Workflow
Sono-Tek (SOTK)
icon
Search documents
Sono-Tek (SOTK) - 2024 Q4 - Annual Results
2024-05-23 11:21
Financial Performance - Record net sales for fiscal year 2024 increased 31% to $19.7 million from $15.1 million in the prior year[4] - Net income increased 127% year over year to $1.4 million compared to $636,000 in fiscal year 2023[4] - Gross profit increased 29% to $9.8 million, with a slight decrease in gross profit margin from 50.8% to 50%[4] - Operating income rose 73% to $1.2 million, with an operating margin of 6% compared to 4.54% in the prior fiscal year[4] - Net sales for the fiscal year ended February 29, 2024, increased by 31% to $19,699,886 compared to $15,058,203 for the fiscal year ended February 28, 2023[36] - Gross profit rose to $9,844,575, representing a gross margin of approximately 50% for the fiscal year 2024, up from $7,652,007 in 2023[36] - Operating income increased to $1,182,485, a growth of 73% from $682,991 in the previous year[36] - Net income for the fiscal year 2024 was $1,441,463, compared to $635,905 in 2023, reflecting a growth of 127%[36] Market Performance - Multi-Axis Coating systems sales increased 48% to $10.1 million, driven by demand in the clean energy sector[9] - Sales to the Alternative/Clean Energy market grew 96% in fiscal year 2024, reflecting a shift to production scale systems[11] - Multi-axis coating systems sales grew by 48% to $10,075,000, accounting for 51% of total sales in 2024[40] - Sales in the alternative energy market surged by 96% to $5,997,000, representing 30% of total sales[41] Financial Position - Backlog at fiscal year-end reached a record high of $9.1 million, a 7% increase year over year[4] - Cash, cash equivalents, and marketable securities increased to $11.8 million, maintaining a debt-free status[23] - Total assets increased to $23,132,265 as of February 29, 2024, up from $20,174,718 in 2023[34] - Stockholders' equity rose to $16,278,998, reflecting an increase of 11% from $14,633,958 in the previous year[34] - Cash and cash equivalents decreased to $2,134,786 from $3,354,601, indicating a decrease of 36% year-over-year[38] Future Outlook - The company expects first quarter fiscal year 2025 revenue growth above 30% and projects 8% to 10% year-over-year revenue growth for fiscal year 2025[4] Capital Expenditures - Capital expenditures for fiscal year 2024 amounted to $0.8 million, with significant investments in IT infrastructure and facility expansion[24] Research and Development - Research and product development expenses rose to $2,885,773, an increase of 34% from $2,149,525 in the previous year[36]
Sono-Tek Announces Fiscal Year 2024 Results with Record-Breaking Revenue and Record YOY Backlog
prismmediawire.com· 2024-05-23 11:00
Sono-Tek Announces Fiscal Year 2024 Results with Record-Breaking Revenue and Record YOY Backlog – Record net sales for fiscal year 2024 increased 31% – -Backlog Increased to Year-over-Year Record High – -Conference Call Thursday, May 23, 2024 at 9:30am EST – MILTON, NY, May 23, 2024 – Sono-Tek Corporation (NASDAQ: SOTK), the leading developer and manufacturer of ultrasonic coating systems, today reported financial results for its fourth quarter and fiscal year 2024, ended February 29, 2024 ("fiscal year 202 ...
Sono-Tek Announces Fiscal Year 2024 Results with Record-Breaking Revenue and Record YOY Backlog
Newsfilter· 2024-05-23 11:00
Sono-Tek Announces Fiscal Year 2024 Results with Record-Breaking Revenue and Record YOY Backlog – Record net sales for fiscal year 2024 increased 31% – -Backlog Increased to Year-over-Year Record High – -Conference Call Thursday, May 23, 2024 at 9:30am EST – MILTON, NY, May 23, 2024 – Sono-Tek Corporation (NASDAQ: SOTK), the leading developer and manufacturer of ultrasonic coating systems, today reported financial results for its fourth quarter and fiscal year 2024, ended February 29, 2024 ("fiscal year 202 ...
Sono-Tek Announces Year-End FY 2024 Earnings Conference Call
Newsfilter· 2024-05-20 11:00
Sono-Tek Corporation is the leading developer and manufacturer of ultrasonic coating systems for applying precise, thin film coatings to protect, strengthen or smooth surfaces on parts and components for the microelectronics/electronics, alternative energy, medical and industrial markets, including specialized glass applications in construction and automotive. MILTON, N.Y., May 20, 2024 (GLOBE NEWSWIRE) -- Sono-Tek Corporation (NASDAQ: SOTK), the leading developer and manufacturer of ultrasonic coating syst ...
