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Solitron Devices, Inc. (SODI-2.02%) has submitted its 10-Q filing for the quarterly period ended November 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $3,369,000 from $4,136,000 in the same quarter the previous year. This decrease is attributed to a lower backlog at the beginning of the third quarter and a delay in an expected order.
Cost of sales for the quarter was $2,368,000, representing 70% of net sales, compared to 74% in the same quarter of the previous year. This decrease in cost ratio is due to reduced sales volume.
The company reported a gross profit of $1,001,000 for the quarter, compared to $1,077,000 in the previous year, with gross margins increasing to 30% from 26%.
Selling, general, and administrative expenses decreased to $675,000 from $859,000, primarily due to legal fees incurred in the prior year related to the acquisition of Micro Engineering Inc.
Operating income for the quarter was $326,000, up from $218,000 in the previous year, due to the reduction in selling, general, and administrative expenses.
Net income for the quarter was $266,000, compared to $86,000 in the previous year. This increase is attributed to the acquisition of Micro Engineering Inc.
For the nine months ended November 30, 2024, net sales increased 25% to $10,917,000 from $8,753,000 in the same period the previous year, largely due to the acquisition of Micro Engineering Inc.
Cost of sales for the nine months was $7,503,000, representing 69% of sales, compared to 71% in the previous year. Gross profit increased to $3,414,000 from $2,581,000, with gross margins rising to 31% from 29%.
Selling, general, and administrative expenses for the nine months increased to $2,246,000 from $2,015,000, primarily due to costs associated with Micro Engineering Inc.
Operating income for the nine months was $1,168,000, up from $566,000 in the previous year, driven by increased sales from the acquisition.
Net income for the nine months was $872,000, compared to $115,000 in the previous year, due to increased sales and the acquisition of Micro Engineering Inc.
Cash provided by operating activities was $2,060,000, while cash used in investing and financing activities was $1,821,000 and $1,271,000, respectively.
Solitron had a working capital of $8,882,000 as of November 30, 2024. The company expects its capital expenditures to be approximately $250,000 over the next twelve months.
The filing also details various financial agreements, including a loan agreement with Bank of America, N.A. for the acquisition of a property in Apopka, Florida.
Solitron does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting, similar to the previous year.
Solitron continues to focus on its core business of manufacturing semiconductor components for military and aerospace markets.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Solitron Devices, Inc. quarterly 10-Q report dated January 14, 2025. To report an error, please email earnings@qz.com.