Core Insights - Sono-Tek Corporation has announced a technical collaboration with Diamond Quanta to integrate precision ultrasonic coating technology into engineered diamond applications [1][2] Group 1: Collaboration Details - The collaboration aims to enhance repeatable thin-film deposition and multilayer integration in engineered diamond applications [2][5] - Sono-Tek's technology will support improved coating uniformity and process consistency, facilitating a structured progression toward OEM qualification [5][6] Group 2: Manufacturing and Process Architecture - Diamond Quanta's approach involves a standardized process architecture that integrates engineered diamond interfaces into qualification-ready manufacturing workflows compatible with existing semiconductor and electronics toolchains [3][4] - The collaboration is expected to align with established semiconductor and electronics manufacturing ecosystems, enhancing the manufacturability of engineered diamond materials [3][5] Group 3: Company Background - Sono-Tek Corporation specializes in designing and manufacturing precision ultrasonic coating systems for various advanced manufacturing applications, including microelectronics and medical devices [4][6] - The company distributes its products globally through direct sales and independent distributors, emphasizing its commitment to supporting scalable production environments [6]

MILTON, N.Y., March 17, 2026 (GLOBE NEWSWIRE) -- Sono-Tek Corporation (Nasdaq: SOTK), a global provider of precision ultrasonic coating systems, today announced a technical collaboration with Diamond Quanta (DQ), a developer of engineered diamond-on-glass and engineered-diamond materials for optics, thermal, semiconductor, and quantum systems. Under the collaboration, Sono-Tek’s precision ultrasonic coating technology is expected to be integrated into Diamond Quanta’s manufacturing workflow to support repea ...

Core Viewpoint - Sono-Tek Corporation has received an $820,000 order for coating equipment to be used in the production of diagnostic medical devices, indicating a significant expansion in production capabilities for an existing customer in the medical sector [1][2][4] Group 1: Order Details - The order reflects the customer's scaling of production and involves integrating Sono-Tek's technology into a larger automated manufacturing line [2] - This order follows previous purchases of two Sono-Tek production systems, priced between $175,000 and $190,000, as the customer began early production [3] - The new system is expected to ship during fiscal year 2027, representing a meaningful step forward in system capability and throughput [2][3] Group 2: Customer Relationship and Market Position - The order signifies the progression of the relationship with the customer and highlights Sono-Tek's strategy of supporting customers transitioning to larger, more complex production platforms [3] - This order is from a different customer than the previously announced $5.0 million and $2.8 million medical device system orders, showcasing Sono-Tek's expanding footprint in the medical sector [4] - The company anticipates that this program may lead to additional opportunities with the customer as production continues to expand [4] Group 3: Company Overview and Strategy - Sono-Tek is a leader in the design and manufacture of ultrasonic coating systems, with applications across various industries including medical devices, microelectronics, and clean energy [5][6] - The company is transitioning its product line from R&D to high-volume production machines, which are expected to have significantly higher average selling prices [6] - Sono-Tek's growth strategy focuses on leveraging innovative technologies and global reach to enhance thin film coating technologies for better customer outcomes [8]

