SOTK

EX-99

2 ex99-1.htm

EARNINGS RELEASE

Exhibit 99.1

Sono-Tek Reports Fiscal Second Quarter and First Half

2027 Results Driven by Strong Medical Sector and Higher Value Production Systems

First Half Revenue Increased 6% to $10.9 Million; Gross Margin Expanded to 55%; Operating Income Increased 41%; Medical Market Sales Increased 289%

Reiterates Expectation of Flat to Modest Revenue Growth for FY 27 Reflecting Timing of Several Large Orders

Recent New Record Orders Significantly Increases Revenue Visibility for FY 28

MILTON, N.Y., October 14, 2026 – Sono-Tek Corporation (Nasdaq: SOTK), a leading developer and manufacturer of precision ultrasonic coating systems, today reported financial results for the second quarter and first half of fiscal year 2027, ended August 31, 2026.

Second Quarter Fiscal 2027 Highlights

·Net sales increased 1% to $5.23 million compared with $5.16 million in the second quarter of fiscal 2026.

·Gross profit increased 7% to $2.77 million, while gross margin expanded to 53%, compared with 50% in the prior-year period, primarily reflecting an unusually favorable product and geographic mix.

·Operating income was $382,000 compared with $421,000 in the prior-year period, reflecting higher operating expenses that partially offset the increase in gross profit.

·Net income was $366,000, or $0.02 per diluted share, compared with $424,000, or $0.03 per diluted share, in the second quarter of fiscal 2026.

·Medical market sales increased 209% to $3.11 million, led by shipments of balloon coating systems and specialty stent-coating systems.

First Half Fiscal 2027 Highlights

·Net sales increased 6% to $10.89 million compared with $10.30 million in the first half of fiscal 2026, consistent with the Company's first-half growth guidance and driven by strong sales to the medical sector.

·Gross profit increased 14% to $5.98 million, while gross margin expanded to 55%, compared with 51% in the prior-year period, primarily reflecting an unusually favorable product and geographic mix.

·Operating income increased 41% to $1.28 million, compared with $905,000 in the first half of fiscal 2026, reflecting increased gross profit and operating leverage.

·Net income increased 22% to $1.11 million, compared with $909,000 in the prior-year period.

·Medical market sales increased 289% to $7.05 million, driven by shipments of balloon coating systems and specialty stent-coating systems.

Balance Sheet, Backlog and Guidance for Fiscal Year 2027

·Cash, cash equivalents and marketable securities: Totaled $17.7 million at August 31, 2026, compared with $14.8 million at February 28, 2026, with no outstanding debt.

·Backlog: Combined equipment and service-related backlog was $9.51 million at August 31, 2026, an increase of approximately $1.78 million, or 23%, from $7.73 million at the end of the first quarter of fiscal 2027. The sequential increase reflects improved order momentum during the second quarter.

·Subsequent Order Activity: Subsequent to quarter end, the Company received three orders totaling approximately $7.19 million expected to ship during fiscal 2028. The order significantly increases revenue visibility for fiscal 2028 with the potential to build even further upon this backlog.

·Guidance: For the full fiscal year 2027, the Company is reiterating its prior guidance for flat to modest revenue growth reflecting the timing of several large orders, growing demand in the medical device market and higher value production systems

Steve Harshbarger, President and Chief Executive Officer of Sono-Tek, stated, “Fiscal 2027 is progressing well, with solid first-half revenue growth, meaningful gross margin expansion and strong improvement in operating profitability. These results reflect disciplined execution across our operations and continued progress with our strategy of focusing on higher-value production systems in advanced technology markets, particularly medical devices. Medical was again the primary growth driver, with first-half sales increasing 289%, led by strong demand for balloon coating and specialty stent-coating systems. We are particularly encouraged by the increasing adoption of our technology as customers move from development into commercial manufacturing.”

“Looking ahead, we remain focused on expanding our installed base of production systems, supporting customers as they scale, and investing in the engineering, application development and commercial capabilities that will drive our next phase of growth. We continue to maintain our previously communicated expectation of flat to modest revenue growth for the full fiscal year. This outlook reflects the timing of several large, higher-value production platform orders, which can result in increased quarter-to-quarter variability as these systems become a larger portion of our business. With a strong and growing backlog and cash position, we believe we are well positioned to capitalize on the opportunities ahead and continue building long

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