Sono-Tek secures $2.95 million clean energy order

MILTON, N.Y. - Sono-Tek Corporation (NASDAQ:SOTK), a developer and manufacturer of ultrasonic coating systems, has announced a $2.95 million order from an existing clean energy customer. The order, which mirrors a recent record order from the same client, includes four production-scale systems slated for delivery in fiscal 2026, commencing March 1, 2025.

The company's President and CEO, Steve Harshbarger, expressed enthusiasm about the repeat order, indicating the customer's trust in Sono-Tek's ultrasonic coating technology for clean energy applications. Harshbarger highlighted the demand for their systems, driven by increased funding in clean energy initiatives, which he anticipates will significantly contribute to the company's growth.

Sono-Tek's technology is used in a range of sectors, including microelectronics, medical devices, and industrial manufacturing, with a growing presence in the clean energy market. The company's systems play a role in advancing solar cells, fuel cells, and carbon capture technologies.

The corporation has a global distribution network and emphasizes the environmental benefits and efficiency of its products. Sono-Tek's strategy focuses on leveraging its proprietary technologies and global reach to develop thin film coating technologies that enhance customer outcomes.

This news is based on a press release statement and includes forward-looking statements that involve risks and uncertainties. Sono-Tek advises that actual results could materially differ due to various factors, including economic conditions, technological developments, and market demand for their products. The company maintains that it has no obligation to update any forward-looking statements.

In other recent news, Sono-Tek Corporation has hit a significant milestone by recording its largest order in company history, a $2.95 million sale, from an existing clean energy client. This order, which includes four production-scale systems, is part of a larger multi-system program with the client and is expected to ship in the first half of fiscal 2026. This is in addition to the four production-scale machines previously delivered in fiscal years 2024 and 2025, bringing the total to eight machines for the client.

In recent financial developments, Sono-Tek reported record-breaking revenue for the fourth quarter and full fiscal year of 2024. Sales grew by 31%, reaching $19.7 million, largely due to contributions from the microelectronics, medical devices, and alternative energy sectors. The company also saw a net income increase of 127% to $1.4 million and holds over $12 million in cash with no debt.

Analysts have noted a slight decrease in the gross profit margin due to increased expenses, and operating expenses rose by 24% as a result of increased headcount and salaries. However, Sono-Tek is projecting strong revenue growth in fiscal year 2025, expecting over 30% in Q1 and 8-10% year-over-year growth. These recent developments provide valuable insights for investors monitoring Sono-Tek's performance and growth trajectory.

InvestingPro Insights

As Sono-Tek Corporation (NASDAQ:SOTK) secures another substantial order from a key clean energy client, the financial metrics and market performance of the company provide valuable context for investors. With a market capitalization of $57.81 million, Sono-Tek is positioned as a small-cap company in the technology sector.

The company's commitment to ultrasonic coating systems for clean energy applications is reflected in its impressive revenue growth of 44.62% over the last twelve months as of Q1 2023, signaling strong demand for its innovative products.

Despite recent market challenges, Sono-Tek holds more cash than debt on its balance sheet, an InvestingPro Tip that suggests financial stability and resilience. This is particularly relevant for investors considering the company's capability to invest in growth opportunities and weather economic downturns. Furthermore, Sono-Tek has been trading near its 52-week low, which may present a potential entry point for investors who believe in the company's long-term prospects within the clean energy sector.

InvestingPro Tips also highlight that Sono-Tek is trading at a high earnings multiple, with a P/E ratio of 33.39. This indicates that the market has high expectations for the company's future earnings growth. However, it's important to note that the company's liquid assets exceed its short-term obligations, providing a cushion for operational needs.

For investors seeking more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/SOTK, which can offer further insights into Sono-Tek's financial health and market position.

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