MILTON, N.Y., July 11, 2024 (GLOBE NEWSWIRE) -- 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 2025, ended May 31, 2024. First Quarter FY2025 Financial Highlights: (Compared with prior-year period unless otherwise noted) Net Sales for the quarter increased 40% to $5,031,000 compared to $3,603,000 in the prior year period, driven by strong shipments to the Medical and Alternative/Clean Energy markets. Gross Profit increased 38% to $2,454,000 compared to $1,777,000 in the prior year period. Operating Income increased $330,000 to $238,000, from an operating loss of $92,000 at May 31, 2023. The increase is due to the current period's increase in gross profit partially offset by an increase in operating expenses. Gross Margin decreased slightly to 48.8% compared to 49.3% in the prior year period due to a realignment of organizational framework that started in Q4 FY2024 but remains strong and within its historical range. Income before taxes was $391,000 compared to $32,000 in the prior year period. Net income was $331,000, or $0.02 per share, compared with $53,000 or $0.00 per share, an increase of 525% Cash, cash equivalents and marketable securities at quarter-end were $12.2 million, an increase of $0.3 million from February 29, 2024 with no outstanding debt. Combined Equipment and service-related backlog at May 31, 2024 was $7.83 million, compared to equipment and service-related backlog of $9.28 million at February 29, 2024. Sales growth guidance for the second quarter of FY2025, ending August 31, 2024, is for growth of 2%-5% above the first quarter ended May 31, 2024 and for continued sales growth for the full fiscal year over the last fiscal year. "Sono-Tek began its fiscal year with strong sales momentum and is looking forward to an excellent year with increasing orders in green energy systems combined with strength in the medical device coating market and the semiconductor/electronics markets. We are aggressively moving forward with full production systems with the potential for multiple repeat orders this year," according to Dr. Christopher L Coccio, Executive Chairman. Steve Harshbarger, CEO & President of Sono-Tek, remarked, "Our growth strategies are continuing to gain momentum as our customers move from R&D and pilot machines to our complex large-scale production systems with significantly higher Average Selling Prices (ASP). We remain excited about our prospects for attracting additional high-volume, high-ASP production system orders in fiscal year 2025. Due to the increased frequency of high ASP large platform machine orders, our revenue can be highly variable from quarter to quarter resulting in large fluctuations in backlog. With our strong sales momentum bolstered by our solid balance sheet, we remain focused on continued execution and look forward to building on our record revenues." First Quarter Fiscal 2025 Results   Three Months Ended May 31, Change     2024     2023     $   % Net Sales $ 5,031,000   $ 3,603,000     1,428,000   40 % Gross Profit   2,454,000     1,777,000     677,000   38 % Gross Margin   48.8%     49.3%                                   Operating Income $ 238,000   $ (92,000)     330,000   359 % Operating Margin   4.7%     (2.6%)                                 Net Income $ 331,000   $ 53,000     278,000   525 % Net Margin   6.6%     1.5%           Basic Earnings Per Share $ 0.02   $ 0.00           Diluted Earnings Per Share $ 0.02   $ 0.00           Weighted Average Shares -Basic   15,751,000     15,742,000           Weighted Average Shares - Diluted   15,774,000     15,769,000                                 First Quarter FY2025 Financial Overview Net Sales for the quarter increased 40% to $5,031,000 compared to $3,603,000 in the prior year period, driven by strong shipments to the Medical and Alternative/Clean Energy markets. In the first quarter of fiscal 2025, approximately 39% of sales originated outside of the United States and Canada compared with 34% in the prior year period. Equipment related backlog at May 31, 2024 was $7.69 million, compared to backlog of $9.08 million at February 29, 2024, a decrease of $1.39 million or 15.4%. Combined equipment and service-related backlog at May 31, 2024 was $7.83 million, compared to equipment and service related backlog of $9.28 million at February 29, 2024, a decrease of $1.5 million or 16%. Gross Profit increased 38% to $2,454,000 compared to $1,777,000 in the prior year period. Gross profit margin decreased 50 basis points to 48.8% in the first quarter of fiscal 2025 compared to 49.3% in the prior year period due to product mix changes and recharacterization of expenses associated with evolving workforce roles, as successful development initiatives transition toward mainstream manufacturing. Operating income increased to $238,000 in the first quarter of fiscal 2025 compared to an operating loss of $92,000 for the prior year period, an increase of $330,000 or 359%. The increase in operating income is a result of the improvement in gross profit of $677,000, offset by an increase in operating expenses of $347,000. Net income for the first quarter was $331,000, or $0.02 per share, compared with net income of $53,000 or $0.00 per share, for the prior year period, an increase of 525%. Diluted weighted average shares outstanding totaled 15,774,376 compared to 15,769,442 