Company reported operating income of $239,000 compared to $664,000 for the six months ended September 30, 2008.  The reduction in operating income was primarily due to lower revenues due to lengthening sales cycles, somewhat offset by lower operating costs.

The Company reported net income of $44,000, or $.01 per basic and diluted share for the three months and $227,000, or $.07 per basic and diluted share for the six months ended September 30, 2009.

Charles McNew, President and Chief Executive Officer, stated, “The current quarter, as expected, was relatively flat compared to the first quarter of FY 2010.  We are pleased to continue our string of profitable quarters and we remain reasonably optimistic looking forward, given the pressures in the maintenance service marketplace and the economic environment in general.”

“We also continue to see growth potential for our supply chain services program, Enterprise Logistics Solutions, which is affording the company multiple higher margin business process outsourcing opportunities.”
 
The Company will host a conference call for investors at 11 a.m. EST on Monday, November 16, 2009, to review the financial and operational results for the quarter.  The conference call phone number is 800-952-3470 for U.S. callers and 212-231-2904 for international callers.  The conference call replay will be available from 1 p.m. EST on Monday, November 16, 2009, to 1 p.m. EST on Tuesday, November 17, 2009.  The replay number is 800-633-8284 for U.S. callers and 402-977-9140 for international callers.  The reservation number is 21443257.

 
 

 
Founded in 1967, Halifax Corporation of Virginia 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 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.
 

 
 

 


 
Halifax Corporation
             
Summary Financial Data
             
             
(in 000's except per share amounts)
           
                             
 
Statements of operations
 
For the three months ended September 30,
   
For the six months ended September 30,
 
   
2009
   
2008
   
2009
   
2008
 
                         
Revenues
  $ 7,641     $ 8,906     $ 15,303     $ 17,923  
                                 
Cost of services
    6,561       7,505       13,130       15,009  
                                 
Gross profit
    1,080       1,401       2,173       2,914  
                                 
Selling, marketing, general & administrative
    975       1,054       1,934       2,250  
                                 
Operating Income
    105       347       239       664  
                                 
Other income
    -       1       152       1  
Interest expense
    (47 )     (93 )     (130 )     (176 )
                                 
Income before income taxes
    58       255       261       489  
                                 
Income tax expense
    14       28       34       59  
                                 
Net income
  $ 44     $ 227     $ 227     $ 430  
                                 
                                 
Earnings per common share - basic and diluted
  $ 0.01     $ 0.07     $ .07     $ .14  
                                 
Weighted average number of common shares
                               
   outstanding:
                               
   Basic
    3,175       3,175       3,175       3,175  
   Diluted
    3,191       3,177       3,184       3,177  
                                 

 
 

 
 
Balance Sheets
 
September 30, 2009
   
March 31, 2009
 
             
Current assets
           
   Cash
  $ 311     $ 766  
   Trade accounts receivable, net
    5,918       6,794  
   Inventory, net
    2,594       2,588  
   Prepaid expenses and other current assets
    305       208  
                 
Total current assets
    9,128       10,356  
                 
Property and equipment, net
    701       727  
Goodwill and intangibles, net
    3,149       3,292  
Other assets
    40       56  
                 
Total assets
  $ 13,018     $ 14,431  
                 
Liabilities and Stockholders' Equity
               
                 
Current liabilities
               
   Accounts payable and accrued expenses
  $ 3,469     $ 4,546  
   Income tax payable
    44       67  
   Deferred maintenance revenue
    2,737       2,072  
   Bank debt
    1,527       2,545  
   Current portion of long-term debt
    199       331  
                 
Total current liabilties
    7,976       9,561  
                 
Other long-term debt
    101       141  
Subordinated debt - affiliate
    1,000       1,000  
Deferred income
    10       40  
                 
Total liabilities
    9,087       10,742  
                 
Stockholders' equity
    3,931       3,689  
                 
Total liabilities and stockholders' equity
  $ 13,018     $ 14,431