MILTON, N.Y. - Sono-Tek Corporation (NASDAQ: SOTK), a developer and manufacturer of ultrasonic coating systems, announced its preliminary net sales for the fourth quarter and full fiscal year 2024, signaling continued growth. For the fourth quarter ended February 29, 2024, the company reported sales of approximately $4.8 million, marking a 30% increase from the $3.7 million achieved in the same quarter of the previous year.
The company's net sales for the entire fiscal year reached about $19.7 million, a 31% rise from the $15.1 million recorded in FY2023. This growth reflects a record-setting performance for Sono-Tek, driven by robust orders and the delivery of several large orders that had been delayed due to Covid-related supply chain disruptions.
Sono-Tek's backlog, which is an indicator of future revenue, also showed strength, with a year-over-year increase of 7%, standing at approximately $9.1 million at the end of February 2024. The company attributes its strong backlog to significant orders received during the second, third, and fourth quarters of FY2024.
Looking ahead, Sono-Tek anticipates a strong start to FY2025, with net sales for the first quarter ending May 31, 2024, expected to grow 35%-40% year-over-year. This projection is set against a backdrop of supply chain constraints that impacted the previous year's first quarter.
Dr. Christopher L. Coccio, Executive Chairman of Sono-Tek, credited the company's advanced technology and ultrasonic coating systems as becoming critical elements in manufacturing processes across various sectors, including the burgeoning clean energy sector. He highlighted applications in next-gen solar cells, fuel cells, green hydrogen generation, and carbon capture.
Sono-Tek's final financial results for the fourth quarter and full fiscal year 2024 are scheduled for release in May 2024, with an investor conference call to follow. The company's ultrasonic coating systems are utilized in a wide range of industries, from microelectronics to medical devices, and are a part of the company's strategic venture into the clean energy market.
The information in this article is based on a press release statement from Sono-Tek Corporation.
InvestingPro Insights
In light of Sono-Tek Corporation's (NASDAQ: SOTK) announcement of robust sales growth, a closer look at the company's financial health using real-time data from InvestingPro offers additional insights. Sono-Tek holds a market capitalization of $69.44 million, illustrating a modest-sized player within the industry. Despite recent growth, the company's stock has experienced a notable decline over the last week, with a 10.37% drop in price total return, which may catch the eye of investors looking for potential entry points.
InvestingPro data also reveals a high Price/Earnings (P/E) ratio of 51.28, suggesting that the stock is trading at a premium based on its earnings. This is further emphasized by an adjusted P/E ratio of 52.79 for the last twelve months as of Q3 2024. While high P/E ratios can indicate investor optimism or a growth stock, they also point to the importance of scrutinizing future earnings potential and market conditions. It's worth noting that Sono-Tek's revenue growth remains strong, with a 13.35% increase in the last twelve months as of Q3 2024, and an impressive 58.67% quarterly revenue growth, indicating a positive trend in the company's sales performance.
For those considering an investment in Sono-Tek, the company's financial health is bolstered by the fact that it holds more cash than debt on its balance sheet, as highlighted by one of the InvestingPro Tips. Additionally, the company's liquid assets exceed short-term obligations, providing a cushion for operational needs or unexpected expenses. Investors should also be aware that Sono-Tek does not pay dividends, which could be a factor for those seeking income-generating investments.
To delve deeper into Sono-Tek's financials and gain access to a comprehensive list of InvestingPro Tips, interested readers can visit InvestingPro. There are 14 additional tips available for Sono-Tek on InvestingPro, offering a wealth of information for making informed investment decisions. Moreover, for a limited time, users can use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing their investment research capabilities.
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