Sono-Tek Announces First Quarter Results

Tue Jul 14, 2009 12:06pm EDT
 
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MILTON, N.Y., July 14, /PRNewswire-FirstCall/ -- Sono-Tek Corporation (OTC
Bulletin Board: SOTK) today announced sales of  $1,465,000 for the three
months ended May 31, 2009, compared to sales of $1,621,000 for the prior year
period, a decrease of $156,000 or 10%.  During the current quarter, sales of
fluxer units, nozzles, Widetrack units, spray dryer units and solder recovery
systems decreased when compared to the prior year.  However, the Company did
see an increase in sales of programmable XYZ precision coating units, SonoFlux
EZ units, stent coating systems and Hypersonic units (recently released) when
compared to the prior year.  

The Company incurred a net loss of ($169,427) for the three months ended May
31, 2009, compared to a net loss of ($130,458) for the prior year period. 
During the quarter, the Company reduced its cash expenditures and operating
expenses.  These actions had a positive impact on this quarter's net loss. 
The Company's net use of cash during the current quarter amounted to less than
$1,000, and is consistent with its goal to conserve and maintain adequate cash
reserves.

Shipments of circuit boards by our customers, to whom we provide spray fluxing
equipment, were still lower than previous levels in the US, as they are still
being impacted by the recession.  However, we are seeing positive signs in
other regions, plus strong growth in fuel cell and solar energy applications
in the US and abroad.  Another promising area has been in the food industry,
where we recently reported our first industrial coating sale for the
application of flavoring oils to baked goods. 

Dr. Christopher L. Coccio, Sono-Tek's Chairman and CEO, reiterated that "Late
in the preceding fiscal year, we began to reduce costs with the goal of
bringing the business back to a profitable mode again. We have now been able
to reduce expenditures that were needed to fulfill the business development
objectives, and senior management also took voluntary pay reductions (20%) to
demonstrate our commitment to the future.  In the current economic climate,
the Company continues to enforce its rigorous prepayment terms for large scale
orders, which may delay the shipment of orders and affect the timing of
revenue.  We believe that the new products, technology developments, and
increased marketing and sales coverage we now have in place will continue to
generate new business in the clean energy, medical, and food areas for us in
the current fiscal year. The combination of these sales, with the cost
reductions, may lead the way to profitability later this year, particularly
since a part of the US stimulus plan is aimed at increasing domestic
capability in clean energy technologies which include both fuel and solar
cells."

For further information, contact Dr. Christopher L. Coccio, at 845-795-2020,
or visit our website at 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; restoration of profitability 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-K and Form 10-Qs containing
additional important information. 
                                    Sono-Tek Corporation
                                  Selected Financial Data


                                                Three Months Ended
                                                ------------------
                                           May 31, 2009     May 31, 2008
                                           ------------     ------------

    Net Sales                               $1,464,728       $1,620,521

    Net (Loss)                               ($169,427)       ($130,458)

    Basic Loss Per Share                        ($0.01)          ($0.01)

    Diluted Loss Per Share                      ($0.01)          ($0.01)

    Weighted Average Shares - Basic         14,414,714       14,361,091

    Weighted Average Shares - Diluted       14,414,714       14,361,091





SOURCE  Sono-Tek Corporation

Dr. Christopher L. Coccio of Sono-Tek Corporation, +1-845-795-2020

 

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