Oct 14, 2026 earnings call — Medical and production system growth
Company reported first half revenue of $10.9 million and gross margin expanded to 55%.
Revenue $0.0B (est $0.0B) · EPS $0.02 (est $0.04)
Key quotes
"The medical market sales increased 289% to approximately 7.1 million"
"We recently announced 3 orders totaling approximately $7.2 million which covered 10 production scale systems and represent the largest aggregate co. Customer order in Sono-Tek's history"
"we are really starting to put a much greater emphasis on expanding our systems integration capabilities, which is what you were just talking about there"
Analyst Q&A 7
Integrated orders and engineering team
Q (Bill Nicklin · Bill Will Insights): Analyst asked whether high-ASP orders mostly come from integrated production-line projects and whether those create a repeat business flywheel. He asked how that affects investment plans and outlook.
A: Management said they are investing more in systems integration via a forward deployed engineering (FDE) team that works closely with customers to integrate ultrasonic technology into larger production platforms. They explained this drives significantly higher average selling prices and faster returns than long-term R&D. They plan to grow the FDE team from 4 people and continue focusing on integration while still investing in core ultrasonic technology.
"And what this team does and it does it with excellence it is really to work very closely with customers to take our existing ultrasonic technology and integrate it into much larger, more sophisticated production platforms." — R. Stephen Harshbarger (CEO)
Medical market and balloon opportunity
Q (Ted Jackson · Northland): Analyst asked about growth opportunities in medical balloons beyond stents, whether Sono-Tek can expand customers there, and other attractive medical/implant applications.
A: Management said the medical market is maturing and Sono-Tek is now a leader in drug eluting balloon coating with higher-ASP machines. They said many medical customers also make other implantable devices, creating more opportunities as customers bring next-gen devices into Sono-Tek's lab for testing and scale-up.
"Sono-Tek is no longer now being considered say, a stent coating company." — R. Stephen Harshbarger (CEO)
Facility expansion costs
Q (Sam · Oak Ridge Financial): Analyst asked the expected capital expenditure to build mezzanine capacity and retrofit another building to expand manufacturing.
A: Management said initial CapEx for the mezzanine phase is estimated around 700 thousand and they hope New York State may contribute about 150 thousand to $200 thousand. The next retrofit building phase is estimated around 600 thousand and the first phase is mandatory and will proceed.
"Yeah. The, initial CapEx we had estimated at around 700 thousand of which we are optimistically thinking that we are probably going to get New York State to be able to participate maybe with, oh, 150 thousand to $200 thousand as part of that. that is just for that initial mezzanine phase, Sam." — R. Stephen Harshbarger (CEO)
Service and spare parts upside
Q (Greg Weaver · Invicta Capital): Analyst asked if services, spares and repairs will grow as large production systems come off warranty, especially for medical systems.
A: Management expects recurring revenue from calibration, service contracts and spare parts to grow as high-volume production machines cannot be down and face stricter regulation. They said larger fleets and out-of-warranty systems should produce meaningful service and consumables revenue over time.
"So the larger the fleet we have out there in the field, the larger potential revenue stream we should see from services coming from that as well." — R. Stephen Harshbarger (CEO)
Semiconductor / microelectronics opportunity
Q (Jason · Bumbershot Holdings): Analyst asked whether Sono-Tek is targeting semiconductor coatings (photoresist and other thin-film steps), which wafer sizes, and timing to move from lab to fab.
A: Management said the semiconductor opportunity is broader than just photoresist and includes other thin-film processes; they are attacking 200-millimeter and planning moves toward 300-millimeter. They cautioned adoption can take a few years to scale to large fab orders but initial machine placements could happen sooner.
"I do not think we will have to go to the extent of, say, doing pilot line because we have had, I think, enough credibility now." — R. Stephen Harshbarger (CEO)
Call technical issue (no answer)
Q (Karen · Encore Holdings Group): Analyst said they were not on mute and confirmed they could be heard.
A: Management did not provide a substantive answer in this exchange; it was a brief check-in about audio connectivity.
FDE team structure and account load
Q (Karen · Encore Holdings Group): Analyst asked whether forward-deployed engineers (FDEs) are assigned by industry, how many accounts each covers, and asked about reporting and information flow to sales.
A: Management clarified the group has 3 forward-deployed engineers plus 1 project manager; FDEs typically handle 2 to 3 major accounts and also feed proposals monthly. They said FDEs report to the application engineering manager, who coordinates with sales and hands mature opportunities to the FDE team for scale-up into production.
"So the forward-deployed engineers, they report to our application engineering manager who actually manages 2 teams." — R. Stephen Harshbarger (CEO)