WEST PALM BEACH, FL / ACCESSWIRE / May 10, 2019 / Solitron Devices, Inc. (OTC PINK: SODI) ('Solitron' or the 'Company') today announced unaudited results for the fiscal 2019 fourth quarter and fiscal year ended February 28, 2019.
For the 2019 fiscal fourth quarter, net sales were $2,881,000 versus $1,922,000 in the 2018 fiscal fourth quarter. Gross profit as a percentage of sales was 22.2% in the 2019 fiscal fourth quarter versus 0.5% in the 2018 fiscal fourth quarter. Net income was $193,000, or $0.10 per share in the 2019 fiscal fourth quarter as compared to a net loss of ($701,000), or ($0.37) per share in the 2018 fiscal fourth quarter.
For the 2019 fiscal year, net sales were $9,378,000 versus $9,270,000 in the 2018 fiscal year. Gross profit as a percentage of sales was 14.8% in the 2019 fiscal year versus 25.2% in the 2018 fiscal year. Net loss was ($1,546,000), or ($0.81) per share in the 2019 fiscal year as compared to a net loss of ($11,000), or ($0.01) per share in the 2018 fiscal year.
The lower gross profit, or increase in cost of goods sold, was due to increases in materials and labor costs. Increased materials costs included increased scrap and rework. Increased labor costs included costs related to expanding our product offerings, rework, and costs associated with implementing a product data management system and 3D CAD/CAE (computer aided design and engineering).
There were no costs associated with the fiscal 2017 audit and investigation in the 2019 fiscal fourth quarter, as compared to $117,000 in the 2018 fiscal fourth quarter. For the 2019 fiscal year, there were $1,115,000 of costs related to the fiscal 2017 audit and investigation as compared to the 2018 fiscal year of $198,000. In addition to those costs, we incurred legal expenses for company counsel.
As noted in our previous press release, we terminated our auditor in January 2019. Based on a number of factors, including the Company's current cash levels and estimated costs to complete audits for fiscal years 2017 through 2019, the Board has made the determination that it is in the best interest of shareholders for the company to rebuild its cash position before hiring an auditor. Therefore, at this time, it is unlikely that fiscal 2020 results will be audited.
Net bookings in the 2019 fiscal fourth quarter and 2018 fiscal fourth quarter were $4.0 million. Net bookings in fiscal 2019 were $8.2 million as compared to $8.3 million in fiscal 2018. Included in the 2019 fiscal fourth quarter and 2019 fiscal year net bookings was a de-booking of approximately $0.5 million. Absent the unusual de-booking, bookings in fiscal 2019 would have exceeded fiscal 2018 level.
While it is early to make any estimates for fiscal 2020 bookings, our quote levels are encouraging, as we continue to work hard to expand the relationships we have with existing customers, add new customers, and work to get back into some programs that the Company had previously been a supplier. Our current estimate for fiscal 2020 bookings is $9 to $10 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.
Our goal over the next few quarters is to rebuild our cash position. We have instituted changes in our purchasing practices to improve inventory management. Additionally, we have reduced personnel in order to lower our cost structure. We intend to fulfill orders more rapidly and try to ship at a higher level than we have historically based on backlog. Depending on the timing of receipt of new orders it may result in a decline in our backlog.