Sono-Tek Announces Year-End FY 2024 Earnings Conference Call
globenewswire.com· 2024-05-20 11:00
Conference Call Dial-in Information To participate, please call 1-844-481-2752 at least 10 minutes prior to the start of the call and ask to join the Sono-Tek call. Webcast Information A simultaneous webcast of the call may be accessed through the Company's website, Events & Presentations | Sono-Tek, or at https://event.choruscall.com/mediaframe/webcast.html?webcastid=Msi7H3Uz MILTON, N.Y., May 20, 2024 (GLOBE NEWSWIRE) -- Sono-Tek Corporation (NASDAQ: SOTK), the leading developer and manufacturer of ultras ...
Sono-Tek (SOTK) - 2024 Q3 - Quarterly Report
2024-01-16 14:07
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: November 30, 2023 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) Identificatio ...
Sono-Tek (SOTK) - 2024 Q2 - Earnings Call Transcript
2023-10-12 17:41
Financial Data and Key Metrics - Net sales increased 50% YoY to $5.64 million in Q2 FY2024, up from $3.6 million in Q1 FY2024 [23] - Gross profit increased 48% YoY to $2.8 million, with a gross profit margin of 49.7%, slightly down from 50.4% in the prior year due to product mix [24] - Operating expenses increased 30% YoY to $2.2 million, driven by higher R&D, marketing, and administrative costs [25][26][27] - Operating income surged 218% YoY to $566,000, with operating margins improving to 10% from 5% in the prior year [28] - Net income was $541,000 or $0.03 per share, up from $162,000 or $0.01 per share in Q2 FY2023 [29] - Cash, cash equivalents, and marketable securities stood at $12.3 million as of August 31, 2023, with no debt on the balance sheet [30] Business Line Performance - Multi-axis coating systems sales grew 96% YoY to $2.9 million, driven by demand in clean energy and medical device markets [34] - Integrated coating systems sales doubled to $853,000, supported by the new Float Glass Coating platform [36] - Fluxing systems sales dipped due to tough comparisons with the previous year's strong sales of the SonoFlux X2 platform [37] - OEM sales were lower as partners built up excess inventory, but spare parts and service revenue grew 64% [38] - Service and spare parts revenue from large systems could reach 10%-15% of total order value, contributing to high-margin recurring revenue [39] Market Performance - Clean energy market sales grew 161% YoY, driven by large orders for carbon capture, green hydrogen, and fuel cell applications [40] - Medical device sales rebounded strongly with 117% growth, driven by large multinational companies adopting specialty implantable device coating systems [41] - Industrial sales grew 104% due to new generation systems, including a large float glass coating machine delivered to Latin America [41] - U.S. and Canada sales increased 94% YoY, benefiting from onshoring trends and government initiatives like the CHIPS Act and Inflation Reduction Act [42] - Asia-Pacific sales decreased 35%, primarily due to lower sales in China, though other regions in Asia remained strong [43] Strategic Direction and Industry Competition - The company's strategic shift to larger, complex systems has broadened its addressable market and increased average selling prices, with systems now commonly selling for over $300,000 and reaching up to $1 million or more [14][15] - Investments in R&D totaled $1.4 million in the first half of FY2024, up from $1 million in the year-ago period, supporting product expansion and market growth [20] - Headcount increased by approximately 10%, mainly in engineering, R&D, and sales, to support growth and expansion [20] - The company expects at least 25% YoY sales growth for FY2024, driven by shipments of delayed and new orders [22] Management Commentary on Operating Environment and Future Outlook - Management highlighted the early success of the strategy to shift to larger, more complex systems, with multiple and repeat orders driving growth [21] - The company is confident in its outlook, expecting to return to its pre-COVID growth path, supported by strong demand in clean energy, medical devices, and industrial markets [22] - The backlog reached a record high of $10.7 million, up 26% from six months ago, reflecting increasing order activity, particularly in the clean energy sector [16][44][47] Other Important Information - The company's proprietary ultrasonic coating technology remains central to its systems, with ongoing R&D efforts driving innovation and market expansion [19] - Customer deposits reached $3.4 million, reflecting the receipt of several large new orders, with deposits typically 50% or greater for orders over several hundred thousand dollars [48] Q&A Session Summary Question: EBITDA Comparison - EBITDA for Q2 FY2024 was approximately $994,000, calculated by adding back depreciation and amortization to income before taxes [72] Question: Quarterly Earnings Calls - Management is considering transitioning to quarterly earnings calls, as the current semi-annual format may not fully reflect the company's growth and counter-cyclical performance [73][75] Question: Gross Margin Outlook - Gross margins are expected to improve as the company optimizes costs for new products like the NovoCoat platform and benefits from operational leverage [78][82] Question: Capacity