Solitron Devices, Inc. Announces Fiscal 2027 Second Quarter Results
Higher sales and bookings accompanied a return to quarterly profit, while investment-banker fees reduced earnings.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Solitron Devices (SODI) reported fiscal 2027 second-quarter net sales of approximately $5.66 million, up 42% from the prior-year quarter. Net income was $1.30 million, or $0.60 per share, versus a loss of $0.23 million, or $0.11 per share. Net bookings rose 48% to $6.42 million, while backlog increased 29% year over year to $24.11 million.
Sales increased from $5.44 million in the first quarter, and backlog rose from $23.34 million. Solitron expects sales at the second-quarter level or greater for the remainder of fiscal 2027. Second-quarter earnings included $200,000 in professional fees related to an investment banker retained to explore strategic alternatives. The company expects its next AMRAAM order in the fiscal fourth quarter and sees potential for multi-year missile-component orders; the related RTX and Pentagon agreements require Congressional funding. Results are unaudited.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointSecond-quarter sales increased 42% year over year to approximately $5.66 million, versus $3.99 million.
- Moderate pointSecond-quarter net income reached $1.30 million, or $0.60 per share, versus a $0.23 million loss.
- Moderate pointNet bookings increased 48% to $6.42 million from $4.32 million in the prior-year second quarter.
- Moderate pointBacklog rose 29% year over year to $24.11 million, also exceeding the first quarter’s $23.34 million.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Sales outlook: Solitron expects second-quarter-level sales or greater for the remainder of fiscal 2027.
12 minor points
- Minor pointSequential sales increased to $5.66 million from $5.44 million in the fiscal first quarter.
- Minor pointSix-month sales increased year over year for the period ended August 31, 2026.
- Minor pointSix-month earnings per share reached $1.06, versus a loss of $0.27 in the prior-year period.
- Minor pointGross profit increased year over year in both the second quarter and six-month period.
- Minor pointOperating results turned profitable from losses in both the second quarter and six-month period.
- Minor pointSecond-quarter cost of sales declined year over year.
- Minor pointSecond-quarter selling, general and administrative expenses declined year over year.
- Minor pointInterest expense declined year over year in both the second quarter and six-month period.
- Minor pointInterest and dividend income each increased year over year in both reported periods.
- Minor pointUnrealized investment results shifted from losses to gains in both reported periods.
- Minor point. Forward-looking: it has not happened yet and may not happen.AMRAAM orders: Solitron expects its next order in the fiscal fourth quarter.
- Minor point. Forward-looking: it has not happened yet and may not happen.Multi-year component orders remain a company-identified possibility for AMRAAM and Standard Missiles 2, 3 and 6.
Negative
- Moderate point$200,000 in professional fees for an investment banker exploring strategic alternatives reduced second-quarter net income.
- Moderate pointCongressional funding is required for the RTX and Pentagon multi-year agreements underlying potential missile-component orders.
- Minor pointSix-month cost of sales increased year over year.
- Minor pointSix-month selling, general and administrative expenses increased year over year.
- Minor pointRealized investment results shifted from gains to losses in both reported periods.
3 minor points
- Minor pointContingent consideration expense was recorded in both reported periods, versus none in the prior-year periods.
- Minor pointSix-month total other loss widened year over year.
- Minor point$52,000 of intangible amortization was included in administrative costs in each of the fiscal 2027 and 2026 second quarters.
AI-generated analysis. How Rhea-AI works. Not financial advice.
WEST PALM BEACH, Fla., Oct. 13, 2026 (GLOBE NEWSWIRE) -- Solitron Devices, Inc. (OTC Pink: SODI) (“Solitron” or the “Company”) is pleased to announce fiscal 2027 second quarter results.
FISCAL 2027 SECOND QUARTER HIGHLIGHTS –
- Net sales increased
42% to approximately$5.66 million in the fiscal 2027 second quarter versus$3.99 million in the fiscal 2026 second quarter. - Net bookings increased
48% to$6.42 million in the fiscal 2027 second quarter versus$4.32 million in the prior year second quarter. - Backlog increased
29% to$24.11 million at the end of the fiscal 2027 second quarter as compared to$18.64 million at the end of the fiscal 2026 second quarter. - Net income was
$1.30 million , or$0.60 per share, for the fiscal 2027 second quarter versus net loss of ($.23) million, or ($0.11) per share, for the fiscal 2026 second quarter.
Revenue increased in the fiscal 2027 second quarter to
In addition, the Company’s backlog continues to remain at record levels. Backlog increased from
This quarter’s net income was negatively impacted by
While the income statement reflects income taxes, no actual income taxes were due as the Company has deferred tax assets related to previous net operating losses.
