Sono-Tek Announces Financial Results for Fiscal Year 2023; Positive Net Sales Growth Expected for Fiscal Year 2024


-Backlog at February 28, 2023 Increased 60% to $8.5M Year Over Year; First Year with Several $1+Million Orders –


-Conference Call on Thursday, May 25, 2023 at 10:00am EST-


MILTON, NY – (NewMediaWire) – May 25, 2023 – 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 2023, ended February 28, 2023 (fiscal 2023”).

Fiscal Year 2023 Highlights

      Backlog at February 28, 2023, was $8.5 million, a record high and a 60% increase compared to backlog at February 28, 2022, (fiscal 2022″). The large increase in backlog resulted from the receipt of several large orders from the clean energy sector during the year. These orders have high average selling prices and longer than typical delivery lead times, which is often necessary for customized production scale, complex coating systems.

      Net sales were $15.1 million, a 12% decrease, compared to $17.1 million in fiscal 2022.  The decline was primarily due to supply chain challenges which delayed the receipt of necessary parts to complete several customer shipments. 

      Gross profit decreased 11% to $7.7 million for fiscal year 2023 compared with $8.6 million for fiscal year 2022.  The gross profit margin increased to 50.8% compared to 50.3% for fiscal 2022. The increase was driven by increased efficiencies and a favorable product mix.

      Operating income decreased to $683,000 or 64% in fiscal 2023when compared to fiscal 2022, due to the current periods decrease in gross profit.

      Net income was $636,000 compared to $2.5 million in fiscal 2022, primarily due to decreases in operating income and income tax expense combined with PPP Loan forgiveness recorded in the prior year.

      Cash, cash equivalents and marketable securities totaled $11.4 million at February 28, 2023, the highest level ever, while the Company continues to have no debt.

      For the first quarter of fiscal 2024, ending May 31, 2023, net sales are expected to be slightly below net sales of $3.7 million recorded in the fourth quarter of fiscal 2023 due to remaining supply chain issues.

      Fiscal year 2024 net sales are projected to post positive growth, as remaining supply chain issues ease and shipments of orders from yearend backlog, including high margin multi-axis systems, resume. Sono-Tek expects to begin shipping the large supply chain-constrained orders from backlog beginning in the second quarter of fiscal 2024, which begins on June 1, 2023.


Dr. Christopher L. Coccio, Chairman and CEO of Sono-Tek, commented, Sono-Tek had a good year in fiscal 2023 with net sales of $15.1 million, 12% lower than last year, despite challenges from supply chain issues that many manufacturers experienced.. In addition to our traditional markets, weve continued to focus on integrating and servicing our products in three main target sectors that each have a strong global growth outlook: Microelectronics and Semiconductors, Clean Energy including fuel cells, solar, and carbon capture, and Medical Devices. Growth in all three of these areas is being driven by growing demand stemming from long term societal needs, and they all benefit from Sono-Teks unique thin film coating technology and systems.”

In fact, we recently received two major orders subsequent to fiscal year end that are expected to be just the first parts of large multi-system orders going forward. One order is for over $600,000 in the clean energy sector and is the first production level follow-up to an earlier R&D system sale. Multiple additional orders are expected once this first production system is in place, due to a large backlog for the customers products. The second order is in the Medical sector, and is also expected to be the first of up to a dozen  large coating systems for a novel in-body cardiac application that has great potential. Earlier in the year, we were excited to announce our first two orders of over $1 million each in the clean energy sector.”

In addition, sales of circuit board fluxing equipment, one of our traditional markets, were strong from the recent introduction of a new platform, and spare parts sales also contributed to our successful year, in part due to more in-house vertical integration that has been put in place to avoid additional supplier problems. We intend to expand vertical integration into other areas as well, particularly in those markets that hampered us in reaching all of our quarterly goals in fiscal 2023.”

Looking ahead, we believe that strong demand will continue for our leading edge products which, when combined with our record backlog, gives us confidence to project positive sales growth beginning with the second quarter of our new fiscal year,” concluded Dr. Coccio.


