SONO TEK CORP SEC 10-Q Report
SONO TEK CORP, a leading provider of ultrasonic coating systems, has released its Form 10-Q report for the second quarter of fiscal 2026. The report highlights the company's robust financial performance and significant operational achievements, underscoring its strategic initiatives and market expansion efforts.
Financial Highlights
Net Sales: $5.163 million, up slightly year over year, reflecting stable demand across product lines.
Gross Profit: $2.590 million, increased by 3% due to a favorable product mix and reduced costs.
Operating Income: $421,000, increased by 47% due to higher gross profit and decreased operating expenses.
Net Income: $424,000, increased by $83,000, driven by improved gross profit and reduced operating expenses.
Net Income for the first half: $909,000, increased by $237,000, reflecting strong operational performance.
Business Highlights
Revenue Segments
- Fluxing Systems: Experienced a 39% increase in sales in the second quarter of fiscal 2026, driven by strong demand in Asia.
- In-Line Coating Systems: Saw a 24% decline in the second quarter due to a customer-requested shipment delay, but achieved a 65% growth in the first half of fiscal 2026, primarily from high ASP solar coating system shipments.
- Multi-Axis Coating Systems: Increased by 5% in the second quarter but decreased by 41% in the first half due to a lack of repeat semiconductor-related orders.
- OEM Systems: Rose by 92% in the second quarter due to strong OEM fluxer demand and new optics-related wins.
Geographical Performance
- Asia Pacific: Sales increased by 153% in the second quarter and 74% year-to-date, driven by medical coating device demand in China and alternative energy orders in Japan and South Korea.
- U.S. and Canada: Sales declined by 22% in the second quarter and 5% for the first half, reflecting weaker green energy demand.
- Latin America: Sales decreased by 45% in the second quarter and 46% in the first half, due to slow activity in PCB fluxing systems in Mexico.
Sales Units
The company shipped six high ASP solar coating systems totaling $4.4 million in the first half of fiscal 2026, contributing significantly to the growth in In-Line Coating Systems.
New Product Launches
The company is transitioning from selling ultrasonic nozzles and components to providing complete machine solutions and higher-value subsystems, which are sold at higher average selling prices.
Future Outlook
The company anticipates wide variations in order flow and shipments from quarter to quarter. It expects continued sales growth in the medical and alternative energy markets and plans to leverage its innovative technologies and global reach to develop thin-film coating technologies that enable better outcomes for customers.
SEC Filing: SONO TEK CORP [ SOTK ] - 10-Q - Oct. 14, 2025