Exhibit 99.1
Ibis Technology Announces Second Quarter 2005 Results;
Charles M. McKenna Named Chief Operating Officer
DANVERS, Mass.--(BUSINESS WIRE)--July 20, 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 second quarter ended June 30,
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 second quarter of 2005 were $198,000,
compared to $167,000 in the preceding quarter, and compared to total
revenues of $203,000 in the second quarter of 2004.
Net loss for the 2005 second quarter was $2.6 million, or $0.25
per share, including a loss of $57,000 from discontinued operations.
Excluding the loss from discontinued operations, the second quarter
net loss was $2.6 million, or $0.24 per share. Net loss for the
preceding quarter was $2.7 million, or $0.25 per share, including a
gain from discontinued operations of $42,000. Net loss in the second
quarter of 2004 was $3.4 million, or $0.32 per share, including a loss
from discontinued operations of $1.3 million, or $0.13 per share. Net
loss in the second quarter of 2004 excluding the loss from
discontinued operations was $2.1 million, or $0.19 per share.
For the first half of 2005, total revenues were $365,000 compared
to $411,000 for the first half of last year. Net loss for the first
six months of 2005 was $5.3 million, or $0.50 per share, including a
loss from discontinued operations of $15,000. For the same period last
year net loss was $6.8 million, or $0.64 per share, including a loss
from discontinued operations of $2.7 million, or $0.25 per share.
In a separate press release issued by Ibis today, the company
announced that Charles M. McKenna has been named executive vice
president and chief operating officer, effective today. McKenna will
report directly to Martin J. Reid, Ibis' president and CEO, and will
be responsible for managing the company's worldwide engineering,
production and sales and marketing operations, plus a range of support
functions.
"We are very pleased to have Chuck McKenna join Ibis in this
important, senior management role," said Reid. "Chuck has a wide
variety of executive management skills, and the timing of his joining
the company couldn't be better. We believe that our customers are
seeing increasing interest in SIMOX-SOI wafers, and we are at a point
where potential implanter demand requires the kind of strategic
planning and management expertise Chuck has demonstrated so well in
the past. His vast network of key contacts in this industry, combined
with his skill in managing rapid, cost-effective growth will serve us
well."
Commenting on the results of the second quarter, Reid said, "In
mid-June, we announced the shipment of an Ibis i2000 oxygen implanter
to Sumitomo Mitsubishi Silicon Corporation (SUMCO). The implanter had
completed the factory acceptance process, and was scheduled for
installation at SUMCO's plant in Japan. The implanter now has been
installed and is undergoing final adjustments before initiating
on-site acceptance testing." The company continues to expect to
recognize revenue on the sale of this implanter by the end of this
year.
This is the third i2000 implanter that has been sold by Ibis, and
the second to a leading silicon wafer manufacturer. "As we have said
before," said Reid, "we believe that the silicon wafer manufacturers
are the ones who will be able to leverage the cost efficiencies of the
SIMOX process and deliver quality, economical SOI wafers to the
world's chipmakers. We continue to emphasize our strategic partnership
with the wafer suppliers, working very closely with them to improve
implanter throughput and product quality."
"It was one year ago that we announced the discontinuance of the
wafer-manufacturing portion of our business," said Reid. "This was
done so we could focus our energies and resources on our equipment
business. Since the time of that announcement, we have made great
strides in developing, expanding and reinforcing our relationships
with the world's silicon wafer suppliers. The strength of these
partnerships, combined with the technological advancements that have
been made through joint development activities with our wafer supplier
customers, has demonstrated that we are on the right path."
