Sono-Tek Corporation (SOTK) research, news, and more from GeoInvesting

Company description

Sun, 18 May 2008 04:00:00 GMT

Sono-Tek Corporation is a leading developer and manufacturer of liquid spray products based on its proprietary ultrasonic nozzle technology. Founded in 1975, the Company's products have long been recognized for their performance, quality, and reliability.

Research

Tue, 10 Oct 2017 17:37:40 GMT

SOTK ($1.35) manufactures, installs and services precision ultrasonic spraying systems for a myriad of industries and applications worldwide. On October 9, 2017 we stated this Tier One Pink was back on our radar due to bullish commentary from a late August 2017 press release :

“The Company's President, R. Stephen Harshbarger, described the current outlook for FY 2018, where the Company expects an increase in sales based on orders, backlog, and proposal activity. He introduced new additions to the senior management team who are expected to help the Company execute its future growth plans. He also described the Company's new product development efforts and related marketing outreach efforts. Since the meeting takes place just prior to the end of the second quarter of the Company's current fiscal year, he indicated that the guidance provided in the Company's last quarterly press release remains accurate and the Company expects second quarter sales of approximately $2,650,000, representing an increase over first quarter sales. Additionally, the Company anticipates sales to continue increasing in the second half of the year, and expects to achieve profitability for the Fiscal Year.”

Looking back at Q1 2018 results from July 2017:

Sales of $2.5 million vs $2.2 million in the prior year period
Operating income of $19,000 vs a loss of $140,000 in the prior year period
EPS of $0.00 vs $0.00

Management comments:

“The first quarter's increase represents a positive change in direction from last year's comparable quarter, where the Company experienced lower revenues due to global economic uncertainty. The Company's sales of certain printed circuit board fluxing equipment as well as medical device coating equipment led the way upward compared to the prior year's first quarter. Based on strong proposal activity and backlog, the Company expects to see a continued upward trend in revenues for the second quarter and likely beyond. The Company is experiencing strong customer interest and purchases of its more sophisticated robotic coating equipment for fuel cell and other advanced applications. Globally, Europe and Asia both seem much more energized in their spending than last year.”

It seems that the company focused on product launches in fiscal 2017 and early in fiscal 2018 that are all planned to contribute to fiscal 2018 growth.

Along with the above comments from the August press release, SOTK provided a investor presentation with its outlook for Q2 2018 and the second half of fiscal 2018 below are two snapshots from the presentation.

While the company mentions “profitable organic growth predicted” we need to interview management to determine at what level of revenues operating leverage could possibly kick in and begin boosting the bottom line results.

Another item that has caught our attention has been the recent 13G activity. On October 6, 2017 Emancipation Management filed a 13G/A showing it has added 805,000 shares since its last filing on May 2017. Emancipation Management now holds a 42.5% stake in the Company.

We also like the company’s clean capital structure with about $1.35m in interest bearing debt, 15m shares outstanding, and minimal dilution.

Caveats:

Q1 2018 net margins were 1%. As we stated above, we will interview management to see if the company can regain prior net margin levels of 4% to 5% which the company generated in fiscal 2017 and 2016 respectively.

Research

Mon, 09 Oct 2017 15:00:35 GMT

SOTK ($1.40) is one of our tier one pinks that we are are taking a closer look at. The Company offered the following bullish commentary from late August 2017 press release:

“The Company's President, R. Stephen Harshbarger, described the current outlook for FY 2018, where the Company expects an increase in sales based on orders, backlog, and proposal activity. He introduced new additions to the senior management team who are expected to help the Company execute its future growth plans. He also described the Company's new product development efforts and related marketing outreach efforts. Since the meeting takes place just prior to the end of the second quarter of the Company's current fiscal year, he indicated that the guidance provided in the Company's last quarterly press release remains accurate and the Company expects second quarter sales of approximately $2,650,000, representing an increase over first quarter sales. Additionally, the Company anticipates sales to continue increasing in the second half of the year, and expects to achieve profitability for the Fiscal Year.”

SOTK manufactures, installs and services precision ultrasonic spraying systems for a myriad of industries and applications worldwide.

Comments & Business Outlook

Tue, 15 Oct 2013 04:00:00 GMT

Second Quarter Fiscal 2013 Results

The company reported sales of $2.5 million, compared to sales of $2.4 million for the prior year period.
The company reported EPS of $0.01, compared to EPS of $0.00for the prior year period.

Dr. Christopher L. Coccio, Sono-Tek's Chairman and CEO, stated that, "We are pleased to see that there appears to be a continuing strengthening of our business, as viewed from the quarter to quarter proposal backlog, and sales activity that we are experiencing. At our Annual Shareholders Meeting on August 22, 2013, we announced our current year targets at double digit sales growth versus last year, combined with net income in the $500,000 - $1,000,000 range. A video version of the Shareholders Meeting presentation is available on our website at http://www.sono-tek.com/investor-relations/".

Research

Sat, 19 Dec 2009 05:00:00 GMT

The GeoTeam® will track the Sono Tek story due to recent developments that the Company hopes will reverse recent losses.

Communicates a goal of bringing the business back to a profitable mode again.
Sono-Tek Announces Largest Ever Quarterly sales of just under $2,000,000 for the third quarter which ended November 30, 2009, compared to sales of $1,582,000 for the prior year period.
Expects to report a significant increase in net income to match the sales increase experienced in the third quarter.
Expects the fiscal year ending on February 28, 2010 to show both double digit sales growth over last year and a profit
Strong sales backlog two weeks into its fourth quarter.

Source: PR Newswire (December 17, 2009)