We continue to be encouraged about the possibility of multi-year orders for components on AMRAAM and Standard Missiles 2, 3 and 6. RTX and the Pentagon announced multi-year agreements in October for both programs. Both agreements require Congressional funding. Our current expectation is for the next AMRAAM order to be received in the fiscal fourth quarter.
| For The Three Months ended | For The Three Months ended | For The Six Months ended | For The Six Months ended | ||||||||||||
| August 31, 2026 | August 31, 2025 | August 31, 2026 | August 31, 2025 | ||||||||||||
| unaudited | unaudited | unaudited | unaudited | ||||||||||||
| Net sales | $ | 5,657 | $ | 3,986 | $ | 11,093 | $ | 6,686 | |||||||
| Cost of sales | 2,909 | 3,151 | 5,880 | 5,461 | |||||||||||
| Gross profit | 2,748 | 835 | 5,213 | 1,225 | |||||||||||
| Selling, general and administrative expenses | 1,033 | 1,126 | 1,963 | 1,894 | |||||||||||
| Operating income (loss) | 1,715 | (291 | ) | 3,250 | (669 | ) | |||||||||
| Other income (loss) | |||||||||||||||
| Interest income | 54 | 42 | 136 | 42 | |||||||||||
| Interest expense | (45 | ) | (66 | ) | (107 | ) | (140 | ) | |||||||
| Dividend income | 42 | 18 | 67 | 59 | |||||||||||
| Realized gain (loss) on investments | (80 | ) | 170 | (80 | ) | 251 | |||||||||
| Unrealized gain (loss) on investments | 80 | (198 | ) | 78 | (325 | ) | |||||||||
| Contingent consideration expense | (2 | ) | - | (333 | ) | - | |||||||||
| Scrap income | - | - | 100 | - | |||||||||||
| Miscellaneous income | 2 | 5 | 2 | 5 | |||||||||||
| Total other income (loss) | 51 | (29 | ) | (137 | ) | (108 | ) | ||||||||
| Net income (loss) before income tax | 1,766 | (320 | ) | 3,113 | (777 | ) | |||||||||
| Income tax (expense) benefit | (468 | ) | 86 | (825 | ) | 207 | |||||||||
| Net income (loss) | $ | 1,298 | $ | (234 | ) | $ | 2,288 | $ | (570 | ) | |||||
| Net income (loss) per common share - basic and diluted | $ | 0.60 | $ | (0.11 | ) | $ | 1.06 | $ | (0.27 | ) | |||||
| Weighted average shares outstanding - basic and diluted | 2,152,703 | 2,084,664 | 2,152,377 | 2,083,436 | |||||||||||
The unaudited financial information disclosed in this press release for the three months ended August 31, 2026, is based on management's review of operations for that period and the information available to the Company as of the date of this press release. The Company's results included herein have been prepared by, and are the responsibility of, the Company's management. The Company's independent auditors have audited the Company's results for the fiscal year ending February 28, 2026. The financial results presented herein should not be considered a substitute for the information filed or to be filed with the SEC in the Company's Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the respective periods once such reports become available.
About Solitron Devices, Inc.
Solitron Devices, Inc., a Delaware corporation, 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 (“Power MOSFETS”), 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 (“JAN”) transistors, diodes, and Standard Military Drawings voltage regulators, are sold as standard or catalog items.
Effective September 1, 2023, Solitron closed its acquisition of Micro Engineering Inc. (MEI) based in Apopka, Florida. MEI specializes in solving design layout and manufacturing challenges while maximizing efficiency and keeping flexibility to meet unique customer needs. Since 1980 the MEI team has been dedicated to overcoming obstacles to provide cost efficient and rapid results. MEI specializes in low to mid volume projects that require engineering dedication, quality systems and efficient manufacturing.
Forward-Looking Statements
This press release contains forward-looking statements regarding future events and the future performance of Solitron Devices, Inc. that involve risks and uncertainties that could materially affect actual results, including statements regarding the Company’s expectations regarding future performance and trends, including production levels, government spending, backlog and delivery timelines, new product development, our efforts and performance following our acquisition of MEI, and potential future revenue and trends with respect thereto from each of the foregoing. Factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to, the risks and uncertainties arising from potential adverse developments or changes in government budgetary spending and policy including with respect to the war in Ukraine, which may among other factors be affected by the possibility of reduced government spending on programs in which we participate, inflation, elevated interest rates, adverse trends in the economy and the possibility of a recession the likelihood of which appears to have increased based on recent economic data, the possibility that management’s estimates and assumptions regarding bookings, sales and other metrics prove to be incorrect; the timing and size of orders from our clients, our delivery schedules and our liquidity and cash position; our ability to make the appropriate adjustments to our cost structure; our ability to properly account for inventory in the future; the demand for our products and potential loss of, or reduction of business from, substantial clients our dependence on government contracts, which are subject to termination, price renegotiations and regulatory compliance and which may among other factors be adversely affected by the factors described elsewhere herein, our ability to continue to integrate MEI in an efficient and effective manner, and the possibility that such acquisition or any other acquisition or strategic transaction we may pursue does not yield the results or benefits desired or anticipated. Descriptions of other risk factors and uncertainties are contained in the Company’s Securities and Exchange Commission filings, including its most recent Annual Report on Form 10-K for the fiscal year ended February 28, 2026.
Tim Eriksen
Chief Executive Officer
(561) 848-4311
Corporate@solitrondevices.com
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Solitron Devices’ fiscal 2027 second-quarter sales and earnings?
Solitron reported approximately $5.66 million in net sales and $1.30 million in net income, or $0.60 per share. Sales increased 42% from $3.99 million in the prior-year second quarter, when the company recorded a net loss of $0.23 million, or $0.11 per share.
What does Solitron Devices expect for sales during the rest of fiscal 2027?
Solitron expects sales to remain at the fiscal 2027 second-quarter level or greater for the remainder of the fiscal year. Second-quarter sales were approximately $5.66 million, and quarter-end backlog was $24.11 million.
Why were no actual income taxes due on Solitron Devices’ fiscal 2027 second-quarter results?
No actual income taxes were due because Solitron had deferred tax assets related to previous net operating losses. The income statement nevertheless reflected income tax expense.