Exhibit 99.1
Ibis Technology Announces Second Quarter 2003 Results
DANVERS, Mass.--(BUSINESS WIRE)--July 23, 2003--
Total revenue of $11.7 million, includes i2000 system sale; net
income reaches $1.2 million, or $0.13 per share
Ibis Technology Corporation (Nasdaq NM: IBIS), the leading
provider of SIMOX-SOI implantation equipment and SIMOX-SOI wafers to
the worldwide semiconductor industry, today announced record financial
results for the second quarter ended June 30, 2003.
Total revenue for the quarter was $11.7 million, up 730 percent
compared to total revenue of $1.4 million in the preceding quarter and
up 530 percent as compared to $1.9 million reported in the second
quarter of 2002. Net income for the 2003 second quarter was $1.2
million, or $0.13 per share, compared to a net loss of $4.3 million,
or $0.45 per share, in the preceding quarter, and a net loss of $4.0
million, or $0.43 per share, in the similar period a year ago.
For the first half of 2003, total revenue was $13.1 million
compared to $3.5 million for the first half of last year. Net loss for
the first six months of 2003 was $3.1 million, or $0.32 per share,
compared to a net loss of $7.8 million, or $0.87 per share, for the
same period last year.
According to Chief Executive Officer Martin Reid, Ibis
Technology's record breaking quarterly total revenue and earnings were
due to both equipment revenue from the sale of an i2000 implanter and
to record wafer sales. "During the quarter, the i2000 implanter we
shipped to our largest customer late last year was accepted. As a
result, we recognized revenue of approximately $8 million in the
second quarter. This acceptance serves as a signal to prospective
implanter customers that our new implanter has been tested in a
customer-oriented production mode," added Reid.
"Quarterly wafer sales exceeded $3.5 million, setting a new
record," said Reid. "The majority of wafers shipped were 300 mm
wafers, consistent with our expectation that the semiconductor
industry is adopting SOI technology coincident with its transition to
300 mm wafer size. The fact that our SIMOX-SOI technology scales so
easily to the 300 mm wafer size, combined with the outstanding
performance of our new i2000 implanter, puts us in a strong position
to support the IC industry's accelerating adoption of SOI."
Reid also explained that the company continues to advance its
SIMOX-SOI technology. "Ongoing process development work done under the
auspices of a joint development agreement with our largest customer
has resulted in a new and improved SIMOX-SOI process. This new process
provides even higher quality wafers, while improving productivity and
lowering wafer cost. Wafers produced by this new process will begin
shipping in the third quarter."
The majority of the cash from the implanter sale was received in
the fourth quarter of last year. The company estimates that it has
adequate cash available for at least nine months of operation and
continues to carefully manage its cash position. In addition, the
company is planning to take measures necessary to insure the
availability of sufficient cash to expand and invest in the business.
Corporate Outlook
Commenting on the company's future outlook, Reid said, "We expect
wafer sales in the third quarter to increase somewhat as our major
customer continues to ramp their production of SOI-based chips.
However, the market for SOI wafers is still in a relatively early
stage of development and since a majority of our revenue is from one
customer, significant variations, quarter to quarter, remain likely.
We continue to expect wafer sales for 2003 to be higher than those of
2002. We also continue to anticipate booking orders for one-to-three
implanters during this fiscal year."
Teleconference and Simultaneous Webcast
Ibis will host a teleconference to discuss its second quarter
results on July 23, 2003 at 5:00 p.m. ET. The dial in number to listen
to the conference call is 719-457-2630. A live webcast of the
conference call will be available at the Ibis Technology web site at
www.ibis.com or at www.streetevents.com. A replay of the call will be
available on these web sites for approximately one week.
