Sono-Tek Corp (SOTK) Reports Record Q2 Fiscal 2024 Net Sales of $5.6 Million, a 50% Increase
Q2 net sales increased by 50% to a record $5.6 million
First half net sales grew by 18% year-over-year
Backlog hit a record $10.7 million
Company expects minimum 25% revenue growth for Fiscal Year ending February 29, 2024
Sono-Tek Corp (NASDAQ:SOTK) released its earnings report for the second quarter and first half of fiscal year 2024 on October 12, 2023. The company reported a 50% increase in Q2 net sales, reaching a record $5.6 million. The first half net sales also grew by 18% year-over-year. The company's backlog hit a record $10.7 million, reflecting increasing order activity from the clean energy sector.
Financial Highlights
According to the report, Sono-Tek's Q2 net sales increased by 50% to $5.6 million, compared to $3.76 million in the same period last year. The company's gross profit for the quarter was $2.8 million, a 48% increase from $1.9 million in Q2 of fiscal 2023. The operating income for the quarter was $566,000, a significant increase of 218% from $178,000 in the prior year period. Net income for the quarter was $541,000, a 234% increase from $162,000 in Q2 of fiscal 2023.
For the first half of fiscal 2024, total sales increased by 18% to $9.24 million, compared to $7.81 million in the first half of fiscal 2023. Gross profit for the first half of fiscal 2024 was $4.58 million, a 14% increase from $4 million in the first half of fiscal 2023. However, operating income decreased by 15% to $474,000, compared to $558,000 in the first half of fiscal 2023. Net income for the first half of fiscal 2024 was $595,000, a 27% increase from $468,000 in the first half of fiscal 2023.
Company Commentary
Sono-Tek reported its strongest quarter ever for the second quarter ended August 31st, said Dr. Christopher L. Coccio, Chairman and CEO. Significant improvements in supply chain issues allowed us to ship a number of previously delayed orders from backlog as well as new orders, resulting in record net sales of $5.64 million, compared to net sales of $3.76 million last year, an increase of $1.9 million or 50%."
Were confident that shipments of previously delayed and new orders will continue to positively impact our sales for the remainder of the fiscal year and were expecting at least 25% year-over-year growth when we end FY2024 next February, concluded Dr. Coccio.
Looking Forward
Sono-Tek Corp (NASDAQ:SOTK) expects a minimum of 25% revenue growth for the fiscal year ending February 29, 2024. The company's backlog of $10.7 million, the highest in its history, reflects the increasing order activity from the clean energy sector. The company's transition strategy to larger, more complex systems for production applications is expected to positively impact sales for the remainder of the fiscal year.
This article first appeared on GuruFocus.
