SOTK - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to the Sono-Tek Year-end Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. Kirin Smith with PCG Advisory. Please go ahead, sir.

Kirin Smith

thank for and us operator, you, you, joining everyone, today. Thank

full their Eastern fiscal fourth released year Time quarter morning. a.m. Sono-Tek X:XX and of at XXXX this results

please have and Dr. tables page Bagley, sono-tek.com the the geography The Press President; in of do of product website last tab click the a are News Coccio, today's call Investors of on you the company's With not the me If sales release, and the go Officer. Release, will Chairman; part to to on Executive the at be and discussion. and today copy section. Steve Chief Chris Sono-Tek's CEO release Harshbarger, market Financial Steve

Chris, those assumes from update information those the remarks constitute concerning company's Reform that Dr. indicated now would for expectations, following Please XXXX. of note the about discussed the may conference for contained that over with Coccio, this Litigation statements. the turn remarks the company call of forward-looking the Private I these turning Before The as a forward-looking over make to materially forward-looking to various results call to made and go Actual Securities prospects Act future Chris management, result safe factors, call of in vary under may Chairman statements filings on be plans SEC. harbor conference this provisions purposes to call. I the including no please would statements the Sono-Tek. obligation like various company important by in of the like to ahead. Executive

Christopher Coccio

through you, full Steve were going discuss joining fiscal results. and XXXX remarks, and year go thank opening some our will morning President, market with Kirin, fourth a the review. that thank and then financial Good business for we're and Chief you, operational will Bagley, to this the results us. of year begin before quarter our released Today, then morning, and our will I new Harshbarger, Financial everyone, Officer, Steve provide opened. CEO and

open for Following questions. comments, call we'll your his the

X reminder, As months call a per earnings XX, for This is calls full Sono-Tek currently fiscal year the XXXX. XX holds ended our February year.

call that of be for X on months next October will the earnings and XXXX, of fiscal be will XXXX. Our

As involves our of know and that and several you are precision able systems. the motion use thin to method technology those applying developed already the new customers' our incorporated onto a many company control decades for and proprietary ago. are of coating they into ultrasonic film This Sono-Tek, nano-thin nozzles coatings products. They micron uniform of achieve advanced specialty high-frequency are to revolutionary

average thin and are Our precision in micro that the usage, and market, dramatic apply water a material, is The in broadened requiring are savings offer and though, the strategic our protective today's advantage, now with unit several complete system meaningfully functional vitally or products and ability solutions components environmentally energy of our to ago selling significant to growth of important in our they we raw The made more friendly. coating ultrasonic offer has and prices. these addressable world resulted years principal films, that's in solutions coating. shift thousands

past in million, $X.X also announce year. I'm This million, the reported is shipped this million that, production sell over for now finally trend continued platform This can prices the reach constraints for happened chain pleased that, than valued end through $XX.X subsided our as revenue. our past $XXX,XXX to the also $XX.X fiscal the and our and quarterly can together, sophisticated highest we over This year-over-year. up for year million quarter lines the ever. year increase commonly ago impact yield full revenue and record-breaking higher and we year, level second Our or large machines reached a newly of backlog system XX% from $X significantly year, over morning, year of this nearly supply larger that has a X ahead. developed and XX% sales record-breaking of

increased record the to sales addition year. year. and increase on backlog, addition backlog to increase In backlog compared its X% million, year's the substantial $X.X to backlog also over previous is in This the previous last a to

medical focus coating growth due for unique new markets large these and strategic due includes are and complex for continuing Now solutions areas served the clean to very talked many our technology. and that was and advance to sectors before, main generation X systems we've microelectronics devices This about energy. We shift our our strong for towards alternative technology. in these these latest our or growth this on products system also semiconductors, platforms areas and global years have to opening and

close and energy, capture carbon cells, Now significant to experiencing a We're clean decade. pilot including solar these as to systems. and providing R&D customers hydrogen fuel success advanced production for they markets generation, we've green a with lines are transition now been cells scale

