Sono-Tek Reports Q2 Earnings: Revenue Growth Driven by Medical Market, Backlog Rises
Sono-Tek (NASDAQ:SOTK) reported revenue of $10.9 million for the first half of fiscal 2027, a 6% increase year-over-year driven primarily by strong performance in its medical market segment and higher-value production systems sales. Medical market sales surged to $7.1 million—a 289% rise—due to customers transitioning from development to commercial manufacturing. Gross margin improved to 55%, up from 51% the previous year, while operating income rose by 41% to $1.3 million and net income increased by 22% to $1.1 million. The company ended Q2 with a cash balance of $17.7 million and no debt, alongside an order backlog of $9.5 million—a 23% sequential increase—plus new post-quarter orders totaling $7.2 million from an alternative energy customer. However, sales in the alternative energy segment dropped by 85%, attributed to shifts in government policy affecting green hydrogen spending. Management also announced plans for a manufacturing capacity expansion and reiterated guidance of flat or modest revenue growth for fiscal 2027.
Tickers: $SOTK
Topics: cash reserves gross margin medical market sales net income operating income revenue
Read the full article at Motley Fool
Part of the story Sono-Tek Misses Revenue and Earnings Estimates Despite Strong Medical Market Growth (2 articles)