Calling 2009 a good year would be an overstatement. Practically all trades, almost every single company, were put to the toughest test during this past year. Obducat is no exception. Also an expanding market like nanotechnology has been significantly impeded, with delayed orders and frozen or reduced research resources as a result. Despite the strained situation, Obducat has nevertheless attained a number of intermediate goals during the year. Steps which may prove important when market activities return to normal as well as in the long term.

Over the next few years, market players not wishing to lose ground to their competitors will need to select a strategic partner for the development and production of nanotechnology applications. During 2009 Obducat fortified its position further as an attractive, long-term provider and collaboration partner. Especially the fact that Obducat is in a position to offer a complete and integrated chain of production – from defining the original pattern in digital form to cost-effective mass production, and finally, as part of the customer’s quality assurance, instruments for analysis of the final structures – makes us an option to grow with. A fact valued by industrial customers like UniLite now that the rate of production is increased in order to meet the demand for LED components.

Above average for the trade

Sales in Obducat were reduced by 28 per cent in 2009 compared with 2008, in comparison with the semiconductor industry in general which declined by 41 per cent according to the SEMI Silicon Manufacturers Group (SMG). This was certainly expected, but in order to assess the whole of 2009 a broader perspective is required. According to market figures Obducat is at least, and in many cases considerably better, on the same level as the semiconductor related market as a whole in the past year. Even if Obducat in its capacity as supplier is still impeded by the effect of the financial crisis still lingering, we are now seeing more and more signs that the market is turning. Preparing for the expected market recovery, which we consider we are all set for, has been a big challenge for Obducat this past year.

Clear goals for 2010

A review and improvement of the communication with customers, market and shareholders will be in focus during the year. Making the business distinct in everything from trademark to market presence is called for in order to be able to convey our message to a market exposed to ever increasing competition.

Another area we will be concentrating on is systematic definition of our product portfolio in order to ensure that it matches the market’s demands and utilises the synergies that exist between our differing market segments. Continuous adaptation of the organisation is also a necessity to make it possible for Obducat to be successful in a changing market.

When the market is now turning in 2010, it is with confidence that I declare that Obducat’s product portfolio is well adapted to meet our customers’ demands for pattern-generation, all the way from R&D and small-scale concept verification in flexible systems such as Eitre®3 and Eitre®6 to high volume manufacturing using our Sindre®400 system. Being able to offer absolute world class analysis tools like Apollo and high resolution EBR pattern generation in the same product portfolio is a unique strength.

New applications create new market niches

We are now seeing that the market for patterning nanometrescale surfaces is growing by established application areas entering a growth phase as a consequence of disruptive technology leaps (i.e. when another technology than the one that normally dominates an area turns out to be both cheaper and equally good/better in several areas). The same trend, with entirely new applications emerging, can also be seen in areas that have nothing to do with electronics and IT. In almost all application areas for nanotechnology, the common theme is production of nanometresized structures by defining a pattern on a surface. Obducat technology is therefore the common denominator for most nanotechnology applications.

All of this means exciting opportunities for Obducat. We follow this development, for instance by taking part in various joint research projects within the framework of EU’s nanotechnology venture. Moreover, we are also conducting, together with some of our strategic customers, several joint development projects. Obducat also has strong presence and collaboration in nanotechnology research, both national and regional, encompassing world-unique, cutting edge research in our immediate environment, which is of great value to Obducat. Thus we can also secure competence with extensive experience in Obducat’s field of activities within easy reach.

Obducat well positioned for the future

Summing up, I can say that Obducat has every chance of gaining new success in 2010 and 2011. Resources in the form of our highly motivated and competent co-workers as well as a product portfolio offering the market competitive and reliable products make us well-positioned now that the market is gathering momentum. I would like to take the opportunity to extend thanks for the warm welcome I have encountered since I took up my position in February. I look forward to leading Obducat into the expansion and profitability that the Company has every reason to expect.
 

Lars Tilly
President and CEO