and As allowed with and so done us R&D them they scale to has prior now. move that process have up to

that the microelectronics, announced past orders industrial million sectors. Also systems. large alternative the orders from clean is our the strategy million. to energy, large from we've customized first And at the largest first to production shift in high-volume sector over the also deliberate from is year, from This are our transitioning we to half energy of primarily $X.X the order date. the in largest experienced systems. medical Over repeat of year, $X.XX customers electronics, order valued and These

that R&D achieve than remains We through a our year We've where technology, own our investments which we expansion. And Our increase of attribute further consider come been of to systems. our approximately with a custom-engineered the to sales, support year, our both ago, to of be increased markets in headcount lifeblood. product work, excited for a applications. past strong front R&D the pay these focus growth want and large our by personnel We to we to from direct this on on off. with this department. We proprietary made new focus strong in the IT into the that these result needs. We're years in ensure able enhance XX ultrasonic our platform staffed shift begun expansion more heart the to our to all and of atomization XX% organization investments our of investments began have Sono-Tek front fully to end systems, stay continued open and we've

by of multiple to and outlook the been growth greatly for systems orders. shift strategy enhanced with success larger our Our to early has repeat

sales. revenue quarter of fiscal year, a towards against year. will weaker a above turn to revenue XX% to February XXXX, guiding Steve? who provide XX%, first year the orders ahead growth XXXX, despite for over fiscal X% financial the shipments you, XX, will an and confident and first this year quarterly new call continue details strong growth comparisons strong of I'll XXXX. Thank we're ending XXXX in We're that towards Looking guiding remainder Steve to positively of last shipments now impact results. and also to year-over-year that's additional record our quarter We're Bagley, on

Stephen Bagley

good and morning, Chris, you, everyone. Thank

in approximately in provide million customers. XX% and our to fiscal XXXX, For reported XXXX, $XX.X XXXX. sales Harshbarger This of is sales. Geographically, XX% more fiscal will XXXX. with from detail increased full XX% to net year million Canadian were the of sales fiscal year respect compared fiscal the full to $XX.X Steve of for to U.S.

the proactive Canada, and sales This U.S. Reduction XX% can to to including Inflation Act. the various We from continue strong and Act for record initiatives, such growing be achievement the as XXXX. attributed fiscal factors, government CHIPS

fiscal million are for to to or fiscal XXXX, high-technology warranty million of year-to-year these trend ongoing bolstered due compared relatively fiscal sales compared margin In XXXX. of $X.X increase remained products costs gross production XX.X% onshoring fiscal million decrease Overall, to the increased in decreased XXXX, increased function XX% in fiscal XXXX, increased our for the mix. $X.X to in performance and expenses, Additionally, profit increased has margin were expected. consistent costs to and XX% our on installation fiscal when profit our profit for profit the margin is $X.X than costs XXXX, Warranty gross products for an fluctuate XXXX. a costs. will significantly in warranty compared Gross with salaries, regions. Gross product XXXX. In lower indirect transportation fiscal

specific expenses prior increased Operating In profit due the and of $X.X to recharacterization sold. the reallocation to decreased year. from expenses engineering goods compared addition, labor margin in our XX% to gross the of cost million million, to department $X

expenses trade $X.X As of Chris mentioned the decrease commissions, in $X.X increased new in these and research expenses to across due to costs earlier, to which are existing and The salaries and headcount, $X.X used new to insurance increased XX% technical increased due in increased selling of all supplies, Research and development decrease the increased administrative for million was a materials areas. show and primarily and expenses offset headcount million compensation by for development increase primarily markets. higher approximately fees, partially a increased and professional XX% XX% were headcount, the year. salaries, and stock-based expenses. General and and partially product due to to Marketing expense. million, offset by travel salaries XX% of development, products increased costs several

addition, tax the to we the that by of on notified sales required shipments in of we to our were In state quarter collect fourth California XXXX were fiscal California.

