Solitron Devices (SODI) investor relations material

Executive summary

• Net sales for the quarter ended November 30, 2025, rose 49% year-over-year to $5.02 million, with backlog up 124% to $27.48 million and net bookings up 73% to $13.91 million.

• Net income for the quarter was $653,000 ($0.31 per share), up from $266,000 ($0.13 per share) in the prior year period.

• For the nine months, net sales increased 7% to $11.71 million, but net income dropped to $83,000 ($0.04 per share) from $872,000 ($0.42 per share) year-over-year.

Financial highlights

• Quarterly gross profit increased to $1.72 million (34% margin) from $1.00 million (30% margin) year-over-year; nine-month gross profit was $2.95 million, down from $3.41 million.

• Operating income for the quarter was $929,000, up from $326,000 a year ago; for nine months, $2.69 million versus $2.25 million.

• SG&A costs rose due to a one-time stock grant and recurring stock options, totaling $344,000.

• No actual income taxes were paid due to deferred tax assets from prior net operating losses.

• Cash and cash equivalents at quarter-end were $3.60 million, down from $4.10 million at the prior fiscal year-end.

Outlook and guidance

• Management expects cash from operations and current cash balances to be sufficient to fund capital expenditures of approximately $250,000 over the next twelve months.

• Sales are expected to stabilize at higher levels in the third and fourth quarters.

• Optimism remains for new product development and additional revenue sources from prototypes under customer testing.

• The company may pursue acquisitions, new product lines, or investments in securities to utilize net operating loss carryforwards.