Revenue Increased 10%; Gross Margin Expanded to 57%; Operating Income Increased 86%; Net Income Increased 67%
Anticipating Continued Revenue Growth in 1H 2027 Driven by Strong Medical Sector and Higher Value Production Systems
MILTON, N.Y., July 08, 2026 (GLOBE NEWSWIRE) -- Sono-Tek Corporation (Nasdaq: SOTK), a leading developer and manufacturer of precision ultrasonic coating systems, today reported financial results for the first quarter of fiscal 2027, ended May 31, 2026.
First Quarter Fiscal 2027 Highlights
Net sales increased 10% to $5.66 million
Gross margin expanded to 57% from 52%
Gross profit increased 21% to $3.21 million
Operating income increased 86% to $897,000
Net income increased 53% to $741,000, or $0.05 per diluted share
Cash, cash equivalents, and marketable securities increased to $16.65 million with no debt
Backlog increased to approximately $7.73 million
Steve Harshbarger, CEO & President of Sono-Tek, stated:
"Fiscal 2027 is off to a strong start with double-digit revenue growth, meaningful margin expansion, and improved profitability, reflecting disciplined execution across our operations and the continued success of our strategy of focusing on higher-value production systems in advanced technology markets, particularly medical devices.
"Our medical business was the primary growth driver this quarter, with strong demand for specialty stent coating systems and Drug-Eluting Balloon platforms across the U.S., Europe, and Asia. This exceptional mix of business-including a higher concentration of medical systems, shipments of higher-value production platforms, and a greater proportion of U.S. based sales with lower distributor commission expenses, was a significant contributor to our gross margin expansion. While we are very pleased with these results, product mix, geographic mix, and shipment timing naturally fluctuate from quarter to quarter, and we would not expect this level of gross margin to be representative of every future quarter. Our technology is increasingly being selected for applications requiring highly controlled, repeatable thin-film coatings, positioning Sono-Tek to benefit as manufacturing precision requirements continue to increase across multiple industries."
"Looking ahead, we remain focused on expanding our installed base of production systems, supporting customers as they scale from development into commercial manufacturing, and investing in the engineering and commercial capabilities that will drive our next phase of growth. The Company continues to project revenue growth during the first half of fiscal 2027, supported by strong medical demand and continued shipments of higher-value production systems, and we maintain our previously communicated expectation of flat to modest revenue growth for the full fiscal year. This full-year outlook primarily reflects the timing of several large production platform orders. As these higher-value production systems become a larger portion of our business, quarterly revenue may increasingly be influenced by shipment timing. Our strong balance sheet provides the flexibility to execute these priorities while continuing to create long-term value for shareholders."
Dr. Christopher L. Coccio, Executive Chairman, added:
"Our first quarter results reinforce the long-term strength of Sono-Tek's ultrasonic coating technology platform and validate the strategic direction that we have pursued for many years. As precision manufacturing requirements continue to increase across advanced industries, we believe we are well positioned to expand our leadership through continued innovation and differentiated application expertise."
"We have spent decades building differentiated technology, deep application expertise, and lasting customer relationships that continue to position us for future success. We believe these enduring strengths, together with disciplined investment and a strong financial foundation, position Sono-Tek to capitalize on attractive long-term growth opportunities while creating lasting shareholder value."
First Quarter Fiscal 2027 Results
Net sales increased 10% to $5.66 million, driven by strong Medical demand, partially offset by lower Alternative Energy shipments compared with the prior-year period.
Gross profit increased 21% to $3.21 million, with gross margin expanding from 52% to 57% due to favorable product mix and higher-value system shipments.
Operating expenses increased 6% to $2.32 million due to continued investment in sales, engineering, and business development initiatives.
Operating income increased 86% to $897,000.
Net income increased 53% to $741,000, or $0.05 per diluted share.
