Business
Sono-Tek Reports Increased Sales and Operating Income for First Quarter Fiscal 2023 and Provides Second Quarter and Fiscal 2023 Sales Guidance
Sales of $4.05M, up 11% and Gross Profit of $2.11M, up 16% Year-over-Year MILTON, NY, July 18, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Sono-Tek
About this update from Sono-tek Corporation
[{"type":"text","content":"Sales of $4.05M, up 11% and Gross Profit of $2.11M, up 16% Year-over-Year MILTON, NY, July 18, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Sono-Tek Corporation (Nasdaq: SOTK), the leading developer and manufacturer of ultrasonic coating systems, today reported financial results for its first quarter period of fiscal year 2023, ended May 31, 2022. First Quarter FY2023 Financial Highlights: (Compared with prior-year period unless otherwise noted) Net Sales were $4,052,000, an increase of 11%, primarily driven by strength in the medical, alternative energy and emerging R&D markets. Gross Profit increased 16% to $2,107,000 due to the increase in sales and a favorable product mix. Gross Margin expanded 200 basis points to 52.0% primarily due to a favorable product mix. Net income increased 17% to $306,000, excluding PPP Loan forgiveness of $1,005,000 in the prior year period. As of May 31, 2022, Sono-Tek had $11.1 million in cash, cash equivalents and marketable securities and no outstanding debt. Backlog at May 31, 2022 was $4.2 million, even with the prior year’s quarter, and down from $5.3 million at February 28, 2022, the end of Sono-Tek’s last fiscal year. The decrease reflects the shipments of $2.2 million of orders during the first quarter that were included in backlog at February 28, 2022. Sono-Tek continues to expect another record for revenue in fiscal year 2023, ending February 28, 2023, barring significant changes in the economic environment. Dr. Christopher L. Coccio, Chairman and CEO, commented, “In the first quarter of fiscal 2023 Sono-Tek’s net sales increased 11% driven by strong demand from our key target markets of semiconductors, medical and alternative energy. In the medical market, sales more than doubled year-over-year and accounted for 41% of the first quarter’s total sales. These sales, to four separate medical-related customers, demonstrate the wide applicability of our ultrasonic coating systems with applications that range across implantable medical textiles, orthodontic devices, glucose monitoring implants, and implantable cardiac devices. A favorable sales mix and the higher revenue resulted in strong profitability in the quarter and a 52% gross profit margin, one of our highest ever. Operating expenses were also higher reflecting increased investments in research and product development directed at our ...