Utilization - The company has sufficient capacity to grow revenue to $25-$30 million within its existing facility, with potential to expand to $40-$45 million by relocating tenants [83][84] Question: Clean Energy and Medical Markets - Growth in clean energy and medical markets was driven by both delayed shipments and new orders, with a 50/50 split between the two [124] - Clean energy growth was primarily in fuel cells, carbon capture, and green hydrogen, while medical growth came from complex implantable device systems [125][128] Question: Backlog Composition - The backlog is heavily weighted towards the clean energy sector, with significant orders like the $2.19 million system and other high-value projects [135][138] - The backlog is split approximately 50/50 between shipments expected in FY2024 and FY2025 [140] Question: Solar Market Potential - The solar market has significant potential, with the company expecting revenue to exceed historical highs of $2-$3 million due to the shift to high-volume production systems [147][148]
Sono-Tek (SOTK) - 2024 Q2 - Quarterly Report
2023-10-12 12:18
Part I - Financial Information [Item 1 – Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201%20%E2%80%93%20Condensed%20Consolidated%20Financial%20Statements) This section presents Sono-Tek Corporation's unaudited condensed consolidated financial statements, showing increased assets, revenues, and net income [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Sono-Tek's total assets grew to **$21.65 million** by August 31, 2023, driven by marketable securities and inventories, with stockholders' equity also increasing Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | August 31, 2023 (Unaudited, in thousands) | February 28, 2023 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $3,454 | $3,355 | | Marketable securities | $8,862 | $8,090 | | Inventories | $4,008 | $3,243 | | Total current assets | $17,890 | $16,575 | | **Total Assets** | **$21,645** | **$20,175** | | **Liabilities & Equity** | | | | Customer deposits | $3,394 | $2,838 | | Total current liabilities | $6,322 | $5,458 | | Total liabilities | $6,322 | $5,541 | | Total stockholders' equity | $15,323 | $14,634 | | **Total Liabilities and Stockholders' Equity** | **$21,645** | **$20,175** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net sales for the three months ended August 31, 2023, surged **50%** to **$5.64 million**, significantly boosting net income, while six-month sales grew **18%** to **$9.24 million** Income Statement Summary - Three Months Ended August 31 | Metric | 2023 (USD) | 2022 (USD) | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $5,639,117 | $3,763,329 | +50% | | Gross Profit | $2,800,568 | $1,895,613 | +48% | | Operating Income | $565,858 | $177,578 | +219% | | Net Income | $541,273 | $162,123 | +234% | | Diluted EPS | $0.03 | $0.01 | +200% | Income Statement Summary - Six Months Ended August 31 | Metric | 2023 (USD) | 2022 (USD) | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $9,242,135 | $7,814,864 | +18% | | Gross Profit | $4,577,800 | $4,002,626 | +14% | | Operating Income | $474,242 | $558,103 | -15% | | Net Income | $594,679 | $467,759 | +27% | | Diluted EPS | $0.04 | $0.03 | +33% | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to **$1.11 million** for the six months ended August 31, 2023, despite **$1.01 million** used in investing activities, resulting in a **$99,656** cash increase Cash Flow Summary - Six Months Ended August 31 | Activity | 2023 (USD) | 2022 (USD) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $1,106,784 | $223,629 | | Net Cash (Used in) Investing Activities | ($1,007,128) | ($755,130) | | Net Increase (Decrease) in Cash | $99,656 | ($531,501) | | Cash and Cash Equivalents, End of Period | $3,454,257 | $4,309,057 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, revenue recognition, inventory, and sales concentrations, highlighting Multi-Axis Coating Systems as the largest revenue driver and **40%** foreign sales - Multi-Axis Coating Systems constituted the largest portion of sales, accounting for **51% of total revenue** for the six months ended August 31, 2023[44](index=44&type=chunk) - Inventories increased to **$4.01 million** at August 31, 2023, from **$3.24 million** at February 28, 2023, primarily due to increases in finished goods and work in process[45](index=45&type=chunk) - For the first half of fiscal 2024, sales to foreign customers were approximately **$3.68 million**, representing **40% of total revenues**, a decrease from **54%** in the same period of fiscal 2023[53](index=53&type=chunk) - One customer accounted for **14% of total sales** during the first half of fiscal 2024, and three customers accounted for **39% of outstanding accounts receivable** at August 31, 2023[54](index=54&type=chunk) [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=Item%202%20-%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting a **50%** Q2 FY2024 net sales increase, a record **$10.7 million** backlog, and increased R&D and sales investments to support growth - Net sales for Q2 FY2024 increased by **50% to $5.6 million**, driven by strong shipments to alternative/clean energy, medical, and industrial markets[66](index=66&type=chunk) - Backlog reached a record