News

Sono-Tek Holds Annual Shareholders Meeting and Provides Sales Guidance for Remainder of Fiscal Year 2021

SmallCaps Daily August 21, 2020

206 3 minutes read

MILTON, N.Y. – (NewMediaWire) – August 20, 2020 – Sono-Tek Corporation (OTCQX: SOTK), the leading developer and
manufacturer of ultrasonic coating systems, today announced that it held its
Annual Shareholders Meeting on August 20, 2020 as a virtual meeting, due to the
coronavirus. The presenters safely gathered at the Company’s headquarters in
Milton, New York, and the presentation is available online at the Company’s
website, http://www.sono-tek.com/investor-relations/. The results of Fiscal
Year 2020, which ended on February 29, 2020, were discussed.

During the meeting, Dr.
Christopher L. Coccio, Chairman and CEO, highlighted the 2020 fiscal year
business performance which resulted in a more than 32% year-over-year increase
in sales to $15.3 million, and a seven fold increase in net income to over $1.1
million. Dr. Coccio also noted that the
recently reported fiscal first quarter of 2021 (March-May 2020), showed a 21%
increase in revenue over the fiscal 2020 first quarter. The Company also
expects to report revenue gains over last year’s second quarter, ending August
31st and to be reported in mid-October.

“Sono-Tek’s results this
fiscal year are benefitting from the long cycle backlog that was in place prior
to the impact of Covid-19. For the balance of the 2021 fiscal year, we expect a
slight softening of orders from some of our market segments due to the impact
of COVID-19. However, offsetting this, we disclosed the receipt of two major
orders in July 2020, totaling over $3 million, half of which is anticipated to
ship in fiscal year 2021. Sono-Tek has
also recently applied to up-list to the NASDAQ exchange which should provide
more liquidity for our common stock if our application is successful,”
concluded Dr. Coccio.

Steve Harshbarger,
Sono-Tek’s President, added, “Sono-Tek’s outlook remains bright. Although COVID-19 has resulted in several
orders being put on hold or delayed, our growth strategy to sell higher priced
full system solutions continues to be successful. Looking to the second half of the current
2021 fiscal year, we are projecting the third quarter to show modest
year-over-year growth and to finish FY2021 in a strong position.”

The Company’s slide show
presentation used at the annual meeting and a video presentation is available
on the Company’s website at http://www.sono-tek.com/investor-relations/.

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 Company’s 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-Tek’s growth
strategy is focused on leveraging its innovative technologies, proprietary
know-how, unique talent and experience, and global reach to further develop microscopic
coating technologies that enable better outcomes for its customers’ products
and processes.

For further information, visit
www.sono-tek.com.

Safe Harbor Statement

We discuss expectations
regarding our future performance, such as our business outlook, in our annual
and quarterly reports, press 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. 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 duration and scope
of the COVID-19 pandemic; the extent and duration of the pandemic’s 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, losses of revenue, and further
adverse effects to our supply chain; 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; 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. We undertake no obligation to update any
forward-looking statement.