WEST PALM BEACH, Fla., Feb. 03, 2026 (GLOBE NEWSWIRE) -- Solitron Devices, Inc. (OTC Pink: SODI) (“Solitron” or the “Company”) is announcing that the Company’s Board of Directors has set April 24, 2026 as its annual meeting date and has decided to pursue the exploration of potential transactions including merger or sale opportunities.   Solitron’s annual meeting has typically been held in January. The delay in the meeting was due to Solitron receiving an unsolicited non-binding acquisition proposal that we ...

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Core Viewpoint - The semiconductor industry has faced significant challenges over the past year, particularly for companies lacking exposure to growth markets such as AI and data centers [1] Group 1: Industry Challenges - Companies that provide diversified components like MOSFETs, resistors, capacitors, and diodes have experienced slow growth due to the lack of meaningful exposure to high-growth sectors [1]

Core Viewpoint - The semiconductor industry has faced significant challenges over the past year, particularly for companies lacking exposure to growth markets such as AI and data centers [1] Group 1: Industry Challenges - Companies that provide diversified components like MOSFETs, resistors, capacitors, and diodes have experienced slow growth due to the lack of meaningful exposure to high-growth sectors [1]

Core Insights - Solitron Devices, Inc. reported significant growth in revenue and bookings for the fiscal 2026 third quarter, indicating a positive trend in sales and operational performance [3][10]. Financial Performance - Revenue for the fiscal 2026 third quarter increased to $5.02 million, up from $3.99 million in the previous quarter, marking a 49% increase compared to $3.37 million in the fiscal 2025 third quarter [3][10]. - Net income for the fiscal 2026 third quarter was $0.65 million, or $0.31 per share, compared to $0.27 million, or $0.13 per share, in the fiscal 2025 third quarter [10]. - For the first nine months of fiscal 2026, net sales increased by 7% to approximately $11.71 million from $10.92 million in the prior fiscal year period [10]. Backlog and Bookings - The company's backlog grew significantly, increasing from $18.64 million at the end of the fiscal 2026 second quarter to $27.48 million at the end of the fiscal 2026 third quarter, representing a 124% increase compared to $12.28 million at the end of the fiscal 2025 third quarter [5][10]. - Net bookings for the fiscal 2026 third quarter rose by 73% to $13.91 million compared to $8.05 million in the prior year third quarter [10]. Cost and Expenses - Despite increased sales, gross profit decreased due to higher material and tariff costs, with SG&A expenses rising primarily due to a one-time stock grant totaling $344,000 [4]. - SG&A expenses for the fiscal 2026 third quarter were $794,000, compared to $675,000 in the fiscal 2025 third quarter [11]. Product Development and Market Position - The company is experiencing increased interest in new product development, having developed various prototypes for testing by potential customers [7]. - Solitron continues to focus on military and aerospace markets, manufacturing a variety of semiconductor components tailored to government contracts [12]. Acquisition Impact - The acquisition of Micro Engineering Inc. (MEI) is expected to enhance Solitron's capabilities in design layout and manufacturing, potentially leading to improved operational efficiency and customer satisfaction [13].

