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Sono-Tek Corporation (SOTK-3.85%) has submitted its Form 10-Q filing for the quarterly period ended November 30, 2024.
The filing reports net sales of $5,191,000 for the third quarter of fiscal 2025, a decrease of 9% compared to the same period in the previous year. This decline is attributed to lower sales in the Industrial and Medical markets and reduced revenue from the US and EMEA regions.
Sales to the Alternative/Clean Energy market increased by 42% to $3,000,000, driven by a production line system for Electrolyzer Coating. Asia Pacific sales grew by 64%, supported by strong sales to South Korea and India.
Gross profit for the quarter decreased by 20% to $2,343,000, with the gross profit margin declining to 45% from 51% in the prior year. The decrease is attributed to product mix and increased international sales with distributor discounts.
Operating income for the quarter decreased by 73% to $198,000, while income before taxes fell by 65% to $314,000, primarily due to the decrease in gross profit.
For the first nine months of fiscal 2025, net sales increased by 3% to $15,383,000, driven by increased sales of multi-axis and integrated coating systems, primarily to the clean energy market.
Sales to the Alternative Energy market rose by 63% to $7,700,000, with revenue growth attributed to high-volume, high average selling price systems delivered for advanced solar and electrolysis applications.
Operating expenses for the nine-month period increased by 4% to $6,592,000, primarily due to increased salaries, legal and audit fees, and stock-based compensation.
Net income for the nine-month period decreased by 26% to $946,000, influenced by a decrease in gross profit and an increase in operating expenses.
As of November 30, 2024, Sono-Tek had no outstanding debt and reported cash, cash equivalents, and marketable securities totaling $12,681,000.
The company continues to focus on expanding its sales capabilities and developing thin-film coating technologies to support customer outcomes.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sono-Tek Corporation quarterly 10-Q report dated January 13, 2025. To report an error, please email earnings@qz.com.