Business
Sono-Tek Reports Strong Growth in Sales, Profitability and Backlog for Second Quarter Fiscal 2022; Expects Double-Digit Growth and Record Sales for FY 2022
Q2 Sales Up 17% and Q2 Net Income Up 93% Year-over-Year; Backlog up 64% from FYE MILTON, NY, Oct. 13, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Sono-Tek
About this update from Sono-tek Corporation
[{"type":"text","content":" Q2 Sales Up 17% and Q2 Net Income Up 93% Year-over-Year; Backlog up 64% from FYE MILTON, NY, Oct. 13, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Sono-Tek Corporation (NASDAQ: SOTK), the leading developer and manufacturer of ultrasonic coating systems, today reported financial results for the second quarter and first half periods of fiscal year 2022, ended August 31, 2021. Second Quarter FY2022 Financial Highlights: (Compared with prior-year period unless otherwise noted) Net sales were $4,070,000, up 17% or $589,000, driven by increased sales of OEM systems to the China market.Gross Profit increased 28% to $2,074,000 due to higher sales and product mix.Gross Margin expanded 440 basis points to 51.0% primarily due to product mix.Operating income increased 123% to $449,000, compared to $201,000.Net income was $344,000, an increase of 93%.Backlog reached a record high of $6,332,000, an increase of 45% compared with backlog of $4,380,000 on May 31, 2021 (the end of the fiscal Q1) and increased 64% compared to backlog of $3,851,000 on February 28, 2021 (the end of fiscal 2021).Uplisted to Nasdaq Capital Market on August 27, 2021. First Half Fiscal 2022 Highlights(Compared with prior-year period unless otherwise noted) Net Sales were $7,715,000, an increase of 12%, primarily driven by strength in the semiconductor and electronic diagnostic coating markets.Gross Profit increased 23% to $3,898,000 due to higher sales and product mix.Gross Margin expanded 440 basis points to 50.5% primarily due to product mix and lower than expected warranty and installation costs.Operating Income increased 105% to $791,000 due to increases in gross profit, partially offset by increases in operating expenses.Income before taxes increased 94% to $802,000, excluding the benefit from PPP loan forgiveness of $1.0 million.As of August 31, 2021, the Company had no outstanding debt. Guidance Sales Growth Guidance for the third and fourth quarters of FY2022 is for double digit increases over the comparable periods of last year. Sono-Tek continues to expect the highest annual sales in corporate history for fiscal year 2022, ending February 28, 2022. Dr. Christopher L. Coccio, Chairman and CEO, commented, “Sono-Tek had another strong performance in the second quarter of fiscal 2022. Net sales increased 17% with strength in multi-axis coating systems and the OEM...