Washington, D.C. 20549
Check appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligations of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined
in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2
of this chapter).
On July 8, 2026, Sono-Tek Corporation issued a press release regarding its financial results
for the quarter ended May 31, 2026 in the form attached as exhibit 99.1.
The information furnished pursuant to this Item 7.01, including Exhibit 99.1, shall not
be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
or otherwise subject to the liabilities under such section and shall not be deemed to be incorporated by reference into any filing of
the Company under the Securities Act of 1933, as amended, or the Exchange Act.
104 Cover Page Interactive Data File (embedded
within the Inline XBRL document)
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Stephen J. Bagley
Exhibit 99.1
Sono-Tek Corporation Reports First Quarter Fiscal 2027
Results
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 8, 2026 – 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."
Dr. Christopher L. Coccio, Executive Chairman, added:
"Our first quarter results reinforce the long-term strength of Sono-Tek's
ultrasonic coating technology platform and validate the strategic direction that we have pursued for many years. As precision manufacturing
requirements continue to increase across advanced industries, we believe we are well positioned to expand our leadership through continued
innovation and differentiated application expertise.
"We have spent decades building differentiated technology, deep application
expertise, and lasting customer relationships that continue to position us for future success. We believe these enduring strengths, together
with disciplined investment and a strong financial foundation, position Sono-Tek to capitalize on attractive long-term growth opportunities
while creating lasting shareholder value."
First Quarter Fiscal 2027 Results
Net sales increased 10% to $5.66 million, driven by strong
Medical demand, partially offset by lower Alternative Energy shipments compared with the prior-year period.
Gross profit increased 21% to $3.21 million, with gross margin
expanding from 52% to 57% due to favorable product mix and higher-value system shipments.
Operating expenses increased 6% to $2.32 million due to continued
investment in sales, engineering, and business development initiatives.
Operating income increased 86% to $897,000.
Net income increased 53% to $741,000, or $0.05 per diluted
share.
First Quarter Fiscal 2027 Results – (compared
with the prior year period)
| | |
Three Months Ended May 31, | | |
Change | |
| | |
2026 | | |
2025 | | |
$ | | |
% | |
| Net Sales | |
$ | 5,661,000 | | |
$ | 5,133,000 | | |
| 528,000 | | |
| 10% | |
| Gross Profit | |
| 3,214,000 | | |
| 2,665,000 | | |
| 549,000 | | |
| 21% | |
| Gross Margin | |
| 57% | | |
| 52% | | |
| | | |
| | |
| Operating Income | |
$ | 897,000 | | |
$ | 483,000 | | |
| 414,000 | | |
| 86% | |
| Operating Margin | |
| 16% | | |
| 9% | | |
| | | |
| | |
| Net Income | |
$ | 741,000 | | |
$ | 485,000 | | |
| 256,000 | | |
| 53% | |
| Net Margin | |
| 13% | | |
| 9% | | |
| | | |
| | |
| Basic Earnings Per Share | |
$ | 0.05 | | |
$ | 0.03 | | |
| | | |
| | |
| Diluted Earnings Per Share | |
$ | 0.05 | | |
$ | 0.03 | | |
| | | |
| | |
| Weighted Average Shares -Basic | |
| 15,713,000 | | |
| 15,734,000 | | |
| | | |
| | |
| Weighted Average Shares - Diluted | |
| 15,737,000 | | |
| 15,749,000 | | |
| | | |
| | |
First Quarter Fiscal 2027 Product and Market Highlights
Market Sales
- Medical: $3.95 million vs. $809,000
- Electronics/Microelectronics: $863,000 vs. $943,000
- Alternative Energy/Clean: $319,000 vs. $3.25 million
- Industrial: $530,000 vs. $119,000
- Emerging R&D and Other: $3,000 vs. $14,000
Medical growth was driven by specialty stent coating systems
in the U.S. and Drug-Eluting Balloon platforms across the U.S., China, and Europe. Alternative Energy declined due to reduced electrolysis
demand and the absence of solar shipments. Industrial growth reflected system upgrades and R&D nano-coating applications.
