Sono-Tek Announces $1.1 Million Order from Clean Energy Sector

Rhea-AI Summary

Sono-Tek Corporation (SOTK) announced a significant order worth $1.1 million from the clean energy sector, marking the largest such order in its history. This order aligns with the company's growth strategy focused on providing full system solutions. Expected to ship in spring 2023, this deal indicates increasing demand for Sono-Tek's ultrasonic coating systems, crucial for emissions reduction in manufacturing. The company highlighted its engineering expertise, pivotal in transitioning clients from R&D to production volumes, thus potentially leading to more orders in the clean energy space.

Positive

• Received a $1.1 million order, largest from the clean energy sector to date.
• This order is among the largest in Sono-Tek's corporate history, signaling strong demand.
• The order reflects successful engagements transitioning customers from R&D to production.

Negative

• None.

Largest Order From Clean Energy Sector to Date & Among Largest in Corporate History

MILTON, NY, Aug. 16, 2022 (GLOBE NEWSWIRE) -- via NewMediaWire – Sono-Tek Corporation (Nasdaq: SOTK), the leading developer and manufacturer of ultrasonic coating systems, today announced that it has received an order valued at $1.1 million from a customer in the clean energy sector.

This is the largest order that Sono-Tek has received from the clean energy sector to date, one of the Company’s target sectors for growth. The order is also among the largest in Sono-Tek’s corporate history, a growing occurrence with Sono-Tek’s increased focus on providing full system solutions. The order is expected to be shipped in the spring of 2023.

Sono-Tek’s equipment applies critical thin layers used in a manufacturing step that will contribute to the process of emissions reduction. Sono-Tek’s application engineers worked closely with the customer’s development team to optimize the coating process. The customer is scaling from R&D to in-line production to meet the rapidly growing demands for their products.

Steve Harshbarger, President and COO of Sono-Tek, commented, “We’re excited to receive this substantial order that validates the investments we’ve made to serve the clean energy sector. Significant investments from governments around the world are driving demand for clean energy products.  Sono-Tek’s application engineering expertise has been a vital part of our success in this sector. We have a large number of customers who are working with our highly experienced engineers and using our ultrasonic coating systems for R&D in carbon capture, hydrogen generation and fuel cell applications. Several of these companies have begun to make the transition to production volumes which can result in additional orders for Sono-Tek equipment, as is the case with this $1.1 million order, the largest we’ve received from the sector so far.”

About Sono-Tek

Sono-Tek Corporation is the leading developer and manufacturer of ultrasonic coating systems for applying precise, thin film coatings to protect, strengthen or smooth surfaces on parts and components for the microelectronics/electronics, alternative energy, medical and industrial markets, including specialized glass applications in construction and automotive.

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 inflationary pressures; political, regulatory, tax, competitive and technological developments affecting our operations or the demand for our products; the duration and scope of the COVID-19 pandemic; the extent and duration of the pandemic’s adverse effect on economic and social activity, consumer confidence, discretionary spending and preferences, labor and healthcare costs, and unemployment rates, any of which may reduce demand for some of our products and impair the ability of those with whom we do business to satisfy their obligations to us; our ability to sell and provide our services and products, including as a result of continued pandemic related travel restrictions, mandatory business closures, and stay-at home or similar orders; any temporary reduction in our workforce, closures of our offices and facilities and our ability to adequately staff and maintain our operations resulting from the pandemic; the ability of our customers and suppliers to continue their operations as result of the pandemic, which could result in terminations of contracts, losses of revenue; further adverse effects to our supply chain and the related build-up of inventory; 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; maintenance of increased order backlog, including effects of any COVID-19 related cancellations; 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; increased sales to the clean energy sector; 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, contact:

Stephen J. Bagley
Chief Financial Officer
Sono-Tek Corporation
info@sono-tek.com

Investor Relations:
Stephanie Prince
PCG Advisory
(646) 863-6341
sprince@pcgadvisory.com

FAQ

What is the significance of the $1.1 million order for Sono-Tek (SOTK)?

The $1.1 million order is the largest Sono-Tek has received from the clean energy sector, highlighting increased demand for its ultrasonic coating systems.

When is Sono-Tek's latest order expected to ship?

The order is expected to be shipped in the spring of 2023.

How does Sono-Tek's order relate to clean energy?

The order involves equipment that plays a critical role in emissions reduction, aligning with the company's focus on clean energy applications.

What impact does this order have on Sono-Tek's growth strategy?

This order supports Sono-Tek's growth strategy by validating its full system solutions approach and expanding its footprint in the clean energy market.

What does Sono-Tek's success in clean energy signify for investors?

Sono-Tek's successful engagement in clean energy orders indicates a growing market and potential for increased revenues, which may positively influence investor sentiment.