First Quarter Fiscal 2027 Results – (compared with the prior year period)
Three Months Ended May 31, | Change | ||||||||
2026 | 2025 | $ | % | ||||||
Net Sales | $ | 5,661,000 | $ | 5,133,000 | 528,000 | 10% | |||
Gross Profit | 3,214,000 | 2,665,000 | 549,000 | 21% | |||||
Gross Margin | 57% | 52% | |||||||
Operating Income | $ | 897,000 | $ | 483,000 | 414,000 | 86% | |||
Operating Margin | 16% | 9% | |||||||
Net Income | $ | 741,000 | $ | 485,000 | 256,000 | 53% | |||
Net Margin | 13% | 9% | |||||||
Basic Earnings Per Share | $ | 0.05 | $ | 0.03 | |||||
Diluted Earnings Per Share | $ | 0.05 | $ | 0.03 | |||||
Weighted Average Shares -Basic | 15,713,000 | 15,734,000 | |||||||
Weighted Average Shares - Diluted | 15,737,000 | 15,749,000 |
First Quarter Fiscal 2027 Product and Market Highlights
Market Sales
Medical: $3.95 million vs. $809,000
Electronics/Microelectronics: $863,000 vs. $943,000
Alternative Energy/Clean: $319,000 vs. $3.25 million
Industrial: $530,000 vs. $119,000
Emerging R&D and Other: $3,000 vs. $14,000
Medical growth was driven by specialty stent coating systems in the U.S. and Drug-Eluting Balloon platforms across the U.S., China, and Europe. Alternative Energy declined due to reduced electrolysis demand and the absence of solar shipments. Industrial growth reflected system upgrades and R&D nano-coating applications.
Product Sales
Fluxing Systems: $92,000 vs. $152,000
In-Line Coating Systems: $2.16 million vs. $3.05 million
Multi-Axis Coating Systems: $2.08 million vs. $677,000
OEM Systems: $231,000 vs. $130,000
Spare Parts, Services and Other: $1.10 million vs. $1.12 million
Total Net Sales: $5.66 million vs. $5.13 million
Multi-Axis growth was driven by strong demand across multiple end markets. In-Line declined due to reduced clean energy shipments, including the absence of prior-year solar system deliveries. OEM Systems increased on semiconductor and fluxer OEM demand, while services remained stable.
Balance Sheet, Backlog and Outlook
Balance Sheet: Cash, cash equivalents, and marketable securities totaled $16.65 million, compared with $14.81 million at the prior year end. The Company had no outstanding debt.
Backlog: Combined equipment and service-related backlog at May 31, 2026 was $7.73 million, compared to backlog of $7.48 million at May 31, 2025, an increase of $250,000, or 3%. Backlog was down $1.39 million compared to the fiscal 2026 year-end level of $9.12 million.
Outlook: Sono-Tek anticipates continued revenue growth and profitability in the first half of fiscal year 2027 compared to the first half of fiscal year 2026, driven by expanding demand in the medical sector and continued adoption of high value production-scale coating systems across multiple end markets. Total fiscal year 2027 revenue is currently projected to be relatively flat to modestly higher compared to fiscal year 2026, as visibility beyond the first half remains limited due to continued uncertainty in certain clean energy sectors and the timing of shipments for higher value production scale platforms.
About Sono-Tek
Sono-Tek Corporation is a global leader in the design and manufacture of ultrasonic coating systems that are shaping industries and driving innovation worldwide. Our ultrasonic coating systems are used to apply thin films onto parts used in diverse industries including microelectronics, alternative energy, medical devices, advanced industrial manufacturing, and research and development sectors worldwide. Sono-Tek's inroads into the clean energy sector have shown transformative results in next-gen solar cells, fuel cells, green hydrogen generation, and carbon capture applications.
Our product line is rapidly evolving, transitioning from R&D to high-volume production machines with significantly higher average selling prices, showcasing our market leadership and adaptability. Our comprehensive suite of thin film coating solutions and application consulting services are expected to generate unparalleled results for our clients and help some of the world's most promising companies achieve technological breakthroughs and bring them to the market. We strategically deliver our products to customers through a network of direct sales personnel, carefully chosen independent distributors, and experienced sales representatives, ensuring efficient market reach across diverse sectors around the globe.
Our solutions are environmentally friendly, efficient and highly reliable, and enable dramatic reductions in overspray, savings in raw material, water and energy usage and provide improved process repeatability, transfer efficiency, high uniformity and reduced emissions.
