Exhibit 99.1
Ibis Technology Announces First Quarter 2006 Results;
Earnings of $1.4 million on sales of $6.3 million
DANVERS, Mass.--(BUSINESS WIRE)--May 3, 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 first quarter ended March 31,
2006.
Total revenues for the first quarter of 2006 were $6.3 million,
which includes approximately $6.0 million of equipment revenue related
to the sale of an i2000 implanter that was accepted by Ibis' customer
during the quarter. This is compared to total revenues of $74,000 in
the preceding quarter and $167,000 in the first quarter of 2005.
Net income for the 2006 first quarter was $1.4 million, or a
profit of $0.12 per share, compared to a net loss for the preceding
quarter of $2.0 million, or a loss of $0.19 per share. Net loss in the
first quarter of 2005 was $2.7 million, or a loss of $0.25 per share.
Net income for the first quarter of 2006 reflects stock based
compensation charges of $125,000, or $0.01 per share, associated with
implementation of Statement of Financial Accounting Standards No.
123R.
As announced this past March, Ibis received final customer
acceptance of the Ibis i2000 oxygen implanter that had been ordered
early in 2005 by Sumitomo Mitsubishi Silicon Corporation (SUMCO), the
world's second largest silicon wafer manufacturer. As expected,
associated with SUMCO's final acceptance of the implanter, Ibis
recognized revenue of approximately $6 million in the first quarter of
2006.
SUMCO ordered a second Ibis i2000 implanter last fall. Ibis
announced last month that this second implanter had passed the factory
acceptance tests and that the system had been shipped to SUMCO.
"We are pleased that SUMCO's first i2000 implanter has passed
final acceptance testing and their second i2000 implanter has passed
factory acceptance testing, and is currently being installed at their
new plant in Japan," said Martin J. Reid, president and CEO of Ibis
Technology Corporation. "Working together in a strategic partnership,
Ibis and SUMCO have made significant progress in improving SIMOX-SOI
technology, both in terms of implanter throughput and final product
quality. We anticipate that SUMCO soon will be using these systems for
producing quality 300-millimeter SIMOX-SOI wafers for their customers
in response to the increasing demand for cost-effective SOI wafers.
"Both of the world's top two silicon wafer suppliers have invested
in SIMOX-SOI technology with the purchase of at least one--and, in
SUMCO's case, two--Ibis i2000 implanters," said Reid. "We believe that
these actions will enable these wafer suppliers to provide the world's
chipmakers with the most cost-effective SOI wafers available.
Economics will determine the success or failure of SIMOX-SOI, and we
believe that the two wafer manufacturers who purchased our implanters
are capable of contributing greatly to the success of SIMOX-SOI."
Corporate Outlook
Commenting on the Company's future outlook, Reid said, "We expect
final customer acceptance of the second SUMCO implanter, which is
based on meeting customer engineering requirements, by the end of the
third quarter of 2006. This would allow for revenue recognition of
approximately $7 million at that time.
"We also look forward to the receipt of additional orders in 2006,
although we do not expect that any such orders would result in
additional revenue being recognized in this year. The SOI market, we
believe, 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 with
regard to the timing or the quantity of these potential orders."
The Company ended the first quarter of 2006 with approximately
$5.1 million in cash and subsequent to the end of the quarter received
an additional $1.2 million associated with the final customer
acceptance of the SUMCO implanter shipped in June 2005, and an
additional $3.5 million associated with the recent factory acceptance
and shipment of the second SUMCO i2000. The Company believes with
these payments and the final payment upon customer acceptance of the
second SUMCO unit at its plant in Japan, that it will have sufficient
cash to support operations at current levels through at least the next
12 months.
Teleconference and Simultaneous Webcast
Ibis will host a teleconference to discuss its first quarter 2006
results and outlook for the future on May 3, 2006 at 5:00 p.m. ET. The
dial-in number to listen to the conference call is 719-457-2727. 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 three weeks.
