Solitron Devices, Inc. (SODI-OTC: BB)
November 6, 2009 Issue
The Most Powerful Name In Corporate News and Information
Around Since The 1960’s Supporting The Aerospace And Defense Industries With Their Custom Hermetically Sealed Power Components And Circuitry, Solitron Devices, Inc. Products Have Gone To The Moon, Now To Mars And Beyond
Solitron designs and manufactures high performance, high density, high quality power components and circuitry. Solitron supports its products and services with a comprehensive Service/Quality program that is second to none.
Solitron has been a recognized leader and pioneer in the innovative design
and manufacturing of state-of-the art power semiconductor products. Solitron
is well known for producing custom and standard power solid-state components
for the aerospace, defense, industrial, medical, and commercial industries.
Solitron's advanced semiconductor device and packaging technology has
contributed to the success of virtually every U.S. and European aerospace
and defense program. Solitron’s products are operating successfully,
worldwide...from the bottom of the ocean to the surface of the moon---and
now beyond Jupiter! They're on board the lunar vehicle and landing craft,
space shuttles and several deep space exploration satellites, as well as the
Mars Global Surveyor spacecraft which has surveyed Mars.
Interview conducted by: Lynn Fosse, Senior Editor, CEOCFOinterviews.com, Published – November 6, 2009
Mr. Saraf: Our focus is to continue supporting the aerospace and the defense industry.
CEOCFO: Would you tell us about your products and what is unique about what Solitron?
Mr. Saraf: We are producing power semiconductors and power hybrids that are utilized in the defense and aerospace industries. For example, our product has been used on the robot spacecrafts that are roaming Mars. Our hybrids were used originally to drive the Lunar Rover, the Jeep, the astronauts used for traveling on the surface of the moon. Our products are used in satellites, and missile systems like AMRRAM, which is an advanced medium-range missile used by the US Air Force and many other western Air Forces. It has been used on Arrow, which is the anti-missile, missile that was developed jointly by Israel and the United States. It is used on other missiles like Hellfire that is being used by the US Air Force extensively in Iraq and Afghanistan. Our hybrids are also used in the radar systems of the F22, F18, F16 and F15.
CEOCFO: Why is your product superior?
Mr. Saraf: It is the manufacturing technology. We make our products in hermetically sealed packages that withstand extreme temperatures, pressure and vibration.
CEOCFO: I know that you do custom work and you have been a pioneer in innovative design, what is an example of something you have worked on and what are you able to do to make a difference in the project?
Mr. Saraf: There is a custom product that we are producing for an unnamed major defense contractor for an advanced fighter and what is unique about it is that it is the world’s smallest, thinnest, lightest, DC to DC Converter in a hermetically sealed package. Nobody else has been able to make it in this constrains of the physical envelope.
CEOCFO: What gives you the edge?
Mr. Saraf: The know-how of the team of people that have been doing it since the mid-1960’s.
CEOCFO: Solitron recently received the AS9100 Rev. B Certification; would you tell us about the new certification and how that enhances what you offer?
Mr. Saraf: Major defense contractors like Lockheed Martin, Hamilton Sundstrand, Boeing, L-3 and Raytheon are requiring the AS9100 increasingly, and it is used for aerospace applications. It demands stricter documentation, production and quality control standards. It is an offspring of ISO9000, which is now required worldwide.
CEOCFO: Where do you do the manufacturing?
Mr. Saraf: We do our manufacturing in West Palm Beach, Florida.
CEOCFO: What is the level of competition in your industry?
Mr. Saraf: The number of our competitors is shrinking because major and medium size companies have increasingly been leaving the defense and aerospace area. This is because the volume of business is not there to justify the cost of the additional certification and quality system in place. Thus for us, it has opened up additional opportunities, which have been vacated by other companies.
CEOCFO: So it is a good time for Solitron!
Mr. Saraf: Yes, it is.
CEOCFO: Would you tell us about your ten golden rules of premiere customer service?
Mr. Saraf: The rules speak for themselves. Bottom line is a company can excel and attract new business when its reputation is based on quality of its product and the quality of its service. Service and quality in many cases are what set companies apart.
CEOCFO: What is the financial picture like at Solitron today?
Mr. Saraf: We are financially healthy, stable, and profitable. If you look at our past performance, we have a solid record of performance and profitability.
CEOCFO: What do you see the next couple of years down the line?
Mr. Saraf: The fact that because of government plans for the future of the defense and aerospace sectors, the number of opportunities large companies are interested in is decreasing because the volume is not attractive to them. It has opened new opportunities for small companies like us. This affords us the opportunity to move in and fill voids created by large companies leaving the market. For example, we are now developing custom Power semiconductors and hybrids products that have been made by other companies that has obsoleted them, stopped making them, or gone out of business and therefore created opportunities for us to make these products that we did not make before.
CEOCFO: Why should potential investors pay attention?
Mr. Saraf: If they are looking for a company that steadily performs financially, they should look at Solitron Devices. They will not find anything flashy that comes and goes with the tide, but a company that has a year after year solid performance, history and future.
CEOCFO: What might someone miss or not understand when they look at Solitron that they should know?
Mr. Saraf: We are small, but if you look at our P&L and balance sheet and items such as current stock price, compare it to our net-cash holdings, and compare them to market valuation, the numbers scream at you that our stock price is under valued.
CEOCFO: Final thoughts, what should people remember most about Solitron?
Mr. Saraf: People should know that we
are here to stay and we have supported the defense and aerospace sectors
since the 1960’s. We supported programs like the first trip to the moon. Now
we can see the future trips to the moon, Mars and beyond.
We are producing power semiconductors and power hybrids that are utilized in the defense and aerospace industries. For example, our product has been used on the robot spacecrafts that are roaming Mars. Our hybrids were used originally to drive the Lunar Rover, the Jeep, the astronauts used for traveling on the surface of the moon. Our products are used in satellites, and missile systems like AMRRAM, which is an advanced medium-range missile used by the US Air Force and many other western Air Forces. It has been used on Arrow, which is the anti-missile, missile that was developed jointly by Israel and the United States. It is used on other missiles like Hellfire that is being used by the US Air Force extensively in Iraq and Afghanistan. Our hybrids are also used in the radar systems of the F22, F18, F16 and F15. - Mr. Shevach Saraf
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