Sono-Tek Announces Additional $2.95 Million Order from Specialty Clean Energy Customer

Rhea-AI Summary

Sono-Tek (SOTK) has received an additional $2.95 million order from an existing clean energy customer, matching a recent record-breaking order. The new order includes four production-scale systems to be shipped in fiscal 2026, bringing the total to twelve systems for this customer. This repeat investment demonstrates the customer's confidence in Sono-Tek's ultrasonic coating technology.

CEO Steve Harshbarger highlighted the strong demand from the clean energy sector, driven by substantial private and public funding. Sono-Tek's systems are important for applications like carbon capture, hydrogen production, fuel cells, and advanced solar technologies. The higher average selling prices of these systems are expected to significantly boost Sono-Tek's growth prospects in the coming years.

Positive

• Received an additional $2.95 million order from an existing clean energy customer
• Total of twelve production-scale systems ordered by the same customer
• Strong demand from the clean energy sector
• Higher average selling prices expected to boost growth prospects

Negative

• None.

Insights

Financial Analyst

This $2.95 million order represents a significant win for Sono-Tek, effectively doubling their recent record-breaking order from the same customer. The total commitment now stands at 12 production systems, signaling strong customer confidence and potential for long-term revenue growth. With shipments expected in fiscal 2026, this order enhances Sono-Tek's future revenue visibility.

The clean energy sector's robust demand, fueled by substantial private and public funding, positions Sono-Tek favorably for accelerated growth. The higher average selling prices of these systems could significantly improve profit margins. Investors should note that while this order bolsters the company's long-term outlook, its impact on near-term financials will be due to the extended delivery timeline.

Clean Energy Expert

Sono-Tek's repeated success with this clean energy customer underscores the critical role of ultrasonic coating technology in advancing clean energy solutions. The customer's progression from R&D to large-scale production systems demonstrates the scalability and effectiveness of Sono-Tek's technology in real-world applications.

The diverse applications mentioned - carbon capture, hydrogen production, fuel cells and advanced solar technologies - highlight the versatility of Sono-Tek's systems. This positions the company well to capitalize on various segments within the rapidly growing clean energy sector. The increased demand signals a potential acceleration in clean energy technology adoption, which could lead to further opportunities for Sono-Tek in this burgeoning market.

Market Research Analyst

This repeat order signifies a strong product-market fit for Sono-Tek in the clean energy sector. The customer's rapid scaling from R&D to multiple production systems suggests a successful commercialization of their clean energy technology, which could attract attention from other players in the industry.

The mention of substantial private and public funding in clean energy initiatives indicates a favorable macro environment for Sono-Tek's growth. This trend could lead to increased demand from both existing and new customers in the sector. However, investors should be aware of the potential risks associated with long lead times and the cyclical nature of government funding in emerging technologies. Sono-Tek's ability to diversify its customer base within the clean energy sector will be important for sustainable long-term growth.

4 System Order Expected to be Shipped in Fiscal 2026

Company Experiencing Strong Demand from Clean Energy Sector

MILTON, N.Y., Aug. 13, 2024 (GLOBE NEWSWIRE) -- Sono-Tek Corporation (Nasdaq: SOTK), a leading developer and manufacturer of ultrasonic coating systems, is pleased to announce the receipt of an additional $2.95 million order from an existing clean energy customer. This new order, identical in value and scope to a recent record-breaking order from the same customer, reinforces Sono-Tek’s position as a key player in the clean energy sector.

The latest order includes four production-scale systems, which are expected to be shipped during fiscal 2026, starting March 1, 2025. This new order builds on the previously announced eight production-scale systems, bringing the total number of production systems for this customer to twelve. Initially starting with an R&D system to develop their processes, the customer has now advanced to a significant production-scale commitment, demonstrating the effectiveness and reliability of Sono-Tek’s technology.

Steve Harshbarger, President and CEO of Sono-Tek, stated, “We are thrilled to announce this additional $2.95 million order, which matches our recent largest order in company history. This repeat investment from our clean energy customer highlights their continued confidence in our innovative ultrasonic coating solutions and proprietary thin film application technology. As they expand their production capabilities, they remain committed to leveraging our systems for both their primary clean energy projects and additional R&D initiatives.”

Harshbarger further noted, “The substantial private and public funding directed toward clean energy initiatives is driving strong demand for our ultrasonic coating systems, which are vital for applications such as carbon capture, hydrogen production, fuel cells, and advanced solar technologies. The higher average selling prices of these systems are expected to significantly boost Sono-Tek’s growth prospects in the years ahead.”

About Sono-Tek

Sono-Tek Corporation is a global leader in the design and manufacture of ultrasonic coating systems that are shaping industries and driving innovation worldwide.  Our ultrasonic coating systems are used to apply thin films onto parts used in diverse industries including microelectronics, alternative energy, medical devices, advanced industrial manufacturing, and research and development sectors worldwide.  Sono-Tek's inroads into the clean energy sector are showing transformative results in next-gen solar cells, fuel cells, green hydrogen generation, and carbon capture applications as we shape a sustainable future. 

Our product line is rapidly evolving, transitioning from R&D to high-volume production machines with significantly higher average selling prices, showcasing our market leadership and adaptability. Our comprehensive suite of thin film coating solutions and application consulting services are expected to generate unparalleled results for our clients and help some of the world's most promising companies achieve technological breakthroughs and bring them to the market. The Company strategically delivers its products to customers through a network of direct sales personnel, carefully chosen independent distributors, and experienced sales representatives, ensuring efficient market reach across diverse sectors around the globe.

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 political, regulatory, tax, competitive and technological developments affecting our operations or the demand for our products; inflationary and supply chain pressures; continued private and public funding for the clean energy sector and continued strong demand for Sono-Tek’s suite of thin film coating solutions and application consulting services in the clean energy and other markets; maintenance of order backlog; 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; consummation of order proposals; completion of large orders on schedule and on budget; 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:

Sono-Tek Corp.
Stephen J. Bagley
Chief Financial Officer
Ph: (845) 795-2020
info@sono-tek.com

Investor Relations:

Kirin Smith
PCG Advisory, Inc.
ksmith@pcgadvisory.com

FAQ

What is the value of Sono-Tek's (SOTK) latest order from the clean energy customer?

Sono-Tek (SOTK) received an additional $2.95 million order from an existing clean energy customer.

How many production-scale systems are included in Sono-Tek's (SOTK) new order?

The new order includes four production-scale systems, bringing the total to twelve systems for this customer.

When is Sono-Tek (SOTK) expected to ship the systems from the new $2.95 million order?

The systems from the new $2.95 million order are expected to be shipped during fiscal 2026, starting March 1, 2025.

What clean energy applications use Sono-Tek's (SOTK) ultrasonic coating systems?

Sono-Tek's (SOTK) ultrasonic coating systems are used in clean energy applications such as carbon capture, hydrogen production, fuel cells, and advanced solar technologies.