Sono-Tek Corp (OTC: SOTK) is an ultrasonic coating systems company that designs and manufactures equipment applying precise thin-film coatings to parts and components across microelectronics, alternative energy, medical, and industrial markets. Revenue comes from transactional equipment sales, with product categories including Integrated Coating Systems, Multi-Axis Coating Systems, and Fluxing Systems, sold through direct sales personnel, independent distributors, and sales representatives. For fiscal year ended February 28, 2025, total gross profit was $9.74 million at a 47.5% gross margin, down from 50% in fiscal 2024, with net income of approximately $1.3 million. Alternative/Clean Energy was the fastest-growing end market in FY2025, rising 64% (+$3.84 million), driven by solar and electrolysis applications. US/Canada sales increased 15% (+$1.6 million) in FY2025. Equipment and service backlog stood at $8.67 million as of February 28, 2025. One customer accounted for approximately 11% of net sales in FY2025. All products are manufactured at a single facility in Milton, New York.

Revenue model

Transactional equipment sales of ultrasonic coating systems, including Integrated Coating Systems, Multi-Axis Coating Systems, Fluxing Systems, and ultrasonic nozzle subsystems (Universal Align). Sales occur via individual purchase orders with no firm long-term volume commitments. Service-related revenue also contributes to backlog, which totaled $8.67 million as of February 28, 2025.

Products and services

Multi-Axis Coating Systems, Integrated Coating Systems, Fluxing Systems, Universal Align subsystems, ultrasonic nozzle systems, and ultrasonic generators. Integrated Coating Systems grew 28% (+$814K) and Multi-Axis Systems grew 6% (+$603K) in FY2025. Systems use high-frequency ultrasonic vibrations to atomize liquids into thin-film coatings applied at low velocity.

Customers and end markets

End markets include alternative/clean energy (solar, electrolysis), microelectronics/electronics, medical, industrial, and research and development. Alternative/Clean Energy was the largest growth driver in FY2025, up 64% (+$3.84 million). Industrial declined 47% in FY2025. Principal customers include original equipment manufacturers, distributors, and end users. One customer represented approximately 11% of net sales in FY2025; two largest customers represented approximately 12% of net sales in FY2024.

Value-chain role

Equipment manufacturer and applications engineering provider. Designs and manufactures custom-engineered coating systems incorporating patented ultrasonic technology. Sells through direct sales force, trained independent distributors, and sales representatives. Provides on-site support and application engineering. Manufactures and assembles all products at one facility in Milton, New York.

Geographic exposure

US/Canada sales increased 15% (+$1.6 million) in FY2025, supported by a record shipment of five high average selling price systems totaling $3.85 million. International sales occur through distributors and sales representatives worldwide. Single manufacturing facility in Milton, New York.

Source: SEC 10-K, filed 2025-05-28

Industry: Special Industry Machinery, NEC Peers: Ouster Inc Daktronics Inc Darkpulse Inc ITERIS, INC. Keysight Technologies Inc Tingo Group, Inc. LUNA INNOVATIONS INC PowerFleet Inc Wrap Technologies Inc