SOLITRON DEVICES INC SEC 10-Q Report

Solitron Devices Inc., a leading manufacturer of high-reliability power semiconductor components, has released its Form 10-Q report for the second quarter of fiscal year 2025. The report highlights significant changes in the company's financial performance and operational activities, reflecting the challenges and strategic adjustments faced during the period.

Financial Highlights

Net Sales: Solitron Devices Inc. reported net sales of $2.7 million for the quarter, a decrease of 32% compared to $3.967 million in the same period of the prior year. This decline was primarily due to a lower backlog and the delay of a large expected order.

Gross Profit: The company's gross profit fell to $0.39 million from $1.675 million, with the gross profit margin decreasing to 14% from 42%. The reduction in gross profit was attributed to the delay in orders.

Operating Income: Solitron Devices Inc. reported an operating loss of $0.378 million, compared to an operating income of $0.792 million in the prior year, reflecting the reduction in net sales.

Net Income (Loss): The company experienced a net loss of $0.336 million, compared to a net income of $0.589 million in the prior year. The net loss was impacted by decreased sales and increased costs.

Net Income (Loss) Per Common Share - Basic and Diluted: The net loss per common share was $0.16, compared to a net income of $0.28 per share in the prior year, reflecting the net loss for the period.

Business Highlights

Revenue Segments: For the three months ended May 31, 2025, approximately 53% of Solitron Devices Inc.'s sales were attributable to contracts with customers whose products are sold to the United States government. The remaining 47% were for non-military, scientific, and industrial applications, or to distributors where end-user information is not available.

Geographical Performance: The majority of sales for the three months ended May 31, 2025, were in the United States, accounting for $2,656,000. Smaller contributions came from Europe and Australia ($33,000) and the Far East and Middle East ($11,000).

Sales Units: The company shipped 15,035 units during the three months ended May 31, 2025, compared to 22,777 units in the same period of the prior year, reflecting a decrease in volume.

Customer Concentration: Significant customers for the three months ended May 31, 2025, included RTX (Raytheon) contributing 34% of revenues, ConMed Linvatec at 26%, and MOOG at 11%, highlighting a concentration in a few key clients.

Future Outlook: Solitron Devices Inc. anticipates that its capital expenditures required to sustain operations will be approximately $250,000 during the next twelve months. The company expects that cash from operations and cash equivalents will be sufficient to fund these needs.

SEC Filing: SOLITRON DEVICES INC [ SODI ] - 10-Q - Jul. 11, 2025