Based on the provided financial report articles, I generated the title for the article: **"Second Quarter 2025 Financial Report: [Company Name]"** Please note that the title may not be exact, as the provided text does not contain the company name.

Press release · 10/26 04:36
Based on the provided financial report articles, I generated the title for the article: **"Second Quarter 2025 Financial Report: [Company Name]"** Please note that the title may not be exact, as the provided text does not contain the company name.

Based on the provided financial report articles, I generated the title for the article: **"Second Quarter 2025 Financial Report: [Company Name]"** Please note that the title may not be exact, as the provided text does not contain the company name.

The report presents the financial statements of the company for the second quarter of 2025, with a focus on key figures, main events, and significant developments. The company’s common stock, additional paid-in capital, and retained earnings have increased since the beginning of the year, with a net income of $X million for the quarter. The company’s fair value inputs, including Level 1, Level 2, and Level 3, are also reported. Additionally, the report highlights the company’s fluxing systems and integrated coating systems, which have seen significant activity during the quarter. Overall, the report provides a comprehensive overview of the company’s financial performance and position as of February 28, 2025.

Overview

Sono-Tek Corporation is a global leader in designing and manufacturing ultrasonic coating systems that are shaping industries and driving innovation worldwide. The company’s 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.

Key Highlights:

  • Net Sales for the first half of fiscal 2025 increased by 10% to $10,193,000, strongly impacted by increased sales from the Alternative Energy Market.
  • Gross Profit increased 9% to $4,971,000 as a result of increased net sales, though Gross Profit % decreased 70 basis points to 48.8% due to product mix and cost realignment.
  • Operating Income increased $50,000 to $524,000 due to the increase in gross profit.
  • Interest income, dividend income and unrealized gain on marketable securities increased to $282,000 due to the current high interest rate environment.
  • As of August 31, 2024, the Company had no outstanding debt and had cash, cash equivalents and marketable securities totaling $11.6 million.

Sales Performance:

  • Total sales for the first half of fiscal 2025 grew by 10%, driven by strong shipments to the Alternative Energy Market.
  • Sales to the Alternative / Clean Energy market recorded growth of 80% for the first half of fiscal 2025, influenced by customers transitioning from R&D systems to higher-priced production systems.
  • Electronics market revenue increased by 30% for the first half of fiscal 2025, positively impacted by shipments of a new coating system for the semiconductor market.
  • Medical systems sales declined by 40% for the first half of fiscal 2025, primarily due to lower demand for stent and balloon coating systems, though balloon coating system sales are expected to recover in the second half.
  • Industrial sales declined by 46% for the first half of fiscal 2025, impacted by reduced sales to the float glass industry.

Profitability:

  • Gross Profit increased 9% to $4,971,000 for the first half of fiscal 2025, though Gross Profit % decreased 70 basis points to 48.8% due to product mix and cost realignment.
  • Operating Income increased $50,000 to $524,000 for the first half of fiscal 2025 due to the increase in gross profit.
  • Net Income increased by $77,000 to $672,000 for the first half of fiscal 2025, primarily due to the increase in gross profit.

Liquidity and Capital Resources:

  • Working capital increased $823,000 to $12,946,000 at August 31, 2024, mostly due to the current period’s net income and non-cash charges.
  • The company had $11.6 million in cash, cash equivalents and marketable securities as of August 31, 2024, with no outstanding debt.
  • Cash provided by investing activities was $3,808,000 in the first half of fiscal 2025, primarily from the liquidation of treasury bill investments.

Outlook:

Sono-Tek’s growth strategy is focused on leveraging its innovative technologies, proprietary know-how, unique talent and experience, and global reach to develop thin-film coating technologies that enable better outcomes for its customers’ products and processes. The company’s transition to providing more complex machine solutions and higher-value subsystems has resulted in significant growth of its average unit selling price, broadening its addressable market and positioning it for continued sales growth.