On Tuesday, Sono-Tek Corporation (NASDAQ: SOTK) had a notable increase in its stock performance, exhibiting a strong upward trend. The stock had a rise of 8.04%, peaking at $5.91 at the end of the US stock market trading day. The disclosure of encouraging financial results served as the catalyst for this constructive shift.
In a significant corporate update, Sono-Tek (SOTK) disclosed its financial results for the third quarter of its fiscal year 2024, which concluded on November 30, 2023. Surprisingly, SOTK saw its best quarter to date in the third quarter of FY2024. Due to the company's adept supply chain management, both new orders and backlog could be shipped, setting a record for net sales of $5.7 million. This was a significant 59% increase over the same time the previous year. Robust deliveries to the alternative/clean energy and medical areas were the main driver of the sales growth.
SOTK's Operating Income witnessed an impressive over 6-fold increase, reaching $721,000, attributed to the substantial surge in sales and gross profit. However, this surge was somewhat offset by an escalation in operating expenses, reflective of ongoing investments in revenue-centric initiatives, particularly in research and development, as well as sales and marketing. Concurrently, Net Income also experienced an almost 6-fold increase.
Despite the record-breaking sales, the backlog maintained a robust position, nearly doubling from the previous year to reach $10.4 million. This marks the second-highest reported backlog in the company's history, with the highest being recorded in the second quarter of the current fiscal year. This surge underscores heightened order activity, particularly from the clean energy sector, coupled with sustained strength in SOTK's other business segments.
Sono-Tek has updated its estimates for the entire fiscal year ending February 29, 2024, demonstrating its bullish view. The business expects net revenues to rise by a significant 30% over the previous fiscal year to a new all-time high. This growth is attributed to increasing shipments from its formidable backlog and a surge in orders from both new and repeat customers. As it looks toward the future, Sono-Tek envisions concluding the current fiscal year on a record-setting note, poised to enter the new fiscal year with a robust foundation and sustained momentum.