Our growth strategy is focused on leveraging our innovative technologies, proprietary know-how, unique talent and experience, and global reach to further develop thin film coating technologies that enable better outcomes for our customers' products and processes. For further information, visit www.sono-tek.com
Safe Harbor Statement
This news 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 "forward-looking statements' are based on currently available competitive, financial and economic data and our operating plans. They are inherently uncertain, and investors must recognize that events could turn out to be significantly different from our expectations and could cause actual results to differ materially. These factors include, among other considerations, general economic and business conditions, including political, regulatory, tax, competitive and technological developments affecting our operations or the demand for our products; inflationary and supply chain pressures; continued strength of sales to the medical device and electronics markets; increased private and public funding for the clean energy sector; continued strong demand for Sono-Tek's suite of thin film coating solutions and application consulting services in the clean energy and other markets; maintenance of order backlog; evolving tariff policies; timely development and market acceptance of new products and continued customer validation of our coating technologies; adequacy of financing; capacity additions, the ability to enforce patents; maintenance of operating leverage; consummation of order proposals; timing of large orders and completion on schedule and on budget; successful transition from primarily selling ultrasonic nozzles and components to a more complex business providing complete machine solutions and higher value subsystems; and realization of first half and annual revenues and profitability within the forecasted ranges of guidance. We undertake no obligation to update any forward-looking statement.
For more information:
Sono-Tek Corp.
Stephen J. Bagley
Chief Financial Officer
Ph: (845) 795-2020
[email protected]
Investor Relations
Kirin Smith, President
PCG Advisory, Inc.
[email protected]
- Financial Tables to follow –
SONO-TEK CORPORATION | ||||||||
May 31, 2026 | February 28, | |||||||
(Unaudited) | 2026 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 8,982,075 | $ | 7,339,403 | ||||
Marketable securities | 7,669,872 | 7,469,649 | ||||||
Accounts receivable (less allowance of $12,225, respectively) | 1,264,932 | 3,350,953 | ||||||
Inventories | 4,063,132 | 3,923,350 | ||||||
Prepaid expenses and other current assets | 659,518 | 743,295 | ||||||
Total current assets | 22,639,529 | 22,826,650 | ||||||
Land | 250,000 | 250,000 | ||||||
Buildings, equipment, furnishings and leasehold improvements, net | 2,138,226 | 2,173,443 | ||||||
Intangible assets, net | 27,892 | 29,791 | ||||||
Deferred tax asset | 809,182 | 1,141,611 | ||||||
TOTAL ASSETS | $ | 25,864,829 | $ | 26,421,495 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 935,442 | $ | 1,038,885 | ||||
Accrued expenses | 2,088,229 | 2,227,401 | ||||||
Customer deposits | 2,006,896 | 3,069,743 | ||||||
Income taxes payable | 147,984 | 255,398 | ||||||
Total current liabilities | 5,178,551 | 6,591,427 | ||||||
Deferred tax liability | 75,238 | 55,909 | ||||||
Total liabilities | 5,253,789 | 6,647,336 | ||||||
Commitments and Contingencies (Note 10) | - | - | ||||||
Stockholders' Equity | ||||||||
Common stock, $.01 par value; 25,000,000 shares authorized, 15,716,723 and 15,710,389 issued and outstanding as of May 31, 2026 and February 28, 2026 | 157,167 | 157,104 | ||||||
Additional paid-in capital | 10,282,508 | 10,186,858 | ||||||
Accumulated earnings | 10,171,365 | 9,430,197 | ||||||
Total stockholders' equity | 20,611,040 | 19,774,159 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 25,864,829 | $ | 26,421,495 |
See notes to unaudited condensed consolidated financial statements.
