HALIFAX ANNOUNCES NEW ENTERPRISE MAINTENANCE
CONTRACTS TOTALING $5.0 MILLION
Company Also Discusses Revenue and Earnings Guidance
for FY 2003
Third Quarter
ALEXANDRIA, VA - December 19, 2002 - Halifax Corporation
(AMEX:HX) today announced that it has recently been awarded enterprise
maintenance
services contracts totaling $5.0 million. The services will be
provided for several regional and nationwide customers over periods
ranging
from one to three years and include the renewal of the Virginia
Retirement System seat management program, several new high availability
system
customers and a new secure network program for a federal customer
within the Department of Defense.
According to Charles McNew, president
and chief executive officer, "The
enterprise maintenance service marketplace continues to offer growth
prospects, and we're concentrating on positioning the Company as
a major player in this space. Consequently, we believe our prospects
for long-term success are favorable.
" Many of the new contracts awarded to the Company have resulted from
our relentless pursuit of customer satisfaction and our strengthened
relationships with multiple large-scale system integrators and
global service providers serving both public and private sector clients."
McNew
further stated, "Our backlog and new business pipeline
are continuing to improve for the long-term, and our mix of higher
margin service business is expanding. We do, however, foresee a
decline in revenue for the quarter ended December 31, 2002, due
to a reduction
in low margin hardware orders. Earnings are not anticipated to
be negatively affected because of the favorable mix of high margin
services.
The Company has de-emphasized hardware sales for the long-term
and believes most future growth potential for both revenue and
profitability
will be generated by our recurring revenue model for enterprise
maintenance services."
Founded in 1967, Halifax Corporation is an enterprise
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 high availability system services,
seat management and deployment services; and secure network program
services. More information on Halifax can be found at www.hxcorp.com.
For investor relations information, contact Qorvis Communications:
Karen Vahouny (703) 744-7809 or kvahouny@qorvis.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, 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 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.
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