Financial Performance - Total net sales for the nine months ended November 30, 2024, increased to $15,383,416, representing a growth of 3% compared to $14,932,157 for the same period in 2023[12] - Gross profit for the nine months ended November 30, 2024, was $7,313,783, a decrease of 2.5% from $7,503,809 in the prior year[12] - Operating income for the nine months ended November 30, 2024, was $721,923, down 39.5% from $1,194,764 in the same period of 2023[12] - Net income for the nine months ended November 30, 2024, was $945,700, a decrease of 26.4% compared to $1,284,848 for the same period in 2023[12] - For the three months ended November 30, 2024, net income was $274,178, a decrease from $690,169 in the same period of 2023, representing a decline of approximately 60.3%[13] - Basic earnings per share for the nine months ended November 30, 2024, was $0.06, compared to $0.08 for the same period in 2023[55] Cash and Assets - Cash and cash equivalents increased significantly to $8,098,750 as of November 30, 2024, from $2,134,786 at the end of February 2024[10] - Total assets rose to $24,336,362 as of November 30, 2024, compared to $23,132,265 as of February 29, 2024[10] - Total stockholders' equity increased to $17,400,774 as of November 30, 2024, up from $16,278,998 at the end of February 2024[10] - The company experienced a net increase in cash and cash equivalents of $5,963,964 for the nine months ended November 30, 2024, compared to a decrease of $372,670 in the prior year[20] - The balance of marketable securities decreased from $9,711,351 as of February 29, 2024, to $4,582,428 as of November 30, 2024, indicating a reduction in liquid assets[31] Revenue Recognition and Sales - The Company applies ASC 606 for revenue recognition, primarily recognizing revenue from short-term contracts with customers[40][41] - The Multi-Axis Coating Systems product line accounted for 53% of total revenue for the nine months ended November 30, 2024, generating $8,158,000, compared to $7,648,000 or 51% in the same period of 2023[47] - The Integrated Coating Systems product line generated $2,850,000 in revenue for the nine months ended November 30, 2024, representing 19% of total revenue[47] - For the nine months ended November 30, 2024, total revenue was $15,383,000, an increase of 3% compared to $14,932,000 for the same period in 2023[47] - The company recognized approximately $3,320,000 of cash deposits as revenue during the nine months ended November 30, 2024[46] Inventory and Costs - Research and product development costs for the nine months ended November 30, 2024, were $2,054,846, a decrease of 7.5% from $2,221,712 in the prior year[12] - Net inventories as of November 30, 2024, totaled $4,737,510, down from $5,221,980 at February 29, 2024[48] - The allowance for slow-moving inventory was recorded at $349,300 as of November 30, 2024, compared to $380,400 at February 29, 2024[48] - Inventory reserve adjustments were $32,524 for the nine months ended November 30, 2024, down from $41,475 in the previous year, indicating improved inventory management[20] Stock Options and Compensation - As of November 30, 2024, the Company had 212,202 stock options outstanding under the 2013 Stock Incentive Plan, with 193,139 options vested[49] - The company recognized approximately $176,000 in stock-based compensation expense for the nine months ended November 30, 2024, compared to $147,000 in 2023, reflecting an increase of approximately 19.9%[53] - The aggregate intrinsic value of the company's vested and exercisable options at November 30, 2024, was approximately $126,000[54] - The company granted options to acquire 134,657 shares to employees during the nine months ended November 30, 2024, with a weighted average grant date fair value of $2.54 per share[52] Foreign Sales - Sales to foreign customers accounted for approximately $5,974,000, or 39% of total revenues for the nine months ended November 30, 2024, compared to 40% in 2023[59] - Export sales to foreign customers for the nine months ended November 30, 2024, totaled $5,974,000, accounting for approximately 39% of total revenues[59]

