Exhibit 99.1
Ibis Technology Announces Third Quarter 2004 Results
DANVERS, Mass.--(BUSINESS WIRE)--Oct. 20, 2004--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
third quarter ended September 30, 2004.
Wafer product sales this quarter, as well as wafer revenue reported in
previous quarters, are reported net of associated costs, as Loss from
discontinued operations on our Income Statement reflecting the Company's
decision to discontinue the wafer business in late July as previously announced.
Current quarter and all previously reported quarterly and year to date financial
information described on the Income Statement has been adjusted and reported
accordingly.
Total revenues for the quarter were $7.2 million, which includes
approximately $7 million of equipment revenue related to the sale of an i2000
implanter that was accepted by Ibis' customer in the third quarter of 2004. This
compares to total revenues of $0.2 million in the preceding quarter and $0.3
million in the third quarter of 2003.
Net loss for the 2004 third quarter was $1.6 million, or a loss of $0.15
per share, which includes a loss from discontinued operations of $2.8 million,
or $0.26 per share. The loss from discontinued operations results from the
Company's decision, announced on July 21, 2004, to discontinue the
wafer-manufacturing portion of its business and to focus on its equipment
business. Net income for the quarter excluding the loss from discontinued
operations was $1.1 million, or $0.11 per share. Net loss in the preceding
quarter was $3.4 million, or $0.32 per share, with a net loss excluding the loss
from discontinued operations of $2.1 million, or $0.19 per share. Net loss in
the third quarter of 2003 was $3.2 million, or $0.33 per share, with a net loss
excluding the loss from discontinued operations of $1.9 million, or $0.20 per
share.
For the first nine months of 2004, total revenues were $7.7 million. This
compares to $9.2 million for the first nine months of last year. Net loss for
the first nine months of 2004 was $8.5 million, or $0.80 per share, including
the $5.5 million, or $0.52 per share, loss from discontinued operations
mentioned above. This compares to a net loss for the first nine months of 2003
of $6.2 million, or $0.66 per share, including the $4.6 million, or $0.48 loss
per share from discontinued operations. Net loss for the first nine months of
2004 excluding the loss from discontinued operations was $3.0 million, or $0.28
per share. This compares to a net loss for the first 9 months of 2003 excluding
the loss for discontinued operations of $1.7 million, or $0.17 per share.
"Based on the prompt installation and final testing and acceptance of an
i2000 implanter sold to a leading silicon wafer manufacturer, we are pleased to
be recognizing equipment revenue of approximately $7 million this quarter," said
Martin J. Reid, president and CEO of Ibis Technology Corporation. "In response
to the global semiconductor industry's demand for initial production quantities
of SOI wafers, the world's leading silicon wafer manufacturers are evaluating
their SOI wafer manufacturing alternatives. The simplicity and
cost-effectiveness of the SIMOX alternative has been well received by the wafer
manufacturers, we believe, and we continue to work with them to demonstrate the
advantages of Ibis implanters."
Significant advancements in implanter performance and wafer quality are
being made as a result of Ibis' ongoing, dedicated product development program.
The Company's development team is working closely with its customers to deliver
what we believe to be an impressive series of advancements that will further
help the wafer manufacturers deliver high quality, cost effective SIMOX-SOI
wafers to their customers.
The Company ended the quarter with approximately $8 million of cash on
hand, and believes it could sustain operations at current levels for
approximately 9 to 12 months.
Corporate Outlook
"Last quarter we stated that we were anticipating the receipt of one to two
implanter orders before the end of this year," said Reid. "Based on new
information from our potential customers, we now believe that these orders are
likely to be received during 2005. Although we believe that SIMOX will continue
to gain ground with the wafer manufacturers, the overall ramp to acceptable
final production yields of 300mm SOI seems to be taking longer than anticipated.
We believe this situation is temporary and has resulted in overall
lower-than-planned, end-of-line yields for all technologies in these new 300mm
fabs. This is likely to delay the receipt of additional i2000 orders for Ibis."
"Although we do not have more specific guidance regarding the timing of
additional implanter orders at this time," said Reid, "we expect to have
additional information following the end of next quarter."
