MILTON, NY - Sono-Tek Corp (NASDAQ:SOTK) held its annual meeting of shareholders on August 22, 2024, where key decisions regarding the election of board members and appointment of independent auditors were made. The results of the meeting, filed with the SEC on August 23, were based on the votes of shareholders.
The election saw four nominees voted onto the company's Board of Directors, each to serve a two-year term until 2026. Eric Haskell, CPA received 4,565,439 votes for and 127,179 against, Dr. Adeniyi Lawal garnered 4,678,298 votes for and 14,320 against, and Carol O’Donnell had 4,623,845 votes for with 68,773 against. These individuals will join the existing directors who were not up for re-election this year.
In addition to the board elections, shareholders ratified the appointment of Marcum, LLP as Sono-Tek's independent auditors for the fiscal year ending February 28, 2025. The decision was made with 11,516,025 votes in favor and 293,941 against, with 42,158 abstentions.
Furthermore, the compensation of the Company’s named executive officers was approved in a non-binding advisory vote, receiving 4,272,099 votes for, 140,112 against, and 280,407 abstained.
In other recent news, Sono-Tek Corporation reported record-breaking revenue for the fourth quarter and full fiscal year of 2024. Sales grew by 31%, reaching $19.7 million, largely due to contributions from the microelectronics, medical devices, and alternative energy sectors. The company also saw a net income increase of 127% to $1.4 million and currently holds over $12 million in cash with no debt.
In further developments, Sono-Tek secured a $2.95 million order from an existing clean energy customer, marking the largest order in the company's history. This order includes four production-scale systems, adding to the four machines previously delivered, totaling eight machines for the client. These systems are scheduled for delivery in fiscal 2026.
Finally, analysts have noted a slight decrease in the gross profit margin due to increased expenses, and operating expenses rose by 24% as a result of increased headcount and salaries.
However, Sono-Tek is projecting strong revenue growth in fiscal year 2025, expecting over 30% in Q1 and 8-10% year-over-year growth. These are the recent developments at Sono-Tek Corporation.
InvestingPro Insights
In light of Sono-Tek Corporation's recent shareholder meeting, investors may find additional context in the company's financial health and market performance. Sono-Tek holds a market capitalization of approximately $65.21 million, reflecting its valuation within the industry machinery sector. Notably, the company has demonstrated robust revenue growth over the last twelve months as of Q1 2025, with an impressive increase of 44.62%. This growth trajectory is further underscored by a solid gross profit margin of nearly 50%.
From an investment standpoint, Sono-Tek's financial position appears strong, as evidenced by two key InvestingPro Tips: the company holds more cash than debt on its balance sheet and has liquid assets that exceed short-term obligations. These indicators suggest a level of financial stability that may be reassuring to shareholders. Additionally, the company is trading at a low P/E ratio relative to near-term earnings growth, which could indicate a potentially undervalued stock in the context of its earnings performance.
For investors seeking a deeper analysis, there are 10 additional InvestingPro Tips available, which can provide further insights into Sono-Tek's financial metrics and market positioning. These tips can be accessed through InvestingPro's platform and may offer valuable perspectives for both current and prospective shareholders.
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