content: UNITED STATES        
                    SECURITIES AND EXCHANGE COMMISSION
                                     
                          Washington, D.C.  20549
                                     
                                     
                                 FORM 8-K
                                     
                              CURRENT REPORT
                                     
  Pursuant to Section 13 and 15(d) of the Securities Exchange Act of 1934
  
  
  Date of Report (Date of earliest event reported): March 18, 1999
  
  
  
                        HALIFAX CORPORATION
        (Exact name of registrant as specified in charter)
  
  
  
  
       Virginia                  2-84160-W             54-0829246
  (State or other jurisdiction (Commission File) (IRS Employer
   of incorporation)                Number)    Identification No.)
  
  
  
  
  
  5250 Cherokee Avenue,  Alexandria, Virginia          22312
  (Address of principal executive offices)         (Zip Code)
  
  
  
  
  Registrant's telephone number, including area code:(703)750-2202
  
  
  
                        Not Applicable
  (Former name or former address, if changed since last report)
  
  
  
  HALIFAX REPORTS EMBEZZLEMENT
  
                                     
       ALEXANDRIA, VA, March 18, 1999 - Halifax Corporation (AMEX:HX)
  today announced that an internal investigation has revealed an apparent
  material embezzlement by a former employee in one of the Company's
  subsidiaries.  The Company has reported the matter to the appropriate
  law enforcement authorities, and the Company has engaged an outside
  team of auditors to investigate the nature and amount of the
  embezzlement.
  
  
  The Company has entered into an agreement with the former employee
  responsible for the embezzlement under the terms of which she has
  agreed to cooperate with the Company in its efforts to determine the
  disposition of monies taken from the Company and to transfer to Halifax
  monies and assets in her direct or indirect possession up to the extent
  of Halifax's loss.  The total amount recoverable from the former
  employee has not been determined.  In addition, the Company maintains
  insurance, which may cover a portion of the embezzlement, and the
  Company is cooperating with law enforcement authorities in their
  attempt to resolve the matter.
  
  The event of the embezzlement may have a number of effects relating to
  the past financial performance of the Company.  For example, the
  Company's financial statements show the Company to be a consumer of
  cash during the past several years.  Absent the embezzlement, the
  Company may have been a positive generator of cash.  In addition, the
  embezzlement may have effected the Company's income statements and
  balance sheets.  For example, to the extent the embezzlement involved
  the understatement of revenues or the overstatement of expenses, the
  Company's P&L performance may have been understated.  To the extent the
  embezzlement involved the creation of fictitious assets on the
  Company's balance sheet, the Company will be compelled to take
  appropriate write-offs in the current period.  Any amounts recoverable
  could partially offset amounts written-off.
  
  The Company will make definitive information regarding the various
  impacts of the embezzlement available as soon as possible.  To the
  extent the investigation reveals the necessity to do so, published
  financial statements will be re-audited and restated.  In the interim,
  the American Stock Exchange continues the trading halt on the Company's
  common stock which became effective yesterday.  The Company is working
  diligently to fully evaluate this situation so that the results can be
  publicly disclosed and trading resumed at the earliest possible time.
  
  
  FORWARD LOOKING STATEMENTS:  The above contains certain forward-looking
  statements involving risks and uncertainties, which statements are
  based on management's current views and assumptions regarding actions
  by third parties, including but not limited to law enforcement
  authorities, the former employee, the Company's senior lender, the
  Company's insurance carriers and the Company's team of outside
  auditors.
metadata_documents: [{"type": "8-K", "sequence": "1", "secsgml_size_bytes": 4080}]
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": "99587856"}, "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 and 15(d) of the Securities Exchange Act of 1934
  
  Date of Report (Date of earliest event reported): March 18, 1999
  
                        HALIFAX CORPORATION
        (Exact name of registrant as specified in charter)
  
       Virginia                  2-84160-W             54-0829246
  (State or other jurisdiction (Commission File) (IRS Employer
   of incorporation)                Number)    Identification No.)
  
  5250 Cherokee Avenue,  Alexandria, Virginia          22312
  (Address of principal executive offices)         (Zip Code)
  
  Registrant's telephone number, including area code:(703)750-2202
  
                        Not Applicable
  (Former name or former address, if changed since last report)
  
  HALIFAX REPORTS EMBEZZLEMENT
  
                                     
       ALEXANDRIA, VA, March 18, 1999 - Halifax Corporation (AMEX:HX)
  today announced that an internal investigation has revealed an apparent
  material embezzlement by a former employee in one of the Company's
  subsidiaries.  The Company has reported the matter to the appropriate
  law enforcement authorities, and the Company has engaged an outside
  team of auditors to investigate the nature and amount of the
  embezzlement.
  
  The Company has entered into an agreement with the former employee
  responsible for the embezzlement under the terms of which she has
  agreed to cooperate with the Company in its efforts to determine the
  disposition of monies taken from the Company and to transfer to Halifax
  monies and assets in her direct or indirect possession up to the extent
  of Halifax's loss.  The total amount recoverable from the former
  employee has not been determined.  In addition, the Company maintains
  insurance, which may cover a portion of the embezzlement, and the
  Company is cooperating with law enforcement authorities in their
  attempt to resolve the matter.
  
  The event of the embezzlement may have a number of effects relating to
  the past financial performance of the Company.  For example, the
  Company's financial statements show the Company to be a consumer of
  cash during the past several years.  Absent the embezzlement, the
  Company may have been a positive generator of cash.  In addition, the
  embezzlement may have effected the Company's income statements and
  balance sheets.  For example, to the extent the embezzlement involved
  the understatement of revenues or the overstatement of expenses, the
  Company's P&L performance may have been understated.  To the extent the
  embezzlement involved the creation of fictitious assets on the
  Company's balance sheet, the Company will be compelled to take
  appropriate write-offs in the current period.  Any amounts recoverable
  could partially offset amounts written-off.
  
  The Company will make definitive information regarding the various
  impacts of the embezzlement available as soon as possible.  To the
  extent the investigation reveals the necessity to do so, published
  financial statements will be re-audited and restated.  In the interim,
  the American Stock Exchange continues the trading halt on the Company's
  common stock which became effective yesterday.  The Company is working
  diligently to fully evaluate this situation so that the results can be
  publicly disclosed and trading resumed at the earliest possible time.
  
  FORWARD LOOKING STATEMENTS:  The above contains certain forward-looking
  statements involving risks and uncertainties, which statements are
  based on management's current views and assumptions regarding actions
  by third parties, including but not limited to law enforcement
  authorities, the former employee, the Company's senior lender, the
  Company's insurance carriers and the Company's team of outside
  auditors.