Solitron Devices (SODI) Q1 2027 earnings summary

Executive summary

• Net sales for the quarter ended May 31, 2026, rose 101% year-over-year to $5.44 million, driven by increased backlog and order deliveries.

• Net income reached $990,000 ($0.46 per share), reversing a net loss of $336,000 ($0.16 per share) in the prior year quarter.

• Gross profit margin improved to 45% from 14% year-over-year, reflecting higher revenue and operational leverage.

• Operating income was $1.54 million, compared to an operating loss of $378,000 a year ago.

• The company retained an investment banker post-quarter to explore strategic alternatives, including potential mergers or sales.

Financial highlights

• Gross profit increased to $2.47 million from $0.39 million year-over-year.

• Cost of sales increased to $2.97 million from $2.31 million, but as a percentage of sales, decreased to 55% from 86%.

• Selling, general, and administrative expenses rose to $930,000, but declined as a percentage of sales to 17% from 28%.

• Cash and cash equivalents grew to $6.04 million from $3.91 million at the prior fiscal year-end.

• Total assets increased to $27.58 million from $25.94 million sequentially.

Outlook and guidance

• Backlog as of May 31, 2026, was $23.34 million, up 28% year-over-year, with a post-quarter-end backlog of $26.97 million as of July 2026.

• Net bookings for the quarter decreased 48% to $1.45 million, reflecting timing variability in order receipts.

• Sales are expected to remain at current levels or higher for the remainder of fiscal 2027, supported by a robust backlog.

• Anticipation of multi-year orders for AMRAAM and Standard Missiles 2 and 6 components, with the next AMRAAM order expected in the fiscal third quarter.

• Capital expenditures for the next twelve months are expected to be approximately $250,000.