First Half Revenue Increased 6% to
Reiterates Expectation of Flat to Modest Revenue Growth for FY 27 Reflecting Timing of Several Large Orders
Recent New Record Orders Significantly Increases Revenue Visibility for FY 28
Second Quarter Fiscal 2027 Highlights
- Net sales increased 1% to
$5.23 million compared with$5.16 million in the second quarter of fiscal 2026. - Gross profit increased 7% to
$2.77 million , while gross margin expanded to 53%, compared with 50% in the prior-year period, primarily reflecting an unusually favorable product and geographic mix. - Operating income was
$382,000 compared with$421,000 in the prior-year period, reflecting higher operating expenses that partially offset the increase in gross profit. - Net income was
$366,000 , or$0.02 per diluted share, compared with$424,000 , or$0.03 per diluted share, in the second quarter of fiscal 2026. - Medical market sales increased 209% to
$3.11 million , led by shipments of balloon coating systems and specialty stent-coating systems.
First Half Fiscal 2027 Highlights
- Net sales increased 6% to
$10.89 million compared with$10.30 million in the first half of fiscal 2026, consistent with the Company's first-half growth guidance and driven by strong sales to the medical sector. - Gross profit increased 14% to
$5.98 million , while gross margin expanded to 55%, compared with 51% in the prior-year period, primarily reflecting an unusually favorable product and geographic mix. - Operating income increased 41% to
$1.28 million , compared with$905,000 in the first half of fiscal 2026, reflecting increased gross profit and operating leverage. - Net income increased 22% to
$1.11 million , compared with$909,000 in the prior-year period. - Medical market sales increased 289% to
$7.05 million , driven by shipments of balloon coating systems and specialty stent-coating systems.
Balance Sheet, Backlog and Guidance for Fiscal Year 2027
- Cash, cash equivalents and marketable securities: Totaled
$17.7 million atAugust 31, 2026 , compared with$14.8 million atFebruary 28, 2026 , with no outstanding debt. - Backlog: Combined equipment and service-related backlog was
$9.51 million atAugust 31, 2026 , an increase of approximately$1.78 million , or 23%, from$7.73 million at the end of the first quarter of fiscal 2027. The sequential increase reflects improved order momentum during the second quarter. - Subsequent Order Activity: Subsequent to quarter end, the Company received three orders totaling approximately
$7.19 million expected to ship during fiscal 2028. The order significantly increases revenue visibility for fiscal 2028 with the potential to build even further upon this backlog. - Guidance: For the full fiscal year 2027, the Company is reiterating its prior guidance for flat to modest revenue growth reflecting the timing of several large orders, growing demand in the medical device market and higher value production systems.
“Looking ahead, we remain focused on expanding our installed base of production systems, supporting customers as they scale, and investing in the engineering, application development and commercial capabilities that will drive our next phase of growth. We continue to maintain our previously communicated expectation of flat to modest revenue growth for the full fiscal year. This outlook reflects the timing of several large, higher-value production platform orders, which can result in increased quarter-to-quarter variability as these systems become a larger portion of our business. With a strong and growing backlog and cash position, we believe we are well positioned to capitalize on the opportunities ahead and continue building long-term value for our shareholders. We are extremely proud of our performance and long-term track record of revenue and importantly net income growth.”
Dr.
“Over decades,
Second Quarter and First Half Fiscal 2027 Financial Results
(Narrative compares with prior-year period unless otherwise noted) ($ in thousands)
| Three Months Ended | Change | ||||||||||||
| 2026 | 2025 | $ | % | ||||||||||
| $ | 5,232 | $ | 5,163 | 69 | 1 | % | |||||||
| Gross Profit | $ | 2,767 | $ | 2,590 | 177 | 7 | % | ||||||
| Gross Margin | 53 | % | 50 | % | |||||||||
| Operating Income | $ | 382 | $ | 421 | (39 | ) | (9 | %) | |||||
| Operating Margin | 7 | % | 8 | % | |||||||||
| Net Income | $ | 366 | $ | 424 | (58 | ) | (14 | %) | |||||