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 second 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 the second SUMCO implanter, (iv)
the timing of SUMCO's ramping to production quantities on the first
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 Company's plan to focus on supplying
implanters to wafer manufacturers, (ix) the Company's expectations
regarding future orders for i2000 implanters, (x) the adequacy of the
Company's cash resources for continuing and future operations, and
(xi) 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, 2005. All
information set forth in this press release is as of May 3, 2006, and
Ibis undertakes no duty to update this information unless required by
law.
-- Financial Tables Follow --
Ibis Technology Corporation
Condensed Statement of Operations
Unaudited Unaudited
Quarter Ended Fiscal Year Ended
March 31, March 31,
2005 2006 2005 2006
Contract and other
revenue $68,000 $255,000 $68,000 $255,000
Equipment revenue 99,000 6,006,000 99,000 6,006,000
------------ ----------- ------------ -----------
Total revenue 167,000 6,261,000 167,000 6,261,000
------------ ----------- ------------ -----------
Cost of contract and
other revenue 0 0 0 0
Cost of equipment
revenue 300,000 2,673,000 300,000 2,673,000
------------ ----------- ------------ -----------
Gross profit
(loss) (133,000) 3,588,000 (133,000) 3,588,000
------------ ----------- ------------ -----------
General and
administrative 562,000 640,000 562,000 640,000
Marketing and sales 390,000 316,000 390,000 316,000
Research and
development 1,683,000 1,329,000 1,683,000 1,329,000
------------ ----------- ------------ -----------
Income (loss) from
operations (2,768,000) 1,303,000 (2,768,000) 1,303,000
Other income
(expense) 40,000 63,000 40,000 63,000
Income tax expense 1,000 1,000 1,000 1,000
------------ ----------- ------------ -----------
Income (loss) from
continuing
operations (2,729,000) 1,365,000 (2,729,000) 1,365,000
Gain (loss) from
discontinued
operations 42,000 0 42,000 0
------------ ----------- ------------ -----------
Net income (loss) ($2,687,000) $1,365,000 ($2,687,000) $1,365,000
------------ ----------- ------------ -----------
Income (loss) from
continuing
operations
per share:
Basic ($0.25) $0.13 ($0.25) $0.13
Diluted ($0.25) $0.12 ($0.25) $0.12
Weighted average
number of shares
used in income
(loss) from
continuing
operations per
share calculation:
Basic 10,719,595 10,816,029 10,719,595 10,816,029
Diluted 10,719,595 10,961,430 10,719,595 10,961,430
Net income (loss) per
share:
Basic ($0.25) $0.13 ($0.25) $0.13
Diluted ($0.25) $0.12 ($0.25) $0.12
Weighted average
number of shares
used in net income
(loss) per share
calculation:
Basic 10,719,595 10,816,029 10,719,595 10,816,029
Diluted 10,719,595 10,961,430 10,719,595 10,961,430
Condensed Balance Sheets
Unaudited Unaudited
December 31, March 31,
2005 2006
Assets
Current assets:
Cash and cash equivalents $6,857,000 $5,061,000
Accounts receivable 91,000 4,838,000
Inventories 6,276,000 4,197,000
Other current assets 616,000 587,000
Current assets 13,840,000 14,683,000
Property and equipment 5,097,000 4,827,000
Other assets 1,055,000 1,004,000
------------- ------------
Total assets $19,992,000 $20,514,000
============= ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 231,000 526,000
Accrued Liabilities 1,201,000 1,236,000
Deferred revenue 7,263,000 5,963,000
------------- ------------
Current liabilities 8,695,000 7,725,000
------------- ------------
Other long-term liabilities 0 1,000
------------- ------------
Total liabilities 8,695,000 7,726,000
------------- ------------
Stockholders' equity 11,297,000 12,788,000
------------- ------------
Total liabilities and stockholders'
equity $19,992,000 $20,514,000
============= ============
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