Exhibit 99.1
Sono-Tek Announces Second Quarter Earnings and
Major Business Development Program
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(October 15, 2007-Milton, NY) Sono-Tek Corporation (OTC BB: SOTK) today
announced sales of $1,414,523 for the three months ended August 31, 2007,
compared to sales of $1,833,938 for the same period last year. For the three
months ended August 31, 2007, the Company had net income of $12,070 compared to
$233,836 for the prior year period. Earnings per share for the three months
ended August 31, 2007 was $.00 compared to $.02 for the prior year period.
Sales were lower than last year due to a slowdown in the US economy and its
impact on the Company's customers. One factor has been the decline in the
domestic housing market and its impact on electronics purchases. However, sales
were higher than the $1,232,643 reported in the first quarter of the current
fiscal year. Net income for the second quarter was below the same quarter of
last year due to the reduced sales volume noted above, as well as the funding of
new initiatives from operating income in the current quarter.
New Business Development Program Announced
Dr. Christopher L. Coccio, Chairman and CEO, announced that "a recent meeting of
the Board of Directors has approved a multi-year business development program
where the Company will invest approximately $2M in creating new business growth.
The program will be led by Dr. Joseph Riemer, who was recently appointed as
President of Sono-Tek, and has as its goal a substantial increase in revenues
over the next several years to move Sono-Tek into the $10-$20m revenue arena.
Funding for the program will be primarily derived from operating revenues,
possibly augmented with some of our cash reserves and is not expected to require
external funding. The program is similar to the new initiatives that have been
underway in the first and second quarters of the current fiscal year."
The program will focus on areas where the Company has demonstrated capabilities
and where there appears to be more opportunity that could be served with
additional technical and sales personnel. Such areas include medical device
coatings, coatings for solar and fuel cell devices serving the clean energy
market, biodegradable food packaging and applications of natural antimicrobials
to food products, and the glass and textile industries.
Sono-Tek is pursuing this program as a means to counteract the current slowdown
in the electronics industry, as well as to add further diversification to our
top line. Sono-Tek believes that trading current income for future growth is the
right choice for the Company at this time, although it recognizes the risks
inherent in any spending program and it will monitor the spending and results as
it goes forward.
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, the ability to
enforce patents and the successful implementation of the business
development program. 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
Six Months Ended August 31, Three Months Ended August 31,
2007 2006 2007 2006
---- ---- ---- ----
Net Sales $ 2,647,166 $ 3,615,682 $ 1,414,523 $ 1,833,938
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Net Income $ 31,984 $ 358,667 $ 12,070 $ 233,836
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Basic Earnings Per Share $ 0.00 $ 0.02 $ 0.00 $ 0.02
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Diluted Earnings Per Share $ 0.00 $ 0.02 $ 0.00 $ 0.02
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Weighted Average Shares - Basic 14,360,541 14,359,341 14,360,541 14,360,541
=========== =========== =========== ===========
Weighted Average Shares - Diluted 14,445,376 14,461,122 14,444,427 14,460,211
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