SOLITRON DEVICES, INC. ANNOUNCES FISCAL 2026 THIRD QUARTER RESULTS (Form 8-K)

SOLITRON DEVICES, INC. ANNOUNCES FISCAL 2026 THIRD QUARTER RESULTS

WEST PALM BEACH, FL - Solitron Devices, Inc. (OTC Pink: SODI) ("Solitron" or the "Company") is pleased to announce fiscal 2026 third quarter results.

FISCAL 2026 THIRD QUARTER HIGHLIGHTS -

FISCAL 2026 NINE MONTHS HIGHLIGHTS -

Revenue increased in the fiscal 2026 third quarter to $5.02 million from $3.99 million during the fiscal 2026 second quarter. As previously noted in our last press release, we expected sales to start to increase during fiscal second quarter, before reaching a steadier level in the fiscal 2026 third and fourth quarters. 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.

The decrease in gross profit during the first nine months of fiscal 2026 versus the first nine months of fiscal 2025 despite increased sales was due to higher material costs, along with increased tariff costs. The increase in SG&A costs year to date for fiscal 2026 over fiscal 2025 was primarily due to a one-time fully vested stock grant to the board and management, along with recurring quarterly options to purchase stock for the COO, that totaled $344,000. Also included in SG&A costs for both fiscal 2026 and 2025 are $157,000 of intangible amortization; and $74,000 and $77,000, respectively, of non-cash interest costs related to the accrued contingent consideration.

In addition, the Company's backlog continues to grow. Backlog increased from $18.64 million at the end of fiscal 2026 second quarter to $27.48 million at the end of fiscal 2026 third quarter.

Bookings in the quarter increased significantly versus the prior year quarter. The Company received the expected AMRAAM Lot 39 order during our third quarter, along with other substantial customer orders. As previously noted, the AMRAAM order quantities were greater than the prior year's order and included higher pricing due to the expiration of a multi-year pricing agreement. Bookings for the quarter did not include any orders related to HIMARS or SM2/SM6.

We continue to see increased interest in new product development. We have developed various prototypes for testing by potential customers and continue to be optimistic about creating additional revenue sources.

SOLITRON DEVICES, INC.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED NOVEMBER 30, 2025 AND NOVEMBER 30, 2024

(in thousands except for share and per share amounts)

The unaudited financial information disclosed in this press release for the three months ended November 30, 2025, 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, 2025. 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.