Exhibit 99.1
Ibis Technology Announces Third Quarter 2005 Results;
SUMCO orders second Ibis i2000 implanter
DANVERS, Mass.--(BUSINESS WIRE)--Oct. 26, 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 third quarter ended September
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 third quarter of 2005 were $163,000,
compared to $198,000 in the preceding quarter, and compared to total
revenues in the third quarter of 2004 of $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.
Net loss for the 2005 third quarter was $1.9 million, or $0.18 per
share, including a gain of $165,000 from discontinued operations.
Excluding the gain from discontinued operations, the third quarter net
loss was $2.1 million, or $0.19 per share. Net loss for the preceding
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 in the third quarter of 2004 was $1.7
million, or $0.16 per share, including a loss from discontinued
operations of $2.8 million, or $0.26 per share. Net income in the
third quarter of 2004 excluding the loss from discontinued operations
was $1.1 million, or $0.10 per share.
For the first nine months of 2005, total revenues were $528,000
compared to $7.7 million for the first nine months of last year. Net
loss for the first nine months of 2005 was $7.3 million, or $0.68 per
share, including a gain from discontinued operations of $150,000. For
the same period last year net loss was $8.5 million, or $0.80 per
share, including a loss from discontinued operations of $5.5 million,
or $0.51 per share.
"As announced in a separate press release issued today, we have
received a purchase order from SUMCO for their second Ibis i2000
implanter, as well as a purchase agreement that will govern the
general contractual terms of future SUMCO orders," said Martin J.
Reid, president and CEO of Ibis Technology Corporation. "We are
pleased that SUMCO is taking the long view in terms of our
relationship and has put into place a mechanism to guide our ongoing
and strengthening association."
This equipment order is valued at $7 million, and represents the
fourth i2000 implanter sold by Ibis and the third to a leading silicon
wafer manufacturer. Ibis believes that the silicon wafer manufacturers
have the ability to leverage their wafer expertise and the cost
efficiencies of the SIMOX process to produce the most economical,
quality SOI wafers for the world's chipmakers.
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 first SUMCO implanter by the end of this
year or early next year. In addition, we have received SUMCO's order
for a second implanter for delivery as soon as possible next year. We
also look forward to positive prospects for orders in 2006, once our
technology improvement goals have been met. However, we continue to
believe the SOI market is still in its early stages and the pace of
SOI adoption is difficult to predict; therefore, forecasting implanter
sales will remain extraordinarily difficult and there are no
guarantees that these orders will be forthcoming."
The company ended the third quarter of 2005 with approximately
$6.0 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 second 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 or early next
year. With the receipt of the order just received from SUMCO, and
presuming that full payment occurs for that order during the year
2006, we believe we will have sufficient cash to support current
operating levels through at least the fourth quarter of 2006. These
expectations are based on current operating plans and the company's
general sales and order 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 third quarter
results and outlook for the future on October 26, 2005 at 5:00 p.m.
ET. The dial-in number to listen to the conference call is
913-981-5520. 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 first 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, (iv) the timing
and likelihood of revenue recognition and payment for SUMCO's second
order, (v) the timing of SUMCO's ramping to production quantities on
the first i2000 implanter (vi) customer interest in and demand for,
and market acceptance of, the company's SIMOX-SOI technology, (vii)
the Company's belief that wafer manufacturers will become the primary
suppliers of SIMOX-SOI wafers to the chipmaking industry, (viii) 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, (ix) the Company's plan to focus on supplying
implanters to wafer manufacturers, (x) the Company's expectations
regarding future orders for i2000 implanters, (xi) the adequacy of the
Company's cash resources for continuing and future operations, and
(xii) 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 an 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 October 26, 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 9 months Ended
September 30, September 30,
2004 2005 2004 2005
Contract and other
revenue $125,000 $121,000 $298,000 $285,000
Equipment revenue 7,116,000 42,000 7,354,000 243,000
------------------------------------------------
Total revenue 7,241,000 163,000 7,652,000 528,000
------------------------------------------------
Cost of contract and
other revenue 3,000 0 15,000 0
Cost of equipment
revenue 3,664,000 139,000 4,363,000 661,000
------------------------------------------------
Gross profit (loss) 3,574,000 24,000 3,274,000 (133,000)
------------------------------------------------
General and
administrative 550,000 526,000 1,753,000 1,738,000
Marketing and sales 376,000 272,000 1,142,000 1,064,000
Research and
development 1,727,000 1,372,000 3,599,000 4,622,000
------------------------------------------------
Income (loss) from
operations 921,000 (2,146,000) (3,220,000) (7,557,000)
Other income 176,000 61,000 182,000 155,000
------------------------------------------------
Income (loss) from
continuing operations 1,097,000 (2,085,000) (3,038,000) (7,402,000)
Loss from discontinued
operations (475,000) 0 (3,179,000) 0
Gain (loss) on
disposal (2,300,000) 165,000 (2,300,000) 150,000
------------------------------------------------
Income (loss) from
discontinued
operations (2,775,000) 165,000 (5,479,000) 150,000
Net loss ($1,678,000)($1,920,000)($8,517,000)($7,252,000)
------------------------------------------------
Income (loss) from continuing
operations per share:
Basic $0.10 ($0.19) ($0.29) ($0.69)
Diluted $0.10 ($0.19) ($0.29) ($0.69)
Weighted average number of
shares used in income(loss)
from continuing operations
per share calculation:
Basic 10,668,023 10,739,291 10,659,072 10,728,469
Diluted 10,708,513 10,739,291 10,659,072 10,728,469
Net loss per share:
Basic ($0.16) ($0.18) ($0.80) ($0.68)
Diluted ($0.16) ($0.18) ($0.80) ($0.68)
Weighted average number of
shares used in net loss
per share calculation:
Basic 10,668,023 10,739,291 10,659,072 10,728,469
Diluted 10,668,023 10,739,291 10,659,072 10,728,469
Ibis Technology Corporation
Condensed Balance Sheets
Unaudited Unaudited
December 31, September 30,
2004 2005
Assets
Current assets:
Cash and cash equivalents $7,726,000 $6,264,000
Accounts receivable 35,000 246,000
Inventories 5,625,000 5,957,000
Other current assets 761,000 651,000
Assets held for sale 131,000 0
---------------------------------
Current assets 14,278,000 13,118,000
Property and equipment 6,325,000 5,347,000
Other assets 1,680,000 1,273,000
---------------------------------
Total assets $22,283,000 $19,738,000
=================================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 393,000 399,000
Accrued Liabilities 1,418,000 1,329,000
Deferred revenue 52,000 4,813,000
---------------------------------
Current liabilities 1,863,000 6,541,000
---------------------------------
Stockholders' equity 20,420,000 13,197,000
---------------------------------
Total liabilities and
stockholders' equity $22,283,000 $19,738,000
=================================
CONTACT: Company Contact:
Ibis Technology Corporation
William J. Schmidt, 978-777-4247
or
IR Agency Contact:
Bill Monigle Associates
Bill Monigle, 603-424-1184