Sono-Tek Corporation

Good day and welcome to the Sonotech Corporation earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Stephanie Prince, PCG Advisory. Please go ahead.

Thank you, Carrie, and thank you to everyone joining us today. Sonotech released their second quarter fiscal results pre-market this morning. If you don't have a copy of the release, please go to the company's website at sonotech.com and click on the press release slash news tab in the investor section. The product, market, and geography sales tables on the last page of the release will be part of today's discussion. With me on the call today are Chris Coccio, Sonotex Chairman and CEO, Steve Harshbarger, President and COO, and Steve Bagley, Chief Financial Officer. Before turning the call over to management, I would like to make the following remarks concerning forward-looking statements. Please note that various remarks that may be made on this conference call about future expectations, plans, and prospects for the company constitute forward-looking statements for the purposes of safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results may vary materially from those indicated by these forward-looking statements as a result of various important factors including those discussed in the company's filings with the SEC. The company assumes no obligation to update the information contained in this conference call. I would now like to turn the call over to Chris Coccio, Chairman and CEO of Sonitech. Chris?

Thank you, Stephanie. Good morning, everyone. Thank you for joining us today for our first-ever earnings conference call. For now, we're planning to hold two earnings calls per fiscal year, at mid-year, like today, and for year-end results. Sonotech's fiscal year end is February 28th. Today, we're going to discuss our results that were released earlier this morning for the second quarter of fiscal 2022, ended August 31st, 2021. I will begin with some opening remarks, and then Steve Bagley, Chief Financial Officer, will provide a financial review of the second quarter. Steve Harshberger, President and COO, will then go through the business and operational results and the sales growth guidance. Following that, we'll open the call for your questions. For those of you who are new to Sonotek, Sonotek developed a revolutionary method of applying precision thin film coating several decades ago. The proprietary technology involves the use of patented high-frequency ultrasonic nozzles incorporated into motion control systems that are able to achieve uniform micron-thin coatings for customers. We focused on important high-tech markets that require the disability, such as semiconductor manufacturing, handheld electronic devices, medical devices, fuel and solar cells, and industrial processes such as glass lines, textiles, and even food coatings. Over the years, we've expanded our footprint to the U.S., New York, Asia, and Latin America. Our solutions offer dramatic savings in the raw material, water, and energy usage, and we are environmentally friendly among other advantages. The strategic shift that we made several years ago to offer more complex, complete solutions versus component sales has broadened our address in the market and has resulted in significant growth in our average selling prices. Our larger machines now often sell for over $300,000, and system prices sometimes reach over $1 million. We anticipate demand for sound effects technology will keep growing as electronic devices continue to become more miniaturized and the usage of implantable medical devices continues to grow around the world. The second quarter was strong and built on our recent trends. Net sales increased 17% year over year, and gross profit was up 28%. We ended the period with a very strong balance sheet, with nearly $10 million in cash and zero debt. We expect to finish the year with double-digit sales, growth, and income, the highest in our history. And there is a lot of upside and opportunity for growth in our focus markets of semiconductor, medical, and clean energy. Our team's hard work and accomplishments were recognized during the quarter when we were approved to uplist our common stock to the NASDAQ capital market in August. The increased exposure from being listed on a national exchange has afforded our shareholders much higher trading volume and visibility with institutional investment community. We're excited to ring the bell at NASDAQ to commemorate this important milestone. I'll now turn the call over to Steve Pagley, our CFO, for some details of our financial results. Steve?