Sono-Tek Corporation reported a record revenue of $20.5 million for the fiscal year ending February 28, 2025, marking a 4% increase from $19.7 million in the previous fiscal year. The growth was primarily driven by strong demand in the alternative and clean energy markets, which saw a 64% increase in sales. However, the company's gross profit decreased slightly to $9.74 million, down 1% from the prior year, resulting in a gross margin of 47.5%, down from 50%. Operating income also fell to $1.01 million, a decrease of 15% compared to $1.18 million in fiscal 2024, attributed to higher operating expenses and a decline in gross profit.
In terms of operational changes, Sono-Tek's backlog at the end of fiscal 2025 was $8.67 million, a 6.6% decrease from the previous year's record high of $9.28 million. The company experienced a notable increase in U.S. and Canadian sales, which rose by 15% to $12.5 million, driven by the shipment of five high average selling price systems totaling $3.85 million. Conversely, international sales accounted for 39% of total sales, down from 45% in the prior year, reflecting challenges in the Asia Pacific and Latin American markets.
Strategically, Sono-Tek has focused on expanding its product offerings and market reach. The Integrated Coating Systems segment grew by 28%, while Multi-Axis Systems increased by 6%, both benefiting from significant orders in the solar and clean energy sectors. The company has also invested in research and development, spending approximately $2.72 million in fiscal 2025, which is 13.3% of sales, down from 14.6% in the previous year. This investment is aimed at enhancing product capabilities and addressing new market opportunities.
Sono-Tek's balance sheet remains strong, with no outstanding debt and cash, cash equivalents, and marketable securities totaling $11.9 million as of February 28, 2025. The company continues to maintain a focus on operational efficiency and market diversification, with plans to leverage its proprietary ultrasonic coating technology across various industries. Looking ahead, Sono-Tek anticipates continued growth in the alternative energy sector and aims to enhance its market presence through strategic partnerships and product innovations.
About SONO TEK CORP
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