Sono-Tek Announces First Quarter Results
MILTON, N.Y., July 12, 2012 /PRNewswire/ -- Sono-Tek Corporation (OTC BB: SOTK) today announced sales of $2,839,702 for the three months ended May 31, 2012, compared to sales of $2,989,070 for the prior year period, a decrease of $149,368 or 5%. During the current quarter, the Company saw increases in its market segments involving medical coating systems, robotic motion controlled coating systems, and some parts of the electronics industry, which were offset by lower sales of SonoFlux units to the PCB industry and of nozzle systems, when compared to the prior year. The lower overall sales figure is mainly due to relative uncertainty in Europe and China affecting sales in those regions, and is consistent with the experience of other reporting companies.
The Company reported net income of $11,100 for the three months ended May 31, 2012, compared to $238,595 for the prior year period, a decrease of $227,495. However, the Company's gross profit margin remained consistent with the prior year period at 47%. The current period reduction in net income was due to an increase in international selling expenses related to several large, first of a kind orders, that the Company expects will lead to significant long term business. In addition, the Company incurred additional corporate expenses from outside consulting fees associated with exploration of strategic alternatives for the Company's future growth.
Dr. Christopher L. Coccio, Sono-Tek's Chairman and CEO, stated that, "We recognize that this year is one in which customers in some of our global locations are slower to place orders, due to uncertainty in their home economies. We also are seeing a shake-out in the solar energy industry worldwide, as governments are withdrawing support for some R&D programs aimed at capturing future markets in this industry. We expect that the next quarter could also be below our growth targets and sales levels due to these factors, but we also