Financial Performance - Total net sales for the nine months ended November 30, 2025, were $15,299,839, a slight decrease of 0.5% compared to $15,383,416 for the same period in 2024[13] - Gross profit for the nine months ended November 30, 2025, increased to $7,766,492, representing a gross margin of 50.8%, compared to $7,313,783 and a margin of 47.6% in 2024[13] - Operating income for the nine months ended November 30, 2025, was $1,223,494, up 69.5% from $721,923 in the same period last year[13] - Net income for the nine months ended November 30, 2025, was $1,248,637, an increase of 32.1% compared to $945,700 in 2024[13] - Basic earnings per share for the nine months ended November 30, 2025, were $0.08, compared to $0.06 for the same period in 2024[13] Cash and Liquidity - Cash and cash equivalents as of November 30, 2025, were $5,395,695, up from $5,202,361 as of February 28, 2025[11] - Total current assets increased to $20,093,512 as of November 30, 2025, compared to $18,988,465 as of February 28, 2025, reflecting a growth of 5.8%[11] - Cash and cash equivalents at the end of the period were $5,395,695, down from $8,098,750 at the end of the previous year, reflecting a decrease of approximately 33%[20] - The company generated net cash provided by operating activities of $109,661 for the nine months ended November 30, 2025, a significant decrease from $1,199,318 in the prior year[20] Assets and Liabilities - Total liabilities decreased to $4,798,194 as of November 30, 2025, from $5,619,441 as of February 28, 2025, a reduction of 14.6%[11] - Total stockholders' equity rose to $19,132,420 as of November 30, 2025, compared to $17,792,195 as of February 28, 2025, indicating an increase of 7.5%[11] - The company’s total assets increased from $16,278,998 on February 29, 2024, to $19,132,420 on November 30, 2025, indicating a growth of approximately 17%[18] Research and Development - Research and product development costs for the nine months ended November 30, 2025, were $1,934,109, a decrease of 5.8% from $2,054,846 in 2024[13] - Research and product development expenses for the nine months ended November 30, 2025, were $1,934,000, compared to $2,055,000 in 2024[67] Inventory and Receivables - The company’s inventory reserve increased to $45,927 from $32,524 year-over-year, representing a rise of approximately 41%[20] - The company’s accounts receivable increased significantly by $2,063,899 compared to $808,594 in the prior year, indicating a rise of approximately 155%[20] - The Company’s inventories totaled $3,656,898 as of November 30, 2025, down from $4,474,401 as of February 28, 2025, representing a decrease of approximately 18.3%[51] Sales and Revenue - Total sales revenue for the three months ended November 30, 2025, was $5,004,000, a decrease from $5,191,000 in the same period of 2024[50] - For the nine months ended November 30, 2025, total sales revenue was $15,300,000, compared to $15,383,000 for the same period in 2024[50] - Export sales to foreign customers for the nine months ended November 30, 2025, totaled $5,626,000, accounting for 37% of total revenues[63] Customer Concentration - One customer accounted for 38% of sales during the first nine months of fiscal 2026, indicating significant customer concentration risk[64] Stock and Compensation - The weighted average grant date fair value of stock options granted during the nine months ended November 30, 2025, was $3.26 per share[56] - The company reported stock-based compensation expenses of $232,097 for the nine months ended November 30, 2025, compared to $176,076 for the same period in 2024, marking a 32% increase[20] Tax and Regulatory - The company plans to leverage the changes introduced by the One Big Beautiful Bill Act to enhance its tax position and reduce current tax payable for capital expenditures in fiscal year 2026[33]

