Solitron Devices, Inc. (SODI) research, news, and more from GeoInvesting

Company description

Mon, 11 Mar 2013 04:00:00 GMT

Solitron Devices, Inc., a Delaware corporation (the “Company” or “Solitron”), designs, develops, manufactures and markets solid-state semiconductor components and related devices primarily for the military and aerospace markets. The Company manufactures a large variety of bipolar and metal oxide semiconductor (“MOS”) power transistors, power and control hybrids, junction and power MOS field effect transistors and other related products. Most of the Company’s products are custom made pursuant to contracts with customers whose end products are sold to the United States government. Other products, such as Joint Army/Navy transistors, diodes and Standard Military Drawings voltage regulators, are sold as standard or catalog items.

Research

Fri, 12 Jul 2024 04:00:00 GMT

SOLITRON DEVICES INC (OTC:SODI) ($18.30; $38.1M market cap) announced Q4 and full year 2024 results:

Q4 sales of $4.0 million vs $1.5 million in the prior year
Q4 adjusted EPS of $0.26 vs a loss of $0.14 in the prior year
Full year sales of $12.76 million vs $6.41 million in the prior year
Full year adjusted EPS of $0.38 vs a loss of $0.33 in the prior year

We may need to make further adjustments after reading the 10-K to account for items related to recent acquisition. It should also be noted that our EPS figures exclude any gain/loss from investment activities.

“As we noted in previous releases, in December 2022 President Biden signed the $1.7 trillion omnibus spending bill which included appropriations to replenish supplies used in Ukraine and to increase stockpiles. Solitron's two largest revenue sources are among the programs. The actual timing of orders and deliveries are out of our control and could be impacted by other suppliers' inability to meet increased production levels. We do not know if we will receive periodic orders, annual orders, or one large order for each of the programs. Current expectations are for the Company to receive orders on both programs this fall. We do not know if the orders will include part of the stockpile program.

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.”

On September 5, 2023 the company closed the acquisition of Micro Engineering Inc. (MEI), based in Apopka, Florida.

Research

Tue, 24 Oct 2023 15:49:16 GMT

SOLITRON DEVICES INC (OTC:SODI)($11.75; $24.4M market cap) - We are taking a closer look at what a recent acquisition could mean to the bottom line for SODI, a company that designs, develops, manufactures, and markets solid-state semiconductor components and related devices primarily for the military and aerospace markets.

On September 5, 2023, the company closed the acquisition of Micro Engineering Inc. (MEI), based in Apopka, Florida.

“MEI produces electronic components primarily for the medical industry. Revenue for 2022 was approximately $5.9 million (unaudited) as compared to approximately $5.5 million (unaudited) in 2021. Unaudited operating income was approximately $1.3 million in 2022 and approximately $1.2 million in 2021. One customer accounted for approximately 90% of revenues in both 2021 and 2022.”

With only 2 million shares outstanding, operating income remaining at those levels post-acquisition would equate to near $0.50 per share. SODI’s operating income for the last six months was $348,000.

It is also worth noting there has also been some insider buying.

Research

Wed, 29 Jul 2015 15:38:46 GMT

SODI ($4.75) recent corporate actions:

7/21/2015 - announced regular annual cash dividend policy, and reiterated commitment to hold annual stockholder meetings and issued a letter to shareholders.
7/23/2015 - a 13D filed by Wynden Capital Management disclosed a 5.7% stake.
- “Wynden is interested in discussing with Issuer’s management, board of directors, and/or with third parties options relating to board composition, capital allocation, and any other strategies for shareholder value creation.”
7/27/2015 -announced the company continues to seek out appropriate acquisition/merger candidates.
7/28/2015 -announced the expansion of its previously authorized $1 million stock repurchase program.

We established a small speculative position in SODI on 5/6/2013 when shares were trading at $3.95 due to shareholder friendly initiatives the company had initiated after an 18% shareholder (Furlong partners) filed a proxy statement urging shareholders to vote in favor of such initiatives.

13D and 13G Activity

Tue, 05 Nov 2013 05:00:00 GMT

November 1, 2013 13D

Nicholas J. Swenson as the sole managing member and president of Groveland Capital LLC disclosed a 7.4% stake in $SODI. The purpose of the transaction according to the filing:

"The Reporting Parties acquired shares of Solitron Devices because they believed and continue to believe that the Common Stock is significantly undervalued. While we believe Solitron's leadership has done a good job managing the Company from an operational perspective, we believe Solitron’s leadership has done a poor job managing the Company from a capital allocation perspective. In this regard, the Reporting Parties believe it is very important that Solitron's board be accountable to shareholders. For this reason, we intend to influence the policies of Solitron Devices and assert shareholder rights, and we have requested a meeting with the Company's management and board to discuss in detail shareholder representation on the Solitron Devices board of directors. "

Comments & Business Outlook

Wed, 05 Jun 2013 04:00:00 GMT

BACKLOG as of February 29, 2012

The Company’s order backlog, which consists of semiconductor and hybrid related open orders, more than 97% of which is scheduled for delivery within 12 months, was approximately $7,685,000 at February 28, 2013, as compared to $5,990,000 as of February 29, 2012. For the years ended February 28, 2013 and February 29, 2012, the entire backlog consisted of orders for electronic components. The Company currently anticipates that the majority of its open order backlog will be filled by February 28, 2014. In the event that bookings in the long-term decline significantly below the level experienced in the last fiscal year, the Company may be required to implement cost-cutting or other downsizing measures to continue its business operations. Such cost-cutting measures could inhibit future growth prospects. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Bookings and Backlog.”
The Company’s backlog as of any particular date may not be representative of actual sales for any succeeding period because lead times for the release of purchase orders depend upon the scheduling practices of individual customers. The delivery times of new or non-standard products can be affected by scheduling factors and other manufacturing considerations, variances in the rate of booking new orders from month to month and the possibility of customer changes in delivery schedules or cancellations of orders. Also, delivery times of new or non-standard products are affected by the availability of raw material, scheduling factors, manufacturing considerations and customer delivery requirements.

The rate of booking new orders varies significantly from month to month, mostly as a result of sharp fluctuations in the government budgeting and appropriation process. The Company has historically experienced somewhat decreased levels of bookings during the summer months, primarily as a result of such budgeting and appropriation activities. For these reasons, and because of the possibility of customer changes in delivery schedules or cancellations of orders, the Company’s backlog as of any particular date may not be indicative of actual sales for any succeeding period. See “Management’s Discussions and Analysis of Financial Conditions – Result of Operations” for a discussion of the increase in bookings for the year ended February 28, 2013 as compared to the previous year.