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Sono-Tek Reports First Quarter FY 2026 Financial Results
Globenewswire· 2025-07-10 11:00
Core Insights - Sono-Tek Corporation reported its fifth consecutive quarter of revenue exceeding $5 million, driven by a significant order in the advanced solar market valued at $2.95 million [1][5] - The company achieved a gross margin of 52%, an increase from 49% year-over-year, and operating income rose by 103% compared to the previous year [1][5] - Despite strong performance in the first half of FY 2026, the company maintains a cautious full-year revenue outlook due to uncertainties surrounding government clean energy incentives and tariff policies [2][4] Financial Performance - Net sales for the first quarter of FY 2026 reached $5.13 million, a 2% increase from $5.03 million in the same quarter of FY 2025 [5][20] - Gross profit increased to $2.7 million, up 9% from $2.5 million year-over-year, contributing to a significant rise in operating income to $483 thousand [5][20] - Net income rose by 47% to $485 thousand, reflecting improved gross profit and reduced operating expenses [5][20] Market and Product Insights - The alternative/clean energy market saw a 42% year-over-year increase in sales, driven by production-scale system shipments, including the high ASP order [14][24] - Integrated coating systems sales surged by 309% to $3.05 million, primarily due to the repeat high ASP order for clean energy applications [14][24] - The electronics market experienced a decline of 40% year-over-year, influenced by the absence of a significant prior year sale [14][24] Geographic Performance - Sales in the U.S. and Canada increased by 15% year-over-year, totaling $3.54 million, bolstered by the advanced solar market order [14][25] - Sales in the Asia Pacific region rose by 16%, while Europe, the Middle East, and Asia saw a decline of 28% [14][25] - Latin America experienced a significant drop in sales, decreasing by 47% compared to the previous year [14][25] Guidance and Outlook - The company expects continued revenue growth and strong profitability in the first half of FY 2026, supported by a backlog of $7.5 million [4][6] - Full-year revenue growth is anticipated to be relatively flat due to potential impacts from government policy changes affecting customer orders [2][4] - The company remains focused on long-term growth strategies, particularly in the medical device industry and high ASP orders [2][4]
