Solitron Devices (SODI) Q2 2025 earnings summary

Executive summary

• Net sales for the quarter ended August 31, 2024, rose 39% year-over-year to $3.58M, driven by the MEI acquisition.

• Net income for the quarter fell to $17K ($0.01 per share) from $200K ($0.10 per share) a year ago, mainly due to higher cost of sales.

• For the six months, net sales increased 63% to $7.55M, with net income rising to $606K from $29K.

• Sequential revenue declined from $3.97M in Q1 to $3.58M in Q2, with net income also falling.

• Integration of MEI contributed $1.58M in Q2 revenue.

Financial highlights

• Gross profit for the quarter decreased to $738K (21% margin) from $897K (35% margin) year-over-year.

• Operating income for the quarter dropped to $50K from $283K a year ago; adjusted for intangible amortization, it was $103K.

• Bookings decreased 22% year-over-year to $1.74M; backlog fell 14% to $7.57M.

• Cost of sales increased to $2.84M from $1.68M year-over-year.

• Cash and cash equivalents at August 31, 2024, were $3.3M, up from $2.2M at February 29, 2024.

Outlook and guidance

• Management expects cash from operations and current cash balances to be sufficient for the next twelve months.

• Anticipated capital expenditures for the next year are $250K.

• Expectation of $7–12M in bookings by calendar year end, including a potential large end-of-life order.

• Anticipate orders from two largest programs in coming months, similar in size to prior year.

• Optimism for new product development, especially in silicon carbide prototypes.