Q4 2024 Sono-Tek Corp Earnings Call Transcript
Key Points
- Sono-Tek Corp (SOTK) reported record-breaking revenue for fiscal year 2024, with a 31% increase year-over-year, reaching $19.7 million.
- The company experienced a significant increase in backlog, which grew to $9.1 million, a 7% increase compared to the previous year.
- Sales in the clean energy sector grew by 96%, driven by customers transitioning from R&D machines to production scale systems.
- Sono-Tek Corp (SOTK) has successfully delivered and installed two high-volume, high ASP production systems, the highest number in a single year in the company's history.
- The company has increased its headcount by approximately 15% to support growth and expansion, particularly in R&D and IT departments.
- Gross profit margin decreased slightly to 50% for fiscal 2024 compared to 50.8% in fiscal 2023, due to increased indirect production salaries, transportation expenses, installation costs, and warranty costs.
- Operating expenses increased by 24% to $8.7 million, driven by higher costs in research and product development, marketing and selling expenses, and general and administrative expenses.
- Sales of PCB Fluxing systems dipped by $455,000 for fiscal 2024, following uncharacteristically high revenue in the previous fiscal year.
- OEM sales decreased by $611,000, attributed to a slowdown in the PCB spray fluxers market.
- The company recorded an accrual of $138,000 for estimated sales tax penalties and interest related to shipments to California since April 2019.
Good day and welcome to the Sono-Tek year-end fiscal year 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Mr. Kirin Smith with PCG Advisory. Please go ahead, sir.
Thank you, operator, and thank you, everyone, for joining us today. Sono-Tek released their fourth quarter and full year of fiscal 2024 results at 7 AM Eastern Time this morning. If you do not have a copy of the release, please go to the company's website at sono-tek.com and click the press release News tab in the Investors section. The product to market and geography, sales tables on the last page of the release will be part of today's discussion.
With me on the call today are Dr. Chris Coccio, Sono-Tek's Executive Chairman; Steve Harshbarger, CEO and President; and Steve Bagley, Chief Financial Officer.
Before turning the call over to management, I would like to make the following remarks concerning forward-looking statements. Please note
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