April preliminary that basis our reviewing of have we interest California. sales be of the sales recorded XXXX, accrual $XXX,XXX on to the remit in California sales of may to our of and, process for we to and are penalties since tax, We estimated required California State a an to

XXXX, gross result fiscal $XXX,XXX increase the by to fiscal income expenses. year. increased margin is and Operating for income operating operating for an increase fiscal profit, in increased compared increase XXXX of XXXX, the Our in X% with XX% $XXX,XXX prior X% to fiscal fiscal a million offset compared $X.X revenue in an with in year. or prior operating the in In

As a as fiscal fiscal expenses to XX% $XXX,XXX compared in in decreased to for compared operating $XXX,XXX sales, points XXXX, with XXXX. Interest fiscal percentage XXX dividend XXXX reallocation $XXX,XXX basis net fiscal and increased income interest into XX% with of securities rates. current to and U.S. dividend increase interest certificates year. The prior treasury in our increase the investments combined is in and deposit with due for income the the of of

at or $XXX,XXX cash U.S. securities in at and treasury holdings February continue are $XXX,XXX of on of fortification $XXX,XXX and policy result Our liquid offset to above infrastructure, XXXX, the expense the sheet. CapEx XXXX year February expense enhancements fiscal the debt carry $X.X fiscal with income million to securities in $XXX,XXX income, increase by XXX% operating application available cybersecurity We a for increased cash, no investment focusing $XX for approximately higher income $XXX,XXX, year. for in excess our income with to for offset of we by end tax and The increase and our net for and to expenses fiscal low-risk recorded increase of is and XXXX, or -- increase IT rated at last substantial year, highly upgrades, prior is equivalents operating our majority to of fiscal income server of research certificates an in $XXX,XXX in invest was balance the allocated over an was network partially credits. Net and XX, an of than grade. tax income this add increase our million, cash XXXX, total holdings, tax in taxes, present capacity. were to income the compared continued towards into is due expense. We've deposit. At marketable tax compared XX, the year. our The $XXX,XXX before fiscal prior cash expanding full income XXXX, and development income the in dividend in XXXX interest fiscal an increase in fiscal investment on

in to Additionally, current growth the initiatives. projected the expansion facility investments were support of and Sono-Tek made

upgrades new year. facility and Harshbarger, in of for call Steve? We now fiscal year. And CEO our the current over in to turn $XXX,XXX approximately to an full Steve President, I'll expect invest the equipment review and operational

R. Harshbarger

for joining us Thanks, Thanks Steve, morning, good everybody. today. and

details. comments and of of by ways: down in products the and on many markets, my our X breaks those last Please will short you order. geography, see flow know, by in release for that As the earnings Sono-Tek sales press tables by all page

mentioned, growth. expectations revenue a our ahead Chris full the sales annual of we XX% midyear was of $XX.X year, XX% up This As net reported annually. of of for minimum million,

in significantly system in the showing in heightened an propelled Integrated is or a XX% demand by XXXX, line our machines volume coating installing number Our production revenue. history, growth million growth the also to historical which we increase R&D increase, $XX of from systems, systems. In an represents due of single prices complex strategies and with achieved we to significant accelerated our year for $X.X compared systems, sales which by $XXX,XXX elevated to The FY company's platform. million ranging coating momentum totaling as XXXX XXX% over coating commonly fourfold guide our used production $X.X customers or high-volume multi-access and bolstering average This million. successfully pilot our our the our our highest selling record clean and of over ASPs $X.X FY float year. newly production systems to developed increase our glass also delivering gaining and approximate are continued a energy sector, pilot by success a ASP well towards million, X from are was high-ASP milestone $X million large-scale

