Sono-Tek Announces Largest Order in Company History

Rhea-AI Summary

Sono-Tek (NASDAQ: SOTK) has received its largest order in company history, valued at $2.95 million, from an existing clean energy customer. This order, the third part of a multi-system program, includes four production-scale systems, bringing the customer's total to eight. The systems are scheduled for shipment in the first half of fiscal 2026.

The customer initially purchased an R&D system from Sono-Tek before advancing to production-scale machines. This order follows the delivery of four previously announced systems in FY2024 and the first half of FY2025. Sono-Tek's CEO, Steve Harshbarger, highlighted the successful collaboration and anticipates further orders as the customer expands their production line for a specialty clean energy product.

The company expects increased demand for its ultrasonic coating systems due to government funding in the clean energy sector, potentially driving growth in applications such as carbon capture, hydrogen generation, fuel cells, and advanced solar energy.

Positive

• Largest order in company history worth $2.95 million
• Expansion of existing customer relationship in clean energy sector
• Increase in total production-scale systems for the customer from 4 to 8
• Potential for further orders from the same customer
• Higher average selling prices (ASPs) expected to positively impact growth
• Increased demand anticipated from government funding in clean energy sector

Negative

• None.

$2.95 Million Order from Specialty Clean Energy Customer

Third Part of Expected Multi-System Program

4 System Order Expected to be Shipped in First Half of Fiscal 2026

MILTON, N.Y., July 31, 2024 (GLOBE NEWSWIRE) -- Sono-Tek Corporation (Nasdaq: SOTK), the leading developer and manufacturer of ultrasonic coating systems, is pleased to announce that it has received a significant new order from an existing clean energy customer. The $2.95 million order is the third part of an anticipated multi-system program and is Sono-Tek’s largest order in its history.

This new order comprises four production-scale systems and builds upon the delivery of four previously announced production-scale machines. These machines were shipped to the customer in FY2024, which ended on February 29, 2024, and during the first half of FY2025, ending February 28, 2025. With this additional order, the total number of production-scale machines for this customer will increase to eight. The customer initially purchased an R&D system from Sono-Tek to develop their processes before advancing to production-scale systems. The new order is scheduled for shipment during the first half of fiscal 2026, starting March 1, 2025.

Steve Harshbarger, President and CEO of Sono-Tek, commented, “This new order from a clean energy customer marks the largest in our company's history and is a testament to the successful collaboration between our teams. This customer has been progressively building out their production line for a specialty clean energy product, starting with an R&D unit and refining their manufacturing process with the support of our application engineering team. In addition to these production-scale systems, this customer continues to place orders for smaller R&D machines for various projects, demonstrating their ongoing trust and partnership with Sono-Tek. We anticipate further orders from this customer following the successful integration of these production systems, which leverage Sono-Tek’s proprietary thin film application technology.”

Harshbarger added, “The recent distribution of funding from large-scale government initiatives for the clean energy sector is driving demand for our proprietary ultrasonic coating systems across various applications, including carbon capture, hydrogen generation, fuel cells, and advanced solar energy. The higher average selling prices (ASPs) that these systems command are expected to positively impact Sono-Tek's growth in the coming years.”

For more information about Sono-Tek Corporation and its innovative ultrasonic coating solutions, please 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; the recovery of the Electronics/Microelectronics and Medical markets; rebound of sales to the industrial market in the second quarter of fiscal year 2025; 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; 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; 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) largest order in company history?

Sono-Tek (SOTK) received its largest order in company history, valued at $2.95 million, from an existing clean energy customer.

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

The recent order for Sono-Tek (SOTK) includes four production-scale systems, bringing the total number of production-scale machines for this customer to eight.

When is Sono-Tek (SOTK) scheduled to ship the new order of production systems?

Sono-Tek (SOTK) is scheduled to ship the new order of four production-scale systems during the first half of fiscal 2026, starting March 1, 2025.

What sectors are driving demand for Sono-Tek's (SOTK) ultrasonic coating systems?

Demand for Sono-Tek's (SOTK) ultrasonic coating systems is being driven by the clean energy sector, including applications in carbon capture, hydrogen generation, fuel cells, and advanced solar energy.