Sono Tek Corp: 2Q 2006 earnings and record sales

Sono-Tek Corp announced sales of USD 1,833,938 for the three months ended 31 August 31 2006, an increase of 16% or USD 254,159 compared to sales of USD 1,579,779 for the same period of 2005. Sales for…

Sono-Tek Corp announced sales of USD 1,833,938 for the three months ended 31 August 31 2006, an increase of 16% or USD 254,159 compared to sales of USD 1,579,779 for the same period of 2005. Sales for the 2Q were the highest in the companys history and were due in part to the sale of a large coating system. For the six months ended 31 August 2006, Sono-Tek reported sales of USD 3,615,682, an increase of 6% or USD 203,538 compared to sales of USD 3,412,144 for the same period of 2005. The company“s 1H sales levels have increased as the result of continued new product development efforts and related marketing thrusts, and expansion into international markets. Net income for the 1Q and 1H was USD 233,836 and USD 358,667, respectively, compared to USD 156,777 and USD 386,175 respectively for the prior year periods. Net income fell by 7% for the six month period ended 31 August 2006 when compared to the same period in 2005. Net income increased by 49% for the three-month period ended 31 August 2005 when compared to the same period last year. The sharp increase in net income during the current quarter compared to 2005 was related to product mix, while the slight decrease in the six month income compared to 2005 is a result of increased spending on marketing, sales, and product development. Sono-Tek believes that minor reductions in current income potential due to increased emphasis on technology and market development are well justified by the creation of future growth opportunities for the company. The balance sheet has improved from 2005 at this time with working capital of USD 4,038,000 at 31 August 2006 versus USD 2,790,000 at 31 August 2005, and stockholders“ equity increased from USD 3,314,000 at 31 August 2005 to USD 4,628,000 at 31 August 2006. The company has a total debt of USD 92,000, giving what it describes as an excellent debt to equity ratio. According to Dr. Christopher L. Coccio, Sono-Tek“s CEO and president, “We are continuing to invest time and money in the creation of new products to meet the needs of both the developed and developing world, and the evolution of the electronics and medical industries where we have a significant presence. We are also working to create new business opportunities for our WideTrack coating systems, extending from glass to textile applications to medical coverings in the past year”. Sono-Tek has also recently announced the opening of its Chinese office, and the creation of a Chinese language website.