About Ibis Technology
Ibis Technology Corporation is the leading provider of oxygen
implanters for the production of SIMOX-SOI
(Separation-by-Implantation-of-Oxygen Silicon-On-Insulator) wafers for
the worldwide semiconductor industry. The company is also the world's
leading producer of SIMOX-SOI wafers. Headquartered in Danvers,
Massachusetts, the company maintains an office in Aptos, California,
as well. Ibis Technology is traded on the Nasdaq National Market under
the symbol IBIS. Information about Ibis Technology Corporation and
SIMOX-SOI is available on Ibis' web site at www.ibis.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995
This release may contain forward-looking statements that are
subject to certain risks and uncertainties including statements
regarding the Company's current expectations that the new advanced
SIMOX process meets the needs of the most advanced ICs, wafer sales
for 2003 will be higher than those of 2002, that the Company will book
orders for one-to-three implanters during this fiscal year, the
Company's estimate that it has adequate cash available for at least
nine months of operation and that sufficient cash will be available to
support company operations and growth. Such statements are based upon
management's current expectations and are subject to risks and
uncertainties that could cause actual results to differ materially
from those set forth in or implied by forward-looking statements,
including, but not limited to, product demand and market acceptance
risks, general economic conditions, the impact of competitive
products, technologies and pricing, the impact of rapidly changing
technology, equipment capacity and supply constraints or difficulties,
limitations on the ability to protect the Company's patents and
proprietary technology, the Company's limited history with regard to
sales of implanters, the cyclical nature of the semiconductor
industry, and other risks and risk factors described in the Company's
Securities and Exchange Commission filings from time to time,
including but not limited to, the Company's Annual Report on Form 10-K
for the year ended December 31, 2002. All information set forth in
this press release is as of July 23, 2003, and Ibis undertakes no duty
to update this information unless required by law.
Ibis Technology Corporation
Condensed Statements of Operations
Quarter Ended June 30, 6 Months Ended June 30,
2003 2002 2003 2002
Product sales $ 3,532,000 $ 1,575,000 $ 4,208,000 $ 2,981,000
Contract and
other revenue 28,000 100,000 526,000 172,000
Equipment revenue 8,162,000 183,000 8,396,000 330,000
Total revenue 11,722,000 1,858,000 13,130,000 3,483,000
Cost of product
sales 4,632,000 3,314,000 7,506,000 6,282,000
Cost of contract
and other revenue 10,000 5,000 28,000 87,000
Cost of equipment
revenue 3,685,000 95,000 3,805,000 159,000
Gross profit 3,395,000 (1,556,000) 1,791,000 (3,045,000)
General &
administrative 568,000 612,000 1,187,000 1,142,000
Marketing & sales 307,000 401,000 661,000 773,000
Research &
development 1,297,000 1,555,000 3,033,000 3,010,000
Income loss from
operations 1,223,000 (4,124,000) (3,090,000) (7,970,000)
Other income 3,000 97,000 30,000 156,000
Net income (loss) $ 1,226,000 $ (4,027,000) $(3,060,000) $(7,814,000)
Net income (loss)
per share
Basic $ 0.13 $ (0.43) $ (0.32) $ (0.87)
Diluted $ 0.13 $ (0.43) $ (0.32) $ (0.87)
Weighted average
number of shares
used in per share
calculation
Basic 9,485,507 9,420,391 9,480,252 8,968,823
Diluted 9,501,079 9,420,391 9,480,252 8,968,823
Condensed Balance Sheets
June 30, 2003 December 31, 2002
Assets
Current assets:
Cash and cash equivalents $ 6,486,000 $ 11,746,000
Accounts receivable 1,177,000 1,599,000
Unbilled revenue 528,000 --
Inventories 2,231,000 1,231,000
Deferred costs -- 2,621,000
Other current assets 234,000 113,000
Current assets 10,656,000 17,310,000
Property and equipment 30,749,000 32,495,000
Other assets 1,757,000 1,894,000
Total assets $ 43,162,000 $ 51,699,000
Liabilities and Stockholders' Equity
Current liabilities:
Capital lease obligation,
current $ 1,497,000 $ 1,501,000
Accounts payable 2,119,000 897,000
Accrued liabilities 3,003,000 2,396,000
Deferred revenue 252,000 6,966,000
Current liabilities 6,871,000 11,760,000
Capital lease obligation,
long-term 436,000 1,184,000
Stockholders' equity 35,855,000 38,755,000
Total liabilities and
stockholders' equity $ 43,162,000 $ 51,699,000
CONTACT: Company Contact :
Ibis Technology Corporation
Debra L. Nelson, 978/777-4247
or
Agency Contact :
For Ibis Technology
Bill Monigle, 603/424-1184