Financial Performance - Net sales for the third quarter were $5.0 million, a decrease of 4% from $5.2 million in the prior-year period, marking the seventh consecutive quarter with revenue exceeding $5 million [4]. - Gross profit increased by 7% year over year to $2.5 million, with gross margin expanding to 50%, up from 45% in the prior-year quarter [4]. - Net income for the third quarter increased by 24% to $340 thousand, or $0.02 per diluted share, compared to $274 thousand, or $0.02 per diluted share, in the prior-year quarter [4]. - For the first nine months, net sales totaled $15.3 million, essentially flat year over year, while gross profit increased by 6% to $7.8 million, with gross margin expanding to 51% from 48% in the prior-year period [4]. - Operating income for the first nine months increased by 69% to $1.22 million, with net income rising by 32% to $1.25 million, or $0.08 per diluted share [4]. - Net sales for the nine months ended November 30, 2025, were $15,299,839, a decrease of 1% compared to $15,383,416 for the same period in 2024 [23]. - Gross profit increased to $7,766,492 for the nine months ended November 30, 2025, compared to $7,313,783 in 2024, reflecting a gross margin improvement [23]. - Operating income rose significantly to $1,223,494 for the nine months ended November 30, 2025, compared to $721,923 in 2024, indicating a 69% increase [23]. - Net income for the nine months ended November 30, 2025, was $1,248,637, up from $945,700 in 2024, representing a 32% increase [23]. - Basic earnings per share increased to $0.08 for the nine months ended November 30, 2025, compared to $0.06 in 2024 [23]. - Total operating expenses were $6,542,998 for the nine months ended November 30, 2025, slightly down from $6,591,860 in 2024 [23]. Market Performance - Total backlog reached a record $12.26 million, increasing 16% year over year and 9% sequentially, reflecting continued strength in customer order activity [8]. - Demand for advanced ultrasonic coating platforms remains strong, particularly in the medical device market, with medical sales increasing by 27% [11]. - In-Line Coating Systems revenue surged by 2,177%, driven by shipments of high-ASP production systems to a major solar energy customer [11]. - The company anticipates modest revenue growth for the full fiscal year, balancing market adjustments with positive demand in the medical device market [8]. - The Electronics/Microelectronics market segment grew by 27% in the three months ended November 30, 2025, totaling $1,287,000 compared to $1,016,000 in 2024 [26]. - U.S. & Canada sales increased by 21% in the three months ended November 30, 2025, reaching $3,415,000 compared to $2,823,000 in 2024 [27]. - The company reported a decrease in sales from the Alternative Energy market segment, which fell by 35% in the three months ended November 30, 2025, totaling $1,912,000 compared to $2,959,000 in 2024 [26]. Financial Position - The company ended the quarter with $11.7 million in cash and no outstanding debt, indicating a strong balance sheet [8]. - In the product sales breakdown, In-Line Coating Systems saw a dramatic increase of 2,177% in the three months ended November 30, 2025, reaching $1,844,000 compared to $81,000 in 2024 [25].

Core Insights - Sono-Tek Corporation reported its fiscal third quarter and nine-month results for 2026, achieving its seventh consecutive quarter of revenue exceeding $5 million, driven by strong demand in the medical market and high-average selling price (ASP) production systems [1][2][3] - The company experienced a gross margin expansion to 50% for the quarter and 51% year-to-date, reflecting effective cost management and a focus on higher-ASP systems [2][3] - Net income for the third quarter increased by 24% to $340,000, while net income for the first nine months rose by 32% to $1.25 million [3][6] Financial Performance - Third quarter net sales were $5.0 million, a decrease of 4% from $5.2 million in the prior-year period [3][4] - Gross profit for the quarter increased by 7% year-over-year to $2.5 million, with gross margin improving from 45% to 50% [3][4] - Operating income surged by 61% to $319,000, indicating improved operational efficiency [3][4] - For the first nine months, net sales totaled $15.3 million, essentially flat compared to the previous year [3][6] Backlog and Guidance - The company's backlog reached a record $12.3 million, reflecting a 16% year-over-year increase, indicating strong customer confidence [1][3] - Sono-Tek reiterated its full-year guidance for FY 2026, anticipating modest revenue growth despite market adjustments related to clean energy initiatives [3][6] Product and Market Highlights - In-Line Coating Systems revenue increased by 126%, driven by shipments to a major solar energy customer [7] - Medical sales rose by 27%, supported by strong demand for balloon catheters, stents, and diagnostic devices [8] - Alternative Energy sales declined by 35% due to reduced U.S. electrolysis activity following policy changes [8][15] Geographic Performance - U.S. and Canada sales increased by 21% in the quarter, supported by high-ASP integrated coating systems [8][20] - Asia Pacific sales declined by 34% in the quarter, while Latin America sales dropped by 50% due to slower activity [8][20] - EMEA sales decreased by 26%, primarily due to softer demand in advanced energy markets [8][20]