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $791 million, a sequential increase of 4% and 2% above the midpoint of guidance [4][18] - Year-over-year revenue growth was 8%, driven by an 8% increase in volume and a 2% positive foreign currency impact [18] - Gross profit was $154 million, resulting in a gross margin of 19.5%, slightly below the midpoint of guidance [19] - Book-to-bill ratio for the quarter was 0.97, with a backlog of $1.2 billion [18][19] Business Line Data and Key Metrics Changes - Automotive revenue increased by 7% quarter-over-quarter, driven by higher volume in the Americas and Europe [8] - Industrial segment revenue grew by 2%, supported by shipments to smart grid infrastructure projects [9] - Aerospace defense revenue decreased by 2% quarter-over-quarter due to slow funding releases [11] - Medical segment revenue grew by 2%, reflecting increased activity from longstanding customers [11] Market Data and Key Metrics Changes - Orders were up 19% year-over-year, indicating improvements in automotive, smart grid infrastructure, aerospace defense, and AI-related power requirements [6] - Asia saw the greatest growth, particularly from automotive customers and sales to distributors [4][5] - Distribution revenue increased by 4%, with most growth coming from Asia [15] Company Strategy and Development Direction - The company is executing its five-year strategic plan, Vishay 3.0, focusing on capacity investments and expanding product offerings [4][28] - Significant investments in capacity expansion are ongoing, with $179 million spent year-to-date and expectations to spend $300 million-$350 million for the year [28] - The company aims to improve margins by addressing operational efficiencies and passing on increased metal costs to customers [49] Management's Comments on Operating Environment and Future Outlook - Management noted that conditions are improving across several market segments, with expectations for mid-single-digit to high-single-digit growth in 2026 [47][48] - The company is focused on supporting automotive OEMs and tier one suppliers to prevent production line downs [64] - Management expressed optimism about the potential for revenue growth driven by government spending in aerospace defense and smart grid infrastructure [46] Other Important Information - The company generated $28 million in operating cash for Q3, with total CapEx of $52 million [23] - Free cash flow for the quarter was -$24 million, reflecting ongoing capacity expansion investments [23] - The company plans to maintain its dividend policy while managing liquidity needs [26] Q&A Session Summary Question: Did Vishay see any benefit from the export restrictions on Nexperia in the automotive segment? - Management indicated ongoing discussions with OEMs and tier ones, noting opportunities but not including them in Q4 revenue guidance due to current shortages [36] Question: What factors impacted gross margin in Q3? - Management cited elevated metals prices and operational issues as key factors affecting gross margin, with plans to pass costs onto customers [39][40] Question: What is the outlook for revenue growth and margin expansion in 2026? - Management expressed confidence in achieving revenue growth aligned with consensus estimates, driven by multiple positive market segments [48][49] Question: Can you elaborate on the capital return strategy? - Management emphasized the importance of maintaining dividends while prioritizing liquidity needs over share buybacks at this time [50]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $791 million, a sequential increase of 4% and 2% above the midpoint of guidance, with a year-over-year increase of 8% [4][18] - Gross profit was $154 million, resulting in a gross margin of 19.5%, slightly below the midpoint of guidance and flat compared to Q2 [19] - Book-to-bill ratio for the quarter was 0.97, with a backlog of $1.2 billion, flat from the previous quarter [18][19] Business Line Data and Key Metrics Changes - Automotive revenue increased by 7% quarter-over-quarter, driven by higher volume in the Americas and Europe [8] - Industrial segment revenue grew by 2%, supported by shipments to smart grid infrastructure projects [9] - Medical market segment revenue rose by 2%, reflecting increased activity from larger customers [11] - Revenue from computing, consumer, and telecom markets increased by 4%, driven by demand for AI servers [12] Market Data and Key Metrics Changes - Orders were up 19% year-over-year, indicating improving conditions in automotive, smart grid infrastructure, aerospace defense, and AI-related power requirements [6] - Asia saw the greatest growth in sales, particularly from automotive customers and distributors [4][5] - Distribution revenue increased by 4%, with most growth coming from Asia [15] Company Strategy and Development Direction - The company is executing its five-year strategic plan, Vishay 3.0, focusing on capacity expansion and innovation [4][28] - Significant investments in capacity expansion are ongoing, with $179 million spent year-to-date and an expected total of $300 million to $350 million for the year [28] - The company aims to improve margins and returns on capital through operational efficiencies and passing on increased metal costs to customers [49] Management Comments on Operating Environment and Future Outlook - Management noted that conditions are improving across several market segments, with expectations for mid-single-digit to high-single-digit growth in 2026 [48] - The company is focused on addressing customer needs and preventing production line downs, particularly in the automotive sector [64] - Management expressed confidence in the company's ability to meet quick-turn delivery requests while maintaining competitive lead times [7][32] Other Important Information - The company reported a negative free cash flow of $24 million for the quarter, with a focus on maintaining dividends despite ongoing capacity expansion [23][26] - The effective tax rate remains low due to minimal pre-tax income, with expectations for normalization as profitability returns [21][25] Q&A Session Summary Question: Did Vishay see any benefit from the export restrictions on Nexperia in the automotive segment? - Management indicated ongoing discussions with OEMs and tier ones, noting opportunities but not including them in Q4 revenue guidance due to current shortages [36] Question: What factors impacted gross margin in Q3? - Management cited elevated metals prices and operational issues as key factors affecting gross margin, with plans to pass costs onto customers [39][40] Question: How does the company view growth and margin expectations for fiscal 2026? - Management expressed optimism about growth driven by five key market segments, aligning with consensus estimates for revenue growth of around 7% [48][49] Question: Can you elaborate on the capital return strategy? - Management emphasized the importance of dividends and indicated no plans for share buybacks at this time due to current liquidity needs [50]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $791 million, a sequential increase of 4% and 2% above the midpoint of guidance, with many market segments showing growth [5][19] - Year-over-year revenue increased by 8%, reflecting an 8% increase in volume and a 2% positive foreign currency impact [19] - Gross profit was $154 million, resulting in a gross margin of 19.5%, slightly below the midpoint of guidance and flat compared to Q2 [20] - Adjusted earnings per share for Q3 2025 was $0.04, compared to a net loss per share of $0.07 in Q2 2025 [22][23] Business Line Data and Key Metrics Changes - Automotive revenue increased by 7% versus Q2, driven by higher volume in the Americas and Europe [9] - Industrial segment revenue grew by 2%, primarily due to shipments of capacitors for smart grid infrastructure projects [10] - Aerospace defense revenue decreased by 2% quarter-over-quarter due to slow funding releases from the U.S. Department of Defense [12] - Medical market revenue grew by 2%, supported by increased activity from longstanding customers [12] Market Data and Key Metrics Changes - Asia achieved the greatest growth in Q3, particularly from automotive customers and sales to distributors [5][6] - Distribution revenue increased by 4%, with nearly all growth coming from Asia [16] - Book-to-bill ratio for the quarter was 0.97, with a run rate of 1.15 for October, indicating improving order conditions [19][6] Company Strategy and Development Direction - The company is executing its five-year strategic plan, Vishay 3.0, focusing on capacity investments and expanding product offerings [5][28] - Investments in capacity expansion are expected to be between $300 million and $350 million for the year, with a significant portion allocated to high-growth products [28] - The company aims to enhance customer engagement and cross-sell products across its portfolio [33] Management's Comments on Operating Environment and Future Outlook - Management noted that market signals remain directionally positive, with increasing demand from automotive, AI servers, smart grid infrastructure, and medical sectors [31] - The company expects revenue growth in 2026, driven by five key market segments showing positive signs [42] - Management is focused on improving gross margins and operational efficiencies, with plans to achieve margin neutrality at the Newport facility by the end of Q1 2026 [43] Other Important Information - The company generated $28 million in operating cash for Q3, with total CapEx for the quarter at $52 million [24] - Free cash flow for the quarter was negative $24 million, but improved from negative $73 million in Q2 [24] - The company plans to maintain its dividend policy while managing liquidity and capital needs [27] Q&A Session Summary Question: Did Vishay see any benefit from the export restrictions on Nexperia in the automotive segment? - Management indicated ongoing discussions with OEMs and tier ones, noting opportunities arising from the situation, but did not include it in Q4 revenue guidance due to the dynamic nature of the market [34] Question: What factors impacted gross margin in Q3? - Management cited elevated metals prices and operational issues as key factors affecting gross margin, with plans to pass costs onto customers [35][36] Question: What is the outlook for revenue growth and margin expansion in 2026? - Management expressed confidence in achieving revenue growth aligned with consensus estimates, supported by positive market drivers and customer engagements [42] Question: How is the capital return strategy prioritized? - Management emphasized the importance of maintaining dividends while managing liquidity, indicating no current plans for share buybacks [45]

