Sono-Tek receives $1.12 million order from medical diagnostics client

Published 23/06/2025, 12:06
Sono-Tek receives $1.12 million order from medical diagnostics client

MILTON, N.Y. - Ultrasonic coating systems developer Sono-Tek Corporation (NASDAQ:SOTK), a $60 million market cap company with annual revenues of $20.5 million and healthy gross margins of 47.5%, announced Monday it has secured a $1.12 million order from a long-standing customer in the medical diagnostic testing industry. According to InvestingPro analysis, the company currently trades at a P/E ratio of 48.5x.

The order comes from a global manufacturer of medical diagnostic platforms that has worked with Sono-Tek for nearly ten years, previously purchasing over ten mid-size ultrasonic coating systems typically priced between $110,000 and $150,000 each.

This latest order represents a significant increase in value compared to previous purchases and includes a system designed for advanced automation and high-volume product handling. The equipment is scheduled for delivery and installation at the customer’s U.S. facility within the next year. InvestingPro data shows the company maintains strong financial health with a current ratio of 3.46, indicating robust liquidity to fulfill such orders.

"This order reflects our customer’s confidence in Sono-Tek’s expanding capabilities," said Steve Harshbarger, CEO and President of Sono-Tek, according to the company’s press release.

The new system is engineered to support sophisticated automation with reduced operator intervention for the production of diagnostic consumables.

Sono-Tek, founded in 1975 and currently celebrating its 50th year in business, specializes in ultrasonic coating technology that enables thin-film deposition for applications in medical devices, microelectronics, alternative energy, and industrial production.

The company stated that this order aligns with its strategy to deliver integrated coating platforms that meet the automation demands of high-volume manufacturing in innovation-driven industries. While InvestingPro analysis suggests the stock is slightly overvalued at current levels, investors can access detailed valuation metrics and 10 additional ProTips about Sono-Tek’s financial health and market performance through the comprehensive Pro Research Report, available exclusively to subscribers.

In other recent news, Sono-Tek Corporation reported its second quarter earnings for 2025, aligning with analysts’ expectations. The company achieved an earnings per share of $0.02 and revenue of $5.12 million, showcasing stable performance despite market challenges. Additionally, Sono-Tek’s net sales increased by 4% year-over-year, reaching $20.5 million, although its earnings per share slightly decreased from $0.09 to $0.08 compared to the previous year. The company maintains a strong cash position with $11.9 million in cash and equivalents and no debt, supporting its growth initiatives.

In boardroom developments, Sono-Tek announced the election of Kirk Warshaw to its Board of Directors, bringing extensive financial and management experience. Meanwhile, Philip Strasburg, a current board member, plans to resign at the next annual shareholders meeting. The company is also seeing significant sales growth in the U.S. and Canada, which offset declines in other regions.

Sono-Tek is focusing on high-growth sectors such as semiconductors and medical devices, with analysts expressing confidence in the company’s strategic direction. The firm continues to innovate, particularly in clean energy and medical applications, which could drive future growth. The company’s strategic initiatives and stable financial performance have been positively received by the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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