WEST PALM BEACH, FL / ACCESSWIRE / October 18, 2019 / Solitron Devices, Inc. (OTC PINK:SODI) ('Solitron' or the 'Company') today announced unaudited results for the fiscal 2020 second quarter ended August 31, 2019.

FISCAL SECOND QUARTER HIGHLIGHTS

4% increase in net sales in fiscal second quarter versus prior year

189% increase in net bookings in fiscal second quarter versus prior year

Wafer Fab improvement plan continues on schedule

FISCAL 2020 FIRST HALF HIGHLIGHTS

17% increase in net sales in first half of fiscal 2020 versus prior year

100% increase in net bookings in first half of fiscal 2020 versus prior year

Cash and Securities increased by nearly $0.5 million in first half of fiscal 2020 versus prior year

Net loss decreased by $0.9 million in first half of fiscal 2020 versus prior year

For the fiscal 2020 second quarter, net sales increased 4% to $2,420,000 versus $2,334,000 in the fiscal 2019 second quarter. Gross profit as a percentage of sales was 19.1% in the fiscal 2020 second quarter versus 19.0% in the fiscal 2019 second quarter. Net loss was ($213,000), or ($0.11) per share in the fiscal 2020 second quarter as compared to a net loss of ($377,000), or ($0.20) per share in the fiscal 2019 second quarter.

Our wafer fab continued to make progress in its improvement plan. As noted in our July 26, 2019 press release, the improvement plan includes a temporary reduction in our fab production levels, which resulted in approximately $175,000 of normal cost being immediately expensed in the quarter, instead of allocated to inventory. The improvement plan is on schedule to be completed in the fiscal fourth quarter, at which time production levels will be increased.

Selling, General & Administrative expenses were $672,000 in the fiscal 2020 second quarter, as compared to $788,000 in the fiscal 2019 second quarter. There were no audit costs in the fiscal 2020 second quarter, whereas the company incurred $336,000 in audit related costs in the fiscal 2019 second quarter. Fiscal 2020 second quarter expenses included a $282,000 non-cash charge for stock compensation expense, and $50,000 in bonus expense; partially offset by a credit of $107,000 related to the reversal of the accrual for the last bill from our previous auditor.

Net bookings were $3.7 million in the fiscal 2020 second quarter, and $5.6 million in the first six months of fiscal 2020, as compared to $1.3 million in the fiscal 2019 second quarter, and $2.8 million in the first six months of fiscal 2019. We are increasing our estimate for fiscal 2020 bookings from a range of $9.5 to $10.5 million to $10.0 million to $11.0 million. The higher end of the range would include receipt of an end of life order. However, timing is uncertain with regard to the receipt of government/defense related contracts.

On October 2, 2019, the Company engaged MaloneBailey, LLP to audit the Company's fiscal 2019 and 2020 financial results at the completion of the fiscal 2020 year.