Sono-Tek Receives $1.12 Million Order from Global Medical Diagnostics Company for High-Volume Coating Platform

Rhea-AI Summary

Sono-Tek Corporation (SOTK) has secured a significant $1.12 million order from a long-standing global medical diagnostics customer for a high-volume ultrasonic coating system. This order represents a major upgrade from previous mid-size systems ($110,000-$150,000 each) purchased by the same customer over their decade-long partnership. The new advanced automation platform will be installed at the customer's U.S. facility within a year, designed to enable scalable production of diagnostic consumables with reduced operator intervention. CEO Steve Harshbarger emphasized this order demonstrates their successful strategy of transitioning customers from R&D machines to complex large-scale production systems with higher Average Selling Prices.

Positive

• Secured large $1.12 million order, significantly higher than previous $110,000-$150,000 systems
• Demonstrates successful upselling strategy from R&D to high-volume production systems
• Long-term customer relationship spanning a decade with over 10 systems deployed
• Expansion into advanced automation and high-volume manufacturing capabilities

Negative

• None.

Insights

Technology Industry Analyst

Sono-Tek's $1.12M order signals successful upmarket strategy, with 7-10x order value growth from existing customer relationship.

This $1.12 million order represents a significant milestone in Sono-Tek's business evolution. While the dollar amount might seem modest in absolute terms, it's approximately 7-10 times larger than the company's typical orders from this same customer, which historically ranged from $110,000 to $150,000.

What's particularly notable is how this validates Sono-Tek's strategic customer development pathway. The company has successfully guided this medical diagnostics customer from purchasing multiple smaller R&D and mid-sized systems to now investing in a high-volume production platform with advanced automation capabilities. This represents the classic technology adoption progression that equipment manufacturers aim for: initial smaller sales leading to major platform commitments once value is proven.

The order's specifications reveal important industry trends. Medical diagnostic manufacturers are increasingly automating production processes to improve throughput and reduce operator-dependent variables. Sono-Tek's ultrasonic coating technology appears well-positioned to address these needs through precision application capabilities that maintain consistency at scale.

From a competitive standpoint, maintaining and expanding a decade-long customer relationship demonstrates strong technology differentiation and service quality. In precision manufacturing equipment markets, customer acquisition costs are substantial, making the ability to capture expanding wallet share from existing customers critical to sustainable growth.

This win supports Sono-Tek's strategic focus on increasing Average Selling Prices through more sophisticated systems, which typically yields higher margin potential and creates barriers to competitive displacement.

MILTON, N.Y., June 23, 2025 (GLOBE NEWSWIRE) -- Sono-Tek Corporation (Nasdaq: SOTK), a leading developer of ultrasonic precision coating systems, today announced that it has received a $1.12 million order from a long-standing customer in the medical diagnostic testing industry.

The customer, a global manufacturer of medical diagnostic platforms, has partnered with Sono-Tek for nearly a decade, deploying over ten of the company’s mid-size ultrasonic coating systems, typically ranging from $110,000 to $150,000 each. This significantly larger new order represents a major evolution in the relationship, demonstrating Sono-Tek’s enhanced capabilities in advanced automation and high-volume product handling.

“This order reflects our customer’s confidence in Sono-Tek’s expanding capabilities and exemplifies our strategy to guide customers from our R&D machines to our complex large-scale production systems with significantly higher Average Selling Prices,” said Steve Harshbarger, CEO and President of Sono-Tek. “We’ve worked closely with this partner over the years, and this new system highlights the evolution of our technology to meet the growing demands of high-throughput, precision manufacturing in the medical diagnostics space.”

The new system is engineered to support sophisticated automation and reduced operator intervention, enabling scalable production of advanced diagnostic consumables. Delivery and installation are scheduled at the customer’s U.S. facility within the next year.

This order aligns with Sono-Tek’s ongoing strategy to deliver fully integrated, high-performance coating platforms that support the scalability and automation demands of high-volume manufacturing in innovation-driven industries such as medical devices, alternative energy, and microelectronics.

About Sono-Tek Corporation

Founded in 1975, Sono-Tek Corporation is celebrating its 50th year as a pioneer in ultrasonic coating technology. Initially focused on delivering precision coating solutions to R&D and laboratory markets, Sono-Tek has since evolved into a global leader providing scalable, high-performance manufacturing platforms for innovation-driven industries. Today, Sono-Tek’s systems enable thin-film deposition with exceptional uniformity, material efficiency, and process control for advanced applications in medical devices, micro-electronics, alternative energy, and industrial production.

For more information, visit www.sono-tek.com

Investor Relations Contacts
Company Contact
Sono-Tek Corporation
info@sono-tek.com
www.sono-tek.com

Investor Relations Contact
PCG Advisory, Inc.
Kirin Smith
ksmith@pcgadvisory.com

FAQ

What is the value of Sono-Tek's (SOTK) new order from the medical diagnostics company?

Sono-Tek received a $1.12 million order for a high-volume coating platform from a global medical diagnostics company.

How does this SOTK order compare to previous orders from the same customer?

This $1.12 million order is significantly larger than previous mid-size systems that typically ranged from $110,000 to $150,000 each.

When will Sono-Tek deliver and install the new coating system?

The system is scheduled for delivery and installation at the customer's U.S. facility within the next year.

How long has this customer been working with Sono-Tek (SOTK)?

The customer has been partnering with Sono-Tek for nearly a decade, having deployed over ten of the company's mid-size ultrasonic coating systems.

What are the key features of Sono-Tek's new coating system?

The system features sophisticated automation, reduced operator intervention, and is designed for scalable production of advanced diagnostic consumables.