Exhibit 99.1
Ibis Technology Announces First Quarter 2005 Results
DANVERS, Mass.--(BUSINESS WIRE)--April 27, 2005--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 first quarter ended March 31, 2005.
Due to the fact that the company discontinued its wafer manufacturing
business, as reported in July 2004, the recording of wafer sales in this quarter
and wafer revenue in previous quarters are now being reported net of related
costs as gain or loss from discontinued operations in the company's statements
of operations. Financial information for this quarter and previously reported
quarterly and year to date information has been so adjusted for comparative
purposes.
Total revenues for the first quarter of 2005 were $167,000, compared to
$274,000 in the preceding quarter, and compared to total revenues of $208,000 in
the first quarter of 2004.
Net loss for the 2005 first quarter was $2.7 million, or $0.25 per share,
including a gain of $42,000 from discontinued operations. Net loss for the
preceding quarter was $2.4 million, or $0.22 per share, including a gain from
discontinued operations of $202,000, or $0.02 per share. Net loss for the
preceding quarter excluding the gain from discontinued operations was $2.6
million, or $0.24 per share. Net loss in the first quarter of 2004 was $3.5
million, or $0.33 per share, including a loss from discontinued operations of
$1.4 million, or $0.13 per share. Net loss in the first quarter of 2004
excluding the loss from discontinued operations was $2.1 million, or $0.20 per
share.
Ibis Technology announced in a press release issued last week that Sumitomo
Mitsubishi Silicon Corporation (SUMCO) had completed the factory acceptance
process for the Ibis i2000 implanter ordered by SUMCO in January of 2005. This
is the third i2000 implanter Ibis has sold, and the second to a leading silicon
wafer manufacturer.
Commenting on the results of the first quarter, Martin J. Reid, president
and CEO of Ibis Technology Corporation, said, "We are continuing discussions
with our customers to initiate new business and to better anticipate future
demand. Both of our engineering groups are supporting this effort. Process
engineering is focused on improvements to the SIMOX process, and equipment
engineering is working to improve the value of our tools for our customers. We
are also focused on attaining our budget projections and reducing costs where
possible.
"We are pleased that SUMCO completed the factory acceptance process for
their tool this quarter. During the last several months, we have been working
with SUMCO to develop process improvements that reduce the roughness of the SOI
surface and insulator interface, and improve the throughput of the system. In
addition, we are targeting additional improvements in both implanter throughput
and product quality over the next several quarters. These advancements should
help SUMCO achieve their goal of being able to deliver higher quality, more
economical SOI wafers to the world's chipmakers.
"We believe that it will be the silicon wafer manufacturers who leverage
the cost efficiencies offered by SIMOX technology to supply the global
semiconductor industry with quality, economical SOI wafers. We are dedicated to
working with the wafer suppliers as strategic partners in this process."
Corporate Outlook
Commenting on the company's future outlook, Reid said, "We expect to ship
the SUMCO system in the second quarter of this year. Final customer acceptance,
which is based on meeting customer engineering requirements, is anticipated by
year end. Based on currently available information and based on achieving
planned improvements in implanter performance, we hope to receive another
implanter order toward the end of 2005. In addition, we look forward to positive
prospects for orders in 2006, once our technology improvement goals have been
met. The SOI market is still in its early stages and the pace of SOI adoption is
difficult to predict; therefore, forecasting implanter sales is extraordinarily
difficult and there are no guarantees that these orders will be forthcoming."
The company ended the first quarter of 2005 with approximately $5.6 million
in cash and believes it will have sufficient cash on hand, including cash
expected to be received from the SUMCO order announced in January 2005 to
support operations at current levels through the first quarter of 2006. Shipment
of this order is expected by the end of the second quarter of 2005, with revenue
recognition and receipt of the final 20 percent of the purchase price based on
final customer acceptance at the customer's facility in Japan by the end of this
year. These expectations are based on current operating plans and the company's
general sales outlook, each of which may change rapidly. The company intends to
continue to invest in research, development and manufacturing capabilities.
Changes in technology or sales growth beyond currently established capabilities
may require further investment.