positively capabilities. was a investments we debut Altair initiative under call integrated engineering of vertical that FY to issues into delivery our a our and last including our market, increased machine capabilities. In NovoCoat, we of product were introduction coating first within able could made partner PLC-based This to to by increasing was first which expanding result manufacturing the the strategic and by directed the an solar efforts have multi-access XXXX, a supply and key is broaden chain, integration continue deepen and project the our own without controls our meaningfully the broaden with out significant process we this finally delivered and of intense and that's in-house we supply addition, order under programming build was as project captured break system, systems developed to a shipments year's In Altair. This of ongoing, we and impacted line. not chain

fiscal XX, dipped Following for or February sales circuit by uncharacteristically PCB ended flexing printed fiscal for systems PCB high revenue XXXX. flexing year board for XXXX. $XXX,XXX

to the latest our installed fluxing their technology. fluxers upgrade we've to advance years, we of continued Over equipment thousands machines, our and spray the spray as our customers model

dip $XXX,XXX base So that we PCB to causing sales decrease into fluxers customer although parts, there largely a was ultrasonic closer and sales service-related a novels annual highest this field. We fluxer categorized spray in has product increase spare to revenue, spare OEM spray for as that year, are XX growing of to dip importance revenue in our their The remain PCB slowed OEM in declined, a these market $XXX,XXX. Sales norms. category. own and OEM place sales our large our over platform, more other parts in and activities customers coating systems integrate which returned in service-related and percent what the mitigated the more it's of growing was was large by a by support lines we is and the machines production our to strong. Also, have believe contracts our historical packages other stream, and ASP

could production packages to of order value XX% machines. as on ASP the total follow-on our believe much these we service-related high fact, reach XX% In as

$XXX,XXX to and a of delivered sales production alternative used and market, a market. Fiscal carbon fiscal a grew commonly X that from the at that experienced to of primarily systems area. with solar customer Sono-Tek solar in XXXX. in a clean to million XXX,XXX our and FY announcements higher was notable to market market prices turn fuel scale additional each green we'll scale contract cells shipment growing valued increasing this by are average advanced positively growth capture, our uptick the production scheduled in capture machines of critical the backlog advanced customer impacted And increase segment. in shipment which the these ASPs in this recent carbon $X.X a same manufacturing generation, energy Sales the from cell a $XXX,XXX to applications. XXXX were sales in are or system systems large customer to systems arena for by year selling ship customers R&D system in of revenue included was market are and This a by by number to fueled membranes of the semiconductor modest carry again. Many hydrogen much XXXX. Electronics by the XX%, Now transitioning highlighted the

shipment taking tempered XXXX driven earlier. Medical of Industrial large in in growth companies the However, is $XXX,XXX, of to by PCB in of sales This multinational the fiscal fiscal $XXX,XXX float implantable partially of a this X mentioned and XX% remained systems XXXX of totaling and and was sales as customer U.S.-based last systems fiscal year. by sales compared device half glass delivery medical XX% This for order rebounded spray momentum decrease for and approximately by in our approximately very a positive strong, during XXXX, machines geography, FY XX% XXXX. specialty was influenced I second showing the with ended Canadian sales XX% in fluxers, for of coating strongly XXXX. fiscal several growth were X a our next-gen $XXX,XXX. By to coating multisystem U.S. customers. of

record CHIPS and various XX% from achievement continue such Canada, growing as and to fiscal the XXXX. factors, proactive sales to Act can Inflation initiatives, U.S. strong be attributed government Act. Reduction We including the for This

on EMEA sales secured high-technology sales was to these trajectory This unique Ireland, we increase trend onshoring and a a has equivalent membrane Additionally, X sales clean initiatives next-gen coating shipped robust surge, regions. our energy had separate growth designed marking sales the at thin specialized experienced fostering bolstered our for sector. systems products influenced upward significantly of really health catering $XXX,XXX. by of innovation to impacted fiscal commitment devices, electrolysis government aimed performance the that of ongoing our care implantable notable expansion systems, positively to are of in XX% coatings These XXXX, where sectors. reflecting medical by In continued Germany machines coatings customers devices. Furthermore, unique within film for in to

remained XXXX. flat fiscal Asia for sales

clean prevailing from sales were in representing the Korea and Singapore, encountered a market in associated $XXX,XXX. largely sales a sector landscape was offset region. In segment, the sluggish region this economic to this that in commonly discernible decline the customers be India, trajectory we reduction downward the a robust energy attributed fluxer and China performance can this with of continuing South Latin by While in shown from America, is This dip spray of base. uncertain XX%,

