Welcome Shareholders Annual Meeting. FY2014 March 1, 2013 February 28, 2014

Transcription

1 Welcome Shareholders 2014 Annual Meeting March 1, 2013 February 28,

2 Safe Harbor Statement This presentation contains forward-looking statements within the meaning of safe-harbor provisions of the Private Securities Litigation Reform Act of Such statements involve known and unknown risks, uncertainties, and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including delivery of profitable, dynamic growth, growth opportunities for ultrasonic spray technology, retaining and expanding industry leadership and customer base, continuing product diversity, maintaining technological advantage of the Company s nozzles over those of competitors, including faster return on investment compared to conventional spray systems, enhancing global distribution network, launching successful food industry initiative, establishing market niche for recently developed products, market reception of new spray innovations, maintaining strong net cash position, achieving EBITDA projections, and other factors. Accordingly, although the Company believes that the expectations reflected in such forwardlooking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this presentation. 2

3 Why Sono-Tek? 3

4 Why Sono-Tek? Who is Sono-Tek? Inventor of ultrasonic nozzle technology, in business since 1975; listed on OTCQB under SOTK. What is ultrasonic spraying and coating? Patented green method of using minimum amounts of liquid to achieve high precision coatings for electronics, medical devices, glass, textiles, and foods; provides cost and environmental benefits. Why invest with us? Profitable, stable, cash, quadrupled sales and net income in the past decade with high expectations for the next 5-10 years. Visit our website for detailed technical and financial information. 4

5 Financial Results (March 2013 February 2014) Reduction in government support of clean energy caused dip in previous year Took cost actions to remain profitable recovery back on growth track. 5

6 Financial Results Sales by Geography 6

7 Electronics & Advanced Energy Overview Applications Printed Circuit Board Fluxing Fuel Cells Solar Cells MEMS Semiconductor** Flux Brazing** ** Targeted growth and development areas 7

8 Ultrasonic Coating Solutions Overview Applications Float Glass Anti-Stain & Protective Polymers Implantable Medical Devices Stents, Surgical Mesh, Pacemakers Other Medical Applications Diagnostic Devices Blood Collection Tubes/Syringes Food Safety** Antimicrobial Coatings Medical Balloon Catheters** Anti-restenosis drugs Specialty Glass/Lenses** Anti-fingerprint, Photochromic, Hard Coat Textiles** Advanced Finishing ** Targeted growth and development areas 8

9 FY 2104 How Did We Do? Increased sales by 8%. Increased net income by 266%. Increased Cash and Marketable Securities. Maintained stable gross margins. Demonstrated the ability to remain profitable during downturns and also invest for future growth. Set the stage for our next growth phase 9

10 Food Business Status Commercial systems sold and operational. Anti-Microbials onto Meat Advanced testing at major national accounts. New distributorships/oems being established worldwide. Anti-Microbials onto Meat Packaging Initial testing underway. Flavorings onto Cereal Commercial systems sold and operational. New applications development at major national accounts. 10

11 New Product Introduced 2014 Coatings SBU Food: Anti-microbials onto Meat Products Antimicrobial coatings are a perfect niche for Sono-Tek s coating technology. Food manufacturers see immediate benefits in switching from pressure spray to ultrasonic spray, with customized integration. 11

12 New Products Introduced 2014 Coatings SBU Implantable Stents: Next Generation Coating System Sono-Tek s well established reputation and penetration in the stent coating market enables the introduction of this next generation improved coating system to existing customers and new companies worldwide. Greater control and precision. Real time video process monitoring. Drug Coated Balloon Catheter Coating System Expansion of medical device coatings. Orders continuing as predicted, market developing. Cardiac angioplasty balloons coated with anti-restenosis drug solutions is a market very similar to stent coating, with similar process challenges, which Sono-Tek has already mastered well. 12

13 New Products in Development Electronics SBU Advanced Textile Finishing Major savings in liquid chemistry, water and energy use. Large potential to revolutionize the U.S. textile industry. MEMS: Photoresist onto Wafers More extensive understanding of the challenges in coating MEMS with photoresist. Investment into lab testing equipment to support these applications. Presenting a technical paper at ISCST s 17th International Coating Science and Technology Symposium in Sept Thin film precision additive manufacturing. 13

14 New Core Technology Developments Critical to stay ahead of competitors Nozzle Technology New critical tolerance designs produce better performance, enhanced spray quality. New ultrasonic nozzles designs are next generation technology only available from Sono-Tek, keeping us ahead of the competition. Generator Technology The heart of all ultrasonic spray systems is the electronics driving the nozzle. New ECHO generator: Patent pending. Greater control and enhanced precision. Capability to continue advances with this platform, expanding its capabilities even further. 14

15 Competition & Market Size Historically Sono-Tek has had only 2-3 ultrasonic coating competitors for the past 20 years. The recent increase in the number of ultrasonic spray competitors, validates the technology as a viable coating solution in the global marketplace. Predict further acceptance and implementation of ultrasonic spray technology Estimated $5M Market Size Estimated $20M Market Size 15

16 Future Market Size As we develop new markets and increase market share for existing ultrasonic spray applications, the pie will continue to grow larger, with ultimate size potential still unknown. The coating equipment market is billions of dollars in annual sales Market Size? 16

17 Photochromic & AS lens coatings Multiple smart phone applications Nano conductive films Stain repellent coatings Medical implant coatings Automotive glass coatings Antimicrobial textile coatings 17

18 Coating technologies for every day, a better way. Handheld electronic devices of today and tomorrow Oleophobic (Anti-fingerprint) Hard Coat (Scratch Resistant) MEMS Photoresist Printed Circuit Board Fluxing 18

19 Summary Sono-Tek performed well in coming out of a tough year in FY2013. Increased profitability and built cash reserves. Created a series of new products to drive our future growth (5%-10% growth predicted for FY2015). Cash available for smart strategic initiatives. New market entrance. Acquisitions (competitors, complementary equipment, good fits for our expertise). Expansion of in-house manufacturing capabilities. We can be selective to find smart wins at minimum risk! Sound business model with large upside potential. 19

20 Questions? Made in the USA 20