Business
Sono-Tek Reports Third Quarter and Nine Month Fiscal 2023 Financial Results and Provides Fiscal 2023 and Fiscal 2024 Revenue Guidance
- Supply Chain Delays Impact Current Sales, Backlog up 14% from Start of Fiscal Year, Projects Double Digit Revenue Growth in FY2024 - - Received 2nd $1.1M
About this update from Sono-tek Corporation
[{"type":"text","content":"- Supply Chain Delays Impact Current Sales, Backlog up 14% from Start of Fiscal Year, Projects Double Digit Revenue Growth in FY2024 - - Received 2nd $1.1M Order from Clean Energy Sector Subsequent to Quarter End - MILTON, NY, Jan. 17, 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 third quarter and first nine months of fiscal year 2023, ended November 30, 2022. Third Quarter Fiscal 2023 Highlights (compared with the third quarter of fiscal 2022 unless otherwise noted). The three-month periods ended November 30, 2022 and 2021 are referred to as the third quarter of fiscal 2023 and fiscal 2022, respectively. Net sales were $3,586,000, a decrease of $883,000 or 19%, a result of supply chain challenges which included the delayed shipment of five machines with a value of $487,000. Net sales declined by 5% sequentially from $3,763,000 reported in the second quarter of fiscal 2023.Gross Profit was $1,824,000, a decrease of $335,000 or 16%, due to the sales decrease, partially offset by a favorable product mix which caused the gross margin to increase 200 basis points to 51%.Operating Expenses increased 3% to $1,721,000, led by a 25% increase in research and development expenditures to $520,000.Operating Income and Income Before Taxes were $103,000 and $133,000 respectively, as a result of lower Gross Profit and increased Operating Expenses.Backlog increased 14% to $6,223,000 on November 30, 2022 compared to backlog of $5,325,000 on February 28, 2022 (the end of fiscal year 2022), and increased 23% from the $5,049,000 backlog at August 31, 2022 (the end of the second quarter of 2023). First Nine Months Fiscal 2023 Highlights (compared with the first nine months of fiscal 2022 unless otherwise noted). The nine-month periods ended November 30, 2022 and 2021 are referred to as the first nine months of fiscal 2023 and fiscal 2022, respectively. Net Sales were $11,401,000, a decrease of $733,000 or 6%, due to a number of delayed shipments resulting from supply chain disruptions, and a dip in sales to Asia from the impact of the strong US dollar on Sono-Tek’s regional customers.Gross Profit was $5,827,000, a decrease of $230,000 or 4%, due to the decrease in revenue, partially offset by a favorable ...