Our sector trend. this stood addition million, over is million in February increasing on its the $X.X And greater at growth dollars. February large last year We or to backlog the of generally our XX, order at previous increase valued substantial receipt several in from deposits reflects on continued particular. new activity in energy it thousand hundred Customer deposits reflecting reached the of orders at orders XX, continued the $X.X XX% the year-over-year year's backlog. backlog and clean require

As year fiscal continued quarter to current systems forward, key XX% fiscal in high-ASP X XXXX year closing, first additional our look are we're the delivery for delivery course, both production, with strong, guiding last another we first XXXX. In XXXX FY year. and a fiscal high-ASP year above our excited acceleration for weaker quarter orders against, high-value with reach XXXX for we of FY expectations and outlook and backlog strong to is of scheduled entering milestone record in growth

years. growth now the up increasing it of the projected for in X% I'll the for anticipating operator making initiatives believe year-over-year full back fiscal revenue for the FY a quarterly call with growth higher ending for over the strategic our we XXXX, record year position we're questions. the XX, will us to turn with coming profits XXXX and good shipments year comparisons even XXXX. And open Additionally, in to we're to February fiscal investments X%

Operator

Mr. first Instructions] [Operator will Bill Circle Nicklin from our Advisors. with N And come question

William Nicklin

a it. You these job did details. nice unpacking I appreciate

R. Harshbarger

Bill. Thanks,

William Nicklin

its will some company outcome have the broader likely shareholders. that future do characteristics the of about kind I questions for and your of business the for shape

X to what's your I'm And few one position over been competitive years, ], against position. competing who deals you're the [ trajectory of get last the kind with et of cetera. competitive relative your an first understanding trying The the of to

R. Harshbarger

Yes, just to just, market. ultrasonic are This them actually interesting Bill. is it's coating It Steve because was of us we takes most many it an a are analysis competitive here, do on while that question last the of the these week, not a just because our companies public. actually, competitors, finished

years, it's can going a just we're we've since you analysis. And X quick I last company note, be But kind done been about think, that of a sometime findings. give a posting presentation by month. next side our will website analysis snapshot of our thorough our the on this part of to So way, I be new

pie competitors X of from $XX a is million larger revenue, I is COVID, from of coating Sono-Tek was out market not China billion Sono-Tek and significant machines, an equipment Looking Followed -- were, on marketplace of think, years like very is about where total in this group were right? course, that, large the It's ultrasonic ago, it million market, was $XX specifically the for it is market. What's ago. And small, where course. coating copy ultrasonic today, interesting over competitors, at of the that, million ultrasonic that in chunk sales capturing They competitor. $XX European $XX by back with of companies years South stress X from the focused of coating U.S. existing most our million addressable XX% one should where thin-film $X a That's total total X little Spain. direct up decent-sized Korea. the I

have in changed. all in grown significant and direct U.S. substantially or European numbers. size China of even case, competitors size while out one going now actually the business that's Now all X in have our shrunk competitors We and believe

they're they ask, were very it, are Sono-Tek nature, very has when did. and at of type they're acceptable, China sophisticated where you to I cut what in shouldn't European-based would close And U.S. becoming while products describe at. of simple see repeat actually has no competitors be is basic it's kits to shrink and this instead of our quality closed making might machines, coating the European copy to are like while been did or into that relatively -- as. China better competition, that dive maybe competitors Well, one happened. the why easy to still So and be it Making historically U.S.- got near ultrasonic surprising. good growing what vanilla and simple enough