SONO-TEK CORPORATION | ||||||||
Three Months Ended May 31, | ||||||||
2026 | 2025 | |||||||
Net Sales | $ | 5,661,159 | $ | 5,132,773 | ||||
Cost of Goods Sold | 2,447,241 | 2,468,259 | ||||||
Gross Profit | 3,213,918 | 2,664,514 | ||||||
Operating Expenses | ||||||||
Research and product development costs | 616,982 | 668,470 | ||||||
Marketing and selling expenses | 1,024,984 | 858,151 | ||||||
General and administrative costs | 674,792 | 654,525 | ||||||
Total Operating Expenses | 2,316,758 | 2,181,146 | ||||||
Operating Income | 897,160 | 483,368 | ||||||
Interest and Dividend Income | 114,624 | 142,098 | ||||||
Net unrealized (loss) on marketable securities | (26,271 | ) | (21,923 | ) | ||||
Income Before Income Taxes | 985,513 | 603,543 | ||||||
Income Tax Expense | 244,345 | 118,558 | ||||||
Net Income | $ | 741,168 | $ | 484,985 | ||||
Basic Earnings Per Share | $ | 0.05 | $ | 0.03 | ||||
Diluted Earnings Per Share | $ | 0.05 | $ | 0.03 | ||||
Weighted Average Shares - Basic | 15,713,185 | 15,733,955 | ||||||
Weighted Average Shares - Diluted | 15,737,276 | 15,748,556 |
See notes to unaudited condensed consolidated financial statements.
SONO-TEK CORPORATION
PRODUCT, MARKET, AND GEOGRAPHIC SALES
(Unaudited)
Product Sales:
Three Months Ended May 31, | Change | ||||||||||||||||||||
2026 | % of total | 2025 | % of total | $ | % | ||||||||||||||||
Fluxing Systems | $ | 92,000 | 2 | % | $ | 152,000 | 3 | % | (60,000 | ) | (39 | %) | |||||||||
In-Line Coating Systems | 2,159,000 | 38 | % | 3,054,000 | 59 | % | (895,000 | ) | (29 | %) | |||||||||||
Multi-Axis Coating Systems | 2,075,000 | 37 | % | 677,000 | 13 | % | 1,398,000 | 206 | % | ||||||||||||
OEM Systems | 231,000 | 4 | % | 130,000 | 3 | % | 101,000 | 78 | % | ||||||||||||
Spare Parts, Services and Other | 1,104,000 | 20 | % | 1,120,000 | 22 | % | (16,000 | ) | (1 | %) | |||||||||||
TOTAL | $ | 5,661,000 | $ | 5,133,000 | $ | 528,000 | 10 | % |
Market Sales:
Three Months Ended May 31, | Change | ||||||||||||||||||||
2026 | % of total | 2025 | % of total | $ | % | ||||||||||||||||
Electronics/Microelectronics | $ | 863,000 | 15 | % | $ | 943,000 | 19 | % | (80,000 | ) | (8 | %) | |||||||||
Medical | 3,946,000 | 70 | % | 809,000 | 16 | % | 3,137,000 | 388 | % | ||||||||||||
Alternative Energy/Clean | 319,000 | 6 | % | 3,248,000 | 63 | % | (2,929,000 | ) | (90 | %) | |||||||||||
Emerging R&D and Other | 3,000 | 0 | % | 14,000 | 0 | % | (11,000 | ) | (79 | %) | |||||||||||
Industrial | 530,000 | 9 | % | 119,000 | 2 | % | 411,000 | 345 | % | ||||||||||||
TOTAL | $ | 5,661,000 | $ | 5,133,000 | $ | 528,000 | 10 | % |
Geographic Sales:
Three Months Ended | |||||||||||||||
May 31, | Change | ||||||||||||||
2026 | 2025 | $ | % | ||||||||||||
U.S. & Canada | $ | 3,530,000 | $ | 3,543,000 | $ | (13,000 | ) | 0 | % | ||||||
Asia Pacific (APAC) | 738,000 | 597,000 | 141,000 | 24 | % | ||||||||||
Europe, Middle East, Africa (EMEA) | 930,000 | 897,000 | 33,000 | 4 | % | ||||||||||
Latin America | 463,000 | 96,000 | 367,000 | 382 | % | ||||||||||
TOTAL | $ | 5,661,000 | $ | 5,133,000 | $ | 528,000 | 10 | % |