Exhibit 99.1
Ibis Technology Announces Fourth Quarter and Fiscal Year 2003 Results;
Annual revenues up 31 percent to record $18.4 million
DANVERS, Mass.--(BUSINESS WIRE)--Feb. 25, 2004--Ibis Technology
Corporation (Nasdaq NM: IBIS), a leading provider of SIMOX-SOI
implantation equipment and SIMOX-SOI wafers to the worldwide
semiconductor industry, today announced its financial results for the
fourth quarter and fiscal year ended December 31, 2003.
Total revenues for the quarter were $1.3 million, compared to $4.0
million in the preceding quarter, and compared to total revenues of
$2.8 million in the fourth quarter of 2002. Net loss for the 2003
fourth quarter was $15.2 million, or $1.46 per share, which includes
an impairment charge of $11.1 million related to the company's 200 mm
and smaller SIMOX wafer production line. Net loss excluding the
impairment charge was $4.1 million, or $0.39 per share. This loss
compares to a net loss of $3.2 million, or $0.33 per share, in the
preceding quarter, and a net loss of $4.0 million, or $0.42 per share,
in the similar period a year ago. The net loss figures excluding the
effect of the impairment charge are provided to show what net loss
from operations would have been absent this charge, which the company
considers to be a non-recurring item.
Fiscal 2003 total revenues were a record $18.4 million, compared
to total revenues of $14.0 million for fiscal year 2002. The net loss
for fiscal year 2003 was $21.4 million, or $2.21 per share, including
the asset impairment charge of $11.1 million mentioned above. Net loss
excluding the impairment charge was $10.3 million, or $1.06 per share.
This loss compares to a net loss of $14.1 million, or $1.53 per share,
for fiscal 2002. Annual wafer sales for fiscal 2003 were a record $9.0
million, compared to $7.6 million in fiscal year 2002. Annual
equipment sales for fiscal year 2003 were $8.0 million, compared to
$5.0 million in fiscal year 2002.
During the fourth quarter ended December 31, 2003, a number of
unexpected events occurred which impacted the company's 200 mm and
smaller wafer size production line including the line's projected cash
flow generation and the company's projected utilization of the assets
within its revised plans. Based on these events and their impact on
current and future projected cash flows, the company's subsequent
impairment analysis resulted in an impairment charge of $11,051,324
for its 200 mm and smaller SIMOX wafer production line, which is
principally comprised of Ibis 1000 implanters and associated machinery
and equipment not expected to be utilized or sold. The remaining
carrying amount for this line is now approximately $865,000. The
company's customers are rapidly transitioning to the 300 mm wafer size
which cannot be processed on the older Ibis 1000 systems. Ibis' newer
i2000 implanters are optimized for processing 300 mm wafers, and the
company expects these implanters to become the primary SIMOX-SOI wafer
production tools as large-scale production applications for 300 mm SOI
wafers continue to develop.
"2003 was a year of continuing progress for Ibis," said Martin J.
Reid, president and chief executive officer of Ibis Technology
Corporation. "We believe that the market for SOI wafers is developing
at an increasing pace as semiconductor manufacturers continue their
drive for smaller, faster, more power efficient integrated circuits.
Ibis believes that those chipmakers who are leading the move to SOI
technology are well poised to gain a competitive advantage as their
customers, the world's leading electronics manufacturers, seek the
performance advantages offered by the most advanced chips available."
During fiscal 2003 an important Joint Development Agreement was
signed between Ibis and IBM for the development of the next-generation
modified low dose ("MLD") process for the manufacture of SIMOX-SOI
wafers. This agreement facilitated advances in SIMOX-SOI processing
and product performance that the company believes are significant,
most notably the ability to produce SIMOX-SOI wafers with thinner top
silicon and buried oxide layers at lower costs.
Ibis is also processing wafers that combine strained silicon with
SIMOX-SOI for wafer manufacturers. The company believes that the
benefits of strained silicon (an emerging wafer-materials technology
that provides improved electron mobility) can be complemented by the
benefits provided by SOI, and Ibis is assisting its customers in their
development of Strained-Silicon-on-SIMOX-SOI wafers.
Also during 2003, the company successfully completed an equity
offering of one million shares of common stock, with net proceeds to
the company of approximately $12.6 million.
Remarking about the company's fourth quarter performance and its
long-term strategy, Reid said, "As we mentioned in our fourth-quarter
update issued on December 15, 2003, our fourth quarter revenues were
adversely affected as our largest customer made year-end inventory
adjustments and prepared for the changing product mix demands of 2004.
We expect quarterly wafer sales to remain volatile as we pursue our
strategy of focusing on providing implanters to the world's silicon
wafer suppliers who will, in turn, be required to meet the demands of
the world-wide semiconductor industry for SIMOX-SOI wafers. We will
continue to supply SIMOX-SOI wafers, including for test and evaluation
purposes and low volume production needs, but we expect that our
primary emphasis will be on implanter sales and support."
Reid noted that the order the company received earlier this month
for an i2000 implanter from a leading wafer supplier, with an option
to purchase a second implanter, supports the company's strategy. This
order is especially noteworthy because earlier implanter sales
primarily supported chipmaker evaluation and pre-production
activities, while this order is from a wafer supplier, the marketplace
on which the company is now focusing.