Product Sales
- Fluxing Systems: $92,000 vs. $152,000
- In-Line Coating Systems: $2.16 million vs. $3.05 million
- Multi-Axis Coating Systems: $2.08 million vs. $677,000
- OEM Systems: $231,000 vs. $130,000
- Spare Parts, Services and Other: $1.10 million vs. $1.12 million
- Total Net Sales: $5.66 million vs. $5.13 million
Multi-Axis growth was driven by strong demand across multiple
end markets. In-Line declined due to reduced clean energy shipments, including the absence of prior-year solar system deliveries. OEM
Systems increased on semiconductor and fluxer OEM demand, while services remained stable.
Balance Sheet, Backlog and Outlook
Balance Sheet: Cash, cash equivalents, and marketable
securities totaled $16.65 million, compared with $14.81 million at the prior year end. The Company had no outstanding debt.
Backlog: Combined equipment and service-related backlog at May 31, 2026 was $7.73
million, compared to backlog of $7.48 million at May 31, 2025, an increase of $250,000, or 3%. Backlog was down $1.39 million compared
to the fiscal 2026 year-end level of $9.12 million.
Outlook: Sono-Tek anticipates continued revenue growth and
profitability in the first half of fiscal year 2027 compared to the first half of fiscal year 2026, driven by expanding demand in the
medical sector and continued adoption of high value production-scale coating systems across multiple end markets. Total fiscal year 2027
revenue is currently projected to be relatively flat to modestly higher compared to fiscal year 2026, as visibility beyond the first half
remains limited due to continued uncertainty in certain clean energy sectors and the timing of shipments for higher value production scale
platforms.
About Sono-Tek
Sono-Tek Corporation is a global leader in the design
and manufacture of ultrasonic coating systems that are shaping industries and driving innovation worldwide. Our ultrasonic coating systems
are used to apply thin films onto parts used in diverse industries including microelectronics, alternative energy, medical devices, advanced
industrial manufacturing, and research and development sectors worldwide. Sono-Tek's inroads into the clean energy sector have shown transformative
results in next-gen solar cells, fuel cells, green hydrogen generation, and carbon capture applications.
Our product line is rapidly evolving, transitioning
from R&D to high-volume production machines with significantly higher average selling prices, showcasing our market leadership and
adaptability. Our comprehensive suite of thin film coating solutions and application consulting services are expected to generate unparalleled
results for our clients and help some of the world's most promising companies achieve technological breakthroughs and bring them to the
market. We strategically deliver our products to customers through a network of direct sales personnel, carefully chosen independent distributors,
and experienced sales representatives, ensuring efficient market reach across diverse sectors around the globe.
Our solutions are environmentally friendly, efficient
and highly reliable, and enable dramatic reductions in overspray, savings in raw material, water and energy usage and provide improved
process repeatability, transfer efficiency, high uniformity and reduced emissions.
Our growth strategy is focused on leveraging
our innovative technologies, proprietary know-how, unique talent and experience, and global reach to further develop thin film coating
technologies that enable better outcomes for our customers’ products and processes. For further information, visit www.sono-tek.com
Safe Harbor Statement
This news release contains forward looking statements regarding
future events and the future performance of Sono-Tek Corporation that involve risks and uncertainties that could cause actual
results to differ materially. These “forward-looking statements’ are based on currently available competitive, financial
and economic data and our operating plans. They are inherently uncertain, and investors must recognize that events could turn out to
be significantly different from our expectations and could cause actual results to differ materially. These factors include, among
other considerations, general economic and business conditions, including political, regulatory, tax, competitive and technological
developments affecting our operations or the demand for our products; inflationary and supply chain pressures; continued strength of
sales to the medical device and electronics markets; increased private and public funding for the clean energy sector; continued
strong demand for Sono-Tek’s suite of thin film coating solutions and application consulting services in the clean energy and
other markets; maintenance of order backlog; evolving tariff policies; timely development and market acceptance of new products and
continued customer validation of our coating technologies; adequacy of financing; capacity additions, the ability to enforce
patents; maintenance of operating leverage; consummation of order proposals; timing of large orders and completion on schedule and
on budget; successful transition from primarily selling ultrasonic nozzles and components to a more complex business providing
complete machine solutions and higher value subsystems; and realization of first half and annual revenues and profitability within
the forecasted ranges of guidance. We undertake no obligation to update any forward-looking statement.
For more information:
Sono-Tek Corp.
