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]

Seventh Consecutive Quarter of Revenue Over $5 Million Driven by Continued Strength in Medical Market and High-ASP Production Systems Gross Margin Expands to 50% in the Quarter and 51% Year-to-Date Third Quarter and Nine-Month Net Income Increased 24% and 32% Respectively Backlog Reaches Record $12.3 Million Reflecting Continued Order Momentum Reiterates Full Year FY 2026 Guidance Anticipating Modest Revenue Growth MILTON, N.Y., Jan. 13, 2026 (GLOBE NEWSWIRE) -- Sono-Tek Corporation (Nasdaq: SOTK), the lead ...