Sono-Tek Announces Second Quarter Earnings and Record Sales

Oct 12, 2006, 01:00 ET from Sono-Tek Corporation

    MILTON, N.Y., Oct. 12 /PRNewswire-FirstCall/ -- Sono-Tek Corporation
 (OTC Bulletin Board:   SOTK) today announced sales of $1,833,938 for the
 three months ended August 31, 2006, an increase of 16% or $254,159 compared
 to sales of $1,579,779 for the same period of last year. This quarter's
 sales level is the highest in our history and is due in part to the sale of
 a large coating system. For the six months ended August 31, 2006, the
 Company reported sales of $3,615,682, an increase of 6% or $203,538
 compared to sales of $3,412,144 for the same period of last year. The
 Company's first half 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 three and six months periods ended August 31, 2006
 was $233,836 and $358,667, respectively, compared to $156,777 and $386,175,
 respectively for prior year periods. Net income decreased by 7% for the six
 month period ended August 31, 2006 when compared to the same period last
 year. Net income increased by 49% for the three month period ended August
 31, 2005 when compared to the same period last year. The sharp increase in
 net income during the current quarter compared to a year ago was related to
 product mix, while the slight decrease in the six month income compared to
 last year is a result of increased spending on marketing, sales, and
 product development. We believe 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
     The balance sheet is improved from last year at this time with working
 capital of $4,038,000 at August 31, 2006 versus $2,790,000 at August 31,
 2005, and stockholders' equity increased from $3,314,000 at August 31, 2005
 to $4,628,000 at August 31, 2006. The Company has a total debt of $92,000,
 resulting in 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. In addition, we
 have recently begun an initiative to develop WideTrack coating
 opportunities in the food industry, particularly as that industry turns to
 coating technology that includes nanotechnology to prevent spoilage,
 improve flavorings, and to reduce costs."
     Sono-Tek has also recently announced the opening of our Chinese office,
 and the creation of a Chinese language website. We continue to see
 opportunities for growth in both China and other parts of Asia, and our new
 office will help us serve these markets more effectively. For further
 information, contact Dr. Christopher L. Coccio, at 845-795-2020, or visit
 our website at .
     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 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-KSB and Form 10-QSBs containing additional important
                                         Sono-Tek Corporation
                                       Selected Financial Data
                             Six Months Ended         Three Months Ended
                                August 31,                August 31,
                            2006         2005         2006          2005
     Net Sales           $3,615,682   $3,412,144   $1,833,938   $1,579,779
     Net Income            $358,667     $386,175     $233,836     $156,777
     Basic Earnings
      Per Share -             $0.02        $0.03        $0.02        $0.01
     Diluted Earnings
      Per Share -             $0.02        $0.03        $0.02        $0.01
     Weighted Average
      Shares - Basic     14,359,341   14,066,199   14,360,541   14,179,910
     Weighted Average
      Shares - Diluted   14,461,122   14,397,528   14,460,211   14,449,440

SOURCE Sono-Tek Corporation