Sono-Tek Stock

Sono-Tek Corporation engages in the design and manufacture of ultrasonic coating systems for applying precise, thin film coatings to add functional properties, protect or strengthen surfaces on parts and components for the microelectronics/electronics, alternative energy, medical, industrial and emerging research & development/other markets.

The company designs and manufactures custom-engineered ultrasonic coating systems incorporating its patented technology, in combination with strong applications engineering knowledge, to assist its customers in achieving their desired coating solutions. The company serves a variety of industries and applications and have a broad base of customers.

The company's products enable the application of a thin and uniform coating of material that prevents coagulation of blood. Among other things, the company's ultrasonic nozzles are used to provide coatings that improve durability, create filters, increase clarity, reduce reflection, enable conductivity, and enhance safety.

Products, Markets and Customers

The company's products are used in a wide range of applications. The company provides its customers a broad offering of ultrasonic spray coating equipment solutions custom suited for their requirements and it continually expands its offerings to address new applications. The company's products include fully integrated Multi-Axis Coating Systems, Integrated Coating Systems, Fluxing Systems, OEM Systems and other related systems. The company invests heavily in research and development to continually bring to market new solutions for its customers, to increase its market share and to solve high value problems in manufacturing.

The company's Multi-Axis Coating Systems, Integrated Coating Systems and Fluxing Systems provide complete fully integrated solutions for its customers, while it created the Universal Align to offer its customers subsystems that integrate its nozzles and generators that they can then incorporate into their original equipment.

The company has built its brand and reputation on providing high quality, highly reliable products that provide consistent performance for critical applications in demanding operating environments. The company's surface coating solutions are used in 24/7 work schedules, under harsh and challenging manufacturing environments, where they provide value in a continuous and dependable fashion.

The company targets the following markets where its product quality and consistency and application knowledge are valued by its customers:

Micro-Electronics/Electronics:

Printed Circuit Boards: Ultrasonic flux application removes oxidation and is more efficient than standard, historic processes.

Semiconductors: Applications of micron-thin photo-resist layers onto complex wafers.

Sensors: Application of chemical, biological or other detection coatings, as well as physical photoelectric elements for conversion of input and output signals.

Display/panel glass on personal electronic devices: for sensitivity to temperature, imprint, pressure and for physical protection.

Medical: The company's systems are used in this industry to apply micron layers of polymers and drugs, biomedical materials and anti-coagulants.

Implanted medical devices, such as stents and balloons; artificial joints; blood collection tubes; diagnostic devices; bandages/protective wraps; lenses; and industrial.

Industrial

Flat (float) glass used for windows in buildings and vehicles.

Textiles: High performance value adding coatings, such as anti-microbial, anti-stain, flame retardant and moisture barriers.

Food Packaging and Food Safety: Anti-microbial coatings.

Food: Coatings of flavors, ingredients and other additives.

Alternative Energy: The company's systems provide coatings of chemicals and other materials that act as catalysts, barriers, facilitators of symbiosis or other interactions between surfaces. This includes fuel cells and solar cells.

Emerging Research and Development/Other Markets

Research and development efforts at universities, research institutions and government agencies that are not part of the company's already established markets.

A variety of other small industries using the company's coating technology, that have not yet matured into a developed marketplace for its ultrasonic coating machines.

The company's principal customers include original equipment manufacturers, distributors and end users of its products in the industries that it serves.

The company's products are sold primarily through its direct sales personnel, select independent distributors and through sales representatives around the world that are trained on its technologies and products. The company's distributors are typically experts in their industries and recognize the significant value that its technology provides their customers. The company provides extensive training and on-site support with its direct sales force and application engineers, who also respond to leads generated by its web site and the trade shows in which it participates. To grow sales, the company continues to strengthen its laboratory and applications engineering personnel and support its worldwide process development labs with additional ultrasonic coating equipment, in conjunction with sponsoring various technical training seminars for its distribution network.

The company also provides application consulting services enabling its customers to rely on its surface coating expertise and specific customer process optimization. The company offers these services both in its application process development laboratory and at its customers' sites where it can assist in the design and development of customized coating systems.

The company is a global business, and its geographical sales mix can vary from year to year depending on the timing of orders from customers. For the year ended February 28, 2023, 55% of the company's sales were from outside the U.S. and Canada.

Strategy

The company's strategy is to further advance the use of ultrasonic coating technologies for the microscopic coating of surfaces in a broader array of applications which enable better outcomes for its customers' products and processes.

The company intends to leverage its innovative technologies, proprietary know-how, unique talent and experience, and global reach to grow the business globally by reaching new markets and further penetrating the markets and customers it serves; increase its earnings power through lean manufacturing processes, automation and continuous improvement; develop new and unique technologies that solve its customers' most challenging problems; and meet or exceed its customers' expectations.

Research and Development

During the year ended February 28, 2023, the company's research and development expenses were $2,149,000.

History

Sono-Tek Corporation was founded in 1975. The company was incorporated in New York in 1975.