OTC:SODI
SOLITRON DEVICES INC
A niche semiconductor specialist delivering high-reliability power diodes and thyristors to aerospace and defense sectors with strong recent profitability.
Key Metrics
Investment Thesis
Bull Case
Solitron is positioned to capture growth from increasing defense spending and the electrification of industrial machinery, backed by a resilient cash flow profile that supports continued R&D investment.
About SOLITRON DEVICES INC
Solitron Devices Inc. is a leading designer and manufacturer of specialized semiconductor devices, including high-reliability diodes and thyristors, primarily serving the aerospace, defense, and industrial power markets. The company leverages its deep expertise in discrete semiconductors to provide critical components for mission-critical applications where reliability is paramount. Recent financials indicate a robust recovery with revenue reaching $14M and net profit of $0.8M in 2025.
Analysis
Management Discussion
The company has demonstrated impressive operational turnaround, growing revenue from $6.4M in 2023 to $14.0M in 2025 while stabilizing profitability after a loss in 2023. Operating cash flow of $2.4M and strong balance sheet liquidity of $4.1M suggest effective working capital management and disciplined cost control during the expansion phase.
Industry Overview
The high-reliability discrete semiconductor industry is characterized by long product lifecycles and stringent quality requirements, favoring established manufacturers with specialized manufacturing capabilities over commoditized players.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $6.4M | $12.8M | $14.0M |
| Cost of Revenue | $5.0M | $8.9M | $10.1M |
| Gross Profit | $1.4M | $3.8M | $4.0M |
| Operating Expenses | $2.1M | $2.9M | $3.0M |
| Operating Income | $-651.0K | $934.0K | $998.0K |
| G&A | $2.1M | $2.9M | $3.0M |
| D&A | $363.0M | $611.0K | $559.0K |
| Depreciation | — | — | $559.0K |
| Amortization | — | $105.0K | $210.0K |
| Other OpEx | $-31.6K | $0 | $0 |
| Non-Operating Income | $826.7M | $1.8M | $-5.0K |
| Interest Expense | $108.0K | $177.0K | — |
| Interest Income | — | $29.0K | $6.0K |
| Pre-Tax Income | $826.0M | $2.8M | $993.0K |
| Income Tax | $0 | $3.0M | $178.0K |
| Continuing Ops | $826.0M | $-247.0K | $815.0K |
| Discontinued Ops | $-826.8M | $6.0M | $0 |
| Net Income | $-826.0K | $5.8M | $815.0K |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-826.0K | $5.8M | $815.0K |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $7.7M | $10.6M | $10.7M |
| Cash & Equivalents | $1.4M | — | $4.1M |
| Marketable Securities | $1.9M | $904.0K | $919.0K |
| Accounts Receivable | $784.0K | $2.8M | $2.1M |
| Inventory | $2.4M | $4.1M | $3.4M |
| Prepaid Expenses | $203.0K | $532.0K | $132.0K |
| Other Current Assets | $986.0K | $2.2M | $0 |
| Long-Term Assets | $7.4M | $14.1M | $13.7M |
| PP&E (Net) | $7.4M | $7.4M | $8.6M |
| Intangibles | — | — | $2.9M |
| Other LT Assets | $14.0K | $6.8M | $2.2M |
| Total Assets | $15.1M | $24.7M | $24.4M |
| Current Liabilities | $1.2M | $4.4M | $2.1M |
| Accounts Payable | $141.0K | $439.0K | $439.0K |
| Deferred Revenue | — | — | $118.0K |
| Other Current Liab | $141.0K | $3.9M | $722.0K |
| Long-Term Liabilities | $2.6M | $3.3M | $4.4M |
| Total Liabilities | $3.8M | $7.7M | $6.6M |
| Shareholders' Equity | $11.3M | $17.1M | $17.9M |
| Paid-In Capital | — | — | $1.8M |
| Retained Earnings | $10.8M | $16.6M | $17.4M |
| Treasury Stock | $1.4M | $1.4M | — |
| Total L&E | $15.1M | $24.7M | $24.4M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-826.0K | $5.8M | $815.0K |
| Non-Cash Adjustments | $2.4M | $-4.3M | $3.6M |
| Working Capital Changes | $-631.0K | $446.0K | $-2.0M |
| Cash from Operations | $953.0K | $1.9M | $2.4M |
| Capital Expenditures | $2.2M | $355.0K | $1.8M |
| Cash from Investing | $-3.5M | $-1.0M | $-1.8M |
| Cash from Financing | $-103.0K | $-110.0K | $1.2M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-2.6M | $770.0K | $1.9M |
| Beginning Cash | $4.1M | $1.4M | $2.2M |
| Ending Cash | $1.4M | $2.2M | $4.1M |
Frequently Asked Questions
How does SOLITRON DEVICES INC make money?
High-Reliability Diodes for Aerospace/Defense, Industrial Power Control Components, Custom Discrete Semiconductor Solutions
What are the main risks for SODI?
Exposure to single-market concentration within the aerospace and defense supply chain, potential for volatile raw material costs affecting margins, and reliance on long-term contract renewals which can introduce revenue uncertainty.
What is SODI's competitive advantage?
Deep technical expertise in legacy silicon technologies, strong relationships with key government and industrial defense contractors, and a proven track record of product longevity in harsh environments.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.