Q2 2025 Sono-Tek Corp Earnings Call Transcript
Key Points
- Sono-Tek Corp (SOTK) reported a 10% increase in revenue for the first half of fiscal 2025, driven by strong sales in the clean energy sector.
- The company achieved a record backlog of $11.7 million, reflecting increased order activity, particularly from the clean energy sector.
- Sono-Tek Corp (SOTK) successfully shipped three integrated coating systems totaling $2.19 million to a substantial customer in the clean energy sector.
- The strategic shift to larger, more complex systems has broadened Sono-Tek Corp (SOTK)'s addressable market and increased average unit selling prices.
- Net income for the first half of fiscal 2025 grew by 13% year over year, indicating improved profitability.
- Net sales for the second quarter decreased by 8% compared to the same period last year, indicating some challenges in maintaining sales momentum.
- Gross profit decreased by 10% year over year, with a decline in gross profit percentage due to product mix and labor expense reallocations.
- Sales in the medical sector declined by 77% in the first half of fiscal 2025, primarily due to lower demand for stent and balloon coating systems.
- APAC sales decreased by 32% in the second quarter, influenced by reduced sales to China amid a weakening Chinese economy.
- Operating income for the second quarter decreased by 49% compared to the prior year, primarily due to decreases in revenue and gross profit.
Good morning, and welcome to the Sono-Tek fiscal second quarter and first half 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Kirin Smith with PCG Advisory. Please go ahead.
Thank you, operator, and thank you, everyone, for joining us today. Sono-Tek released their second quarter and six months of fiscal 2025 results this morning. If you don't have a copy of the release, please go to the company's website at sono-tek.com and click on the press release/news tab in the investors section.
The product, 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 Harshberger, 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.
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