Core Insights - Sono-Tek Corporation reported a sixth consecutive quarter of revenue exceeding $5 million, with a notable 150% year-over-year increase in medical market sales [1][3][5] - The company achieved a 35% increase in net income for the first half of fiscal year 2026, reflecting strong demand in the medical device market [1][5][17] - Sono-Tek's backlog increased by 50% sequentially, indicating robust new order momentum [1][5][12] Financial Performance - For the second quarter of fiscal 2026, net sales reached $5.163 million, slightly up from $5.162 million year-over-year [5][8] - Gross profit for the quarter increased by 3% to $2.6 million, with a gross margin of 50% [5][8] - Net income for the quarter rose 24% to $424 thousand, or $0.03 per share, compared to $341 thousand, or $0.02 per share, in the prior year [5][8] First Half Overview - Record revenue for the first half of fiscal 2026 was $10.30 million, up from $10.19 million in the same period last year [5][9] - Gross profit for the first half increased by 6% to $5.3 million, with a gross margin of 51% [5][9][17] - Net income for the first half rose 35% to $909 thousand, or $0.06 per share, compared to $672 thousand, or $0.04 per share, in the previous year [5][9][17] Market and Product Insights - The medical market sales surged by 150% year-over-year, driven by strong demand for balloon coating systems [5][8][26] - Sales in the alternative/clean energy sector decreased slightly by 3% year-over-year, while the electronics market saw a decline of 1% [5][8][26] - The industrial market experienced a significant decline of 68% year-over-year, influenced by a large order in FY 2025 that did not repeat [5][8][26] Geographic Sales Performance - Sales in the U.S. and Canada decreased by 22% year-over-year, while sales in Asia increased by 153% [5][11][27] - EMEA sales rose by 25%, while Latin American sales declined by 45% [5][11][27] Balance Sheet and Cash Flow - As of August 31, 2025, cash, cash equivalents, and marketable securities totaled $10.6 million, with no outstanding debt [5][12] - The company anticipates capital expenditures of approximately $300 thousand for fiscal year 2026 [5][12]