high of **$10.7 million** as of August 31, 2023, a **26% increase** from February 28, 2023, primarily due to growing orders from the clean energy sector[66](index=66&type=chunk) - The company has shifted its business from selling components to providing complete machine solutions, with some systems selling for over **$1,000,000**[64](index=64&type=chunk) [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Q2 FY2024 sales grew **50%** to **$5.64 million**, driven by Multi-Axis and Integrated Coating systems, while gross profit margin slightly decreased and operating expenses rose **19%** due to R&D and marketing investments Sales by Product Line - Six Months Ended August 31 | Product Line | 2023 Sales (USD) | 2022 Sales (USD) | Change (%) | | :--- | :--- | :--- | :--- | | Multi-Axis Coating Systems | $4,686,000 | $3,470,000 | +35% | | Integrated Coating Systems | $1,162,000 | $594,000 | +96% | | Spare Parts, Services and Other | $2,144,000 | $1,728,000 | +24% | | Fluxing Systems | $440,000 | $707,000 | -38% | | OEM Systems | $810,000 | $1,316,000 | -38% | Sales by Market - Six Months Ended August 31 | Market | 2023 Sales (USD) | 2022 Sales (USD) | Change (%) | | :--- | :--- | :--- | :--- | | Alternative/Clean Energy | $2,652,000 | $1,306,000 | +103% | | Industrial | $1,965,000 | $806,000 | +144% | | Electronics/Microelectronics | $2,351,000 | $3,010,000 | -22% | | Medical | $2,111,000 | $2,473,000 | -15% | - R&D costs for the first half of FY2024 increased by **41% to $1.45 million**, and the number of full-time R&D employees increased by approximately **40%** over the past twelve months[76](index=76&type=chunk)[78](index=78&type=chunk) [Liquidity and Capital Resources](index=19&type=section&id=Liquidity%20and%20Capital%20Resources) Working capital increased to **$11.57 million** by August 31, 2023, with total cash and marketable securities at **$12.3 million**, and operating cash flow significantly improved to **$1.11 million** Cash and Marketable Securities (in thousands) | Category | August 31, 2023 (in thousands) | February 28, 2023 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $3,454 | $3,355 | | Marketable securities | $8,862 | $8,090 | | **Total** | **$12,316** | **$11,445** | - Cash from operating activities was **$1,107,000** in the first half of fiscal 2024, compared to **$224,000** in the same period of fiscal 2023[93](index=93&type=chunk) - Stockholders' Equity increased by **$689,000** to **$15,323,000** at August 31, 2023, primarily due to net income of **$594,000**[92](index=92&type=chunk) [Critical Accounting Policies](index=20&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies, including Income Taxes and Stock-Based Compensation, require significant judgment and estimates, particularly for deferred tax assets and Black-Scholes model inputs - The company's critical accounting policies involve significant judgment and include Accounting for Income Taxes and Stock-Based Compensation[98](index=98&type=chunk) - The company uses the Black-Scholes option pricing model to calculate the fair value of stock options, which requires estimates for stock price volatility and option lives[100](index=100&type=chunk) [Item 3 – Quantitative and Qualitative Disclosures about Market Risk](index=21&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces no material foreign currency exchange rate risk due to US dollar transactions and considers interest rate risk on cash and marketable securities immaterial - The company does not believe it is subject to material foreign currency exchange rate risk because all sales transactions are conducted in US dollars[102](index=102&type=chunk) - Market rate risk from changing interest rates on the company's **$3.45 million** in cash and **$8.86 million** in marketable securities is not considered material[103](index=103&type=chunk) [Item 4 – Controls and Procedures](index=22&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) The CEO and CFO confirmed the effectiveness of disclosure controls and procedures as of August 31, 2023, with no material changes to internal controls during Q2 FY2024 - Based on an evaluation as of August 31, 2023, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[104](index=104&type=chunk) - No changes in internal controls over financial reporting occurred during the second fiscal quarter of 2024 that materially affected, or are likely to materially affect, these controls[105](index=105&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings requiring disclosure for the period - The company had no legal proceedings to report[108](index=108&type=chunk) [Item 1A. Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) There are no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended February 28, 2023 - There are no material changes from the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the year ended February 28, 2023[108](index=108&type=chunk)
Sono-Tek (SOTK) - 2024 Q1 - Quarterly Report
2023-07-13 13:13
For the quarterly period ended: May 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 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 Commission File No.: 000-16035 (Exact name of registrant as specified in its charter) (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) New York 14-156809 ...
