Sono-Tek Corporation reported financial results for the second quarter and first half of fiscal year 2027, ended August 31, 2026. For the second quarter, net sales increased 1% year-over-year to $5.23 million, while gross profit rose 7% to $2.77 million, expanding the gross margin to 53% from 50% in the prior-year period. Operating income for the quarter was $382,000, and net income was $366,000, or $0.02 per diluted share.
For the first half of fiscal 2027, net sales increased 6% to $10.89 million compared to $10.30 million in the prior year. Gross profit increased 14% to $5.98 million, resulting in a gross margin of 55%. Operating income increased 41% to $1.28 million, and net income increased 22% to $1.11 million.
The company highlighted significant growth in its medical sector, with medical market sales increasing 209% to $3.11 million in the second quarter and 289% to $7.05 million in the first half of fiscal 2027. This growth was driven by shipments of balloon coating systems and specialty stent-coating systems.
On the balance sheet, cash, cash equivalents, and marketable securities totaled $17.7 million as of August 31, 2026, with no outstanding debt. The company reported a combined equipment and service-related backlog of $9.51 million, an increase of approximately $1.78 million from the end of the first quarter of fiscal 2027.
Subsequent to the quarter end, Sono-Tek received three orders totaling approximately $7.19 million expected to ship during fiscal 2028. The company reiterated its expectation of flat to modest revenue growth for the full fiscal year 2027, citing the timing of several large orders, growing demand in the medical device market, and higher value production systems.
