Exhibit 99.1
Ibis Technology Announces Second Quarter 2006 Results
DANVERS, Mass.--(BUSINESS WIRE)--July 26, 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 second quarter ended June 30,
2006.
Ibis receives payments from its customers upon reaching certain
agreed upon milestones, such as initiation of an order, factory
acceptance, shipment, and final acceptance of an order. However, the
Company does not recognize revenue on the sale of an implanter until
the system has been installed at the customer's site and final
customer acceptance has been achieved. As expected, the implanter that
was shipped to SUMCO earlier this year has not yet achieved final
customer acceptance, therefore no revenue from the sale of that tool
was recognized in the quarter.
Total revenues for the second quarter of 2006 were $42,000,
compared to total revenues in the preceding quarter of $6.3 million,
which included approximately $6.0 million of equipment revenue related
to the customer acceptance and revenue recognition of an i2000
implanter during the first quarter. Total revenues in the second
quarter of 2005 were $199,000.
Net loss for the 2006 second quarter was $2.2 million, or a loss
of $0.20 per share, compared to a net income for the preceding quarter
of $1.4 million, or $0.12 per share. Net loss in the second quarter of
2005 was $2.6 million, or a loss of $0.25 per share. Net loss for the
second quarter of 2006 reflects stock based compensation charges of
$97,000, or $0.01 per share, associated with the implementation of
Statement of Financial Accounting Standards No. 123(R).
For the first half of 2006, total revenues were $6.3 million
compared to $365,000 for the first half of last year. Net loss for the
first six months of 2006 was $801,000, or $0.07 per share, compared to
a loss of $5.3 million, or $0.50 per share for the first half of 2005.
The second Ibis i2000 oxygen implanter sold to Sumitomo Mitsubishi
Silicon Corporation (SUMCO), one of the world's largest silicon wafer
manufacturers, has been installed in SUMCO's facility in Japan.
Although the system already has achieved the performance
specifications defined by the original purchase order, Ibis and SUMCO
are working together to reach a new, lower threshold for metallic
contamination. The result will be improved product quality. Once this
additional milestone is achieved and customer acceptance is received
for the implanter, we will recognize approximately $7.0 million in
revenue.
"The strategic partnership we have with SUMCO is producing
measurable results in terms of advanced SIMOX-SOI technology," said
Martin J. Reid, president and CEO of Ibis Technology Corporation.
"Product quality and implanter throughput are both being improved.
"We are also continuing to invest in our manufacturing processes
to reduce cycle time in anticipation of the need to manufacture
multiple implanters annually. The assembly process for the next
machine will be used to test and further optimize these processes."
Corporate Outlook
Commenting on the Company's future outlook, Reid said, "We
continue to 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 at that time.
"We also continue to look forward to the possibility of an
additional order for multiple tools in 2006. However, because of
customer scheduling requirements, 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 second quarter of 2006 with approximately
$7.5 million in cash, and believes that with the final payment upon
customer acceptance of the second SUMCO unit 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 second quarter 2006
results and outlook for the future on July 26, 2006 at 5:00 p.m. ET.
The dial-in number to listen to the conference call is 850-521-5128. 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 July 26, 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 6 Months Ended
June 30, June 30,
2005 2006 2005 2006
License and other
revenue $ 96,000 $ 28,000 $ 164,000 $ 283,000
Equipment revenue 103,000 14,000 201,000 6,020,000
---------------------------------------------------
Total revenue 199,000 42,000 365,000 6,303,000
---------------------------------------------------
Cost of contract
and other revenue 0 0 0 0
Cost of equipment
revenue 222,000 53,000 522,000 2,726,000
---------------------------------------------------
Gross profit
(loss) (23,000) (11,000) (157,000) 3,577,000
---------------------------------------------------
General and
administrative 650,000 675,000 1,212,000 1,314,000
Marketing and
sales 402,000 300,000 792,000 617,000
Research and
development 1,568,000 1,357,000 3,250,000 2,686,000
---------------------------------------------------
Loss from
operations (2,643,000) (2,343,000) (5,411,000) (1,040,000)
Other income
(expense) 55,000 177,000 95,000 240,000
Income tax expense 0 0 1,000 1,000
---------------------------------------------------
Loss from
continuing
operations (2,588,000) (2,166,000) (5,317,000) (801,000)
Gain (loss) from
discontinued
operations (57,000) 0 (15,000) 0
---------------------------------------------------
Net loss ($2,645,000) ($2,166,000) ($5,332,000) ($801,000)
---------------------------------------------------
Loss from
continuing
operations per
share:
Basic ($0.24) ($0.20) ($0.50) ($0.07)
Diluted ($0.24) ($0.20) ($0.50) ($0.07)
Weighted average number
of shares used in
loss from continuing
operations per share
calculation:
Basic 10,726,305 10,835,385 10,722,968 10,825,761
Diluted 10,726,305 10,835,385 10,722,968 10,825,761
Net loss per share:
Basic ($0.25) ($0.20) ($0.50) ($0.07)
Diluted ($0.25) ($0.20) ($0.50) ($0.07)
Weighted average number
of shares used in
net loss per share
calculation:
Basic 10,726,305 10,835,385 10,722,968 10,825,761
Diluted 10,726,305 10,835,385 10,722,968 10,825,761
Condensed Balance Sheets
Unaudited Unaudited
December 31, June 30,
2005 2006
Assets
Current assets:
Cash and cash equivalents $ 6,857,000 $ 7,557,000
Accounts receivable 91,000 65,000
Inventories 6,276,000 4,772,000
Other current assets 616,000 517,000
Current assets 13,840,000 12,911,000
Property and equipment 5,097,000 4,539,000
Other assets 1,055,000 935,000
----------------------------
Total assets $ 19,992,000 $ 18,385,000
============================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 231,000 485,000
Accrued Liabilities 1,201,000 1,141,000
Deferred revenue 7,263,000 5,963,000
----------------------------
Current liabilities 8,695,000 7,589,000
----------------------------
Total liabilities 8,695,000 7,589,000
----------------------------
Stockholders' equity 11,297,000 10,796,000
----------------------------
Total liabilities and stockholders'
equity $ 19,992,000 $ 18,385,000
============================
CONTACT: Company Contact:
Ibis Technology Corporation
William J. Schmidt, 978-777-4247
Chief Financial Officer
or
IR Agency Contact:
Bill Monigle Associates
Bill Monigle, 941-497-1622
President