UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 13, 2016
Sono-Tek Corporation
(Exact name of registrant as specified in its charter)
Commission File Number: 0-16035
| New York | 14-1568099 |
| (State of Incorporation) | (I.R.S. Employer ID No.) |
| 2012 Route 9W, Milton, New York | 12547 |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code (845) 795-2020
Check appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02: Results of Operations and Financial Condition.
Item 7.01: Regulation FD Disclosure
On October 13, 2016, Sono-Tek Corporation issued a press release regarding its financial results for the quarter ended August 31, 2016, in the form attached as exhibit 99.1.
Item 9.01: Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated October 13, 2016.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SONO-TEK CORPORATION
By: /s/ Stephen J. Bagley
Stephen J. Bagley
Chief Financial Officer
October 13, 2016
Exhibit 99.1
Sono-Tek Announces Second Quarter Results and Confirms Prior Sales and Income Guidance
(October 13, 2016 - Milton, NY) Sono-Tek Corporation (OTC QX: SOTK) today announced sales of $2,310,000 for the three months ended August 31, 2016, compared to sales of $2,975,000 for the prior year period, a decrease of $665,000 or 22%. The Company’s second quarter sales level was in line with first quarter sales, as expected, and as communicated to shareholders in the Company’s recent press releases. The current quarter’s decrease compared to the prior year’s quarter was primarily due to a slowdown in sales to the electronics industry, particularly in China and Brazil, both of which have experienced economic problems. During the second quarter, there were no deliveries of the Company’s large WideTrack glass coating lines when compared to several in the prior year’s quarter.
The Company anticipates an improvement in revenues in the second half of the current fiscal year as some customers free up funds for year-end purchases and as sales of the Company’s recent new product introductions expand. The Company is scheduled to ship a large WideTrack System to an Asian glass customer in the third quarter which is expected to contribute to both the top and bottom lines.
The Company reported a net loss of $90,000 for the three months ended August 31, 2016 as compared to net income of $144,000 for the prior year period. For the six months ended August 31, 2016, the Company reported a net loss of $34,000 as compared to net income of $298,000 for the prior year period. The Company expects to return to profitability in the third and fourth quarters of the fiscal year and achieve overall profitability for the Fiscal Year, as discussed in the Company’s August 26, 2016 press release.
Dr. Christopher L. Coccio, Sono-Tek’s Chairman and CEO stated that, “Sono-Tek has experienced quarterly and annual revenue fluctuations in the past, primarily due to economic factors or the timing of larger shipments to its customers. Sono-Tek has proven resiliency in riding out these ups and downs, and expects to continue to do so. The Company has accumulated a significant amount of cash and marketable securities in recent years, which cushions it from these revenue variations, while still permitting the Company to pursue a strategy of adding new ultrasonic product applications to its market basket. This strategy has allowed the Company to grow organically in the past, and it expects to do so in the future.”
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 our operations or the demand for our products; timely development and market acceptance of new products; adequacy of financing; capacity additions, the ability to enforce patents, acceptance of our advanced medical device platform; the sufficiency of cash and marketable securities to cushion against revenue fluctuations; and the ability to achieve increased sales volume from customers’ year end purchases at projected levels and a return to profitability. We refer you to documents that the company files with the Securities and Exchange Commission, which includes Form 10-K and Form 10-Qs containing additional important information.
Sono-Tek Corporation
Selected Financial Data
Unaudited
| Six Months Ended August 31, | Three Months Ended August 31, | |||
| 2016 | 2015 | 2016 | 2015 | |
| Net Sales | $4,550,663 | $5,857,570 | $2,310,451 | $2,974,673 |
| Gross Profit | $2,048,716 | $2,862,735 | $1,025,313 | $1,489,604 |
| (Loss) Income Before Taxes | ($21,882) | $403,348 | ($87,298) | $196,111 |
| Net (Loss) Income | ($33,882) | $297,612 | ($89,673) | $143,590 |
| Basic Earnings (Loss) Per Share | $0.00 | $0.02 | ($0.01) | $0.01 |
| Diluted Earnings (Loss) Per Share | $0.00 | $0.02 | ($0.01) | $0.01 |
| Weighted Average Shares - Basic | 14,961,076 | 14,938,615 | 14,961,076 | 14,944,124 |
| Weighted Average Shares - Diluted | 14,961,076 | 15,033,588 | 14,961,076 | 15,046,066 |