Corporate Outlook
Commenting on the company's future outlook, Reid said, "Based on
meeting certain customer engineering requirements, we expect final
customer acceptance of the SUMCO implanter by year end. In addition,
we expect to receive another implanter order by the end of this year,
based on achieving planned improvements in implanter performance. We
also look forward to positive prospects for orders in 2006, once our
technology improvement goals have been met. However, 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 second quarter of 2005 with approximately
$8.0 million in cash and believes it will have sufficient cash on
hand, including cash expected to be received upon final customer
acceptance of the SUMCO implanter shipped in June 2005, to support
operations at current levels through at least the first quarter of
2006. 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 is expected 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 second quarter
results and outlook for the future on July 20, 2005 at 5:00 p.m. ET.
The dial-in number to listen to the conference call is 719-457-2638. 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 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 July 20, 2005,
and Ibis undertakes no duty to update this information unless required
by law.
Ibis Technology Corporation
Condensed Statement of Operations
Unaudited Unaudited
Quarter Ended 6 months Ended June 30,
June 30, 2004 2005
2004 2005
Contract and other
revenue $83,000 $96,000 $173,000 $164,000
Equipment revenue 120,000 102,000 238,000 201,000
------------ ------------ ------------ ------------
Total revenue 203,000 198,000 411,000 365,000
------------ ------------ ------------ ------------
Cost of contract
and other revenue 5,000 0 12,000 0
Cost of equipment
revenue 372,000 222,000 699,000 522,000
------------ ------------ ------------ ------------
Gross profit
(loss) (174,000) (24,000) (300,000) (157,000)
------------ ------------ ------------ ------------
General and
administrative 573,000 650,000 1,204,000 1,212,000
Marketing and
sales 425,000 402,000 766,000 792,000
Research and
development 887,000 1,567,000 1,872,000 3,250,000
------------ ------------ ------------ ------------
Income (loss)
from
operations (2,059,000) (2,643,000) (4,142,000) (5,411,000)
Other income
(expense) (2,000) 55,000 7,000 94,000
------------ ------------ ------------ ------------
Income (loss) from
continuing
operations (2,061,000) (2,588,000) (4,135,000) (5,317,000)
Gain (loss) from
discontinued
operations (1,297,000) (57,000) (2,704,000) (15,000)
------------ ------------ ------------ ------------
Net income
(loss) ($3,358,000) ($2,645,000) ($6,839,000) ($5,332,000)
------------ ------------ ------------ ------------
Income (loss) from continuing operations per share:
Basic ($0.19) ($0.24) ($0.39) ($0.50)
Diluted ($0.19) ($0.24) ($0.39) ($0.50)
Weighted average number of shares used in income (loss) from
continuing operations per share calculation:
Basic 10,657,780 10,726,305 10,654,548 10,722,968
Diluted 10,657,780 10,726,305 10,654,548 10,722,968
Net income (loss) per share:
Basic ($0.32) ($0.25) ($0.64) ($0.50)
Diluted ($0.32) ($0.25) ($0.64) ($0.50)
Weighted average number of shares used in net income
(loss) per share calculation:
Basic 10,657,780 10,726,305 10,654,548 10,722,968
Diluted 10,657,780 10,726,305 10,654,548 10,722,968
Ibis Technology Corp
Condensed Balance Sheets
Unaudited Unaudited
December 31, June 30,
2004 2005
Assets
Current assets:
Cash and cash equivalents $7,726,000 $8,039,000
Accounts receivable 35,000 66,000
Unbilled revenue 0 0
Inventories 5,625,000 5,791,000
Other current assets 761,000 781,000
Assets held for sale 131,000 0
------------ ------------
Current assets 14,278,000 14,677,000
Property and equipment 6,325,000 5,642,000
Other assets 1,680,000 1,462,000
------------ ------------
Total assets $22,283,000 $21,781,000
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Capital lease obligation, current $0 $0
Accounts payable 393,000 370,000
Accrued Liabilities 1,418,000 1,489,000
Deferred revenue 52,000 4,813,000
------------ ------------
Current liabilities 1,863,000 6,672,000
------------ ------------
Stockholders' equity 20,420,000 15,109,000
------------ ------------
Total liabilities and stockholders'
equity $22,283,000 $21,781,000
============ ============
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