Sono-Tek Corporation Reports 10% Increase in Net Sales for Q1 Fiscal 2027

Sono-Tek Corporation reported a 10% increase in net sales for the first quarter of fiscal year 2027, reaching $5.66 million compared to $5.13 million in the same period last year. The company's gross profit rose by 21% to $3.21 million, resulting in a gross profit margin of 57%, up from 52% in the prior year. This improvement was attributed to a favorable product mix, particularly increased shipments of high-value medical device coating systems, including specialty stent coating and Drug-Eluting Balloon coating platforms. Operating income also saw a significant increase of 86%, totaling $897,000, compared to $483,000 in the previous year.

In terms of operational metrics, Sono-Tek's combined equipment and service-related backlog increased to $7.73 million, up from $7.48 million a year earlier. The company experienced notable growth in its medical market segment, with sales soaring by 388% to $3.95 million, while sales to the alternative energy sector plummeted by 90% to $319,000 due to reduced demand. Geographic sales showed a diverse performance, with U.S. and Canada sales remaining stable at $3.53 million, while Asia Pacific sales grew by 24% to $738,000, and Latin America sales surged by 382% to $463,000.

The company’s financial position improved, with cash, cash equivalents, and marketable securities totaling $16.65 million as of May 31, 2026, compared to $14.81 million at the end of February 2026. Sono-Tek reported no outstanding debt and generated $1.94 million in cash from operating activities during the quarter, a significant turnaround from the $922,000 used in the same period last year. The increase in cash flow was primarily driven by a decrease in accounts receivable.

Looking ahead, Sono-Tek's management expressed optimism about future growth, particularly in the medical and alternative energy markets. The company plans to continue expanding its sales capabilities by increasing its direct sales force and adding new distributors. Additionally, Sono-Tek is focused on leveraging its innovative technologies to enhance its product offerings and maintain its competitive edge in the ultrasonic coating systems market. The company anticipates fluctuations in order flow and shipments from quarter to quarter, reflecting the dynamic nature of its business environment.