Exhibit 99.1
Ibis Technology Announces Fourth Quarter and Fiscal Year 2005 Results
and Updates Status of SUMCO Orders
DANVERS, Mass.--(BUSINESS WIRE)--Feb. 22, 2006--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 fourth quarter and fiscal year
ended December 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 fourth quarter of 2005 were $74,000,
compared to $163,000 in the preceding quarter, and compared to total
revenues in the fourth quarter of 2004 of $274,000.
Net loss for the 2005 fourth quarter was $2.0 million, or $0.19
per share, including a gain of $65,000 from discontinued operations.
Net loss for the preceding 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 in the fourth
quarter of 2004 was $2.4 million, or $0.22 per share, including a gain
from discontinued operations of $202,000. Net loss in the fourth
quarter of 2004 excluding the gain from discontinued operations was
$2.6 million, or $0.24 per share.
Fiscal year 2005 total revenues were $0.6 million comprised of
license and spare parts sales, compared to $7.9 million for fiscal
year 2004. Revenue in 2004 included approximately $7.0 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
fiscal year 2005 was $9.2 million, or $0.86 per share, including a
gain from discontinued operations of $215,000. Net loss for fiscal
year 2005 excluding the gain from discontinued operations was $9.5
million, or $0.88 per share. For the same period last year net loss
was $10.9 million, or $1.02 per share, including a loss from
discontinued operations of $5.3 million. Net loss for the same period
last year excluding the loss from discontinued operations was $5.6
million, or $0.53 per share.
"In terms of market and customer development, the year 2005 was
one of continuing progress for Ibis," said Martin J. Reid, president
and CEO of Ibis Technology Corporation. "Early in 2005 we received an
order for an Ibis i2000 implanter from Sumitomo Mitsubishi Silicon
Corporation (SUMCO). SUMCO is the second silicon wafer manufacturer to
purchase an Ibis implanter, and we now have both of the world's top
two wafer suppliers as Ibis customers."
Ibis has stated that it is dedicated to working with the wafer
suppliers as strategic partners. Since early 2005, SUMCO and Ibis have
been collaborating on process improvements aimed at improving the
quality of the wafers and increasing the throughput of the implanters.
"These advancements should help SUMCO achieve their goal of being able
to deliver higher quality, more economical SOI wafers to the world's
chipmakers," said Reid.
In October of 2005, SUMCO ordered a second i2000 implanter and
completed a master purchase agreement that will govern the general
contractual terms of all future SUMCO orders. "We believe that this
order represents the SIMOX production ramp startup for addressing the
growing SOI market," added Reid.
SUMCO's first i2000 implanter is currently going through final
customer acceptance testing in Japan. Although the customer acceptance
process was delayed due to unexpected mechanical / software events,
final customer acceptance now is expected by the end of the first
quarter. SUMCO's second i2000 implanter is completely assembled and is
going through the initial power checks as part of the factory
acceptance process, which is progressing on schedule at Ibis.
Corporate Outlook
Commenting on the Company's future outlook, Reid said, "We are in
constant contact with the customer and based on meeting certain
customer engineering requirements, we now expect final customer
acceptance of the first SUMCO implanter by the end of the first
quarter of 2006. This would allow for revenue recognition of
approximately $6 million and the collection of the final $1.2 million
payment at that time.
"We believe we can achieve factory acceptance of SUMCO's second
implanter at Ibis at the beginning of the second quarter, which would
likely allow the shipment of this tool by the end of the second
quarter. Final acceptance in Japan is expected in the third or fourth
quarter of 2006. This would allow for revenue recognition of
approximately $7 million at that time.
"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 fourth quarter of 2005 with approximately
$6.9 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 next 12 months.
Based on having received the order for SUMCO's second implanter, and
presuming that full payment for that order occurs during the year
2006, the Company believes it will have sufficient cash to support
current operating levels through at least the next 18 months. 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 fourth quarter and
fiscal year 2005 results and outlook for the future on February 22,
2006 at 5:00 p.m. ET. The dial-in number to listen to the conference
call is 719-457-2679. 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 factory and
on-site acceptance of the i2000 implanters 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 the SUMCO implanters, (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
February 22, 2006, and Ibis undertakes no duty to update this
information unless required by law.
Ibis Technology Corporation
Condensed Statement of Operations
Unaudited Unaudited
Quarter Ended 12 months Ended
December 31, December 31,
2004 2005 2004 2005
Contract and other
revenue $93,000 $39,000 $391,000 $324,000
Equipment revenue 181,000 35,000 7,535,000 278,000
-------------------------------------------------
Total revenue 274,000 74,000 7,926,000 602,000
-------------------------------------------------
Cost of contract and
other revenue 0 0 15,000 0
Cost of equipment
revenue 359,000 89,000 4,722,000 750,000
-------------------------------------------------
Gross profit
(loss) (85,000) (15,000) 3,189,000 (148,000)
-------------------------------------------------
General and
administrative 468,000 479,000 2,221,000 2,217,000
Marketing and sales 378,000 255,000 1,520,000 1,319,000
Research and
development 1,731,000 1,371,000 5,330,000 5,993,000
-------------------------------------------------
Income (loss) from
operations (2,662,000) (2,120,000) (5,882,000) (9,677,000)
Other income
(expense) 59,000 62,000 241,000 217,000
-------------------------------------------------
Income (loss) from
continuing
operations (2,603,000) (2,058,000) (5,641,000) (9,460,000)
Loss from
discontinued
operations 0 0 (3,179,000) 0
Gain (loss) on
disposal 202,000 65,000 (2,099,000) 215,000
-------------------------------------------------
Income (loss) from
discontinued
operations 202,000 65,000 (5,278,000) 215,000
Net income (loss) ($2,401,000)($1,993,000)($10,919,000)($9,245,000)
-------------------------------------------------
Income (loss) from
continuing
operations per
share:
Basic ($0.24) ($0.19) ($0.53) ($0.88)
Diluted ($0.24) ($0.19) ($0.53) ($0.88)
Weighted average
number of shares
used in income
(loss) from
continuing
operations per
share
calculation:
Basic 10,685,994 10,765,982 10,665,842 10,737,924
Diluted 10,685,994 10,765,982 10,665,842 10,737,924
Net income (loss)
per share:
Basic ($0.22) ($0.19) ($1.02) ($0.86)
Diluted ($0.22) ($0.19) ($1.02) ($0.86)
Weighted average
number of shares
used in net income
(loss) per share
calculation:
Basic 10,685,994 10,765,982 10,665,842 10,737,924
Diluted 10,685,994 10,765,982 10,665,842 10,737,924
Ibis Technology Corporation
Condensed Balance Sheets
Unaudited Unaudited
December 31, December 31,
2004 2005
Assets
Current assets:
Cash and cash equivalents $7,726,000 $6,857,000
Accounts receivable 222,000 91,000
Inventories 5,625,000 6,276,000
Other current assets 574,000 616,000
Assets held for sale 131,000 0
------------------------------
Current assets 14,278,000 13,840,000
Property and equipment 6,325,000 5,097,000
Other assets 1,680,000 1,055,000
------------------------------
Total assets $22,283,000 $19,992,000
==============================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 393,000 231,000
Accrued Liabilities 1,418,000 1,201,000
Deferred revenue 52,000 7,263,000
------------------------------
Current liabilities 1,863,000 8,695,000
------------------------------
Stockholders' equity 20,420,000 11,297,000
------------------------------
Total liabilities and stockholders'
equity $22,283,000 $19,992,000
==============================
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