content: UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549
  
                                 FORM 8-K
  
                              CURRENT REPORT
  
  Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  
  
     Date of Report (Date of Earliest Event Reported): April 30, 2006
  
  
                            HALIFAX CORPORATION
          (Exact name of registrant as specified in its charter)
  
  
        Virginia             1-08964               54-0829246
    (State or other       (Commission File      (I.R.S. Employer
    jurisdiction of           Number)         Identification No.)
     incorporation)
  
         5250 Cherokee Avenue, Alexandria, Virginia         22312
         (Address of principal executive offices)       (Zip Code)
  
  
  Registrant's telephone number, including area code:(703)658-2400
  
                                N/A
        Former  name, former address, and former fiscal year, if  changed
  since last report
  
  Check  the appropriate box below if the Form 8-K filing is intended  to
  satisfy  the  filing  obligation of the registrant  under  any  of  the
  following provisions:
  
  [ ]  Written communications pursuant to Rule 425 under the Securities
       Act (17 CFR 230.425)
  
  [ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange
       Act (17 CFR 240.14a-12)
  
  [ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under
       the Exchange Act (17 CFR 240.14d-2(b))
  
  [ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under
       the Exchange Act (17 CFR 240.13e-4(c))
  <PAGE>
  
  
  Item 1.01  Entry into a Material Definitive Agreement.
  
  
  On May 3, 2006, Halifax Corporation received the executed new six-year
  contract extending a contract with IBM Global Services ("IBM") for
  services related to an entertainment retailer effective April 1, 2006.
  The total value of the contract over the six-year period is expected to
  exceed $25 million.  Termination in the first year of the contract
  requires 90 days notice and a cancellation penalty equal to three
  months of fixed price revenue.  After the first year of the contract,
  IBM may terminate the contract in whole or part at anytime during the
  period of performance whenever Halifax defaults in the performance of
  the contract.  A default occurs if Halifax fails to make reasonable
  progress in the prosecution of services and endangering timely
  performance, and fails to cure such default within 15 days after
  receipt from IBM of a written notice specifying the default.  In the
  event that IBM's contract with the entertainment retailer is terminated
  or suspended, which directly impacts the contract Halifax has with IBM,
  IBM will make every effort to provide Halifax with 90 days written
  notice of the termination.  Halifax has had a business relationship
  with IBM since 1997.
  
  
  Item 1.02  Termination of a Material Definitive Agreement.
  
  Halifax Corporation resigned from a loss generating contract with HP
  for services related to a consumer products retail chain effective
  April 30, 2006.  Halifax has had a business relationship with HP since
  1992.
  
  See Note 11 to the Notes to Consolidated Financial Statements contained
  in the Company's Form 10-Q for the quarter ended December 31, 2005 for
  a discussion of the financial impact of the termination of this
  contract.
  
  FORWARD-LOOKING STATEMENTS
  
  
       Certain statements in this Currant Report on Form 8-K constitute
  "forward-looking statements" within the meaning of the Federal Private
  Securities Litigation Reform Act of 1995. While forward-looking
  statements sometimes are presented with numerical specificity, they are
  based on various assumptions made by management regarding future events
  over which we have little or no control.  Forward-looking statements
  may be identified by words including "anticipate," "believe,"
  "estimate," "expect" and similar expressions.  We caution readers that
  forward-looking statements, including without limitation, those
  relating to future business prospects, revenues, working capital,
  liquidity, and income, are subject to certain risks and uncertainties
  that would cause actual results to differ materially from those
  indicated in the forward-looking statements.  Factors that could cause
  actual results to differ from forward-looking statements include the
  concentration of our revenues, risks involved in contracting with our
  customers, including difficulties to accurately estimate costs when
  bidding on a contract and the occurrence of start-up costs prior to
  receiving revenues and contract with fixed price provisions, government
  contracting risks, potential conflicts of interest, difficulties we may
  have in attracting and retaining management, professional and
  administrative staff, fluctuation in quarterly results, risks related
  to acquisitions and acquisition strategy, continued favorable banking
  relationships, the availability of capital to finance operations and
  ability to make payments on outstanding indebtedness, weakened economic
  conditions, acts of terrorism, risks related to competition and our
  ability to continue to perform efficiently on contracts, and other
  risks and factors identified from time to time in the reports we file
  with the Securities and Exchange Commission ("SEC"), including our
  Annual Report on Form 10-K.  Should one or more of these risks or
  uncertainties materialize, or should underlying assumptions prove
  incorrect, actual results may vary materially from those anticipated,
  estimated or projected.
  
