Sono Tek Corporation (SOTK)

[shmoopy38]

PR Newswire:

Sono-Tek Announces Year End Earnings

MILTON, N.Y., May 23 /PRNewswire-FirstCall/ -- Sono-Tek Corporation
(OTC Bulletin Board: SOTK) today announced sales of $6,886,000 for the
Fiscal Year ended February 28, 2007, compared to sales of $6,871,000 for
the previous Fiscal year, an increase of $15,000. While sales appear to be
flat, in fact there were significant increases in the sales to medical
device companies and to international customers, resulting from our
technical and market development programs of the past two years. Offsetting
these gains was a general decline in North American sales to the
electronics industry, historically, our largest market. The Company
anticipated this decline in view of an accelerating move to offshore
electronics production, combined with a slowdown in the housing market, and
a reduction in the competitiveness of domestic automotive manufacturers.
The housing market and domestic automotive companies are large users of
printed circuit boards in a variety of electronic devices.
Net income for the year was $544,000, compared to $1,043,000 for the
previous Fiscal Year, a decrease of 48%. The decrease in net income is
mainly a result of increased spending on marketing, sales, and product
development, and the impact of new SEC regulations that treat stock option
awards as current expenses. According to Dr. Christopher L. Coccio,
Sono-Tek's CEO and President, "We believe that the reduction in current
income generation resulting from increased spending on product and market
development is well justified, in that it is expected to create future
growth opportunities for the Company. We have been successful in creating
new business in the medical device market, and in growing a significantly
larger international business in electronics, medical device coatings, and
coatings for fuel cells and solar panels."
The balance sheet is improved from last year at this time, with working
capital of $4,232,000 versus $3,699,000 at the end of the previous Fiscal
Year, and stockholders' equity increased from $4,230,000 to $4,851,000 at
February 28, 2007. The Company has total debt of $79,000, resulting in an
excellent debt to equity ratio. The strong balance sheet and cash position
has allowed the Company to make expenditures in both new technology and
geographical markets this year, and will allow it to continue its plans to
achieve significant future growth by investments in technology and market
development. Some of the key areas being worked on include the new MediCoat
PSI and MediCoat 2 products for applying drug eluting coatings to medical
devices, the new SonoDry series of spray dryers for nanotechnology and
related research applications, the initiative to develop food industry
applications for our WideTrack product line, and development work in the
energy field to apply our technology to fuel oil combustors, solar panels,
and fuel cells.
Dr. Coccio stated, "We expect to see continued softness in the North
American electronics industry, which could result in overall sales
decreases. We will continue to pursue the newer markets noted above. We
believe it would be counterproductive to curtail our current product and
market development efforts for short term quarterly results."
For further information, contact Dr. Christopher L. Coccio, at 845-795-
2020, or visit our website at http://www.sono-tek.com
Sono-Tek Corporation is a leading developer and manufacturer of liquid
spray products based on its proprietary ultrasonic nozzle technology.
Founded in 1975, the Company's products have long been recognized for their
performance, quality, and reliability.
This earnings 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 factors include, among other considerations, general
economic and business conditions; political, regulatory, competitive and
technological developments affecting the Company's operations or the demand
for its products; timely development and market acceptance of new products;
adequacy of financing; capacity additions and the ability to enforce
patents. We refer you to documents that the company files with the
Securities and Exchange Commission, which includes Form 10-KSB and Form
10-QSBs containing additional important information.
Sono-Tek Corporation
Selected Financial Data

Fiscal Year Ended February 28,
2007 2006


Net Sales $6,886,453 $6,871,069

Net Income $544,203 $1,043,320

Basic Earnings Per Share - $0.04 $0.07

Diluted Earnings Per Share - $0.04 $0.07

Weighted Average Shares - Basic 14,359,936 14,156,972

Weighted Average Shares - Diluted 14,439,808 14,274,493



SOURCE Sono-Tek Corporation

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Related links:

http://www.sono-tek.com