Sono-Tek's Impressive Growth in Half-Year Revenue Report
Important Financial Highlights from Sono-Tek
Sono-Tek Corporation (NASDAQ: SOTK), a prominent innovator in ultrasonic coating systems, has reported impressive financial performance for its recent fiscal quarter. The company celebrated its sixth consecutive quarter with revenue exceeding $5 million, highlighting a remarkable year-over-year growth rate.
Second Quarter Fiscal Year 2026 Overview
Key Performance Indicators
For the second quarter of fiscal year 2026, Sono-Tek achieved net sales of $5.163 million, a slight increase from $5.162 million reported for the same quarter last year. Sequentially, this reflects a growth compared to the $5.13 million reported in the previous quarter. The gross profit for this quarter reached $2.6 million, representing a 3% year-over-year increase.
Furthermore, the company recorded a net income of $424 thousand, which translates to $0.03 per share, marking a 24% increase from the net income of $341 thousand, or $0.02 per share, from the prior-year period. These figures contribute to the overall positive momentum the company is experiencing.
First Half Fiscal Year 2026 Performance
Record Revenue Growth
In the first half of fiscal year 2026, Sono-Tek reported record revenue of $10.30 million, an increase from the $10.19 million achieved during the same timeframe in the previous year. Throughout this period, gross profit was $5.3 million, a 6% year-over-year increase, reflecting improved product mix and lower warranty expenses.
The company also achieved a net income of $909 thousand or $0.06 per share, showcasing a significant 35% increase from $672 thousand, or $0.04 per share, reported previously. Such results illustrate the effectiveness of Sono-Tek’s strategies in capturing market share across various sectors.
Backlog and Guidance for Future Growth
Positive Company Outlook
As of late August 2025, Sono-Tek reported strong financial stability with cash, cash equivalents, and marketable securities totaling $10.6 million, coupled with no outstanding debt. The robust backlog of $11.21 million demonstrates the company’s increasing momentum in securing orders, particularly from the medical device sector, as it reflects a commendable 50% increase from $7.48 million at the end of the first quarter of this fiscal year.
Sono-Tek's ongoing guidance has been updated to anticipate modest revenue growth, considering ongoing demand in the medical device market amidst evolving governmental clean energy incentives and tariff policies. Dr. Christopher L. Coccio, Executive Chairman, expressed satisfaction with the company’s continued growth trajectory.
Product Sales and Market Segmentation
Sales Overview by Category
In the quarter under review, Sono-Tek's product categories showed varied performance based on market demand. In-line Coating Systems sales decreased by $493 thousand primarily due to a delivery delay from a customer in the clean energy sector. Meanwhile, Multi-Axis Coating Systems experienced a respectable increase of $99 thousand, indicating positive trends in this area.
Other segments, including OEM sales, grew significantly, showcasing a robust 92% increase to $394 thousand, which is a positive indicator of customer interest in Sono-Tek's innovative solutions. Spare Parts and Services also rose by $160 thousand, equating to an 18% increase, demonstrating the essential contribution of these elements to the company's overall sales.
Geographical Performance
Regional Sales Trends
Geographically, sales in the US/Canada dipped by 22%, mainly due to slow momentum in the clean energy sector. However, a strong surge was noted in Asia, with a remarkable 153% increase in sales confirmed, primarily due to strong demands from major markets such as China. EMEA (Europe, Middle East, and Africa) demonstrated a 25% increase, reflecting a robust overall growth factor for Sono-Tek.
This diverse geographical performance highlights Sono-Tek's ability to adapt and thrive in various market conditions, driven by its effective sales strategies and customer engagement practices.
Conference Call and Future Insights
Sono-Tek will hold a conference call to elaborate on these impressive financial results and plans for continued growth. Stakeholders and analysts are invited to participate to gain deeper insights into the company’s strategic initiatives and future projections.
Frequently Asked Questions
What are the key highlights for Sono-Tek's second quarter performance?
Sono-Tek reported net sales of $5.163 million, a slight increase over last year, with a net income of $424 thousand, reflecting 24% growth.
How much revenue did Sono-Tek generate in the first half of fiscal year 2026?
They generated a record revenue of $10.30 million, showing significant growth compared to the previous year.
What is the current backlog for Sono-Tek?
As reported, Sono-Tek's equipment and service-related backlog stands strong at $11.21 million, reflecting more incoming orders.
What was Sono-Tek's gross profit margin this quarter?
The gross profit margin for the second quarter was 50%, a year-over-year increase from 49%.
How has demand influenced Sono-Tek's revenue growth?
Increased demand, particularly within the medical device sector, has significantly driven revenue growth and company outlook.
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