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]

Core Insights - Sono-Tek Corporation reported its fifth consecutive quarter of revenue exceeding $5 million, driven by a significant order completion in the advanced solar market valued at $2.95 million [1][2][3] - The company achieved a gross margin of 52%, an increase from 49% in the previous year, and operating income rose by 103% year-over-year [1][7] - Despite strong performance in the first half of FY 2026, the company maintains a cautious full-year revenue outlook due to uncertainties surrounding governmental clean energy incentives and tariff policies [2][5] 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 [7] - Gross profit increased to $2.7 million, up 9% from $2.5 million year-over-year, contributing to a gross margin expansion [7] - Operating income rose to $483 thousand, a 103% increase compared to $238 thousand in the first quarter of FY 2025 [7] - Net income for the quarter was $485 thousand, reflecting a 47% increase from $331 thousand in the prior year [7] Market and Product Insights - Sales in the Alternative/Clean Energy market increased by 42% year-over-year, driven by production-scale system shipments, including a high ASP order of $2.95 million [9] - Integrated Coating Systems sales surged by 309% to $3.05 million, primarily due to a repeat order for high ASP systems [8] - Multi-Axis Coating Systems sales declined by 75% to $677,000, attributed to reduced R&D funding in the clean energy sector following government policy shifts [8] 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 [5][6] - Full-year revenue growth is anticipated to be relatively flat due to market adjustments in response to recent governmental policy changes [5][6] - The company remains focused on high ASP orders and is well-positioned to navigate potential short-term demand shifts [3][5] Balance Sheet Overview - As of May 31, 2025, Sono-Tek reported cash, cash equivalents, and marketable securities totaling $10.9 million, with no debt on its balance sheet [16] - Stockholders' equity stood at $18.3 million, reflecting a healthy financial position [16]