Sono-Tek (SOTK) - 2023 Q4 - Earnings Call Transcript
2023-05-25 18:18
Financial Data and Key Metrics Changes - Total sales for fiscal 2023 decreased by 12% to $15.1 million, primarily due to delayed shipments from supply chain challenges [53][68] - Net income was $636,000 or $0.04 per share, down from $2.5 million or $0.16 per share in the prior fiscal year [64] - Cash, cash equivalents, and marketable securities increased to $11.4 million, up approximately $700,000 from the previous year [65] Business Line Data and Key Metrics Changes - Revenue from multi-axis coating systems declined by 32% to $6.8 million due to supply chain issues [69] - Fluxing sales increased by 71% to $1.2 million, driven by the adoption of the SonoFlux X2 platform [69] - Sales in the other product category grew by 29% to $3.8 million, mainly from high-value spare parts for existing machines [69] Market Data and Key Metrics Changes - Sales in the alternative energy, electronics, and medical markets decreased by 17%, 23%, and 15% respectively, due to reliance on multi-axis coating systems affected by supply chain delays [70] - Approximately 45% of sales originated in the U.S. and Canada, up from 32% in fiscal 2022, influenced by U.S. government investments in green energy [71] - APAC revenue decreased by 39%, attributed to reduced sales to China and the strong U.S. dollar making products more expensive in Japan and South Korea [71] Company Strategy and Development Direction - The company is focusing on moving into production and leveraging federal funding in clean energy, alongside enhancing pre and post-processing capabilities [11][58] - There is a strategic shift towards offering complete solutions rather than just components, broadening the addressable market [57] - The company aims to increase in-house production of components from 25% to 40% by year-end, with a long-term goal of 60% [61][150] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about revenue growth in fiscal 2024, anticipating a bubble of shipments from the backlog due to resolved supply chain issues [9][76] - The urgency from customers in the clean energy sector transitioning from R&D to high-volume production is noted as a significant driver for future orders [94] - Management does not foresee a return to previous lower shipment levels, expecting sustained growth due to increased demand in the clean energy sector [106] Other Important Information - The backlog increased by 60% to $8.5 million at fiscal year-end, reflecting delayed shipments of large orders [51][90] - Customer deposits more than doubled to $2.8 million, indicating strong order intake during fiscal 2023 [90] - The company plans to present at the LD Micro Conference in June 2023, marking its first attendance at this event [52] Q&A Session Summary Question: What is the nature of the current orders and their impact on revenue visibility? - Management confirmed that the terminology of multiphase programs indicates larger orders with higher average selling prices, enhancing revenue visibility [80][82] Question: How does the backlog relate to future revenue expectations? - The backlog of $8.5 million is expected to contribute significantly to fiscal 2024 revenue, with management anticipating strong order intake to replenish the backlog [129][126] Question: Are supply chain issues expected to normalize? - Management indicated that while supply chain challenges impacted fiscal 2023, they expect a revenue bubble in fiscal 2024, with continued growth driven by high ASP production systems [85][106] Question: What is the outlook for operating expenses in 2024? - Operating expenses are expected to remain steady, with continued emphasis on R&D and managing inflation in salaries [110][111] Question: Will inventory levels trend down in the future? - Management suggested that inventory levels may stabilize at a higher norm due to ongoing supply chain considerations [143]