Fiscal Year 2023 Review (Results compared with fiscal 2022)


Fourth Quarter Fiscal 2023 Review (Results compared with the fourth quarter of fiscal 2022)


Fiscal Year 2023 Financial Overview

Net sales in fiscal year 2023 were $15.1 million compared to $17.1 million in fiscal year 2022.

By product, revenue from multi-axis coating systems declined 32% to $6.8 million due to lingering supply chain challenges, which resulted in delayed shipment schedules for several large system orders and are reflected in the year end fiscal 2023 backlog.  Fluxing Systems sales increased 71% to $1.2 million, from the continued adoption of the Companys recently updated spray fluxing platform, SonoFlux X2, which continues to be implemented with several large PCB contract manufacturers. Sales in the Other” product category increased by 29% to $3.8 million, primarily due to increased sales of high value spare parts packages to support the Companys high average selling price multi-axis machines already in the field.

By market, revenue from the Alternative Energy, Electronics, and Medical markets decreased by 17%, 23%, and 15% respectively, as large portions of all these markets use Sono-Teks multi-axis systems, which experienced delayed deliveries due to supply chain challenges, shifting the shipment of several planned orders from fiscal 2023 into fiscal 2024.  The industrial market grew by 131% due to the shipment of 71% of a large multi-system order in fiscal 2023. The remaining 29% of the order is scheduled for shipment in the first quarter of fiscal 2024.  

Geographically, in fiscal 2023, approximately 45% of sales originated in the U.S. and Canada compared to 32% in fiscal 2022.  The shift was positively impacted by several U.S. Government initiatives to invest in the green energy sector and advanced research markets. APAC revenue decreased by (39%) in fiscal 2023, impacted by reduced sales in China due to several China-based manufacturing sites moving operations back to the U.S. and Mexico. In addition, the currently strong U.S. dollar (USD) has temporarily made Sono-Tek products more expensive in Japan and South Korea, resulting in several delayed purchases. 

Backlog at February 28, 2023 was $8.5 million compared to $5.3 million at February 28, 2022, an increase of 60%. This growth is attributed to the Companys successful strategies for product line and system sales expansion with further customization and automation, which delivers increased value to customers, and higher average selling prices to Sono-Tek.

Gross profit was $7.7 million compared with $8.6 million for fiscal year 2022, a decrease of 11%.  The gross profit margin increased from 50% to 51%, from the previous fiscal year.  The increase was driven by increased efficiencies and a favorable product mix.

Operating income was $683,000 compared to $1.9 million for the prior fiscal year primarily due to the current periods decrease in gross profit. The operating margin for fiscal 2023 was 5% compared with 11% in the prior fiscal year.

Net income was $636,000, or $0.04 per share, compared with $2.5 million, or $0.16 per share, in fiscal 2022, a decrease of $1.9 million or 74%. The decrease in net income in fiscal 2023 is a result of a decrease in operating income and income tax expense combined with the PPP Loan forgiveness recorded in the prior year.

Balance Sheet and Cash Flow Overview

Cash, cash equivalents and marketable securities at February 28, 2023 were $11.4 million compared to $10.7 million, at February 28, 2022, the end of fiscal year 2022.  At February 28, 2023, the Company had no debt on its balance sheet.

Capital expenditures for ongoing upgrades of the Companys manufacturing and development lab facilities totaled $0.6 million in fiscal year 2023.

Conference Call Information

Sono-Tek will hold a conference call to discuss its fourth quarter and fiscal year 2023 financial results today, Thursday, May 25, 2023 at 10:00 am EST.

To participate, please call 1 (877) 270-2148 at least 10 minutes prior to the start of the call and ask to join the Sono-Tek call.

A simultaneous webcast of the call may be accessed through the Company’s website at Events & Presentations | Sono-Tek or at

A replay of the call will be available at 1 (877) 344-7529, access code #3465454, through June 1, 2023.

About Sono-Tek

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.

The Companys solutions are environmentally-friendly, efficient and highly reliable, and enable dramatic reductions in overspray, savings in raw material, water and energy usage and provide improved process repeatability, transfer efficiency, high uniformity and reduced emissions.

