Record Revenue and Consistent Quarterly Performance
Fiscal 2026 revenue of $20.9M, up 2% from $20.5M a year ago; second consecutive year above $20M and eight consecutive quarters above $5M each.
Significant Margin Expansion
Gross margin expanded to 51% (from 48% prior year) driven by favorable product mix and higher U.S. sales; Q4 gross margin reached 50%.
Operating Income and Net Income Growth
Operating income increased 81% to $1.82M (operating margin improved to 9% from 5%); net income rose 42% to $1.8M from $1.27M.
Strong Gross Profit and Quarterly Results
Full-year gross profit increased 8% to $10.6M; Q4 revenue up 10% to $5.6M, Q4 gross profit up 15% to $2.79M and Q4 net income increased 70% to $557K.
Robust Cash Position and Operating Cash Flow
Cash, cash equivalents and marketable securities totaled $14.8M (up from $11.9M); operating cash flow generated $3.2M versus $525K prior year; no outstanding debt and working capital increased to $16.2M.
Strong Performance in Medical and Electronics End Markets
Medical grew 54% year-over-year (driven by balloon catheter coating systems and advanced medical tech); electronics increased 16% (electronically active coatings for diagnostics).
Shift to Higher-Value, High-ASP Production Systems
Integrated/inline coating systems increased 91% (solar-related shipments); company reports strategic shift to larger, more complex systems (many $1M–$3M+), improving revenue quality and margin expansion.
Healthy Backlog and Order Mix
Backlog approximately $9.12M (near historically high levels) and U.S./Canada revenue grew 12% to represent ~67% of total revenue; five high-ASP system shipments totaled $3.85M contributing to mix and margins.