Core Insights - Sono-Tek Corporation reported its seventh consecutive quarter of revenue exceeding $5 million, driven by strong demand in the medical market and high-average selling price (ASP) production systems [1][5][7] - The company achieved a gross margin of 50% for the quarter and 51% year-to-date, reflecting effective cost management and a focus on higher-ASP systems [1][5][7] - Net income for the third quarter increased by 24% to $340,000, while net income for the first nine months rose by 32% to $1.25 million [1][7][11] - The backlog reached a record $12.3 million, indicating sustained order momentum and customer confidence in Sono-Tek's technology [1][5][7] Financial Performance - Third quarter net sales were $5.0 million, a decrease of 4% from $5.2 million in the prior year [6][7] - Gross profit for the quarter increased by 7% to $2.5 million, with gross margin expanding from 45% to 50% year-over-year [7][8] - Operating income rose by 61% to $319,000, reflecting improved gross margin and operating leverage [7][8] - For the first nine months, net sales totaled $15.3 million, essentially flat compared to the previous year [11][12] Market and Product Highlights - Medical sales increased by 27%, driven by strong demand for balloon catheter, stent, and diagnostic device coating systems [13][30] - In-Line Coating Systems revenue surged by 2,177%, attributed to shipments to a major solar energy customer [13][20] - Multi-Axis Coating Systems experienced a decline of 53% due to reduced demand following shifts in U.S. policy incentives [13][20] - Alternative Energy sales declined by 35% due to reduced U.S. electrolysis activity [13][20] Geographic Performance - U.S. and Canada sales increased by 21% in the quarter, supported by high-ASP integrated coating systems [13][31] - Asia Pacific sales declined by 34% following a strong prior year, while Latin America sales dropped by 50% due to slower activity [13][31] - EMEA sales decreased by 26%, primarily due to softer demand in advanced energy markets [13][31]

Core Insights - Three stocks are highlighted with strong momentum characteristics and a buy rank as of October 21, including Verastem, Inc., Amer Sports, Inc., and Sono-Tek Corporation [1][2][3] Company Summaries - **Verastem, Inc. (VSTM)**: - Zacks Rank 1 - Current year earnings estimate increased by 21.5% over the last 60 days - Shares gained 52.2% over the last three months, outperforming the S&P 500's 5.7% increase - Momentum Score of A [1] - **Amer Sports, Inc. (AS)**: - Zacks Rank 1 - Current year earnings estimate increased by 9.1% over the last 60 days - Shares gained 38.7% over the past six months, compared to the S&P 500's 26.2% increase - Momentum Score of A [2] - **Sono-Tek Corporation (SOTK)**: - Zacks Rank 1 - Current year earnings estimate increased by 37.5% over the last 60 days - Shares gained 15.9% over the last three months, outperforming the S&P 500's 5.7% increase - Momentum Score of A [3]

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment returns Group 1: Company Earnings Estimates - Newmont Corporation (NEM) has seen a 6.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Royal Bank of Canada (RY) has experienced a 5.6% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Amer Sports, Inc. (AS) has seen a 9.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Verastem, Inc. (VSTM) has experienced a significant 21.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Sono-Tek Corporation (SOTK) has seen a remarkable 37.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Core Viewpoint - Sono-Tek Corporation (SOTK) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily driven by changes in a company's earnings picture, with the Zacks Consensus Estimate reflecting EPS estimates from sell-side analysts [2][3]. - The recent upgrade for Sono-Tek suggests an improvement in its earnings outlook, likely leading to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimate Revisions - There is a strong correlation between earnings estimate revisions and near-term stock price movements, making it beneficial for investors to track these revisions [7]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. Specifics on Sono-Tek's Earnings Estimates - Sono-Tek is projected to earn $0.08 per share for the fiscal year ending February 2026, with no year-over-year change expected [9]. - Over the past three months, the Zacks Consensus Estimate for Sono-Tek has increased by 100%, indicating a significant upward revision in earnings expectations [9]. Conclusion on Zacks Rating System - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across its universe of over 4,000 stocks, with only the top 5% receiving a "Strong Buy" rating [10]. - Sono-Tek's upgrade to Zacks Rank 1 places it in the top 5% of stocks based on estimate revisions, suggesting potential for market-beating returns in the near term [11].