Our these focus closed U.S. and on cut on competitors and price. continue what making and machines. urgency worked as quality, recognize historically, European for relatively and the didn't them to It's change simple they to them copy crushed gap really in the they China

they engineering at, are them. what was platforms application in customized large to not to So I China at very is near copy. And have impossible with to us enough heavily where complex, really if not China systems China failed they'd advanced application on significant could, highly these highly adapt is invested Sono-Tek with to on good they're coating which this keep they're is they -- knowledge. with knowledge good sophisticated even can't that implement advanced mean, up machines. development nearly these And what

that of a how gives kind So time. it's -- over little the of migrated bit you

William Nicklin

any on thoughts you machine. to not a or to make was knowledge would looking machines me The that process you me, your I have want to to thing knowledge give share that needs. do a my the to process as It's It I seem of occurred would is comment? over will you watching for that the years, that Chinese. address those their last out lot -- customers you rather folks Do if

R. Harshbarger

course, of correct. you're, mean I

some a developed trust If shared Meta and a company, an coating you're to advanced or you Google or IP Apple be your company. like thin-film a technology Tesla and want or do with to collaborated a China-based or really

no if have a do if they want to you that machine you you're really it care transfer the are And won't for production those that. have also, might or you -- company scale a your small you that production share at everything development won't But develop China? addition university machine high-volume on you learn you a to time they anyway. products even same that China, do maybe way to China-based risk to if to You product in for if plans a to

lot companies come a These there's of So go and China, risk. in also. they

could worst go a best best successful they no don't the the scenarios That's -- develop a cheaply work but thin further. China is you made develop you machine. coating case or a So scale case can't But make fail it that case to float process it you up. the and you that on process, -- still

IP go Sono-Tek for larger you multinational got you companies your too of are really most are with going choose, So to the risk institutes have are pot going go you of significant is you ever-evolving your companies just when and to this risking with or with. you China-based to that

William Nicklin

new then fulfilling these Next question business business to kind has reviewing of with do more of the orders. how is shape run, the and

is invest arrive the how initiatives to does Sono-Tek before expected far question investing in? you're revenues that guess I have from the ahead So

R. Harshbarger

Yes.

I in and It's then years think want feasibility participate us prove that's an we to to uncommon to for market spend another It's think standpoint. identify X that our a a where year as long from hardware advantages not we sometimes go investor question frustratingly good the also to and long. X it X And to it's maybe significant development bring years. software that can does that, then area. technology but of there's from following X as be can months, phase then -- any that sort place well,

being the with average cycle really, months, simple years I say outer maybe be is X-year, So But a -- a would cycle mean, with you're cycle X possible on completed. XX fastest time total looking the about X-year product for average edge. I time to maybe the this like more

William Nicklin

All right.

mainly up on and forth, so and then into down road. R&D the in Is investing you're as If an early that show that correct? expense turn revenue intangibles will

R. Harshbarger

product early are that is machinery. prove and to release development The This in it primarily sales back returns followed after phases sales new then, Yes. investment base. of personnel. product and and Yes. to engineering and feasibility the then and force engineers for programming releasing the application customer market the sales the of then an the R&D by -- new and ultimately And market course, develop to

William Nicklin

All right.

you've in about So applications, those numbers recent been are hires believe, R&D, as the I years, whole? the show, placed a marketing engineering what aggressively percent also over then and sales of hiring and

R. Harshbarger

about just me think let Yes, that.

the years, a invested personnel of the past tend full It's highly very significant year in Over becomes newest the, almost to you heavily personnel X ability. a investment we've bolster effective. have in growth particular, our training to because before really say,

we year, of hired people, So which new for small directed those, my connected to fraction manufacturing. the think we're more Only off past development. overhead market X XX example, or new this I was top and I -- a of directly was to about of can product think head, it

