Business
Sono-Tek Reports Record Backlog for First Quarter Fiscal 2024 and Provides Sales Guidance for Expected Growth in Second Quarter and Full Year of FY2024 as Supply Chain Issues Improve
MILTON, NY, July 13, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Sono-Tek Corporation (Nasdaq: SOTK), the leading developer and manufacturer of ultrasonic
About this update from Sono-tek Corporation
[{"type":"text","content":"MILTON, NY, July 13, 2023 (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 of fiscal year 2024, ended May 31, 2023. First Quarter Fiscal 2023 Highlights (compared with the first quarter of fiscal 2023 unless otherwise noted). The three-month periods ended May 31, 2023 and 2022 are referred to as the first quarter of fiscal 2024 and fiscal 2023, respectively. Net Sales were $3.6 million, a decrease of 11%, primarily driven by vendor delays which pushed out planned first quarter shipments into the second and third quarters of fiscal 2024.Gross Profit was $1.8 million, a decrease of 16% due to the decline in sales, the Gross Margin was 49.3%.As of May 31, 2023 the Company had $12.1 million in cash, cash equivalents and marketable securities and no outstanding debt.Backlog at May 31, 2023 was $9.96 million, a record high and a 17% increase from the preceding quarter, and a year-over-year increase of 135%. New high margin, production line, system orders for the green energy sector are contributing to the growth in backlog.Sales Guidance for the second quarter of FY2024, ending August 31, 2023, is for substantial sales growth as delayed orders have already begun shipping to customers.Sales Guidance for fiscal year 2024, ending February 29, 2024, anticipates sales to rebound strongly due to the record backlog and ongoing improvements of supply chain issues. “The first quarter of fiscal 2024 continued to be impacted by lingering supply chain issues, however, we’ve made significant progress improving the situation, which is expected to begin to positively impact shipments in the current fiscal quarter that began on June 1, 2023. This positive development is due to a combination of vendor initiatives and our own success increasing our internal vertical integration. “With these issues continuing to improve, we are moving aggressively forward with full production of the delayed systems that have the potential for multiple repeat orders this year. Our record backlog has grown to $9.96 million at quarter end from both delayed shipments to customers and the new orders that we’ve received. Since our fiscal year ended in February, backlog has grown 17% and is 135% higher than a year ago. Supporte...