Group 1: Meeting and Legislative Context - EU tech chief Henna Virkkunen is scheduled to meet with chipmaker Nexperia, emphasizing the importance of this meeting for the upcoming Chips Act 2.0, expected to begin in 2026 [1] - The European Commission plans to review the EU Chips Act, which was adopted in 2023 with a budget of 43 billion euros ($50.15 billion), aiming to increase the EU's share of global chip output to 20% by 2030 [4] Group 2: Nexperia's Operational Challenges - Nexperia, owned by Chinese company Wingtech, has come under scrutiny after the Dutch government took control of the company due to concerns over its former CEO's actions to shift operations to China [2] - Following the Dutch government's intervention, Beijing blocked Nexperia products from leaving China, leading the company to inform carmakers that it could no longer guarantee supplies, raising concerns across various sectors [3] Group 3: Product Significance - Nexperia specializes in basic power control chips, such as transistors and diodes, which are essential components in nearly all electronic devices, particularly in automotive applications for connecting batteries to motors and managing lighting and braking systems [3]

Core Insights - Solitron Devices, Inc. reported a revenue increase in fiscal 2026 second quarter to $3.99 million, up from $2.70 million in the first quarter, indicating a positive sales trend [1][8] - The company's backlog reached a record level of $18.64 million at the end of the fiscal 2026 second quarter, up from $18.26 million in the first quarter [2] - Despite increased sales, the company experienced a net loss of $0.23 million in the fiscal 2026 second quarter, attributed to a one-time stock grant and other costs impacting gross margin [3][8] Financial Performance - Net sales increased by 11% to approximately $3.99 million in the fiscal 2026 second quarter compared to $3.58 million in the same quarter of fiscal 2025 [8] - Net bookings surged by 147% to $4.32 million in the fiscal 2026 second quarter, compared to $1.75 million in the prior year [8] - The gross profit for the fiscal 2026 second quarter was $835,000, compared to $738,000 in the same quarter of the previous year [7] Operational Developments - The company anticipates receiving an AMRAAM Lot 39 order in the fiscal 2026 third quarter, with expected order quantities approximately 10% above the previous year's order [4] - There is increased interest in new product development, particularly in silicon carbide, with various prototypes being tested by potential customers [5] - Solitron completed the acquisition of Micro Engineering Inc. (MEI) on September 1, 2023, which specializes in design layout and manufacturing challenges [11]