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Sono-Tek Reports Third Quarter and Nine Months Fiscal 2025 Financial Results
SOTKSono-Tek (SOTK) GlobeNewswire·2025-01-13 12:00

Core Insights - Sono-Tek Corporation reported its third consecutive quarter of revenue exceeding 5million,withayear−over−yearrevenuegrowthof35 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 20millionwithcontinuedprofitability[2][4]FinancialPerformance−Forthethirdquarteroffiscal2025,netsaleswere20 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 5.69millioninthesamequarteroffiscal2024[5][8]−Grossprofitforthethirdquarterwas5.69 million in the same quarter of fiscal 2024 [5][8] - Gross profit for the third quarter was 2.34 million, down 20% from 2.93millionintheprioryear,resultinginagrossprofitmarginof452.93 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,reflectingthedeclineinrevenueandgrossprofit[5][17]MarketandProductInsights−SalestotheAlternative/CleanEnergymarketgrewby42274,000, 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 3.56million,contributingsignificantlytorevenue[9][30]−SalesintheElectronics,Medical,andIndustrialmarketssawdeclinesof263.56 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]