EXHIBIT 99.1 Ibis Technology Announces First Quarter 2004 Results DANVERS, Mass.--(BUSINESS WIRE)--April 21, 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 first quarter ended March 31, 2004. Total revenues for the quarter were $2.1 million, up 62 percent compared to $1.3 million in the preceding quarter, and up 46 percent compared to $1.4 million in the first quarter of 2003. Net loss for the 2004 first quarter was $3.5 million, or $0.33 per share, compared to a net loss of $15.2 million, or $1.46 per share, in the preceding quarter, which includes an impairment charge of $11.1 million related to the company's 200 mm and smaller SIMOX wafer production line. Net loss in the preceding quarter excluding the impairment charge was $4.1 million, or $0.39 per share. The net loss amount, excluding the effect of the impairment charge, is provided to show what net loss from operations would have been absent this charge, which the company considers to be a special item. The net loss in the first quarter of 2003 was $4.3 million, or $0.45 per share. "In the first quarter we received an order from a leading silicon wafer manufacturer for an i2000 implanter, with an option to purchase a second implanter, which we believe is one of the most notable events to take place in Ibis' history," said Martin J. Reid, president and chief executive officer of Ibis Technology Corporation. "The fact that the customer is a leading silicon wafer manufacturer is most noteworthy because prior to the receipt of this order, most of our implanter sales have been made to a leading semiconductor chip manufacturer primarily for research, process development and small-scale wafer production." "We have frequently stated that we believe when it comes to producing large volumes of SIMOX-SOI wafers for mass production, it will be the wafer manufacturers who become the primary suppliers of SIMOX-SOI wafers to the chipmaking industry, and we believe that this order from a leading wafer manufacturer indicates that our SIMOX-SOI technology has taken another step forward in the marketplace," said Reid. Ibis recently achieved customer acceptance of the i2000 implanter at Ibis' facility and expects to ship this system in the second quarter of 2004. Revenue recognition for this implanter order will be based on final customer acceptance at the customer's facility, the timing of which may vary depending on a number of factors. As a result, Ibis cannot provide any guarantees with respect to when it will recognize revenue on this transaction or if the option for a second implanter will be exercised. The i2000 implanter is designed to be a high-throughput, high-volume production tool for manufacturing 200- and 300-millimeter SIMOX-SOI wafers. The i2000 implanter's flexibility, automation and operator-friendly controls allow this tool to produce a wide span of SIMOX-SOI wafer products, including the company's Advantox(R) MLD and Advantox MLD-UT wafers. Corporate Outlook Commenting on the company's future outlook, Reid said, "We currently expect wafer sales in the second quarter of 2004 to be in the range of $1 million to $3 million as we continue to provide SIMOX-SOI wafers to chipmakers and wafer suppliers, including for evaluation and low volume production needs. However, our emphasis remains focused on further development of our implanter business. We also anticipate receiving orders for one or two more i2000 implanters this year and believe that the adoption rate of SOI technology will increase next year." Teleconference and Simultaneous Webcast Ibis will host a teleconference to discuss its first quarter results and outlook for the future on April 21, 2004 at 5:00 p.m. ET. The dial-in number to listen to the conference call is 719-457-2621. 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, (i) customer interest in and demand for, and market acceptance of, the Company's SIMOX-SOI technology, (ii) the company's belief that wafer manufacturers will become the primary suppliers of SIMOX-SOI wafers to the chipmaking industry, (iii) the throughput and production capacity of the i2000 implanter for manufacturing 200- and 300-mm SIMOX-SOI wafers (iv) the expected shipment of an i2000 implanter in the second quarter of 2004, (v) the timing and likelihood of revenue recognition on orders for the company's implanters, (vi) expected quarterly wafer sales and their volatility, (vii) the company's plan to focus on supplying implanters to wafer manufacturers, (viii) the company's expectations regarding future orders for i2000 implanters, and (ix) and the adoption rate of SOI technology. 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 risks and uncertainties include, but are not limited to, future continued migration to SOI technology and, market acceptance of SIMOX, the level of demand for the company's products, the company's ability to pursue, and 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 in selling implanters, general economic conditions, and other risks and uncertainties 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 April 21, 2004, and Ibis undertakes no duty to update this information unless required by law. -- Financial Tables Follow -- Ibis Technology Corporation Condensed Statements of Operations (Unaudited) First Quarter Ended March 31, 2004 2003 Product sales $ 1,849,000 $ 676,000 Contract and other revenue 90,000 498,000 Equipment revenue 118,000 234,000 Total revenue 2,057,000 1,408,000 Cost of product sales 3,256,000 2,874,000 Cost of contract and other revenue 7,000 18,000 Cost of equipment revenue 327,000 120,000 Gross profit (1,533,000) (1,604,000) General & administrative 631,000 619,000 Marketing & sales 341,000 354,000 Research & development 985,000 1,736,000 Loss from operations (3,490,000) (4,313,000) Other income 9,000 27,000 Net loss $(3,481,000) $(4,286,000) Net loss per share Basic $ (0.33) $ (0.45) Diluted $ (0.33) $ (0.45) Weighted average number of shares used in per share calculation Basic 10,651,316 9,474,940 Diluted 10,651,316 9,474,940 Condensed Balance Sheets (Unaudited) (Audited) March 31, December 31, 2004 2003 Assets Current assets: Cash and cash equivalents $14,651,000 $14,175,000 Accounts receivable 641,000 124,000 Unbilled Revenue - 529,000 Inventories 5,061,000 1,758,000 Other current assets 404,000 247,000 Current assets 20,757,000 16,833,000 Property and equipment 12,252,000 16,841,000 Other assets 1,600,000 1,669,000 Total assets $34,609,000 $35,343,000 Liabilities and Stockholders' Equity Current liabilities: Capital lease obligation, current $ 810,000 $ 1,184,000 Accounts payable and other current liabilities 3,528,000 3,042,000 Deferred revenue 2,632,000 - Current liabilities 6,970,000 4,226,000 Capital lease obligation, long-term - - Stockholders' equity 27,639,000 31,117,000 Total liabilities and stockholders' equity $34,609,000 $35,343,000 CONTACT: Ibis Technology Corporation Martin J. Reid, 978-777-4247 or IR Agency For Ibis Technology Bill Monigle, 603-424-1184