MILTON, NY – Sono-Tek reported fiscal third quarter 2020 sales of $3.67 million, up 16% year-over-year.

The company’s sales growth was particularly strong in the medical market, which increased 68%, and the electronics/microelectronics market, up 7%.

In the fiscal third quarter, approximately 65% of sales originated outside of the US and Canada, compared with 62% in the prior-year period.

For the quarter ended Nov. 30, net income was $280,000, compared to $20,000 in the same period in the prior year.

Operating income was $270,000 in the fiscal third quarter, up from $50,000 in the fiscal third quarter of 2019.

“For the third quarter, Sono-Tek reported another record-breaking quarter and achieved new highs in sales, backlog, margins and net income,” said chairman and CEO Christopher L. Coccio, Ph.D. “These gains stem from the strategic shift in our business model that we initiated several years ago, expanding our product line to provide higher value complete machine solutions and larger subsystems to original equipment manufacturers. These product advancements are supported by a high level of application engineering expertise from our specialized staff, in combination with customer requirements that are proven out in our globally located process development labs. We have also invested significant resources to enhance our market diversity.

“These shifts have improved our balance sheet, increased our financial strength and continue to drive interest in our expanding line of products. In addition, average unit selling prices have expanded to over $300 thousand per unit from $50 thousand per unit, a six-fold increase. To support the strong sales momentum, we are in the process of expanding our manufacturing facility and have acquired new machinery to accommodate Sono-Tek’s expected growth in the years ahead.”

As of Nov. 30, the company’s backlog reached a new record level of $5.4 million, an increase of 78% compared to Feb. 28.

Operating expenses totaled $1.5 million, up 23% year-over-year.

For the first nine months of fiscal 2020, net sales increased 14% to $9.8 million.

Net income for the nine-month period was approximately $420,000, up 316%.

Cash and cash equivalents and short-term investments at quarter-end were $6 million, up 9%.

At Nov. 30, Sono-Tek had total debt of $749,000, down approximately $122,000 since fiscal 2019 year-end.

“We expect a significant portion of our $5.4 million backlog will ship during the current fiscal year ending February 29, 2020, assuming customer acceptance test schedules for some of the more complex and customized equipment orders. Therefore, based on this existing backlog, we expect net sales will increase 15% to 25% for the full fiscal year of 2020. The increased sales volume is also expected to continue to positively impact margins and drive stronger earnings growth.”

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