Sono-Tek Corporation ( (SOTK) ) has released its Q3 earnings. Here is a breakdown of the information Sono-Tek Corporation presented to its investors.
Sono-Tek Corporation is a leading manufacturer of ultrasonic coating systems, serving various industries such as microelectronics, alternative energy, and medical devices, with a focus on environmentally friendly and efficient solutions.
Sono-Tek Corporation recently reported its financial outcomes for the third quarter and the first nine months of fiscal 2025. The company achieved over $5 million in revenue for the third consecutive quarter, marking a 3% year-over-year growth in the first nine months. They have maintained a strong backlog of $10.6 million, with expectations for annual revenue exceeding $20 million.
Key financial metrics from the third quarter highlight a 9% decline in net sales compared to the same period last year, attributed to changes in sales dynamics across various markets. The gross profit percentage decreased to 45% from a previous 51%, due to a higher proportion of international sales and product mix adjustments. Despite these challenges, sales in the alternative/clean energy market grew significantly by 42%, while multi-axis coating systems saw a 20% increase in sales.
Operating income saw a steep decline of 73%, primarily due to decreased gross profit, while net income fell by 60% to $274,000. For the nine-month period, net sales increased by 3%, driven by sales of high ASP production systems. The company maintained a strong financial position with no outstanding debt and $12.7 million in cash and marketable securities.
Looking ahead, Sono-Tek is optimistic about continued growth, driven by strong customer demand and a robust backlog. The management anticipates record revenue for the full fiscal year 2025, buoyed by its strategic focus on high-value production systems and expanding market reach, particularly in the clean energy sector.