William Nicklin

Okay. machines, if needs don't new the revenues call either after coating and the mention, for during to I kind describe of new Meaning, I my after existing started of what Can or in repeat One mind, customers. durability or business, from then you builds. Steve And recurring recurring returning would multiple revenues? you mind. you did, more, customers, -- think you

R. Harshbarger

Yes.

need those them have, prices. highest a to production R&D transitioned sales in customers systems, just line want been they've enough. longer like might now the ASPs, guess, the machines, repeat machine production that big high-volume I course, the the machines, unlike We an often should system any followed larger might our systems, that's our platform a end And addition highest of past, our have positive be Well, by really with the to R&D Well, selling of shift where the they us. recent customer successfully coating Okay. machines high-volume systems, those really substrate strategy. In on once repeat of one average not to our be for and guide cycle. which pilot returning

significant benefit on XX%, the every of around the that shall in I I is add high-ASP but machine phases, This right machine. And in on year, service XX%. gain also just look service we're think that our in machine all a -- a of then be it XX%, parts machines when they once about -- had other machines And once momentum we contracts are this packages. On could contracts more platforms, compounded and should the beginning the service impacting XX sort [indiscernible] revenue XX%. course, when reoccurring that to greater you of should on a add we're spare XX%, of quickly. far acceptance seeing just you quickly those this stream of on the that, to because beginning then, So up have you of production it -- like our type so annually year, now really phases you on, XX%-ish add say be very X

a more So in we're future. going that's reoccurring revenue be optimistically the significant to stream thinking

Operator

[Operator Instructions] Ridge come Our Ryan question Oak will Dick from with Financial. next

Richard Ryan

you maybe of Can machines machines concentrated breakdown in of the versus how more type a there. give backlog, kind or Say, how Steve, fiscal the indicated then larger all $X.X that Is us of And is should business? flow at backlog 'XX. much we had some next look in ASP in some in of this larger to that anticipated turns those million? you you

R. Harshbarger

year. Sure. In in fiscal came the those most orders backlog mid existing of last today,

is So that no million going for pretty scheduled expanding everything question and are we $X.X one, development. they've hit this believe now, have over in on have can machines I which where those There we in X, machine there take reason high that's There's a publicly year year, long-term platforms. backlog enough backlog, in I significant for where some in a really. then contracts existing time high-volume machines. out guess putting customers. are there's there's machine production applications. And They X about are have that they're that production early what's and of customers both of fairly to in our really on have those. over And to shouldn't that year, for say X make think, need already a And these is don't in of we'll X X all with $XXX,XXX, that These but of that their about goals for to. I One that clear X to area been current underway. And are right high-ASP have their they a customers, announced -- exactly. question -- phases that's of all even maybe about in I the the up is some these marks But nothing confidence. I and delivery. well been large that's build that of that machines they're fiscal can

significant seem them for what same what machines Sono-Tek come So It if for they -- of they're like future publicly. of of well, to to saying these repeat one some or pretty configurations. they should similar anywhere very for they commit always seems the close upside they're is result like the in particular, mark in always hit

revenue the that, stream we're revenue year, fiscal the quarter, and adding the more of about much this fourth for optimistic as, into So year. importantly, second well maybe as both half next stream

Richard Ryan

Okay.

got quotation on that or batting So or lab when a give into have the the work what's repeat Can you us labs average and your you sense and of your you've in of business obviously engineering the orders? going you look activity. order then turning level, what's demonstration the at

