Wed, May 28, 1:08 PM (21 days ago)
**Sono-Tek Corporation (SOTK) Financial Summary** **Company Overview:** Sono-Tek Corporation is a leader in ultrasonic coating systems, serving microelectronics, medical, alternative energy, industrial, and emerging research markets. The company focuses on precision, thin film coatings to enhance functional properties and protect surfaces. **Financial Performance (Fiscal Year 2025):** - **Revenue:** $20.5 million, up 4% from $19.7 million in fiscal 2024. - **Gross Profit:** $9.74 million, down 1% from $9.84 million in fiscal 2024. - **Operating Income:** $1.01 million, down 15% from $1.20 million in fiscal 2024. - **Net Income:** $1.27 million, down 12% from $1.4 million in fiscal 2024. - **Earnings Per Share (EPS):** $0.08, down from $0.09 in fiscal 2024. - **Backlog:** $8.67 million, down 6.6% from $9.28 million in fiscal 2024. **Market and Geographic Diversity:** - **Sales Breakdown:** 61% from US/Canada, 39% from international markets. - **Product Categories:** Integrated Coating Systems increased 28%, Multi-Axis Systems grew 6%. - **End Markets:** Alternative/Clean Energy rose 64%, Industrial market declined 47%. **Operating Expenses:** - **Research and Development:** $2.72 million, down 6% from $2.89 million in fiscal 2024. - **Marketing and Selling:** $3.68 million, slightly down from $3.70 million in fiscal 2024. - **General and Administrative:** $2.33 million, up 12% from $2.08 million in fiscal 2024. **Financial Condition:** - **Cash and Cash Equivalents:** $5.20 million, up from $2.14 million in fiscal 2024. - **Marketable Securities:** $6.73 million, down from $9.71 million in fiscal 2024. - **Total Assets:** $23.41 million, up from $23.13 million in fiscal 2024. - **Total Liabilities:** $5.62 million, down from $6.85 million in fiscal 2024. - **Stockholders' Equity:** $17.79 million, up from $16.28 million in fiscal 2024. **Future Outlook:** Sono-Tek aims to advance ultrasonic coating technologies, enhance earnings power through lean manufacturing, and develop new technologies to solve customer challenges. The company plans to grow globally, increase earnings, and provide acceptable returns to shareholders. **Risk Factors:** - **Market Risks:** Dependence on a limited number of customers, supply chain disruptions, and economic conditions. - **Operational Risks:** Manufacturing disruptions, intellectual property protection, and regulatory compliance. - **Financial Risks:** Access to capital, currency exchange controls, and inflationary pressures. **Market Position:** Sono-Tek continues to expand its market presence, with a strong focus on innovation and customer satisfaction. The company's strategic initiatives include leveraging its core technology, enhancing product offerings, and expanding into new markets. **Changes in Market Position:** - **Sales Growth:** Driven by strong shipments to the Alternative/Clean Energy Market. - **Product Innovation:** Focus on integrated and multi-axis coating systems. - **Geographic Expansion:** Increased sales in the US/Canada region, offset by declines in other regions. **Strategic Overview:** Sono-Tek's strategy revolves around technological innovation, market expansion, and operational efficiency. The company is committed to maintaining its leadership position in the ultrasonic coating industry while exploring new opportunities for growth.