Exhibit 99.1
Sono-Tek Announces First Quarter Earnings
(July 14, 2006-Milton, NY) Sono-Tek Corporation (OTC BB: SOTK) today announced
sales of $1,781,744 for the three months ended May 31, 2006, compared to sales
of $1,832,364 for the same period of last year. Operating income for the first
three months of the year was $109,437 or 6% of sales compared to $231,462 or 13%
of sales for the prior year period. For the three months ended May 31, 2006, the
Company had net income of $124,831 compared to $229,398 for the prior year
period. Earnings per share for the three months ended May 31, 2006 was $.01
compared to $.02 for the prior year period.
The balance sheet is improved from last year at this time with working capital
of $3,844,000 at May 31, 2006 versus $2,480,000 at May 31, 2005. Stockholders'
equity increased to $4,381,000 at May 31, 2006 from $3,142,000 at May 31, 2005,
an increase of $1,239,000 or 39%.
While the first quarter's sales are slightly below the first quarter of last
year, the Company's sales levels have increased over the past several years as
the result of product development efforts, related marketing thrusts and
expansion into overseas markets. Quarterly sales are affected by the timing of
our newer and larger Widetrack industrial coating systems, and we expect to see
higher sales in the second quarter due to this factor.
Net income for the first quarter decreased when compared to the same quarter of
last year. The following accounting requirements and Company initiatives
impacted the current quarter's results. New FASB regulations for stock option
accounting became effective on March 1, 2006. Stock options are now treated as
current period expenses and have a negative impact on income. In response to the
new regulations, the Company plans to reduce future stock option awards. The
Company also increased its investor relation expenditures associated with
seminars and web casts in the first quarter. In addition, the Company has
continued its investment in technology and market development to create future
growth. This investment will continue, although all expenses will be subject to
sales growth and continued health in the economies where the Company sells its
products. The Company expects to continue the growth of both sales and net
income in the current fiscal year, and is managing the business to that end.
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 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
information.
Sono-Tek Corporation
Selected Financial Data
Unaudited
Three Months Ended May 31,
2006 2005
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Net Sales $1,781,744 $ 1,832,364
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Net Income $ 124,831 $ 229,398
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Basic Earnings Per Share - $ 0.01 $ 0.02
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Diluted Earnings Per Share - $ 0.01 $ 0.02
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Weighted Average Shares - Basic 14,358,140 13,952,488
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Weighted Average Shares - Diluted 14,468,868 14,386,259
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