Corporate Outlook
Commenting on the company's future outlook, Reid said, "We expect
wafer sales in the first quarter of 2004 to be in the range of $1
million to $2 million as we continue to provide SIMOX-SOI wafers to
chipmakers and wafer suppliers, including for evaluation and low
volume production needs. Based on what we know today, we have reason
to be encouraged about our wafer business in the second quarter, but
our emphasis remains focused on further development of our implanter
business."
Teleconference and Simultaneous Webcast
Ibis will host a teleconference to discuss its fourth quarter and
year-end results and outlook for the future on February 25, 2004 at
5:00 p.m. ET. The dial-in number to listen to the conference call is
913-981-5559. A live webcast of the conference call will be available
at the Ibis Technology website at www.ibis.com or at
www.streetevents.com. A replay of the call will be available on these
websites for approximately one week.
About Ibis Technology
Ibis Technology Corporation is a 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 a leading
producer of SIMOX-SOI wafers. Headquartered in Danvers, Massachusetts,
the company maintains an additional office in Aptos, California. 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 contains express or implied forward-looking
statements regarding, among other things, the company's expectation
that the i2000 implanters will become the primary SIMOX-SOI wafer
production tool, the pace of development of the SOI market, the
competitive advantages of chipmakers utilizing SOI technology,
relative customer demand for 300 mm and smaller wafers, the
significance of advances resulting from the joint IBM/Ibis development
agreement, the benefits of strained silicon, expected quarterly wafer
sales and their volatility, and the company's plan to focus on
supplying implanters to wafer manufacturers. Such statements are
neither promises nor guarantees but rather are subject to risks and
uncertainties which could cause actual results to differ materially
from those described in the forward-looking statements. Such factors
and uncertainties include, but are not limited to continued migration
to SOI technology, continued market acceptance of SIMOX, product
demand, the company's intent to pursue, and its ability to maintain,
further strategic relationships, partnerships and alliances with third
parties, the company's ability to protect its proprietary technology,
the potential trends in the semiconductor industry generally, the ease
with which the i2000 can be installed and qualified in fabrication
facilities, the likelihood that implanters, if ordered, will be
qualified and accepted by customers, the likelihood and timing of
revenue recognition on such transactions, the impact of competitive
products, technologies and pricing, the impact of rapidly changing
technology, the possibility of further asset impairment and resulting
charges, equipment capacity and supply constraints or difficulties,
the company's limited history with regard to sales of implanters,
general economic conditions, 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, 2003. All
information set forth in this press release is as of February 25,
2004, and Ibis undertakes no duty to update this information unless
required by law.
Ibis Technology Corporation
Statements of Operations
Unaudited Audited
4th Quarter Ended Year Ended
December 31, December 31
2003 2002 2003 2002
Wafer product
sales $ 1,044,000 $ 2,653,000 $ 8,996,000 $ 7,646,000
Contract and
other revenue 67,000 50,000 660,000 283,000
Equipment revenue 160,000 116,000 8,782,000 6,103,000
Total revenue 1,271,000 2,819,000 18,438,000 14,032,000
Cost of wafer
product sales 3,026,000 4,179,000 15,542,000 14,457,000
Cost of contract
and other revenue 11,000 18,000 45,000 115,000
Cost of equipment
revenue 316,000 136,000 4,331,000 3,868,000
Gross profit
(loss) (2,082,000) (1,514,000) (1,480,000) (4,408,000)
General &
administrative 673,000 530,000 2,337,000 2,174,000
Marketing & sales 278,000 354,000 1,236,000 1,510,000
Research &
development 1,173,000 1,644,000 5,381,000 6,258,000
Impairment of
long-lived assets 11,051,000 -- 11,051,000 --
Loss from
operations (15,257,000) (4,042,000) (21,485,000) (14,350,000)
Other income 30,000 33,000 35,000 254,000
Net loss $(15,227,000) $(4,009,000)$(21,450,000)$(14,096,000)
Net loss per share
Basic $ (1.46) $ (0.42)$ (2.21)$ (1.53)
Diluted $ (1.46) $ (0.42)$ (2.21)$ (1.53)
Weighted average
number of shares
used in per share
calculation
Basic 10,418,729 9,450,077 9,727,513 9,207,922
Diluted 10,418,729 9,450,077 9,727,513 9,207,922
Condensed Balance Sheets
Audited
December 31, 2003 December 31, 2002
Assets
Current assets:
Cash and cash equivalents $14,175,000 $11,746,000
Accounts receivable 124,000 1,599,000
Unbilled revenue 529,000 --
Inventories 1,758,000 1,231,000
Deferred costs -- 2,621,000
Other current assets 247,000 113,000
Current assets 16,833,000 17,310,000
Property and equipment 16,841,000 32,495,000
Other assets 1,669,000 1,894,000
Total assets $35,343,000 $51,699,000
Liabilities and Stockholders' Equity
Current liabilities:
Capital lease obligation, current $ 1,184,000 $ 1,501,000
Accounts payable and other current
liabilities 3,042,000 10,259,000
Current liabilities 4,226,000 11,760,000
Capital lease obligation, long-term -- 1,184,000
Stockholders' equity 31,117,000 38,755,000
Total liabilities and
stockholders' equity $35,343,000 $51,699,000
CONTACT: Ibis Technology Corporation
Company Contact:
Debra L. Nelson, 978-777-4247
or
For Ibis Technology
Agency Contact:
Bill Monigle, 603-424-1184