WEST PALM BEACH, Fla., Oct. 15, 2024 (GLOBE NEWSWIRE) -- Solitron Devices, Inc. (OTC:SODI) ("Solitron" or the "Company") is pleased to announce fiscal 2025 second quarter results.
FISCAL 2025 SECOND QUARTER HIGHLIGHTS
Net sales increased 39% to approximately $3.58 million versus $2.58 million in the prior year period.
Net bookings decreased 21% to $1.75 million versus $2.23 million in the prior year period.
Backlog decreased 14% to $7.57 million at the end of the fiscal 2025 second quarter as compared to $8.79 million at the end of the fiscal 2024 second quarter.
Net income decreased to $0.02 million, or $0.01 per share, in the fiscal 2025 second quarter versus net income of $0.20 million, or $0.10 per share, in the fiscal 2024 second quarter.
This is our fourth quarter since we closed the acquisition of Micro Engineering (MEI). Thus far we are pleased with the results. We continue the process of integration of systems and are excited about the potential to expand our relationship with existing customers. MEI contributed $1.58 million in revenue in the fiscal 2025 second quarter.
While revenue increased from the prior year, it declined sequentially from $3.97 million in the fiscal first quarter to $3.58 million in the fiscal second quarter. Net income declined significantly due to the decreased revenue and increase in cost of sales. We had a number of issues negatively impact the quarter. The most significant was an issue with a plating supplier that resulted in fully reserving over 2,000 parts. To put that in some perspective we shipped approximately 9,200 units from Solitron's WPB facility in the quarter. Scrapping the parts caused a loss of revenue while incurring the cost to reserve all raw material and work in process up until the time of scrapping. We are still in discussions with the supplier about recovering costs. We are withholding payment on existing payables while the matter is resolved. Also included in costs for the fiscal 2025 second quarter are $53,000 of intangible amortization; and $26,000 of non-cash interest costs related to the accrued contingent consideration.
While reported operating income was $50,000 in the fiscal 2025 second quarter, if we adjust for the intangible amortization, it was $103,000. That number excludes the $26,000 of non-cash interest costs, which are non-operating. We believe the adjusted number more accurately reflects the performance of the business during the quarter. Regardless, it was a significant decline from the previous quarter due mainly to the scrapping of parts noted above.
Bookings in the quarter were down compared to the prior year quarter. We once again want to reiterate that our bookings have historically been lumpy. Based on conversations, it is our expectation that the two largest programs Solitron generates revenue from will place orders in the coming months. At present, we expect the orders to be similar in size to the past year, thus we do not expect the orders to include any additional demand related to the stockpile program. We also recently quoted a large end-of-life order with expected deliveries over a three-year period. Our current expectation is to receive between $7 million and $12 million of bookings between today and calendar year end. The $12 million amount would include being awarded the end-of-life order near the maximum quantities quoted.
We continue to see increased interest in new product development, including silicon carbide. We have developed various prototypes for testing by potential customers and continue to be optimistic about creating additional revenue sources.
SOLITRON DEVICES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED AUGUST 31, 2024 AND AUGUST 31, 2023
(in thousands except for share and per share amounts)
For The Three Months ended
For The Three Months ended
For The Six Months ended
For The Six Months ended
August 31, 2024
August 31, 2023
August 31, 2024
August 31, 2023
unaudited
unaudited
unaudited
unaudited
Net sales
$
3,581
$
2,579
$
7,548
$
4,617
Cost of sales
2,843
1,682
5,135
3,113
Gross profit
738
897
2,413
1,504
