SOLITRON DEVICES INC

Solitron Devices, Inc.

Company overview

Solitron Devices, Inc. is a Delaware corporation that designs, develops, manufactures, and markets solid-state semiconductor components and related devices, primarily for military and aerospace markets. The company sells both custom/semi-custom products (the vast majority) and standard/catalog items.

Acquisition and facilities

• Acquired Micro Engineering Inc. (MEI) on September 1, 2023. MEI focuses on design/layout and manufacturing solutions for electronic components, targeting engineering-dedicated, cost-efficient, and flexible approaches for low-to-mid volume projects.
• MEI facility in Apopka, Florida: purchased May 21, 2024 (approximately 10,900 sq ft).
• Corporate headquarters and manufacturing operations in West Palm Beach, Florida (approximately 24,000 sq ft).
• Wafer fabrication was in-house until shutdown in 2022; the company now purchases wafers from external sources and maintains an inventory of wafers produced prior to the shutdown.

Principal product lines and sales mix (fiscal years ended Feb 28)

• Power Transistors: 39% (FY2026) vs 43% (FY2025)
• Power MOSFETs: 24% vs 15%
• Hybrids: 27% vs 33%
• Field Effect Transistors: 9% vs 8%
• Wafers/Dice: 1% vs 1%
• Total: 100% in both fiscal years

Product classification and sales mix:

• Approximately 95% of sales in FY2026 were custom/semi-custom products (96% in FY2025); standard/catalog products represented 5% in FY2026 (4% in FY2025).
• About 54% of semiconductor components are manufactured under approved Source Control Drawings (SCD) from the U.S. government and/or prime contractors; the remainder are primarily JAN-qualified products for military use.

Customers and revenue concentration

• Top customers (FY2026): ConMed Linvatec ~33% of net sales; RTX Corporation ~27%.
• FY2025: ConMed Linvatec ~38%; RTX Corporation ~31%.
• No other single customer accounted for 10% or more of net sales in either year.
• Nine customers accounted for ~91% of net sales in FY2026; seven customers accounted for ~89% in FY2025.
• Operations are primarily domestic with limited foreign sales.

Backlog

• Backlog for semiconductor and hybrid orders: $27,281,000 as of Feb 28, 2026; $18,108,000 as of Feb 28, 2025.
• Approximately 54% of backlog is scheduled for delivery within 12 months.
• Backlog as of those dates pertained to electronic components.

Intellectual property

• The company previously owned 33 patents; all have expired or lapsed. The company reports these expirations have not had a material adverse effect.

Competition and market position

• Competitors include Infineon Technologies, Microsemi Corporation, Anaren, NEOTech, and Sensitron Semiconductor, among others.
• Competition is based on product quality, reliability, turn-around time, service, and price. The company emphasizes strengths in high-reliability custom hybrids and rapid response to customer needs.

Certifications and quality

• ISO 9001:2015 and AS9100:2016 certifications.
• Certification reissued September 8, 2024, and valid through September 2027.
• Some products are subject to government-source inspections to verify compliance with specifications.

Manufacturing and supply chain

• Raw materials are sourced from multiple suppliers. In FY2026 two suppliers accounted for 41% of production materials (30% and 11%); in FY2025 two suppliers accounted for 51% (39% and 12%).
• Foreign supplier share in FY2026: about 31% of materials (1% Malaysia, 30% China).
• Prices for raw silicon wafers, copper, and precious metals can be volatile; many packages are gold-plated, which introduces cost volatility.
• The company relies on external wafer suppliers and plating houses and uses outside vendors for certain process steps.

Research and development

• R&D spending: $18,000 in FY2026; $30,000 in FY2025.
• R&D has historically been funded through customer charges for custom designs or amortized into unit prices.

Environmental and regulatory considerations

• Subject to environmental laws and hazardous materials regulations, with potential costs for compliance and remediation.
• Compliance programs address anti-bribery/anti-corruption and anti-money-laundering laws (including the FCPA and USA PATRIOT Act).
• Subject to conflict minerals disclosure requirements under Dodd-Frank, with associated sourcing risks.

Net sales by geography

• Foreign sales accounted for 5% of net sales in FY2026 and less than 1% in FY2025. All foreign sales were denominated in U.S. dollars.

Cybersecurity and risk management

• Maintains a cybersecurity program that includes risk assessment, technical safeguards, incident response and recovery planning, annual cybersecurity risk assessments, and board-level reporting.

Miscellaneous

• No current, material ongoing litigation as of Feb 28, 2026.
• Identified risks include customer concentration, dependence on government contracts, supply chain vulnerabilities, and the need to attract and retain specialized personnel.