Financial Performance - Third quarter fiscal 2025 net sales were $5,190,595, a decrease of 9% compared to $5,690,022 in the same quarter of fiscal 2024[3] - Revenue for the first nine months of fiscal 2025 increased by 3% year over year to $15.4 million, compared to $14.9 million[3] - Net income for the third quarter of fiscal 2025 was $274,000, a decrease of 60% from $690,000 in the prior year[17] - Net income for the nine months ended November 30, 2024, was $945,700, down from $1,284,848 in the prior year, reflecting a decline of 26%[31] - Operating income decreased 73% to $197,637 compared to $720,522 in the same quarter last year[3] - Operating income for the nine months ended November 30, 2024, decreased to $721,923 from $1,194,764 in the same period of 2023[31] - Gross profit margin for the third quarter of fiscal 2025 declined to 45%, down from 51% in the prior year[3] - Gross profit for the nine months ended November 30, 2024, was $7,313,783, a decrease of 3% from $7,503,809 in the prior year[31] - The company reported a basic earnings per share of $0.06 for the nine months ended November 30, 2024, down from $0.08 in the same period of 2023[31] Market Performance - Sales to the Alternative/Clean Energy market grew 42% to $3.0 million, driven by customers transitioning to production scale systems[3] - Sales in the Alternative Energy market increased by 42% to $2,959,000 for the three months ended November 30, 2024, compared to $2,083,000 in 2023[34] - Sales in the Electronics/Microelectronics market decreased by 26% to $1,016,000 for the three months ended November 30, 2024, compared to $1,374,000 in 2023[34] - Multi-Axis Coating systems sales increased by 20% to $3.56 million in the third quarter of fiscal 2025[12] Financial Position - Backlog at the end of the third quarter of fiscal 2025 was strong at $10.6 million, slightly down from $10.7 million at the end of the third quarter of fiscal 2024[6] - Cash, cash equivalents, and marketable securities totaled $12.7 million with no outstanding debt as of November 30, 2024[21] - Total current assets as of November 30, 2024, were $19,821,290, an increase from $18,746,566 as of February 29, 2024[29] - Total stockholders' equity increased to $17,400,774 as of November 30, 2024, from $16,278,998 as of February 29, 2024[29] Guidance and Projections - Guidance for fiscal year 2025 projects revenue of over $20 million with continued profitability[2] Research and Development - Research and product development costs for the nine months ended November 30, 2024, were $2,054,846, a decrease of 7% from $2,221,712 in the same period of 2023[31]

Core Insights - Sono-Tek Corporation reported its third consecutive quarter of revenue exceeding $5 million, with a year-over-year revenue growth of 3% for the first nine months of fiscal year 2025 [1][2][4] - The company maintains a strong backlog of $10.6 million, indicating robust future revenue potential [1][12] - Guidance for fiscal year 2025 projects revenue to exceed $20 million with continued profitability [2][4] Financial Performance - For the third quarter of fiscal 2025, net sales were $5.19 million, a decrease of 9% compared to $5.69 million in the same quarter of fiscal 2024 [5][8] - Gross profit for the third quarter was $2.34 million, down 20% from $2.93 million in the prior year, resulting in a gross profit margin of 45% [5][13] - Operating income fell 73% to $198,000, with an operating margin of 4%, compared to 13% in the previous year [5][16] - Net income decreased by 60% to $274,000, reflecting the decline in revenue and gross profit [5][17] Market and Product Insights - Sales to the Alternative/Clean Energy market grew by 42% to $3 million, driven by customer transitions from R&D systems to production-scale systems with higher average selling prices (ASPs) [7][8] - Multi-Axis Coating systems sales increased by 20% to $3.56 million, contributing significantly to revenue [9][30] - Sales in the Electronics, Medical, and Industrial markets saw declines of 26%, 33%, and 59% respectively, indicating challenges in these sectors [10][31] Geographic Sales Performance - Approximately 54% of sales were to the U.S. and Canada, down from 60% in the prior year, with a 17% decrease in sales to this region [11][33] - Sales in the Asia Pacific region increased by 64%, while EMEA sales decreased by 35% [11][33] - Latin American sales surged by 165%, attributed to a significant order in the medical device sector [11][33] Balance Sheet and Cash Flow - As of November 30, 2024, the company had $12.7 million in cash and cash equivalents, with no outstanding debt [21] - Total stockholders' equity stood at $17.4 million, reflecting a solid financial position [21]

Core Viewpoint - Sono-Tek is positioned as a leader in ultrasonic coating systems, presenting a compelling investment opportunity due to its innovative technology, debt-free status, and recent share buyback program, indicating potential undervaluation [1][5]. Group 1: Technology and Applications - Sono-Tek utilizes high-frequency sound waves to atomize coating materials, resulting in precise and controlled application, which offers advantages such as reduced material waste and energy consumption [2]. - The company's technology has diverse applications across high-growth markets, including microelectronics, alternative energy, medical devices, and industrial manufacturing, supported by a comprehensive product portfolio [3]. Group 2: Leadership and Strategy - The leadership team, including Executive Chairman Dr. Christopher L. Coccio and CEO Steve Harshbarger, possesses extensive experience in ultrasonic technology, which is crucial for the company's growth and market penetration [4]. - Sono-Tek's strategic focus on higher-value offerings, including spare parts and application consulting, enhances revenue potential and strengthens customer relationships [3]. Group 3: Financial Performance - In Q2 FY2025, Sono-Tek reported an 8% year-over-year revenue decline, attributed to a strong prior year, but showed a sequential growth of 3%, indicating underlying momentum [6]. - The first half of FY2025 saw revenue increase by 10% year-over-year to $10.2 million, reflecting a solid foundation for future expansion [6]. Group 4: Stock and Buyback Program - The recently announced $2 million share buyback program, representing approximately 1.27% of outstanding shares, signals management's confidence in the stock's undervaluation [5]. - Sono-Tek's cash position of $11.6 million and zero debt further support the potential for increased earnings per share (EPS) and stock price appreciation [5]. Group 5: Market Trends and Growth - Sales to the alternative/clean energy market surged by 37%, driven by government investments and the adoption of high-ASP production systems [9]. - The electronics market experienced a 51% increase in sales, primarily due to demand in the semiconductor industry, while medical and industrial sales are expected to recover in the latter half of the fiscal year [10]. Group 6: Backlog and Future Outlook - Sono-Tek's record backlog of $11.7 million represents a 50% sequential increase and a 7% year-over-year jump, indicating a strong pipeline for future revenue growth [8]. - The company's commitment to innovative product development and its debt-free balance sheet reinforce a positive outlook for long-term potential [12].