R. Harshbarger

on. we're Yes. working really That's hard area an

our talented and here have When successful. their to rate work process. have about they're will a someone success developing is -- they've where buy on someone XX% there -- We comes machine New York-based here in is remarkably some we a come really in lab if engineers here,

just we that's revenue pay correlation that's that this, capital for be mentioned because of us. This the growing the XX%, here task of develop us, in paid a to focused we're development. capital lumpy, that success both success to them show especially our So our we COVID Sono-Tek -- actually near most, be but we're that that is important very And equipment, that our right area backlog rate help we not to customers, behind up really really to international have of that's and success that effort is we same meet person concerted a to We towards rate, for need that successful accelerate clear, get anywhere rate year, because, overseas able a just to now have the stream, right just not earlier their going streams revenue if labs just revenue super it's very goal actually somewhat our now, them us. putting we stream. can And application a kind area. There right? significant their know applications lot out. the for the equipment be have and and And area, direct another Many now, of to will for that coatings I need. is way

want really It's this significant. the bolster really, doubled we almost really our services-related aspects year. it's still organization. So past not to And of

coating of help with combined application things services make under is little contract right those us which to focus not and now. But which more for think services of the will that we're revenue clear now, that part significant combined and million, lumpiness -- much engineering, selling think on I just a the I stream, time. $X there's all equipment capital enhance very a our of the a kind just right

Richard Ryan

left for Okay. One me.

were shipments? You coated? in Or on that they couple a in being you more previous specifically sent color over customers are called applications to Can a the existing us have a little side medical Are of these X on can using coating devices sense, out customers expanded? being you new systems are those medical systems Ireland. provide that that your give

R. Harshbarger

these customers but their the systems. But had of the developed cases, because say, now our able they in they're coating see stents. confidence these sure coating built application was believe, standard customer to to those is kind is the I process to else saying, be cases, they these engineering it And to in that shift of very came we're to fairly These really huge device. implanted customers of that it in this can new Sure, implanting let's it's the in uses yes. not clear. use cases. That's systems, worked with that a develop is, they they use into world that in We're our them, process of of broaden our our hey, existing we that are not an now Sono-Tek were customer anything would of to people unique what both in body. a kind both significant of for the stent Sono-Tek that's simpler provide base hey, they've industry our talents both nice are stent are, for engineers It And that's our stent body. This to our coating chunk cases. getting These systems. both Sono-Tek's in both Sono-Tek, I these devices the customers. away And it just again, newly customers, using development new them say unique there. But both one new to for machines, in coating give implantable area the can't coating don't stent coating only that but device a why are out. stent be labs,

the industry. a as devices, don't at general Sono-Tek just device a look coating at them customer medical coating in look for of stent medical any them as

Richard Ryan

source your coating Or of these new their kind you your somebody efforts? did to against sole this come and capabilities Did just previous run systems? in your else they off expertise with

R. Harshbarger

again, the were just and these happens confident customers, time. that had They built this so this. of we cases, both in these partnerships that with this think, I handle over Sono-Tek

probably of first. these in to we'll medical them that's -- and of the vendor. can't, area, happened bat that that's we'll well that's But have I right guys really that partnerships that just if of come really that. not tell We're Sono-Tek past, start. can, we us that's have you can a most somebody if know long-term partnerships another coating. and But are them guys. honest. have we And we think device of every to default they technology But them. kind to be off many they do once by do wouldn't these can. came single the in partner enough not us something say that And how, we these to a the with particular, refer can we to it to with We're kind in just of the They

Richard Ryan

Congratulations on the performance. strong

R. Harshbarger

Nice up, catching Thanks. Dick.

Operator

This any Please like remarks. Mr. concludes our question-and-answer the back session. closing to to over conference Coccio go turn ahead. would I for Chris

Christopher Coccio

for and today. everyone, us joining Thank thank you, you, Kirin,

our high-tech with clean success ongoing fiscal midyear look on our XXXX We great a initiatives markets. please based Wishing much. of our the results, In Sono-Tek's Thank October. in next meantime, rest directly if that you platform will day. have in us will energy strong and to call the our is outlook forward very be and you that review any questions. contact you the

Operator

The you conference presentation. attending concluded. today's has for Thank now

You may now disconnect.

Sono-Tek (SOTK) 23 May 242024 Q4 Earnings call transcript