Sono-Tek Announces $600K Multi-System Order From Innovative Medical Technology Customer, First Part of Expected Multi-Phase Program

Rhea-AI Summary

Sono-Tek Corporation (Nasdaq: SOTK) announced a $0.6 million order from an existing medical device customer as part of a multi-phase program aimed at increasing production capacity. This order, which includes several ultrasonic coating machines, is expected to ship in FY2024, ending February 28, 2024. The partnership showcases Sono-Tek's innovative coating technology which enhances critical drug delivery devices. President and COO Steve Harshbarger highlighted the significance of this order for meeting surging market demand and indicated that the company’s fiscal backlog has substantially grown during FY2023, to be reported in mid-May.

Positive

• Received a $0.6 million order from a medical device manufacturer, indicating strong demand.
• The order is part of a multi-phase program, suggesting potential for future sales growth.
• Demonstrates the effectiveness of Sono-Tek's application engineers in integrating systems into complex manufacturing processes.

Negative

• None.

Order Expected to be Shipped in Current Fiscal Year

MILTON, NY, March 08, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Sono-Tek Corporation (Nasdaq: SOTK), the leading developer and manufacturer of ultrasonic coating systems, today announced that it has received a $0.6 million order from a medical device manufacturer, the first part of an expected multi-phase program for additional machines.

The $0.6 million multi-system order is from an existing customer that previously purchased several identical Sono-Tek machines to manufacture its products and is now continuing to ramp up capacity to meet growing customer demand. The innovative medical technology company worked with Sono-Tek’s application engineers to perfect the coating process that applies proprietary thin films onto a critical drug delivery device. Sono-Tek anticipates shipping the order in FY2024, the current fiscal year that ends February 28, 2024.

Steve Harshbarger, President and COO, commented, “We’re excited to announce this multi-system order from an existing customer that manufactures an innovative medical device with growing market demand. The order also demonstrates the abilities of our application engineers to understand and integrate Sono-Tek’s coating systems into a customer’s complex manufacturing processes, be it medical technology, semiconductors or green energy, Sono-Tek’s three target markets for growth. The order is the first part of an expected multi-phase program. As it was received before the end of Q4 FY2023 (ended February 28th), the order was added to our fiscal year-end backlog, which has grown significantly during the fiscal year and will be reported in mid-May.”

About Sono-Tek Corporation

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 continuing effects of the COVID-19 pandemic 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; 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 device market; successful transition from primarily selling ultrasonic nozzles and components to a more complex business providing complete machine solutions and higher value subsystems; 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 recent order did Sono-Tek Corporation receive?

Sono-Tek Corporation received a $0.6 million order from a medical device manufacturer.

What is the expected shipment timeline for Sono-Tek's recent order?

The order is expected to be shipped in FY2024, ending February 28, 2024.

How does the recent order impact Sono-Tek's backlog?

The order has contributed to a significant increase in Sono-Tek's fiscal year-end backlog.

What sectors does Sono-Tek target for growth?

Sono-Tek targets medical technology, semiconductors, and green energy for growth.

Who commented on the significance of the new order at Sono-Tek?

Steve Harshbarger, President and COO, commented on the significance of the new order.