Sono-Tek Reports Fiscal Third Quarter and Nine-Month Fiscal 2026 Financial Results

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]