for the prior year period. Balance Sheet and Cash Flow Overview Cash, cash equivalents and marketable securities at quarter-end were $12.2 million, an increase of $0.3 million from February 29, 2024, the end of fiscal year 2024. The increase was the result of the current period's net income and non-cash charges partially offset by an increase in inventories and a decrease in payables and customer deposits. Capital expenditures in the first quarter totaled $33,000 which were directed to ongoing upgrades to the Company's manufacturing facilities. Sono-Tek anticipates total capital expenditures will be approximately $300,000 - $350,000 in fiscal 2025. At May 31, 2024, Sono-Tek had no debt on its balance sheet. About Sono-Tek Sono-Tek Corporation is a global leader in the design and manufacture of ultrasonic coating systems that are shaping industries and driving innovation worldwide. Our ultrasonic coating systems are used to apply thin films onto parts used in diverse industries including microelectronics, alternative energy, medical devices, advanced industrial manufacturing, and research and development sectors worldwide. Sono-Tek's bold venture into the clean energy sector is showing transformative results in next-gen solar cells, fuel cells, green hydrogen generation, and carbon capture applications as we shape a sustainable future.  Our product line is rapidly evolving, transitioning from R&D to high-volume production machines with significantly higher average selling prices, showcasing our market leadership and adaptability. Our comprehensive suite of thin film coating solutions and application consulting services ensures unparalleled results for our clients and helps some of the world's most promising companies achieve technological breakthroughs and bring them to the market. The Company strategically delivers its products to customers through a network of direct sales personnel, carefully chosen independent distributors, and experienced sales representatives, ensuring efficient market reach across diverse sectors around the globe. The Company's solutions are environmentally friendly, efficient and highly reliable, and enable dramatic reductions in overspray, savings in raw material, water and energy usage and provide improved process repeatability, transfer efficiency, high uniformity and reduced emissions. Sono-Tek's growth strategy is focused on leveraging its innovative technologies, proprietary know-how, unique talent and experience, and global reach to further develop thin film coating technologies that enable better outcomes for its customers' products and processes. For further information, visit www.sono-tek.com. Safe Harbor Statement This news release contains forward looking statements regarding future events and the future performance of Sono-Tek Corporation that involve risks and uncertainties that could cause actual results to differ materially. These "forward-looking statements' are based on currently available competitive, financial and economic data and our operating plans. They are inherently uncertain, and investors must recognize that events could turn out to be significantly different from our expectations and could cause actual results to differ materially. These factors include, among other considerations, general economic and business conditions, including political, regulatory, tax, competitive and technological developments affecting our operations or the demand for our products; inflationary and supply chain pressures; the recovery of the Electronics/Microelectronics and Medical markets; rebound of sales to the industrial market in the second quarter of fiscal year 2025; maintenance of order backlog; the imposition of tariffs; timely development and market acceptance of new products and continued customer validation of our coating technologies; adequacy of financing; capacity additions, the ability to enforce patents; maintenance of operating leverage; consummation of order proposals; completion of large orders on schedule and on budget; continued sales growth in the medical and alternative energy markets; successful transition from primarily selling ultrasonic nozzles and components to a more complex business providing complete machine solutions and higher value subsystems; and realization of quarterly and annual revenues within the forecasted range of sales guidance. We undertake no obligation to update any forward-looking statement. For more information: Sono-Tek Corp.Stephen J. BagleyChief Financial OfficerPh: (845) Investor Relations:Kirin SmithPCG AdvisoryPh: (646) http://www.sono-tek.com FINANCIAL TABLES FOLLOW   SONO-TEK CORPORATIONCONDENSED CONSOLIDATED BALANCE SHEETS       May 31, 2024     February 29,       (Unaudited)     2024   ASSETS                 Current Assets:                 Cash and cash equivalents   $ 2,402,007     $ 2,134,786   Marketable securities     9,749,483       9,711,351   Accounts receivable (less allowance of $12,225)     1,401,582       1,470,711   Inventories     5,479,368       5,221,980   Prepaid expenses and other current assets     148,603       207,738   Total current assets     19,181,043       18,746,566                     Land     250,000       250,000   Buildings, equipment, furnishings and leasehold improvements, net     2,709,183       2,832,156   Intangible assets, net     45,020