ALEXANDRIA, Va., June 2 /PRNewswire-FirstCall/ -- Halifax Corporation of Virginia , today announced that its outstanding bank debt has declined to $1.9 million. The Company's bank debt balance which was $6.9 million on December 31, 2007 has declined by approximately $5.0 million in the past five months. The Company attributes the decline to aggressive cost containment actions, focused cash management and certain customer prepayments. The Company is presently in discussions with several new long term lending sources, to replace its line of credit which, following the recent extension, is scheduled to expire on June 30, 2008.
In addition, the Company announced that it has been awarded business from five new Enterprise Logistics Solutions customers with an aggregate annual value of $1.5 million per year.
Charles McNew, President and Chief Executive Officer stated, "We have worked diligently to attain our present level of positive cash flow. It has been difficult but we are encouraged by the rapid progress and as a result we are confident that a long term financing solution is on the horizon."
McNew continued, "While our maintenance business hasn't grown in recent months, we are seeing signs that our revised cost models, which have been designed to drive down labor costs and minimize parts risk are positioning the Company for a potential resumption of expansion in this challenging market."
"The Company is also very pleased with the multiple new wins it has secured in the Enterprise Logistics Solutions marketplace. These recent wins coupled with a robust pipeline for future business are providing highly encouraging indicators regarding the potential for this new service launch. We are carefully adding sales and programming talent to support the growth we are experiencing in this exciting global middle market sector."
For additional information regarding the terms of the Company's line of credit, see the Company's current report on Form 8-K dated April 30, 2008.
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.
