Business
Sono-Tek Reports Second Quarter and First Half Fiscal 2023 Financial Results and Provides Fiscal 2023 Sales Guidance
-Company Expects Stronger Q4 and FY 2023 ending February 2023- -Conference Call Tuesday, October 18, 2022 at 10:00 am ET- MILTON, NY, Oct. 17, 2022 (GLOBE
About this update from Sono-tek Corporation
[{"type":"text","content":" -Company Expects Stronger Q4 and FY 2023 ending February 2023- -Conference Call Tuesday, October 18, 2022 at 10:00 am ET- MILTON, NY, Oct. 17, 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 second quarter and first half of fiscal year 2023, ended August 31, 2022. Second Quarter Fiscal 2023 Highlights (compared with the second quarter of fiscal 2022 unless otherwise noted). We refer to the three-month periods ended August 31, 2022 and 2021 as the second quarter of fiscal 2023 and fiscal 2022, respectively. Supply chain demand issues resulted in delayed shipments for a number of orders in the second quarter of fiscal 2023, many of which are now scheduled for shipment in the third quarter of fiscal 2023, including three large system orders totaling $319,000. As a consequence of these delayed shipments, net sales were $3,763,000, a decrease of $307,000 or 8%. Gross Profit decreased 9% to $1,896,000 due to lower sales and product mix.Gross Margin decreased 60 basis points to 50.4% due to product mix. Operating income decreased 60% to $178,000 primarily due to the decrease in gross profit combined with increases in operating expenses that are being driven by inflationary salary increases in the current competitive landscape required to attract and retain talent.Backlog on August 31, 2022 was $5,049,000, an increase of 19% compared with backlog of $4,230,000 on May 31, 2022 (the end of fiscal Q1), and decreased 5% compared to backlog of $5,325,000 on February 28, 2022. The quarter over quarter increase in backlog was impacted by growing order activity from the clean energy sector, including an order valued at $1.1 million that is the largest order from the sector to date, and also among the largest in Sono-Tek’s corporate history. Sono-Tek shipped its first roll-to-roll coating system in the second quarter of fiscal 2023 for the food packaging industry, the result of significant investments that the Company has made to integrate its ultrasonic coating systems with roll-to-roll product handling technology.Management currently anticipates that supply chain challenges will continue to impact deliveries in the third quarter of fiscal 2023, resulting in a decrease in revenue when compared to the ...