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8-K - CURRENT REPORT - SOLITRON DEVICES INC | sodi_8k.htm |
Exhibit 99.1
SOLITRON
DEVICES, INC. ANNOUNCES PRELIMINARY UNAUDITED SECOND QUARTER SALES
AND BOOKINGS
WEST
PALM BEACH, FL – Solitron Devices, Inc. (OTCBB: SODI)
(“Solitron” or the “Company”) today
announced an update on recent financial results and the status of
its fiscal 2017 audit.
For the
six-month period ended August 31, 2018 (unaudited) (first half of
fiscal 2019):
➢
Sales were
approximately $4.2 million in the first half of fiscal 2019 versus
approximately $5.4 million in the first half of fiscal
2018.
➢
Bookings were
approximately $2.8 million in the first half of fiscal 2019 versus
approximately $2.9 million in the first half of fiscal
2018.
For the
quarter ended August 31, 2018 (unaudited) (second quarter of fiscal
2019):
➢
Sales in the second
quarter of fiscal 2019 decreased by 3% to approximately $2.3
million versus approximately $2.4 million in the second quarter of
fiscal 2018.
➢
Bookings in the
second quarter of fiscal 2019 decreased by 24% to approximately
$1.3 million versus approximately $1.7 million in the second
quarter of fiscal 2018.
➢
Backlog at the end
of the second quarter of fiscal 2019 increased by 2% to
approximately $5.9 million versus approximately $5.8 million at the
end of the second quarter of fiscal 2018.
➢
Total cash and
securities were approximately $0.7 million at the end of the second
quarter of fiscal 2019 versus approximately $2.8 million at the end
of the second quarter of fiscal 2018.
➢
Accounts receivable
at the end of the second quarter of fiscal 2019 was approximately
$1.5 million versus approximately $1.5 million at the end of the
second quarter of fiscal 2018.
➢
Total liabilities
at the end of the second quarter of fiscal 2019 was approximately
$1.3 million versus approximately $0.8 million at the end of second
quarter of fiscal 2018.
Sales
decreased by 3% from the prior year fiscal quarter. We continue to
encounter and work through various challenges related to expanding
our product line in order to increase future sales. These
challenges are expected to negatively impact gross margins in the
near term. The company has implemented some cost savings measures,
including a small reduction in personnel.
Bookings
are seasonal and lumpy. As noted in our preliminary unaudited
fiscal 2018 press release, a customer who typically books a large
order in the fiscal fourth quarter placed a split order with the
second half expected to be awarded toward the end of the second
quarter of fiscal 2019. We noted in our last press release that due
to the nature of government contracts, the award may slip into the
early part of the third quarter. That has occurred. Based on that
slippage, management is now expecting that the normal fiscal year
end order, originally expected to arrive in February of 2019, will
likely be issued approximately nine months after receipt of the
anticipated third quarter order. Despite the expected slippage,
management is still expecting a modest increase in bookings for
fiscal 2019 versus the $8.3 million received in fiscal
2018.
Preliminary
fiscal 2017 net loss is expected to be between $2.0 and $2.1
million. Stockholders’ equity as of February 28, 2017 is
expected to be between $7.3 and $7.4 million.
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These
preliminary, unaudited results for the fiscal 2017 year end, second
fiscal quarter ended 2019 and 2018 are based on management's review
of operations for those periods and the information available to
the Company as of the date of this press release and remain subject
to the completion of the audit of the Company’s annual
financial statements for the fiscal 2017 year end, the Company's
review procedures and the audit of the Company’s annual
financial statements for the fiscal 2018 and fiscal 2019 years by
an independent registered public accounting firm to be retained by
the Company. Final adjustments and other material developments may
arise between the date of this press release and the date the
Company files with the Securities and Exchange Commission
(“SEC”) its Annual Report on Form 10-K for the year
ended February 28, 2017 and its Quarterly Report on Form 10-Q for
the quarter ended August 31, 2018. Our current independent
registered public accounting firm has not reviewed or performed any
procedures with respect to the preliminary financial information
presented for the fiscal periods ended August 31, 2018, August 31,
2017, and fiscal year ended February 28, 2018, nor has it completed
the audit for the fiscal year ended February 28, 2017.
The
information presented in this press release should not be
considered a substitute for the financial information to be filed
with the SEC in the Company's Annual Report on Form 10-K for the
year ended February 28, 2017 and its Quarterly Report on Form 10-Q
for the quarter ended August 31, 2018 once it becomes available.
The Company has no intention or obligation to update the
preliminary estimated unaudited financial results in this release
prior to filing its Quarterly Report on Form 10-Q for the quarter
ended August 31, 2018.
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.
The Company was incorporated under the laws of the State of New
York in March 1959 and reincorporated under the laws of the State
of Delaware in August 1987.
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
preliminary fiscal 2017 and second quarter 2019 and 2018 results.
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: (1) our ability to file
the Annual Report on Form 10-K for the year ended February 28, 2017
and subsequent periodic reports and the timing of such periodic
reports; (2) expected bookings for fiscal year 2019; (3) our
ability to properly account for inventory in the future, (4) our
ability to protect the Company’s net operating losses and tax
benefits, (5) changes in our stock price, corporate or other market
conditions; (6) the loss of, or reduction of business from,
substantial clients; (7) our dependence on government contracts,
which are subject to termination, price renegotiations and
regulatory compliance; (8) changes in government policy or economic
conditions; (9) increased competition; (10) the uncertainty of
current economic conditions, domestically and globally; and (11)
other factors contained in the Company’s Securities and
Exchange Commission filings, including its Form 10-K, 10-Q and 8-K
reports.
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