Solitron Devices, Inc. (OTCQB: SODI) designs, develops, manufactures and markets solid-state semiconductor components and related devices primarily for the military and aerospace markets. The majority of the company’s products are custom made pursuant to contracts with clients whose end products are typically sold to the United States government. Solitron also offers a selection of additional products – including joint Army/Navy transistors, diodes and standard military voltage regulators – as standard catalog items.
The company’s firm commitment to quality and excellence has helped it establish a formidable position within the semiconductor equipment industry, particularly as it relates to military and aerospace applications. Solitron’s MIL-PRF-38534 certified and qualified hybrid circuit facility allows for improved access to Department of Defense contracts. Since its founding in 1965, the company has leveraged its strategic industry position to supply its components for use in well over 200 unique programs.
In recent months, Solitron has taken strides toward ensuring maximized shareholder value moving forward. In the quarter ending February 28, 2015, the company recorded a 31 percent increase in gross profit, as compared to the previous quarter. In May, Solitron translated this growth into returns for its investors by declaring a cash dividend of $0.25 per share of common stock. Additionally, the company’s board of directors authorized a repurchase program of up to $500,000 of common stock through February 29, 2016.
“We are continuing to return capital to our stockholders by paying our second cash dividend since emerging from bankruptcy is 1993,” Shevach Saraf, chairman and chief executive officer of Solitron, stated in a news release. “We are committed to enhancing and returning stockholder value. We will continue to regularly review our capital management strategy and evaluate opportunities to return capital to our stockholders.”
In the years to come, Solitron is in a strong position to capitalize on rapid industry growth. According to a report by SEMI, the global industry association serving the manufacturing supply chain for the electronics industries, global semiconductor equipment sales increased by 19.3 percent to $38 billion in 2014 and the market is expected to climb to nearly $44 billion in 2015.
For prospective investors, Solitron’s recent activity could foreshadow an opportunity to realize sustainable returns in the future. Look for the company to capitalize on its momentum in order to increase its market share, particularly in government-related applications.
For more information, visit www.selitrondevices.com