Teleconference and Simultaneous Webcast
Ibis will host a teleconference to discuss its first quarter results and
outlook for the future on April 27, 2005 at 5:00 p.m. ET. The dial-in number to
listen to the conference call is 719-457-2693. 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) the expected shipment and on-site acceptance
of the i2000 implanter ordered by SUMCO, (ii) attaining implanter improvements
to the degree and in the timeframe necessary to meet customer expectations,
(iii) the timing and likelihood of revenue recognition on that implanter, and
(iv) the timing of SUMCO's ramping to production quantities on the i2000
implanter (v) customer interest in and demand for, and market acceptance of, the
company's SIMOX-SOI technology, (vi) the company's belief that wafer
manufacturers will become the primary suppliers of SIMOX-SOI wafers to the
chipmaking industry, (vii) the company's ability to conduct its operations in a
manner consistent with its current plan and existing capital resources or
otherwise to obtain additional implanter orders or to secure financing to
continue as a going concern, (viii) the timing and likelihood of revenue
recognition on orders for the company's implanters, (ix) the timing and impact
of the company's decision to discontinue its wafer manufacturing and sales
operation, (x) the company's plan to focus on supplying implanters to wafer
manufacturers, (xi) the company's expectations regarding future orders for i2000
implanters, (xii) the adequacy of the company's cash resources for continuing
and future operations, and (xiii) 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, cessation as a going concern due to the
depletion of the company's cash reserves at an unanticipated rate combined with
an inability to obtain customer orders or to secure financing, 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 without
substantial delay, modification, or cancellation, in whole or in part, 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, 2004. All information set
forth in this press release is as of April 27, 2005, and Ibis undertakes no duty
to update this information unless required by law.
-- Financial Tables Follow --
Ibis Technology Corporation
Condensed Statement of Operations
Unaudited
Quarter Ended
March 31,
2004 2005
Contract and other revenue $90,000 $68,000
Equipment revenue 118,000 99,000
----------- -----------
Total revenue 208,000 167,000
----------- -----------
Cost of contract and other revenue 7,000 0
Cost of equipment revenue 327,000 300,000
----------- -----------
Gross profit (loss) (126,000) (133,000)
----------- -----------
General and administrative 631,000 562,000
Marketing and sales 341,000 390,000
Research and development 985,000 1,683,000
----------- -----------
Income (loss) from operations (2,083,000) (2,768,000)
Other income (expense) 9,000 39,000
----------- -----------
Income (loss) from continuing operations (2,074,000) (2,729,000)
Gain (loss) from discontinued operations (1,407,000) 42,000
----------- -----------
Net income (loss) ($3,481,000) ($2,687,000)
----------- -----------
Income (loss) from continuing
operations per share:
Basic ($0.19) ($0.25)
Diluted ($0.19) ($0.25)
Weighted average number of shares used in
income (loss) from continuing operations
per share calculation:
Basic 10,651,316 10,719,595
Diluted 10,651,316 10,719,595
Net income (loss) per share:
Basic ($0.33) ($0.25)
Diluted ($0.33) ($0.25)
Weighted average number of shares used
in net income (loss) per share calculation:
Basic 10,651,316 10,719,595
Diluted 10,651,316 10,719,595
Condensed Balance Sheets
Unaudited Unaudited
December 31, March 31,
2004 2005
Assets
Current assets:
Cash and cash equivalents $7,726,000 $5,588,000
Accounts receivable 35,000 131,000
Unbilled revenue 0 0
Inventories 5,625,000 5,672,000
Other current assets 761,000 688,000
Assets held for sale 131,000 131,000
----------- -----------
Current assets 14,278,000 12,210,000
Property and equipment 6,325,000 5,970,000
Other assets 1,680,000 1,571,000
----------- -----------
Total assets $22,283,000 $19,751,000
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Capital lease obligation, current $0 $0
Accounts payable $393,000 449,000
Accrued Liabilities 1,418,000 1,517,000
Deferred revenue 52,000 52,000
----------- -----------
Current liabilities 1,863,000 2,018,000
----------- -----------
Stockholders' equity 20,420,000 17,733,000
----------- -----------
Total liabilities and stockholders' equity $22,283,000 $19,751,000
=========== ===========
CONTACT: Company Contact:
Ibis Technology Corporation
William J. Schmidt, 978-777-4247
Chief Financial Officer
or
IR Agency Contact:
Bill Monigle Associates
Bill Monigle, 603-424-1184
President