Core Viewpoint - Sono-Tek Corporation has announced a share repurchase program of up to $2.0 million, reflecting its financial strength and confidence in long-term growth strategy [1][2]. Financial Position - As of August 31, 2024, Sono-Tek had approximately $11.6 million in cash, cash equivalents, and marketable securities, with no debt on its balance sheet [3]. - The company had approximately 15,751,000 shares of common stock outstanding as of the same date [3]. Repurchase Program Details - The repurchase program allows Sono-Tek to buy back shares through open market purchases or other means, with the timing and volume at the company's discretion [2]. - The program does not obligate the company to repurchase a specific number of shares and can be modified or discontinued at any time [2]. Business Overview - Sono-Tek is a leader in ultrasonic coating systems, serving various industries including microelectronics, alternative energy, and medical devices [4]. - The company is focusing on clean energy applications, showing transformative results in next-gen solar cells, fuel cells, and carbon capture [4]. Product and Market Strategy - The product line is evolving from R&D to high-volume production machines, indicating market leadership and adaptability [5]. - Sono-Tek's solutions are designed to be environmentally friendly and efficient, reducing overspray and saving raw materials, water, and energy [6]. Growth Strategy - The growth strategy emphasizes leveraging innovative technologies and global reach to enhance customer outcomes [7].

Company Overview - Sono-Tek Corporation is a global leader in the design and manufacture of ultrasonic coating systems, impacting various industries such as microelectronics, alternative energy, medical devices, and advanced industrial manufacturing [3][4] - The company is making significant advancements in the clean energy sector, particularly in next-generation solar cells, fuel cells, green hydrogen generation, and carbon capture applications [3] Product and Technology - Sono-Tek's product line is evolving from research and development to high-volume production machines, which feature significantly higher average selling prices, demonstrating market leadership and adaptability [4] - The company's ultrasonic coating solutions are environmentally friendly, efficient, and reliable, leading to reductions in overspray, raw material, water, and energy usage, while improving process repeatability and transfer efficiency [5] Growth Strategy - The growth strategy of Sono-Tek focuses on leveraging innovative technologies, proprietary know-how, and global reach to enhance thin film coating technologies, ultimately improving customer product outcomes [6] - The company employs a strategic distribution network that includes direct sales personnel, independent distributors, and experienced sales representatives to ensure efficient market reach across diverse sectors [4] Investor Engagement - Sono-Tek will participate in the Spartan Capital Securities investor conference on November 4th, where CEO Steve Harshbarger will present to investors [1][2]

Sono-Tek Corporation (NASDAQ:SOTK) Q2 2025 Earnings Conference Call October 15, 2024 10:00 AM ET Company Participants Kirin Smith - PCG Advisory Chris Coccio - Chairman & CEO Steve Harshbarger - President & COO Steve Bagley - CFO Conference Call Participants Ted Jackson - Northland Securities Dick Ryan - Oak Ridge Financial Operator Good morning, and welcome to the Sono-Tek Fiscal Second Quarter and First Half 2025 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instruction ...

Sono-Tek Corporation (SOTK) came out with quarterly earnings of $0.02 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.01 per share when it actually produced earnings of $0.02, delivering a surprise of 100%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. SonoTek, which belongs to ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: August 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No.: 000-16035 (Exact name of registrant as specified in its charter) New York 14-1568099 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification ...

Exhibit 99.1 Sono-Tek Reports Fiscal Second Quarter and First Half 2025 Financial Results, Record Backlog and Provides Revenue Guidance - Q2 Sequential Revenue Growth Meets Quarterly Guidance of 2%-5% -Record Equipment and Service Backlog of $11.7 Million- - First Half Revenue Growth of 10% YOY, First Half Net Income Growth of 13% YOY- - Expects Continued Revenue Growth for Full Fiscal Year 2025- -Conference Call Today at 10:00 am ET- MILTON, N.Y., October 15, 2024 – Sono-Tek Corporation (Nasdaq: SOTK), the ...