Stephen J. Bagley
Chief Financial Officer
Ph: (845) 795-2020
info@sono-tek.com
Investor Relations
Kirin Smith, President
PCG Advisory, Inc.
ksmith@pcgadvisory.com
- Financial Tables to follow –
SONO-TEK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
| | |
May 31, 2026 | | |
February 28, | |
| | |
(Unaudited) | | |
2026 | |
| ASSETS | |
| | | |
| | |
| Current Assets: | |
| | | |
| | |
| Cash and cash equivalents | |
$ | 8,982,075 | | |
$ | 7,339,403 | |
| Marketable securities | |
| 7,669,872 | | |
| 7,469,649 | |
| Accounts receivable (less allowance of $12,225, respectively) | |
| 1,264,932 | | |
| 3,350,953 | |
| Inventories | |
| 4,063,132 | | |
| 3,923,350 | |
| Prepaid expenses and other current assets | |
| 659,518 | | |
| 743,295 | |
| Total current assets | |
| 22,639,529 | | |
| 22,826,650 | |
| | |
| | | |
| | |
| Land | |
| 250,000 | | |
| 250,000 | |
| Buildings, equipment, furnishings and leasehold improvements, net | |
| 2,138,226 | | |
| 2,173,443 | |
| Intangible assets, net | |
| 27,892 | | |
| 29,791 | |
| Deferred tax asset | |
| 809,182 | | |
| 1,141,611 | |
| | |
| | | |
| | |
| TOTAL ASSETS | |
$ | 25,864,829 | | |
$ | 26,421,495 | |
| | |
| | | |
| | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |
| | | |
| | |
| | |
| | | |
| | |
| Current Liabilities: | |
| | | |
| | |
| Accounts payable | |
$ | 935,442 | | |
$ | 1,038,885 | |
| Accrued expenses | |
| 2,088,229 | | |
| 2,227,401 | |
| Customer deposits | |
| 2,006,896 | | |
| 3,069,743 | |
| Income taxes payable | |
| 147,984 | | |
| 255,398 | |
| Total current liabilities | |
| 5,178,551 | | |
| 6,591,427 | |
| | |
| | | |
| | |
| Deferred tax liability | |
| 75,238 | | |
| 55,909 | |
| Total liabilities | |
| 5,253,789 | | |
| 6,647,336 | |
| | |
| | | |
| | |
| Commitments and Contingencies (Note 10) | |
| — | | |
| — | |
| | |
| | | |
| | |
| Stockholders’ Equity | |
| | | |
| | |
| Common stock, $.01 par value; 25,000,000 shares authorized, 15,716,723 and 15,710,389 issued and outstanding as of May 31, 2026 and February 28, 2026 | |
| 157,167 | | |
| 157,104 | |
| Additional paid-in capital | |
| 10,282,508 | | |
| 10,186,858 | |
| Accumulated earnings | |
| 10,171,365 | | |
| 9,430,197 | |
| Total stockholders’ equity | |
| 20,611,040 | | |
| 19,774,159 | |
| | |
| | | |
| | |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | |
$ | 25,864,829 | | |
$ | 26,421,495 | |
See notes to unaudited condensed consolidated financial statements.
SONO-TEK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| | |
Three Months Ended May 31, | |
| | |
2026 | | |
2025 | |
| | |
| | |
| |
| Net Sales | |
$ | 5,661,159 | | |
$ | 5,132,773 | |
| Cost of Goods Sold | |
| 2,447,241 | | |
| 2,468,259 | |
| Gross Profit | |
| 3,213,918 | | |
| 2,664,514 | |
| | |
| | | |
| | |
| Operating Expenses | |
| | | |
| | |
| Research and product development costs | |
| 616,982 | | |
| 668,470 | |
| Marketing and selling expenses | |
| 1,024,984 | | |
| 858,151 | |
| General and administrative costs | |
| 674,792 | | |
| 654,525 | |
| Total Operating Expenses | |
| 2,316,758 | | |
| 2,181,146 | |
| | |
| | | |
| | |
| Operating Income | |
| 897,160 | | |
| 483,368 | |
| | |
| | | |
| | |
| Interest and Dividend Income | |
| 114,624 | | |
| 142,098 | |
| Net unrealized (loss) on marketable securities | |
| (26,271 | ) | |
| (21,923 | ) |
| | |
| | | |
| | |
| Income Before Income Taxes | |
| 985,513 | | |
| 603,543 | |
| | |
| | | |
| | |
| Income Tax Expense | |
| 244,345 | | |
| 118,558 | |
| | |
| | | |
| | |
| Net Income | |
$ | 741,168 | | |
$ | 484,985 | |
| | |
| | | |
| | |
| Basic Earnings Per Share | |
$ | 0.05 | | |
$ | 0.03 | |
| | |
| | | |
| | |
| Diluted Earnings Per Share | |
$ | 0.05 | | |
$ | 0.03 | |
| | |
| | | |
| | |
| Weighted Average Shares - Basic | |
| 15,713,185 | | |
| 15,733,955 | |
| | |
| | | |
| | |
| Weighted Average Shares - Diluted | |
| 15,737,276 | | |
| 15,748,556 | |
See notes to unaudited condensed consolidated financial statements.