       Forward-looking statements are intended to apply only at the time
  they are made.  Moreover, whether or not stated in connection with a
  forward-looking statement, the Company undertakes no obligation to
  correct or update a forward-looking statement should we later become
  aware that it is not likely to be achieved.  If the Company were to
  update or correct a forward-looking statement, you should not conclude
  that the Company will make additional updates or correction thereafter.
  
  
  
  
  Item 9.01 Financial Statements and Exhibits.
  
            (a)  Financial Statements of Businesses Acquired
  
                 None.
  
            (b)  Pro-forma Financial Information
  
                 None.
  
            (c)  Exhibits
  
                 None.
  
  <PAGE>
  
                                 SIGNATURE
  
  
  
  
  Pursuant  to the requirements of the Securities Exchange Act  of  1934,
  the  Registrant has duly caused this report to be signed on its  behalf
  by the undersigned hereunto duly authorized.
  
                                     HALIFAX CORPORATION
  
  
  
  Date:  May 5, 2006                 By:  /s/Joseph Sciacca
                                          Joseph Sciacca
                                          Vice President, Finance & CFO
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "f8kmay3e.txt", "secsgml_size_bytes": 6715}]
metadata_filer: {"company-data": {"conformed-name": "HALIFAX CORP", "cik": "0000720671", "assigned-sic": "7370", "irs-number": "540829246", "state-of-incorporation": "VA", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-08964", "film-number": "06811132"}, "business-address": {"street1": "5250 CHEROKEE AVE", "city": "ALEXANDRIA", "state": "VA", "zip": "22312", "phone": "7037502202"}, "mail-address": {"street1": "5250 CHEROKEE AVENUE", "city": "ALEXANDRIA", "state": "VA", "zip": "22312"}, "former-company": {"former-conformed-name": "HALIFAX ENGINEERING INC/VA", "date-changed": "19911204"}}
text: UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549
  
                                 FORM 8-K
  
                              CURRENT REPORT
  
  Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
  
     Date of Report (Date of Earliest Event Reported): April 30, 2006
  
                            HALIFAX CORPORATION
          (Exact name of registrant as specified in its charter)
  
        Virginia             1-08964               54-0829246
    (State or other       (Commission File      (I.R.S. Employer
    jurisdiction of           Number)         Identification No.)
     incorporation)
  
         5250 Cherokee Avenue, Alexandria, Virginia         22312
         (Address of principal executive offices)       (Zip Code)
  
  Registrant's telephone number, including area code:(703)658-2400
  
                                N/A
        Former  name, former address, and former fiscal year, if  changed
  since last report
  
  Check  the appropriate box below if the Form 8-K filing is intended  to
  satisfy  the  filing  obligation of the registrant  under  any  of  the
  following provisions:
  
  [ ]  Written communications pursuant to Rule 425 under the Securities
       Act (17 CFR 230.425)
  
  [ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange
       Act (17 CFR 240.14a-12)
  
  [ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under
       the Exchange Act (17 CFR 240.14d-2(b))
  
  [ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under
       the Exchange Act (17 CFR 240.13e-4(c))
  Item 1.01  Entry into a Material Definitive Agreement.
  
