Halifax Corp. / HX

About Halifax Corp.

5250 Cherokee Ave., Alexandria, Va. 22312
www.hxcorp.com | 703-750-2202 | Founded: 1967

Industry: Information Technology | Category: Public Companies

Halifax returned to profitability in fiscal 2007 after ending an unprofitable nationwide maintenance contract in April 2006. Ending the contract reduced revenue but also eliminated losses. The firm reported profit for three straight quarters, compared with losses for the comparable period the previous year.
For the fiscal year ended March 31, 2006, the firm reported a profit of $1.5 million but also an operating loss of $4.7 million. In the spring of 2006, it signed several new maintenance contracts and extended a contract with a nationwide retailer that is projected to bring in more than $25 million over six years. Including new awards, the company's contract backlog totals a record $81 million.
In the third quarter of fiscal 2007, gross profit margin was 11 percent of revenue, compared with 2 percent in the comparable quarter a year earlier. Margins are improving, the firm said, because of cost containment and technology upgrades. Working capital approached $10 million.
On Jan. 1, 2007, Indus, which bought the firm's Secure Network Services Group for $12.5 million in 2005, withheld payment on the final 5 percent due. Halifax is pursuing collection of $625,000.

President and CEO: Charles L. McNew

2006 Financial Data

Revenues: $54,911,000 | Net Income: $1,536,000
Asssets: $27,409,000 | Earnings Per Share: $0.48
Total employees: 520 | Local employees: 20