SONO-TEK CORPORATION
PRODUCT, MARKET, AND GEOGRAPHIC SALES
(Unaudited)
Product Sales:
| |
|
Three Months Ended May 31, |
|
Change |
| |
|
2026 |
|
|
% of total |
|
2025 |
|
|
% of total |
|
$ |
|
|
% |
| Fluxing Systems |
|
$ |
92,000 |
|
|
2% |
|
$ |
152,000 |
|
|
3% |
|
|
(60,000 |
) |
|
(39%) |
| In-Line Coating Systems |
|
|
2,159,000 |
|
|
38% |
|
|
3,054,000 |
|
|
59% |
|
|
(895,000 |
) |
|
(29%) |
| Multi-Axis Coating Systems |
|
|
2,075,000 |
|
|
37% |
|
|
677,000 |
|
|
13% |
|
|
1,398,000 |
|
|
206% |
| OEM Systems |
|
|
231,000 |
|
|
4% |
|
|
130,000 |
|
|
3% |
|
|
101,000 |
|
|
78% |
| Spare Parts, Services and Other |
|
|
1,104,000 |
|
|
20% |
|
|
1,120,000 |
|
|
22% |
|
|
(16,000 |
) |
|
1% |
| TOTAL |
|
$ |
5,661,000 |
|
|
|
|
$ |
5,133,000 |
|
|
|
|
$ |
528,000 |
|
|
10% |
Market Sales:
| |
|
Three Months Ended May 31, |
|
Change |
| |
|
2026 |
|
|
% of total |
|
2025 |
|
|
% of total |
|
$ |
|
|
% |
| Electronics/Microelectronics |
|
$ |
863,000 |
|
|
15% |
|
$ |
943,000 |
|
|
19% |
|
|
(80,000 |
) |
|
(8%) |
| Medical |
|
|
3,946,000 |
|
|
70% |
|
|
809,000 |
|
|
16% |
|
|
3,137,000 |
|
|
388% |
| Alternative Energy/Clean |
|
|
319,000 |
|
|
6% |
|
|
3,248,000 |
|
|
63% |
|
|
(2,929,000 |
) |
|
(90%) |
| Emerging R&D and Other |
|
|
3,000 |
|
|
0% |
|
|
14,000 |
|
|
0% |
|
|
(11,000 |
) |
|
(79%) |
| Industrial |
|
|
530,000 |
|
|
9% |
|
|
119,000 |
|
|
2% |
|
|
411,000 |
|
|
345% |
| TOTAL |
|
$ |
5,661,000 |
|
|
|
|
$ |
5,133,000 |
|
|
|
|
$ |
528,000 |
|
|
10% |
Geographic Sales:
| |
|
Three Months Ended |
|
|
|
|
|
|
|
| |
|
May 31, |
|
|
Change |
|
| |
|
2026 |
|
|
2025 |
|
|
$ |
|
|
% |
|
| U.S. & Canada |
|
$ |
3,530,000 |
|
|
$ |
3,543,000 |
|
|
$ |
(13,000 |
) |
|
0% |
|
| Asia Pacific (APAC) |
|
|
738,000 |
|
|
|
597,000 |
|
|
|
141,000 |
|
|
24% |
|
| Europe, Middle East, Africa (EMEA) |
|
|
930,000 |
|
|
|
897,000 |
|
|
|
33,000 |
|
|
4% |
|
| Latin America |
|
|
463,000 |
|
|
|
96,000 |
|
|
|
367,000 |
|
|
382% |
|
| TOTAL |
|
$ |
5,661,000 |
|
|
$ |
5,133,000 |
|
|
$ |
528,000 |
|
|
10% |
|
