Comet confirms guidance despite the expected slow start to the financial year

Comet Holding AG / Key word(s): Quarterly / Interim Statement Comet confirms guidance despite the expected slow start to the financial year 19.04.2024 / 06:30 CET/CEST Trading update first quarter 2024

• Net sales of CHF 80.9 million in Q1/24 (Q1/23: CHF 107.5 million)
• Book-to-bill of 1.09 at the end of Q1/24
• Guidance for full-year 2024 confirmed

In Q1/24, Comet Group's net sales amounted to CHF 80.9 million, marking a decline of 24.8% compared to the same period last year (Q1/23: CHF 107.5 million) and 28.2% compared to the previous quarter (Q4/23: CHF 112.7 million). This drop in sales can be attributed to the still weak demand for wafer fabrication equipment, although there are signs of improvement. A book-to-bill ratio of 1.09 for the first three months (Q4/23: 0.84), better utilization of existing production capacity, declining inventories, and rising average selling prices for microchips are all positive indicators that the semiconductor equipment industry has embarked on a recovery path. As demand for semiconductor components continues to recover, the demand for wafer fabrication equipment is expected to increase in the coming quarters, which bodes well for Comet.

The two X-ray divisions X-Ray Systems (IXS) and X-Ray Modules (IXM) also experienced a decline in sales compared to the same quarter of the previous year due to restrained investment in systems and components for non-destructive testing. Both divisions felt the effects of the continued slowdown in economic momentum, which began in the final quarter of last year.

Outlook

Comet expects the recovery in the semiconductor industry to boost incoming orders for manufacturers of semiconductor production equipment in 2024. While the company expects to see a significant acceleration of demand in the second half-year, the timing and extent of the recovery remain difficult to predict. Comet also expects traditional sectors such as the automotive, aerospace and security industries to remain generally stable after a subdued start to the year. In this overall favorable market environment, the major challenges facing the global economy remain a source of uncertainty.