Solitron Devices (SODI) investor relations material

Executive summary

• Net sales for the quarter ended August 31, 2025, increased 11% year-over-year to $3.99 million, driven by improved backlog and order delivery timing.

• Net bookings surged 147% to $4.32 million, and backlog rose 146% to $18.64 million compared to the prior year.

• Revenue increased sequentially from $2.70 million in the first quarter to $3.99 million in the second quarter.

• Operating loss for the quarter was $291,000, primarily due to increased stock-based compensation and higher administrative expenses.

• Net loss for the quarter was $234,000, or ($0.11) per share, compared to net income of $17,000 in the prior year period.

Financial highlights

• Gross profit for the quarter was $835,000, up from $738,000 year-over-year, with gross margin steady at 21%.

• For the six months, net sales decreased 11% to $6.69 million, and gross profit fell to $1.23 million (18% margin) from $2.41 million (32% margin) year-over-year.

• Net loss for the six months was $570,000, compared to net income of $606,000 in the prior year.

• Operating cash flow for the six months was $777,000, down from $1.55 million in the prior year.

• Cash and cash equivalents at quarter-end were $2.85 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 and operations for the next twelve months.

• Anticipated capital expenditures for the next year are approximately $250,000.

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

• Sales are expected to reach a steadier level in the third and fourth quarters of fiscal 2026.

• Anticipation of receiving the AMRAAM Lot 39 order in the third quarter, with expected order quantities about 10% higher and pricing increased due to the expiration of a multi-year agreement.