| 7 | % | 8 | % | ||||||||||
| Six Months Ended | Change | ||||||||||||
| 2026 | 2025 | $ | % | ||||||||||
| $ | 10,893 | $ | 10,295 | 596 | 6 | % | |||||||
| Gross Profit | $ | 5,981 | $ | 5,254 | 727 | 14 | % | ||||||
| Gross Margin | 55 | % | 51 | % | |||||||||
| Operating Income | $ | 1,279 | $ | 905 | 374 | 41 | % | ||||||
| Operating Margin | 12 | % | 9 | % | |||||||||
| Net Income | $ | 1,107 | $ | 909 | 198 | 22 | % | ||||||
| 10 | % | 9 | % | ||||||||||
Product Sales
| Three Months Ended | Change | Six Months Ended | Change | |||||||||||||||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | |||||||||||||||||||||||||
| Fluxing Systems | $ | 27,000 | $ | 165,000 | (138,000 | ) | (84 | % | ) | $ | 119,000 | $ | 317,000 | (198,000 | ) | (62 | % | ) | ||||||||||||||
| In-Line Coating Systems | 1,778,000 | 1,530,000 | 248,000 | 16 | % | 3,937,000 | 4,584,000 | (647,000 | ) | (14 | % | ) | ||||||||||||||||||||
| Multi-Axis Coating Systems | 1,975,000 | 2,030,000 | (55,000 | ) | (3 | % | ) | 4,050,000 | 2,707,000 | 1,343,000 | 50 | % | ||||||||||||||||||||
| OEM Systems | 642,000 | 394,000 | 248,000 | 63 | % | 873,000 | 524,000 | 349,000 | 67 | % | ||||||||||||||||||||||
| Spare Parts, Services and Other | 810,000 | 1,044,000 | (234,000 | ) | (22 | % | ) | 1,914,000 | 2,164,000 | (250,000 | ) | (12 | % | ) | ||||||||||||||||||
| TOTAL | $ | 5,232,000 | $ | 5,163,000 | 69,000 | 1 | % | $ | 10,893,000 | $ | 10,296,000 | 597,000 | 6 | % | ||||||||||||||||||
Sales of In-Line Coating Systems increased 16% in the second quarter of fiscal 2027 due to strong medical sales in
In-Line Coating Systems sales decreased 14% during the first half of fiscal 2027 primarily attributed to the shipment of six high ASP systems valued at
Sales of Multi-Axis Coating Systems decreased by 3% in the second quarter of fiscal 2027. In the first half of fiscal 2027, Multi-Axis Coating Systems increased 50% or approximately
Sales of OEM Systems increased 63% to
Market Sales
| Three Months Ended | Change | Six Months Ended | Change | |||||||||||||||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | |||||||||||||||||||||||||
| Electronics/Microelectronics | $ | 1,204,000 | $ | 1,455,000 | (251,000 | ) | (17 | % | ) | $ | 2,068,000 | $ | 2,399,000 | (331,000 | ) | (14 | % | ) | ||||||||||||||
| Medical | 3,105,000 | 1,004,000 | 2,101,000 | 209 | % | 7,050,000 | 1,812,000 | 5,238,000 | 289 | % | ||||||||||||||||||||||
| Alternative/Clean Energy | 535,000 | 2,433,000 | (1,898,000 | ) | (78 | % | ) | 855,000 | 5,681,000 | (4,826,000 | ) | (85 | % | ) | ||||||||||||||||||
| Emerging R&D and Other | 3,000 | 33,000 | (30,000 | ) | (91 | % | ) | 5,000 | 47,000 | (42,000 | ) | (89 | % | ) | ||||||||||||||||||
| Industrial | 385,000 | 238,000 | 147,000 | 62 | % | 915,000 | 357,000 | 558,000 | 156 | % | ||||||||||||||||||||||
| TOTAL | $ | 5,232,000 | $ | 5,163,000 | 69,000 | 1 | % | $ | 10,893,000 | $ | 10,296,000 | 597,000 | 6 | % | ||||||||||||||||||
Medical sales increased 209% to
Industrial sales increased 62% to
Alternative Energy sales decreased 78% to
Electronics/Microelectronics sales decreased 17% to
Geographic Sales
| Three Months Ended | Change | Six Months Ended | Change | |||||||||||||||||||||||||||||
| 2026 | 2025 | $ | % | 2026 | 2025 | $ | % | |||||||||||||||||||||||||
| $ | 3,682,000 | $ | 2,720,000 | 962,000 | 35 | % | $ | 7,212,000 | $ | 6,263,000 | 949,000 | 15 | % | |||||||||||||||||||
| 507,000 | 930,000 | (423,000 | ) | (45 | % | ) | 1,244,000 | 1,527,000 | (283,000 | ) | (19 | % | ) | |||||||||||||||||||
| 952,000 | 1,424,000 | (472,000 | ) | (33 | % | ) | 1,883,000 | 2,321,000 | (438,000 | ) | (19 | % | ) | |||||||||||||||||||
| 91,000 | 89,000 | 2,000 | 2 | % | 554,000 | 185,000 | 369,000 | 199 | % | |||||||||||||||||||||||
| TOTAL | $ | 5,232,000 | $ | 5,163,000 | 69,000 | 1 | % | $ | 10,893,000 | $ | 10,296,000 | 597,000 | 6 | % | ||||||||||||||||||
In the second quarter of fiscal 2027, approximately 30% of sales originated outside of
In the first half of fiscal 2027, approximately 34% of sales originated outside of
EMEA sales decreased 33% in the second quarter and 19% in the first half of fiscal 2027, primarily reflecting softer clean-energy sales in the region. The first-half decrease was partially offset by strong sales to a European fluxing OEM partner and steady medical-sector sales.