Sono-Teks growth strategy is focused on leveraging its innovative technologies, proprietary know-how, unique talent and experience, and global reach to further develop thin film coating technologies that enable better outcomes for its customersproducts and processes.  For further information, visit

Safe Harbor Statement

We discuss expectations regarding our future performance, such as our business outlook, in our annual and quarterly reports, news releases, and other written and oral statements. These forward-looking statements” are based on currently available competitive, financial and economic data and our operating plans. They are inherently uncertain, and investors must recognize that events could turn out to be significantly different from our expectations and could cause actual results to differ materially. These factors include, among other considerations, general economic and business conditions; political, regulatory, tax, competitive and technological developments affecting our operations or the demand for our products; the effects of inflation; easing of supply chain pressures that have impacted on the timely procurement of raw materials and delivery of systems and products; the continued abatement of the COVID-19 pandemic; the extent and duration of the pandemics adverse effect on economic and social activity, consumer confidence, discretionary spending and preferences, labor and healthcare costs, and unemployment rates, any of which may reduce demand for some of our products and impair the ability of those with whom we do business to satisfy their obligations to us; our ability to sell and provide our services and products, including as a result of continued pandemic related travel restrictions, mandatory business closures, and stay-at home or similar orders; any temporary reduction in our workforce, closures of our offices and facilities and our ability to adequately staff and maintain our operations resulting from the pandemic; the ability of our customers and suppliers to continue their operations as result of the pandemic, which could result in terminations of contracts, and losses of revenue; the recovery of the Electronics/Microelectronics and Medical markets following COVID-19 related slowdowns; maintenance of increased order backlog, including effects of any COVID-19 related cancellations; the imposition of tariffs; timely development and market acceptance of new products and continued customer validation of our coating technologies; adequacy of financing; capacity additions, the ability to enforce patents; maintenance of operating leverage; consummation of order proposals; completion of large orders on schedule and on budget; continued sales growth in the microelectronics, medical and alternative energy markets, including expected multi-system sales to existing customers; effective implementation of increased in-home vertical integration; successful transition from primarily selling ultrasonic nozzles and components to a more complex business providing complete machine solutions and higher value subsystems; and realization of quarterly and annual revenues within the forecasted range of sales guidance.

We undertake no obligation to update any forward-looking statement.

For more information, contact:

Sono-Tek Corp.

Stephen J. Bagley

Chief Financial Officer

Ph: (845) 795-2020

Investor Relations:


Stephanie Prince

PCG Advisory

Ph: (646) 863-6341


– Tables Follow –



    February 28,
    February 28,
Current Assets:                
Cash and cash equivalents   $ 3,354,601     $ 4,840,558  
Marketable securities     8,090,000       5,867,990  
Accounts receivable (less allowance of $12,225 and 56,123, respectively)     1,633,866       1,092,505  
Inventories     3,242,909       2,373,242  
Prepaid expenses and other current assets     254,046       323,304  
Total current assets     16,575,422       14,497,599  
Land     250,000       250,000  
Buildings, equipment, furnishings and leasehold improvements, net     2,624,996       2,561,184  
Intangible assets, net     57,202       76,015  
Deferred tax asset     667,098       240,736  
TOTAL ASSETS   $ 20,174,718     $ 17,625,534  
Current Liabilities:                
Accounts payable   $ 810,863     $ 684,511  
Accrued expenses     1,427,446       1,804,028  
Customer deposits     2,838,165       1,167,968  
Income taxes payable     381,421       58,874  
Total current liabilities     5,457,895       3,715,381  
Deferred tax liability     82,865       168,840  
Total Liabilities     5,540,760       3,884,221  
Commitments and Contingencies (Note 13)                
Stockholders’ Equity                
Common stock, $.01 par value; 25,000,000 shares authorized, 15,742,073 and 15,729,175 issued and outstanding as February 28, 2023, and 2022, respectively     157,421       157,292  
Additional paid-in capital     9,566,898       9,310,287  
Accumulated earnings     4,909,639       4,273,734  
Total stockholders’ equity     14,633,958       13,741,313  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 20,174,718     $ 17,625,534  

See accompanying notes to consolidated financial statements.



See accompanying notes to consolidated financial statements.


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