Fri, Jul 12, 9:17 PM (57 days ago)
Solitron Devices, Inc.'s Form 10-K for the fiscal year ended February 29, 2024, highlights significant growth and strategic changes. Key financial performance indicators include a 99% increase in net sales to $12,757,000, driven by the acquisition of Micro Engineering Inc. (MEI) and a return to normal production levels post-relocation. Gross profit rose to $3,807,000, with a margin improvement to 30%. Operating income was $934,000, reversing a prior loss, while net income surged to $5,801,000, aided by a $2,236,000 bargain purchase gain and a $3,024,000 tax benefit. The company's backlog grew by 47% to $11,207,000. MEI's acquisition added $3,219,000 in intangible assets, primarily customer lists and trademarks. The company faces risks from customer concentration, supply chain dependencies, and regulatory changes. Future outlook includes leveraging MEI's capabilities and maintaining MIL-PRF-19500 and MIL-PRF-38534 qualifications to enhance marketability.