Comet is well-positioned for growth.

In 2024, Comet continued to face a challenging business environment, even as conditions showed a positive shift compared to the previous year. The gradual recovery from the downturn in the semiconductor cycle gained momentum, although at a slower pace than anticipated at the start of 2024. This recovery was primarily driven by rising demand in the area of artificial intelligence (AI) and related segments, such as logic chips and high-bandwidth memory (HBM). While these specialized applications currently represent only a small proportion of the total volume of chip demand, they are expected to contribute significantly to the industry’s growth.

Traditional microchip applications in consumer-focused markets like automotive, personal computers, and smartphones were not able to keep pace with this positive trend last year. These sectors dealt with continued challenges due to subdued consumer sentiment, influenced by inflation and general uncertainty stemming from geopolitical tensions. In particular, the European automotive industry struggled with declining demand, including for electric vehicles, which further impacted the overall dynamics in the industrial markets.

We have continued to invest, despite the headwinds mentioned above, in our three major strategic thrusts – accelerating growth, enhancing efficiency and strengthening culture – and are therefore well-positioned and prepared for the expected acceleration of the upturn in an increasingly complex and challenging business environment. This will enable the company to deliver sustainable and profitable long-term growth.

The economic environment of improved, but still cautious, sentiment is reflected in our financial results for fiscal year 2024. While there has been a clear improvement compared to the previous year, Comet’s full potential is far from being realized. The Plasma Control Technologies (PCT) division benefited the most from the recovery following the significant downturn in the previous year, although still at a modest level. To be prepared for the further upswing, PCT has taken appropriate measures, including the careful expansion of production staff. The X-Ray Systems (IXS) division, on the other hand, felt the impact of weakness in its traditional markets, which has not yet been fully offset by sales in new markets. Nonetheless, the strategic focus on the semiconductor and electronics industry has been pursued with unwavering commitment. The X-Ray Modules (IXM) division experienced the expected consolidation after the record-setting prior year, partly due to the same challenges faced by IXS. In this area as well, the focus on the semiconductor industry has advanced significantly, with new, innovative products added to the portfolio. The benefits of these investments will become evident in the coming years and contribute to strengthening Comet’s market position.

In 2024, Comet achieved significant milestones in strategic growth projects across all business units. Building on the successful market launch of the radio frequency (RF) generator from the Synertia® family in 2022, PCT now introduced the first platform projects for the combined Synertia® generator and matchbox, including the latest Synertia® match technology. Featuring an integrated RF power delivery platform, Comet now offers an advanced solution for real-time data analysis that enhances plasma process stability, reduces downtime, increases yield, and boosts overall productivity. IXS also made substantial progress, by launching an enhanced, fully automated version of its groundbreaking inspection system for the semiconductor industry, the CA20 – now built for inspecting components directly within fabs, following the version for labs that was launched the previous year. These machines are equipped with Comet IXM’s advanced x-ray tubes, underscoring IXM’s leading technological position and strategic focus on the high-growth semiconductor industry. To support the success of these products, Comet has strategically invested in the commercial side of the business, particularly in Asia, the gravitational center of the semiconductor industry.

To meet the long-term, dynamically growing demand for semiconductor equipment and to further diversify our global presence, we are investing in our expansion in Asia, notably by establishing Penang, Malaysia, as a dedicated regional hub. The groundbreaking for the new Comet facility there in October 2024 marked a significant milestone in this strategic project. Manufacturing in Malaysia presents numerous advantages, making it an attractive choice for Comet to expand its production capabilities. One of the key benefits is Malaysia’s strategic location at the heart of Southeast Asia, providing seamless access to major regional markets such as China and other rapidly growing Asian economies. This advantageous geographic positioning helps reduce logistics costs and shortens delivery times, enhancing Comet’s overall operational efficiency.

Innovation and technology leadership remain at the core of Comet’s strategic focus. Even under the challenging economic conditions of the past two years, we have continued to invest heavily in research and development, as well as in strategically important employee skills that are crucial to our ongoing success. This ensures that we stay ahead of industry trends and consistently deliver value to our customers. These investments were made possible by Comet’s sound financial position.

Comet’s commitment to sustainability is backed by what we do about it. We firmly believe that sustainable practices are key to our future success, and we strive to make a meaningful impact through our actions. One of our cornerstone programs is our eco-design initiative, launched in 2023 with the goal of embedding eco-efficient principles into all our product development processes. We are also making steady progress in transitioning to renewable and clean energy sources. In addition, we have committed to setting science-based targets with the Science Based Targets initiative (SBTi) by the end of 2024.

Comet’s technologies are at the heart of the ongoing trends of digitalization and electrification – two crucial transformations that will shape the global economy and society in the long term and drive further demand for semiconductors. Key applications such as artificial intelligence – specifically, the data centers where most AI computing is done – and electric vehicles increasingly require more powerful and energy-efficient semiconductor solutions. Our strategic priorities are centered on maintaining technology leadership in products for the semiconductor industry, especially through our core technologies of RF power and x-ray. To meet the ever-evolving demands of the future, we rely on close, collaborative partnerships with our customers.

Comet is ready to seize the opportunities of the coming acceleration of the upswing, and this has been made possible by the dedication of many. First and foremost, we express our heartfelt thanks to all our employees for their outstanding efforts during 2024. We also wish to extend our sincere appreciation to our customers and suppliers for their trust and solid partnership. Finally, we are deeply grateful to our shareholders, whose confidence drives Comet forward on its promising journey and many of whom have shown steadfast loyalty over the years.