"We are continuing discussions with all of the wafer manufacturers
regarding their interest in SIMOX-SOI and the timing of potential implanter
orders with us." said Reid. "We believe that the advantages offered by SIMOX
technology are compelling and that SIMOX-SOI has a significant competitive cost
advantage at production quantities."
Teleconference and Simultaneous Webcast
Ibis will host a teleconference to discuss its third quarter results and
outlook for the future on October 20, 2004 at 5:00 p.m. ET. The dial-in number
to listen to the conference call is 719-457-2681. 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 October 20, 2004, and Ibis undertakes no
duty to update this information unless required by law.
Ibis Technology Corporation
Condensed Statements of Operations
(Unaudited)
Quarter Ended 9 Months Ended
September 30, September 30,
2004 2003 2004 2003
Contract and other
revenue $ 125,000 $ 67,000 $ 298,000 $ 593,000
Equipment revenue 7,116,000 226,000 7,354,000 8,622,000
-------------------------------------------------
TOTAL REVENUE 7,241,000 293,000 7,652,000 9,215,000
-------------------------------------------------
Cost of contract
and other revenue 3,000 6,000 15,000 34,000
Cost of equipment
revenue 3,664,000 210,000 4,363,000 4,015,000
-------------------------------------------------
Gross profit 3,574,000 77,000 3,274,000 5,166,000
-------------------------------------------------
General &
administrative 550,000 477,000 1,753,000 1,664,000
Marketing & sales 376,000 297,000 1,142,000 958,000
Research &
development 1,727,000 1,175,000 3,599,000 4,208,000
-------------------------------------------------
Income (loss) from
operations 921,000 (1,872,000) (3,220,000) (1,664,000)
Other income 206,000 (25,000) 212,000 5,000
-------------------------------------------------
Income (loss) from
continuing
operations 1,127,000 (1,897,000) (3,008,000) (1,659,000)
Loss from
discontinued
operations 2,775,000 1,266,000 5,479,000 4,564,000
-------------------------------------------------
Net income (loss) $(1,648,000) $(3,163,000) $(8,487,000) $(6,223,000)
-------------------------------------------------
Income (loss) from
continuing
operations per
share
Basic $ 0.11 $ (0.20) $ (0.28) $ (0.17)
Diluted $ 0.11 $ (0.20) $ (0.28) $ (0.17)
Weighted average
number of shares
used in income
(loss) from
continuing
operations per
share
calculation
Basic 10,668,023 9,504,210 10,659,072 9,486,532
Diluted 10,708,513 9,504,210 10,659,072 9,486,532
Net income (loss)
per share
Basic $ (0.15) $ (0.33) $ (0.80) $ (0.66)
Diluted $ (0.15) $ (0.33) $ (0.80) $ (0.66)
Weighted average
number of shares
used in net
income (loss)
per share
calculation
Basic 10,668,023 9,504,210 10,659,072 9,486,532
Diluted 10,668,023 9,504,210 10,659,072 9,486,532
Condensed Balance Sheets
(UNAUDITED) (AUDITED)
SEPTEMBER 30, 2004 DECEMBER 31, 2003
Assets
Current assets:
Cash and cash equivalents $ 8,333,000 $14,175,000
Accounts receivable 2,393,000 124,000
Unbilled revenue 75,000 529,000
Inventories 4,680,000 1,758,000
Other current assets 1,125,000 247,000
-----------------------------------
Current assets 16,606,000 16,833,000
Property and equipment 6,820,000 16,841,000
Assets held for sale 277,000 --
Other assets 1,480,000 1,669,000
-----------------------------------
Total assets $ 25,183,000 $35,343,000
-----------------------------------
Liabilities and Stockholders' Equity
Current liabilities:
Capital lease obligation, current $ 0 $ 1,184,000
Accounts payable 2,391,000 3,042,000
Deferred revenue 52,000 --
-----------------------------------
Current liabilities 2,443,000 4,226,000
-----------------------------------
Stockholders' equity 22,740,000 31,117,000
-----------------------------------
Total liabilities and
stockholders' equity $ 25,183,000 $35,343,000
-----------------------------------
CONTACT: Ibis Technology Corporation
William J. Schmidt, 978-777-4247
or
Bill Monigle Associates
Bill Monigle, 603-424-1184