Sono-Tek: 2Q 2008 sales rise but spending hits net profit

Sono-Tek Corporation announced 16 October 2008 sales of USD 1,605,000 for the three months ended 31 August 2008, compared to sales of USD 1,415,000 for the same period of 2007. For the six months to 3…

Sono-Tek Corporation announced 16 October 2008 sales of USD 1,605,000 for the three months ended 31 August 2008, compared to sales of USD 1,415,000 for the same period of 2007. For the six months to 31 August 2008, the company“s sales increased 22% to USD 3,226,000 from USD 2,647,000 for the same period 2007. Dr. Christopher L. Coccio, chairman and CEO, attributed the increase to the new business development program, and noted that the sales increase was based on products such as the Exactacoat and Flexicoat, which serve the new solar and fuel cell markets, WideTrack systems for new glass customers and its first textile finishing system, and the new line of SonoDry ultrasonic spray dryers for the pharmaceutical and nanotechnology industries. The company reported a net loss of USD 177,000 for the three months ended 31 August 2008, compared to net income of USD 12,000 for the prior year period. The current period net loss is attributed to the increased spending required by the technical and market development portions of the new business development program. According to Dr. Coccio, “We have spent the last year building technical infrastructure and intellectual property, improving laboratory and other facilities and ramping up trade show presence and our sales organization. This has all been part of a very aggressive program to take the Company to new levels, and we will continue it in spite of the difficulties facing the economy. Nonetheless, we will be looking at each part of the program for costs and results, deferring some items to preserve cash until economic conditions improve. We will continue to be on the offensive for new opportunities, but at the same time, reduce program spending during the current period of uncertainty in the economy”. Dr. Coccio was selected for one of the “Best CEO” awards for 2008, based on the company“s financial performance over the past five years. The award was given by Demarche Associates and was awarded to approximately 200 firms out of the 8,000 large and small companies in the S&P Compustat database. Sono-Tek Corporation is a leading developer and manufacturer of liquid spray products based on its proprietary ultrasonic nozzle technology.