Exhibit 99.1
Ibis Technology Announces Second Quarter 2004 Results
DANVERS, Mass.--(BUSINESS WIRE)--July 21, 2004--
Company announces continued focus on implanter equipment business;
discontinuance of the wafer-manufacturing and sales business
Ibis Technology Corporation (Nasdaq NM: IBIS), a leading provider
of SIMOX-SOI implantation equipment to the worldwide semiconductor
industry, today announced its financial results for the second quarter
ended June 30, 2004.
Total revenues for the quarter were $2.1 million, compared to $2.1
million in the preceding quarter, and compared to $11.7 million in the
second quarter of 2003, which included revenue of approximately $8
million related to the sale of an i2000 implanter that was accepted by
the customer in the second quarter of 2003.
Net loss for the 2004 second quarter was $3.4 million, or $0.32
per share, compared to a net loss of $3.5 million, or $0.33 per share,
in the preceding quarter. Net income in the second quarter of 2003 was
$1.2 million, or $0.13 per share.
For the first half of 2004, total revenues were $4.1 million
compared to $13.1 million for the first half of last year, which
included approximately $8 million in equipment revenue as mentioned
above. Net loss for the first six months of 2004 was $6.8 million, or
$0.64 per share, compared to a net loss of $3.1 million, or $0.32 per
share, for the same period last year.
"We are very pleased that during the second quarter we shipped the
i2000 implanter that had been ordered earlier in the year by a leading
wafer manufacturer. The system is now being installed at the
customer's plant," said Martin J. Reid, president and chief executive
officer of Ibis Technology Corporation. Revenue recognition for this
implanter, which is expected to amount to approximately $7 million,
will be based on final customer acceptance, the timing of which may
vary depending on a number of factors. As a result Ibis cannot provide
any guarantees with respect to when or whether it will recognize
revenue on this transaction.
The company received a second payment from a customer upon
shipment of the i2000 implanter mentioned above during the second
quarter. This amount has been recorded as deferred revenue. The
company has also started procuring selected parts for two additional
machines with the intention of manufacturing one tool in anticipation
of an order during the second half of 2004. The company has
approximately $14 million of cash on hand. With just one additional
order and the operational changes the company expects to put into
place during the third quarter, the company anticipates that based on
its most recent forecast it could sustain operations for the
foreseeable future or for about 18 months.
In a separate press release issued by Ibis today, the company
announced that, consistent with its focus on its equipment business,
it has decided to discontinue the wafer-manufacturing portion of its
business. "From our perspective, the increased interest in our SIMOX
implanters that we are seeing from leading wafer manufacturers is a
signal that it's time for us to concentrate our total efforts on our
equipment business," said Reid.
Corporate Outlook
Commenting on the company's future outlook, Reid said, "We are now
focused exclusively on our equipment business. We anticipate that we
will be phasing out production volume wafer manufacturing early in the
third quarter; as a result, we expect that future wafer revenues will
be small. Equipment revenues will depend primarily on whether and when
our customer accepts the machine that we shipped in the second
quarter."
"Although the decision to increase our focus on our equipment
business is consistent with our long-term strategy, we believe that it
will cause 'lumpy' revenues when viewed on a quarter-to-quarter
basis," said Reid. "This is likely to remain the case until implanter
sales increase substantially."
Teleconference and Simultaneous Webcast
Ibis will host a teleconference to discuss its second quarter
results and outlook for the future on July 21, 2004 at 5:00 p.m. ET.
The dial-in number to listen to the conference call is 719-457-2680. 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. 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 timing and likelihood of revenue recognition on
orders for the company's implanters, (iv) the timing and impact of the
company's decision to discontinue its wafer manufacturing and sales
operation, (v) the company's plan to focus on supplying implanters to
wafer manufacturers, (vi) the company's expectations regarding future
orders for i2000 implanters, and (vii) 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 July 21, 2004, and Ibis
undertakes no duty to update this information unless required by law.
Ibis Technology Corporation
Condensed Statements of Operations
(Unaudited)
Quarter Ended June 30, 6 Months Ended June 30,
2004 2003 2004 2003
Product sales $ 1,889,000 $ 3,532,000 $ 3,738,000 $ 4,208,000
Contract and other
revenue 83,000 28,000 173,000 526,000
Equipment revenue 120,000 8,162,000 238,000 8,396,000
Total revenue 2,092,000 11,722,000 4,149,000 13,130,000
Cost of product
sales 3,186,000 4,632,000 6,442,000 7,506,000
Cost of contract
and other revenue 5,000 10,000 12,000 28,000
Cost of equipment
revenue 372 ,000 3,685,000 699,000 3,805,000
Gross profit (1,471,000) 3,395,000 (3,004,000) 1,791,000
General &
administrative 573,000 568,000 1,204,000 1,187,000
Marketing & sales 425,000 307,000 766,000 661,000
Research &
development 887,000 1,297,000 1,872,000 3,033,000
Income (loss) from
operations (3,356,000) 1,223,000 (6,846,000) (3,090,000)
Other income (2,000) 3,000 7,000 30,000
Net income (loss) $(3,358,000) $ 1,226,000 $(6,839,000)$(3,060,000)
Net income (loss)
per share
Basic $ (0.32) $ 0.13 $ (0.64)$ (0.32)
Diluted $ (0.32) $ 0.13 $ (0.64)$ (0.32)
Weighted average
number of shares
used in per share
calculation
Basic 10,657,780 9,485,507 10,654,548 9,480,252
Diluted 10,657,780 9,501,079 10,654,548 9,480,252
Condensed Balance Sheets
(Unaudited) (Audited)
June 30, December 31,
2004 2003
Assets
Current assets:
Cash and cash equivalents $13,955,000 $14,175,000
Accounts receivable 40,000 124,000
Unbilled revenue 75,000 529,000
Inventories 6,512,000 1,758,000
Other current assets 382,000 247,000
Current assets 20,964,000 16,833,000
Property and equipment 11,340,000 16,841,000
Other assets 1,524,000 1,669,000
Total assets $33,828,000 $35,343,000
Liabilities and Stockholders' Equity
Current liabilities:
Capital lease obligation, current $ 436,000 $ 1,184,000
Accounts payable 4,063,000 3,042,000
Deferred revenue 4,942,000 --
Current liabilities 9,441,000 4,226,000
Capital lease obligation, long-term - -
Stockholders' equity 24,387,000 31,117,000
Total liabilities and stockholders' equity $33,828,000 $35,343,000
CONTACT: Ibis Technology Corporation
William J. Schmidt, 978-777-4247
or
IR Agency Contact:
Bill Monigle Associates
Bill Monigle, 603-424-1184