Announces Loss for FY 2008, Profitable for Q1 FY 2009
ALEXANDRIA, Va., July 1 /PRNewswire-FirstCall/ -- Halifax Corporation of
Virginia (Amex: HX) today announced that it has closed on a new three year
line of credit for $4,000,000 with a new lending source, which is intended to
replace the Company's expiring line of credit. The transaction is closed in
escrow pending the satisfaction of certain escrow conditions. Terms of this
new financing will be disclosed in more detail in the Company's Current Report
on Form 8K, which will be filed once the escrow conditions are satisfied.
In addition, the Company reported that it has delayed the filing of it's
Form 10-K until July 14, 2008 to allow for proper disclosure of the new loan
and security agreement. The Company will report a loss for FY 2009 of
approximately $2,450,000 primarily due to inventory adjustments, legal
settlement, transaction expenses, and severance costs related to our recent
restructuring. It was also noted that the Company is once again profitable and
cash flow positive and expects to report earnings for the quarter ended June
30, 2008 of approximately $200,000 or $0.06 per share.
Charles McNew, President and Chief Executive Officer stated, 'FY 2008 was
a transition year for the Company and we believe the losses are now behind us.
A significant portion of the losses were comprised of one time charges. We
were also able to pay down a sizeable portion of our bank debt in the prior
fiscal year. As a result of comprehensive restructuring actions, we have
revised our service model and have dramatically reduced labor costs and parts
risk which we believe will position us for a return to market share
expansion.'
McNew added, 'As we look forward to FY 2009, we are forecasting a solidly
profitable first quarter and believe that there is a basis to view this as a
sustainable environment. We are also continuing to develop a robust pipeline
of new business opportunities for both Enterprise Logistics Solutions and
Field Maintenance Services opportunities.'
Founded in 1967, Halifax Corporation 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 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 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.
SOURCE Halifax Corporation of Virginia