(January 15, 2013 – Milton, NY) Sono-Tek Corporation (OTC BB: SOTK) today announced sales of
$2,202,000 for the three months ended November 30, 2012, compared to sales of $2,945,000 for
the prior year period, a decrease of $743,000 or 25%. During the current quarter, the Company
saw an increase in its stent coating systems and spray fluxing units, which was offset by lower sales of
nozzles and generators, widetrack units, and robotic controlled spraying systems when compared to
the prior year. For most of this year the Company has been affected by the slowdown in the solar
energy industry due to overcapacity in that market. In addition, sales to other customers and
segments have been affected by a slowdown in government programs as governments work to
regain fiscal balance.
The Company reported net income of $25,000 for the three months ended November 30, 2012,
compared to $196,000 for the prior year period, a decrease of $171,000. However, the Company’s
gross profit margin was healthy at 49%. The current period reduction in net income was due to the
decrease in overall sales levels, and has led to cost reductions to maintain profitability while the
slowdown persists.
The Company reported sales of $7,433,000 for the nine months ended November 30, 2012 as compared
to $9,084,000 for the prior year period, a decrease of $1,651,000 or 18%. The Company reported net
income of $96,000 for the nine months ended November 30, 2012 compared to $872,000 for the prior
year period, a decrease of $776,000. For the nine months ended November 30, 2012, the Company
reported $3,597,000 in gross profit as compared to $4,618,000 for the prior year period, a decrease of
$1,021,000. The gross profit margin was 48% of sales for the nine months ended November 30, 2012
and 51% of sales for the nine months ended November 30, 2011. The decrease in net income and gross
profit are related to the overall decrease in sales, which is currently being offset by cost reductions.
Dr. Christopher L. Coccio, Sono-Tek’s Chairman and CEO, stated that, “This year continues to be a
challenging one, with sales reductions on the order of 18% compared to last year. In response, we
have consolidated our management organization and reduced costs to maintain a profitable business
and conserve cash for future opportunities. However, we are not reducing our efforts to create and
sell new systems to additional market niches. Our Company has shown resilience in the face of
changing market conditions, and we expect to be ready to capitalize on the eventual upswing. We
will continue to focus our efforts on printed circuit board and developing electronics segments,
advanced energy market segments, where there is continuing investment taking place, medical
industry opportunities involving newer implantable devices, and industrial markets such as glass,
textiles, and food applications. We have business activity underway in each of these segments at
present and will work to expand them.”
For further information, contact Dr. Christopher L. Coccio, at 845-795-2020, or visit our website at
www.sono-tek.com
Sono-Tek Corporation is a leading developer and manufacturer of liquid spray products based on its
proprietary ultrasonic nozzle technology. Founded in 1975, the Company’s products have long been
recognized for their performance, quality, and reliability.
This earnings release contains forward looking statements regarding future events and the future
performance of Sono-Tek Corporation that involve risks and uncertainties that could cause actual
results to differ materially. These factors include, among other considerations, general economic
and business conditions; political, regulatory, competitive and technological developments
affecting the Company’s operations or the demand for its products; timely development and
market acceptance of new products; adequacy of financing; capacity additions; maintenance of
profitability and the ability to enforce patents. We refer you to documents that the company files
with the Securities and Exchange Commission, which includes Form 10-K and Form 10-Qs
containing additional important information.