Sono-Tek Corp - system expected to ship during fiscal year 2028

Sono-Tek Corporation (Nasdaq: SOTK) has announced plans for a new 300-millimeter wafer coating machine tailored for the semiconductor fabrication market, with revenue contributions expected to begin in fiscal year 2028. This development marks a strategic expansion into the semiconductor industry, leveraging the company’s expertise in ultrasonic coating technologies. The machine is scheduled for introduction in late calendar 2026, according to forward-looking commentary from management during the Q4 2026 earnings call.

The company has been transitioning toward higher-value, production-scale systems, which has improved revenue quality and operating leverage. This shift has also led to longer lead times and less predictable shipment schedules, contributing to potential quarterly revenue volatility. Despite these challenges, Sono-Tek’s operating income grew 81% year-over-year in Q4 2026, demonstrating strong profitability even with modest top-line growth.

Management is also pursuing a phased manufacturing expansion to increase annual revenue capacity to approximately $35 million, with long-term potential reaching $45 million. The company’s strong balance sheet, no debt, with $14.8 million in cash and marketable securities, supports these growth initiatives.