Conference Call Information
The Company will hold a conference call to discuss its fiscal second quarter and first half 2027 financial results, ended
To participate, please dial 1-844-481-2752 or 1-412-317-0668 for international callers at least 10 minutes prior to the start of the call and ask to join the
Webcast Information
A simultaneous webcast of the call may be accessed through the Company's website, Events & Presentations |
https://event.choruscall.com/mediaframe/webcast.html?webcastid=XwOIJQ1z
A replay of the call will be available at 1-855-669-9658 or 1-412-317-0088 for international callers, access code 9211789, through
About Sono-Tek
Sono-Tek Corporation is the 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 are showing 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.
Sono-Tek’s growth strategy is focused on leveraging its innovative technologies, proprietary know-how, unique talent and experience, and global reach to further develop thin film coating technologies that enable better outcomes for its 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 market; continued private and public funding for the clean energy sector and 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; the imposition of tariffs; 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; completion of large orders 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 quarterly and annual revenues within the forecasted range of sales guidance. We undertake no obligation to update any forward-looking statement.
For more information, contact:
Sono-Tek Corp.
Stephen J. Bagley
Chief Financial Officer
Ph: (845) 795-2020
info@sono-tek.com
Investor Relations:
Kirin Smith
PCG Advisory, Inc.
ksmith@pcgadvisory.com
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
2026 | 2026 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 10,249,779 | $ | 7,339,403 | ||||
| Marketable securities | 7,505,420 | 7,469,649 | ||||||
| Accounts receivable (less allowance of | 1,230,260 | 3,350,953 | ||||||
| Inventories | 3,833,809 | 3,923,350 | ||||||
| Prepaid expenses and other current assets | 535,491 | 743,295 | ||||||
| Total current assets | 23,354,759 | 22,826,650 | ||||||
| Land | 250,000 | 250,000 | ||||||
| Buildings, equipment, furnishings and leasehold improvements, net | 2,036,827 | 2,173,443 | ||||||
| Intangible assets, net | 26,316 | 29,791 | ||||||
| Deferred tax asset | 731,673 | 1,141,611 | ||||||
| TOTAL ASSETS | $ | 26,399,575 | $ | 26,421,495 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 779,158 | $ | 1,038,885 | ||||
| Accrued expenses | 1,988,412 | 2,227,401 | ||||||
| Customer deposits | 2,324,246 | 3,069,743 | ||||||
| Income taxes payable | 188,503 | 255,398 | ||||||
| Total current liabilities | 5,280,319 | 6,591,427 | ||||||
| Deferred tax liability | 54,324 | 55,909 | ||||||
| Total liabilities | 5,334,643 | 6,647,336 | ||||||
| Commitments and Contingencies (Note 10) | ||||||||
| Stockholders’ Equity | ||||||||
| Common stock, | 157,167 | 157,104 | ||||||
| Additional paid-in capital | 10,370,106 | 10,186,858 | ||||||
| Accumulated earnings | 10,537,659 | 9,430,197 | ||||||
| Total stockholders’ equity | 21,064,932 | 19,774,159 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 26,399,575 | $ | 26,421,495 | ||||
See notes to unaudited condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||||||||||||
| Six Months Ended | Three Months Ended | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| $ | 10,893,312 | $ | 10,295,469 | $ | 5,232,153 | $ | 5,162,696 | |||||||||
| Cost of Goods Sold | 4,912,537 | 5,041,218 | 2,465,298 | 2,572,959 | ||||||||||||
| Gross Profit | 5,980,775 | 5,254,251 | 2,766,855 | 2,589,737 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Research and product development costs | 1,296,143 | 1,295,748 | 679,160 | 627,278 | ||||||||||||
| Marketing and selling expenses | 2,025,731 | 1,729,504 | 1,000,747 | 871,353 | ||||||||||||
| General and administrative costs | 1,380,209 | 1,324,477 | 705,417 | 669,952 | ||||||||||||
| Total Operating Expenses | 4,702,083 | 4,349,729 | 2,385,324 | 2,168,583 | ||||||||||||
| Operating Income | 1,278,692 | 904,522 | 381,531 | 421,154 | ||||||||||||
| Interest and Dividend Income | 268,559 | 223,660 | 153,936 | 81,562 | ||||||||||||
| Net unrealized (loss)/gain on marketable securities | (63,704 | ) | 1,570 | (37,433 | ) | 23,493 | ||||||||||
| Income Before Income Taxes | 1,483,547 | 1,129,752 | 498,034 | 526,209 | ||||||||||||
| Income Tax Expense | 376,085 | 221,074 | 131,740 | 102,516 | ||||||||||||
| Net Income | $ | 1,107,462 | $ | 908,678 | $ | 366,294 | $ | 423,693 | ||||||||
| Basic Earnings Per Share | $ | 0.07 | $ | 0.06 | $ | 0.02 | $ | 0.03 | ||||||||
| Diluted Earnings Per Share | $ | 0.07 | $ | 0.06 | $ | 0.02 | $ | 0.03 | ||||||||
| Weighted Average Shares - Basic | 15,714,954 | 15,727,844 | 15,716,723 | 15,721,162 | ||||||||||||
| Weighted Average Shares - Diluted | 15,789,915 | 15,740,384 | 15,806,121 | 15,731,571 | ||||||||||||
See notes to unaudited condensed consolidated financial statements.