  On May 3, 2006, Halifax Corporation received the executed new six-year
  contract extending a contract with IBM Global Services ("IBM") for
  services related to an entertainment retailer effective April 1, 2006.
  The total value of the contract over the six-year period is expected to
  exceed $25 million.  Termination in the first year of the contract
  requires 90 days notice and a cancellation penalty equal to three
  months of fixed price revenue.  After the first year of the contract,
  IBM may terminate the contract in whole or part at anytime during the
  period of performance whenever Halifax defaults in the performance of
  the contract.  A default occurs if Halifax fails to make reasonable
  progress in the prosecution of services and endangering timely
  performance, and fails to cure such default within 15 days after
  receipt from IBM of a written notice specifying the default.  In the
  event that IBM's contract with the entertainment retailer is terminated
  or suspended, which directly impacts the contract Halifax has with IBM,
  IBM will make every effort to provide Halifax with 90 days written
  notice of the termination.  Halifax has had a business relationship
  with IBM since 1997.
  
  Item 1.02  Termination of a Material Definitive Agreement.
  
  Halifax Corporation resigned from a loss generating contract with HP
  for services related to a consumer products retail chain effective
  April 30, 2006.  Halifax has had a business relationship with HP since
  1992.
  
  See Note 11 to the Notes to Consolidated Financial Statements contained
  in the Company's Form 10-Q for the quarter ended December 31, 2005 for
  a discussion of the financial impact of the termination of this
  contract.
  
  FORWARD-LOOKING STATEMENTS
  
       Certain statements in this Currant Report on Form 8-K constitute
  "forward-looking statements" within the meaning of the Federal Private
  Securities Litigation Reform Act of 1995. While forward-looking
  statements sometimes are presented with numerical specificity, they are
  based on various assumptions made by management regarding future events
  over which we have little or no control.  Forward-looking statements
  may be identified by words including "anticipate," "believe,"
  "estimate," "expect" and similar expressions.  We caution readers that
  forward-looking statements, including without limitation, those
  relating to future business prospects, revenues, working capital,
  liquidity, and income, are subject to certain risks and uncertainties
  that would cause actual results to differ materially from those
  indicated in the forward-looking statements.  Factors that could cause
  actual results to differ from forward-looking statements include the
  concentration of our revenues, risks involved in contracting with our
  customers, including difficulties to accurately estimate costs when
  bidding on a contract and the occurrence of start-up costs prior to
  receiving revenues and contract with fixed price provisions, government
  contracting risks, potential conflicts of interest, difficulties we may
  have in attracting and retaining management, professional and
  administrative staff, fluctuation in quarterly results, risks related
  to acquisitions and acquisition strategy, continued favorable banking
  relationships, the availability of capital to finance operations and
  ability to make payments on outstanding indebtedness, weakened economic
  conditions, acts of terrorism, risks related to competition and our
  ability to continue to perform efficiently on contracts, and other
  risks and factors identified from time to time in the reports we file
  with the Securities and Exchange Commission ("SEC"), including our
  Annual Report on Form 10-K.  Should one or more of these risks or
  uncertainties materialize, or should underlying assumptions prove
  incorrect, actual results may vary materially from those anticipated,
  estimated or projected.
  
       Forward-looking statements are intended to apply only at the time
  they are made.  Moreover, whether or not stated in connection with a
  forward-looking statement, the Company undertakes no obligation to
  correct or update a forward-looking statement should we later become
  aware that it is not likely to be achieved.  If the Company were to
  update or correct a forward-looking statement, you should not conclude
  that the Company will make additional updates or correction thereafter.
  
  Item 9.01 Financial Statements and Exhibits.
  
            (a)  Financial Statements of Businesses Acquired
  
                 None.
  
            (b)  Pro-forma Financial Information
  
                 None.
  
            (c)  Exhibits
  
                 None.
  SIGNATURE
  
  Pursuant  to the requirements of the Securities Exchange Act  of  1934,
  the  Registrant has duly caused this report to be signed on its  behalf
  by the undersigned hereunto duly authorized.
  
                                     HALIFAX CORPORATION
  
  Date:  May 5, 2006                 By:  /s/Joseph Sciacca
                                          Joseph Sciacca
                                          Vice President, Finance & CFO