Revenue mix shifted dramatically: Medical market sales surged 388% to $3.95M (70% of total) driven by specialty stent coating and Drug-Eluting Balloon (DEB) coating system shipments in the US, China, and Europe, while Alternative Energy/Clean sales collapsed 90% to $319K (6%) due to reduced electrolysis demand following government policy shifts and no solar shipments that had contributed $3.25M a year prior.
Multi-Axis Coating Systems revenue increased 206% to $2.08M (37% of total) from $677K (13%), while In-Line Coating Systems decreased 29% to $2.16M from $3.05M; combined equipment and service-related backlog rose 3% year-over-year to $7.73M, and $2.38M in customer deposits were converted to revenue during the quarter as equipment shipped (customer deposits declined from $3.07M to $2.01M).
Gross margin expanded 500 basis points to 57% (from 52%) on 10% revenue growth to $5.66M, attributed to a favorable mix of high-value medical coating systems and lower distributor discounts/commissions from a concentration of US-based shipments; management explicitly cautioned that this margin level may vary quarter to quarter with changing product mix.
International sales grew to 38% of total (from 31%), with Latin America surging 382% to $463K (including a $242K Costa Rica shipment for specialty medical device coating used in advanced cardiac procedures) and APAC up 24% to $738K on increased China DEB coating sales; the company operates testing labs at distribution partner sites in China, Taiwan, Germany, Turkey, Korea, and Japan, plus a first lab co-located with its New York manufacturing facilities.
The company ended the quarter with $16.6M in cash, cash equivalents, and marketable securities and no outstanding borrowings on its $1.5M revolving line or $750K equipment line; two customers accounted for 53% of quarterly sales (down from one customer at 57% a year prior), and Industrial sales increased 345% to $530K on rework/upgrade orders and an R&D textile coating machine for nano-coatings.
(Filed on May 28, 2026)
+9.5%
49.8%
$7.3M
(Annual context, fiscal year ended Feb 28 2026, from 10-K) Record net sales of $20.91M (+2% vs. $20.50M in fiscal 2025); gross margin expanded to 51% from 48%; operating income rose 81% to $1.82M; net income increased 42% to $1.81M. Equipment and service backlog reached a record $9.12M at year-end, up from $8.67M.
(Annual context) Product mix shifted decisively toward high-ASP production systems: In-Line (Integrated) Coating Systems surged 91% to $7.07M, driven by multiple high-ASP system shipments including several delivered to a key solar-energy customer, while Multi-Axis Systems fell 25% to $8.06M on reduced electrolysis-related demand. End-market highlights: Medical grew 54% to $5.00M (drug-eluting balloon, stent, diagnostic coatings); Alternative/Clean Energy declined 19% to $7.97M primarily from government-policy-driven reductions in electrolysis demand, partially offset by solar system shipments.
(Q4-specific) The filing attributes a $1.00M increase in accounts receivable, a $454K decrease in inventories, and a $657K increase in customer deposits to a large volume of sales and shipments concentrated in Q4 fiscal 2026 (Dec 2025–Feb 2026). The $2M Stock Repurchase Plan (approved 2024) terminated in January 2026; 44,091 shares repurchased over fiscal 2025–2026 were held as treasury stock and then canceled in February 2026.
(Annual context) Customer concentration intensified: one customer accounted for 28% of fiscal 2026 net sales versus 11% in fiscal 2025. US/Canada sales rose 12% to $13.95M (67% of total), while all international regions declined (EMEA -16%, LatAm -27%, APAC -5%), reducing non-US/Canada sales to 33% of total from 39%. COO Christopher Cichetti was appointed in March 2025; departure of a senior engineer contributed to a 6% decline in R&D spend to $2.55M (12% of sales).
(Risk/outlook, not a completed operational event) The 10-K flags the US-Iran military conflict that 'escalated in early 2026' as a source of supply-chain disruption, elevated energy costs (Brent crude exceeding $110/barrel in early April 2026), and macroeconomic uncertainty, as well as ongoing US tariff actions on electronic components and metal alloys. The One Big Beautiful Bill Act (signed July 4, 2025) permitted retroactive expensing of previously capitalized domestic R&D costs, reducing the deferred tax asset by approximately $384K to $1.14M.
(Filed on January 13, 2026)
-3.6%
50.2%
$5.4M
Combined equipment and service-related backlog reached a record $12.26 million at November 30, 2025, up 16% year-over-year and 9% sequentially. In-Line Coating Systems revenue for the quarter was $1.84 million versus $81,000 in the prior-year quarter, part of a nine-month total of $6.43 million that included shipment of eight high-ASP systems (approximately $5.9 million in aggregate) to a major solar customer.
Multi-Axis Coating Systems revenue declined 53% in the quarter to $1.67 million and 46% over the first nine months to $4.37 million, driven by reduced U.S. electrolysis-related demand following shifts in government policy incentives affecting carbon capture and fuel cell projects. Alternative-energy market sales as a whole fell 35% in the quarter to $1.91 million.
Medical market sales grew 27% in the quarter to $1.14 million and 37% over the first nine months to $2.95 million, supported by balloon catheter coating system shipments across the U.S., Europe, and China, stent coating activity, and emerging diagnostic device applications; management noted that medical order momentum and backlog continued to accelerate.
Gross profit margin improved to 50% in the quarter from 45% in the prior-year quarter, attributed to a favorable mix of mature high-ASP systems with reduced manufacturing costs, favorable warranty expenses, and stronger U.S. sales carrying less distributor discounting. One customer accounted for 29% of Q3 sales and 67% of outstanding accounts receivable at quarter-end, reflecting revised payment terms for the eight-unit solar order; the company stated it did not foresee collection issues.
(Filed on October 14, 2025)
+0.0%
50.2%
$3.8M
Combined equipment and service backlog reached $11.21M at August 31, 2025, up 50% sequentially from Q1 fiscal 2026 and within 2% of the prior-year record, driven by new medical market order momentum.
Q2 product-line dynamics were mixed: medical sales surged 150% YoY (balloon coating system shipments across U.S., Europe, and China), OEM systems rose 92% on fluxer demand and new optics-related OEM wins, while In-Line Coating Systems (solar) fell 24% due to a customer-requested shipment delay; in H1, In-Line grew 65% on six high-ASP solar system shipments totaling $4.4M to a U.S. customer, and Multi-Axis declined 41% as prior-year semiconductor orders did not repeat.
Customer concentration intensified: one customer accounted for 43% of H1 fiscal 2026 sales (vs. 21% prior year) and 59% of AR at quarter-end; the company noted a structural shift toward larger customers under standard payment terms, reducing deposits and inflating AR. The $4.4M solar customer requested a ~2-month payment timing modification tied to a production-site shift from overseas to the U.S.; management stated it does not foresee collection issues.
APAC sales jumped 153% in Q2 to $930K (from $368K) and 74% in H1, driven by medical coating device demand in China and alternative-energy orders in Japan and South Korea; total foreign (non-U.S./Canada) sales rose to 47% of quarterly revenue from 32% a year earlier.
The One Big Beautiful Bill Act, signed July 4, 2025, was recorded in the quarter's tax provision: retroactive expensing of previously capitalized R&D costs reduced the net deferred tax position by approximately $202K, and the restored 100% bonus depreciation is expected to lower current tax payable on fiscal 2026 capital expenditures.
