Trading update third quarter 2022

•    Net sales of CHF 164.8 million in Q3/22, CHF 432.3 million after 9M/22
•    Book-to-bill ratio of 1.14 at the end of Q3/22
•    Guidance for FY22 confirmed

Comet achieved strong sales of CHF 164.8 million in Q3/22 driven by continued vigorous demand from the semiconductor equipment industry (15.5% sales growth compared to Q2/22). In the first nine months, the company achieved sales of CHF 432.3 million. This acceleration underlines the continued robust demand for Comet’s products and the conversion of record high backlogs. 

The development of order intake and the book-to-bill ratio remained high in Q3/22 although the sentiment in the semiconductor equipment industry has become more cautious. Short-term uncertainties stemming from geopolitical tensions, inflationary pressures and supply chain bottlenecks contributed to a more temperate order book in Q3/22. Comet’s book-to-bill of 1.14 contributes to the continued high level of backlog. 

In the third quarter, Comet focused on reliably serving its customers despite supply chain pressures. The company rebounded on sales to Chinese customers but has not yet fully recovered from the unfavorable impact of the restrictive COVID-19 measures in China. To meet the expected vibrant growth for matchboxes in the medium term, Comet will benefit from doubling its operations in Penang, Malaysia. This expansion underpins the company’s confidence in the structural growth of the semiconductor industry and puts Comet in an excellent position to meet the projected rising demand at the global level.

Outlook

The growth drivers of the semiconductor and electronics market are intact. The aerospace market remains on a robust recovery path from the pandemic while automotive lacks momentum.  

Macroeconomic factors in the short term have softened. Recent data indicate a more cautious capital spend on wafer fabrication equipment, a factor which reduces visibility to demand for Comet’s semi-related products. In this market environment, Comet is focused on its growth opportunities and remains steadfast in executing its focus strategy, meeting customer demand, and further improving its profitability. In parallel, the company continues to proactively address the ongoing supply chain challenges and geopolitical uncertainties.

Based on a strong backlog and demand for its products and solutions, Comet is confident to achieve its full-year guidance for 2022 of net sales in the range of CHF 580 million to 610 million and an EBITDA margin between 21% and 23%.

–end–

Comet Group
The Comet Group is a globally leading, innovative technology company based in Switzerland with a focus on plasma control and x-ray technology. With premium high-tech components and systems, we enable our customers to both enhance the quality of their products and make their manufacturing more efficient and eco-friendly. Our innovative solutions are in demand in the semiconductor and electronics market, the aerospace and automobile industry and in security inspection. Headquartered in Flamatt, Switzerland, the Comet Group has a presence in all world markets. We employ more than 1,500 people worldwide, including about 500 in Switzerland. Besides production facilities in China, Denmark, Germany, Malaysia, Switzerland and the USA, we maintain various other subsidiaries in Canada, China, Japan, Korea, Taiwan and the USA. Comet (COTN) is listed on the SIX Swiss Exchange.