Revenue Increased 10%; Gross Margin Expanded to 57%; Operating Income Increased 86%; Net Income Increased 67%
Anticipating Continued Revenue Growth in 1H 2027 Driven by Strong Medical Sector and Higher Value Production Systems
MILTON, N.Y., July 08, 2026 (GLOBE NEWSWIRE) -- Sono-Tek Corporation (Nasdaq: SOTK), a leading developer and manufacturer of precision ultrasonic coating systems, today reported financial results for the first quarter of fiscal 2027, ended May 31, 2026.
First Quarter Fiscal 2027 Highlights
Net sales increased 10% to $5.66 million
Gross margin expanded to 57% from 52%
Gross profit increased 21% to $3.21 million
Operating income increased 86% to $897,000
Net income increased 53% to $741,000, or $0.05 per diluted share
Cash, cash equivalents, and marketable securities increased to $16.65 million with no debt
Backlog increased to approximately $7.73 million
Steve Harshbarger, CEO & President of Sono-Tek, stated:
"Fiscal 2027 is off to a strong start with double-digit revenue growth, meaningful margin expansion, and improved profitability, reflecting disciplined execution across our operations and the continued success of our strategy of focusing on higher-value production systems in advanced technology markets, particularly medical devices.
"Our medical business was the primary growth driver this quarter, with strong demand for specialty stent coating systems and Drug-Eluting Balloon platforms across the U.S., Europe, and Asia. This exceptional mix of business-including a higher concentration of medical systems, shipments of higher-value production platforms, and a greater proportion of U.S. based sales with lower distributor commission expenses, was a significant contributor to our gross margin expansion. While we are very pleased with these results, product mix, geographic mix, and shipment timing naturally fluctuate from quarter to quarter, and we would not expect this level of gross margin to be representative of every future quarter. Our technology is increasingly being selected for applications requiring highly controlled, repeatable thin-film coatings, positioning Sono-Tek to benefit as manufacturing precision requirements continue to increase across multiple industries."
"Looking ahead, we remain focused on expanding our installed base of production systems, supporting customers as they scale from development into commercial manufacturing, and investing in the engineering and commercial capabilities that will drive our next phase of growth. The Company continues to project revenue growth during the first half of fiscal 2027, supported by strong medical demand and continued shipments of higher-value production systems, and we maintain our previously communicated expectation of flat to modest revenue growth for the full fiscal year. This full-year outlook primarily reflects the timing of several large production platform orders. As these higher-value production systems become a larger portion of our business, quarterly revenue may increasingly be influenced by shipment timing. Our strong balance sheet provides the flexibility to execute these priorities while continuing to create long-term value for shareholders."