Exhibit 99.1
Ibis Technology Announces Third Quarter 2006 Results
Earnings of $2.2 million on sales of $7.2 million
Second Ibis i2000 implanter passes customer acceptance at SUMCO
DANVERS, Mass.--(BUSINESS WIRE)--Oct. 25, 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 third quarter ended September
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 announced in a Company press
release on August 29, 2006, the second Ibis i2000 implanter purchased
by SUMCO achieved final customer acceptance, and, accordingly, revenue
in the amount of $7 million was recognized in the third quarter.
Total revenues for the third quarter of 2006 were $7.2 million,
which includes approximately $7.0 million of equipment revenue related
to the sale of an i2000 implanter mentioned above. This compares to
total revenues of $42,000 in the preceding quarter and $163,000 in the
third quarter of 2005.
Net income for the 2006 third quarter was $2.2 million, or $0.21
per basic share, compared to a net loss for the preceding quarter of
$2.2 million, or a loss of $0.20 per basic share. Net loss in the
third quarter of 2005 was $1.9 million, or a loss of $0.19 per basic
share. Net income for the third quarter of 2006 reflects stock based
compensation charges of $65,000, or $0.01 per share, associated with
the implementation of Statement of Financial Accounting Standards No.
123(R).
For the first nine months of 2006, total revenues were $13.5
million compared to $528,000 for the first nine months of last year.
Net income for the first nine months of 2006 was $1.4 million, or
$0.13 per share, compared to a loss of $7.2 million, or a loss of
$0.69 per share, for the first nine months of 2005. Net income for the
first nine months of 2006 reflects stock based compensation charges of
$287,000, or $0.03 per share, associated with the implementation of
Statement of Financial Accounting Standards No. 123(R).
Commenting on the third quarter results, Martin J. Reid, president
and CEO of Ibis Technology Corporation, said, "We are very pleased
that SUMCO now has two Ibis i2000 implanters for manufacturing
quality, cost-effective SIMOX-SOI wafers. With the demand for SOI
wafers increasing, we believe SUMCO will be well positioned to take
advantage of the market opportunity."
Corporate Outlook
Commenting on the Company's future outlook, Reid said, "We look
forward to the receipt of additional implanter orders, which the
Company now believes will most likely occur in the first half of 2007.
The SOI market, we believe, is still in its early stages and the pace
of SOI adoption remains difficult to predict; therefore, forecasting
implanter sales will continue to be extraordinarily difficult and
there are no guarantees with regard to the timing or the quantity of
these potential orders.
"Our anticipated timing of additional orders is primarily based on
activities and plans of our customer, SUMCO, which is in the process
of moving many pieces of equipment, including implanters, to its
Yonezawa, Japan location, which is expected to become SUMCO's
SIMOX-SOI development and volume production center. In addition, SUMCO
has advised us that it is developing some new SIMOX wafer types in
order to target future markets and applications. These activities are
tending to delay the placement of additional implanter orders."
Echoing earlier remarks made by SUMCO's president, Yoshio
Murakami, General Manager of SOI Projects at SUMCO, said, "Several
customers of SUMCO are showing interest in SIMOX-SOI wafers and we see
SOI market growth continuing, with a significant ramp up in the demand
over the next several years. Based on this trend, we are relocating
SIMOX production facilities to our Yonezawa plant in preparation for
possible mass production of SIMOX wafers."
Ibis ended the third quarter of 2006 with approximately $5.8
million in cash. In addition, the Company now has on hand the majority
of the components required to build the next implanter. The Company
believes that it will have sufficient cash, prior to the receipt of an
additional order or orders, to support operations at current levels
through the second quarter of 2007. The Company will also continue to
explore various financing alternatives that it believes are
appropriate.
Litigation Settlement
On October 3, 2006, Ibis announced an agreement in principle to
settle outstanding securities litigation. The proposed settlement
provides for a payment to the plaintiffs of $1.9 million, which amount
will be funded entirely by the Company's insurance carrier.
Teleconference and Simultaneous Webcast
Ibis will host a teleconference to discuss its third quarter 2006
results and outlook for the future on October 25, 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 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 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, (ii) the timing of SUMCO's ramping to production quantities
on their i2000 implanters (iii) customer interest in and demand for,
and market acceptance of, the Company's SIMOX-SOI technology, (iv)
attaining implanter improvements to the degree and in the timeframe
necessary to meet customer expectations, (v) the Company's plan to
focus on supplying implanters to wafer manufacturers, (vi) the
Company's expectations regarding future orders for i2000 implanters,
(vii) the adequacy of the Company's cash resources for continuing and
future operations, and (viii) 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
October 25, 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 9 Months Ended
September 30, September 30,
2005 2006 2005 2006
License and other
revenue $121,000 $183,000 $285,000 $466,000
Equipment revenue 42,000 7,041,000 243,000 13,061,000
----------------------------------------------
Total revenue 163,000 7,224,000 528,000 13,527,000
----------------------------------------------
Cost of contract and
other revenue 0 0 0 0
Cost of equipment
revenue 140,000 2,957,000 661,000 5,683,000
----------------------------------------------
Gross profit (loss) 23,000 4,267,000 (133,000) 7,844,000
----------------------------------------------
General and
administrative 526,000 560,000 1,738,000 1,875,000
Marketing and sales 272,000 220,000 1,064,000 836,000
Research and development 1,371,000 1,343,000 4,622,000 4,029,000
----------------------------------------------
Income (loss) from
operations (2,146,000) 2,144,000 (7,557,000) 1,104,000
Other income (expense) 60,000 93,000 156,000 333,000
Income tax expense 0 0 1,000 1,000
----------------------------------------------
Income (loss) from
continuing operations (2,086,000) 2,237,000 (7,402,000) 1,436,000
Gain from discontinued
operations 165,000 0 150,000 0
----------------------------------------------
Net income (loss) ($1,921,000)$2,237,000 ($7,252,000)$1,436,000
----------------------------------------------
Income (loss) from
continuing operations
per share:
Basic ($0.19) $0.21 ($0.69) $0.13
Diluted ($0.19) $0.20 ($0.69) $0.13
Weighted average number
of shares used in
income (loss) from
continuing operations
per share calculation:
Basic 10,739,291 10,872,928 10,728,469 10,841,656
Diluted 10,739,291 10,991,264 10,728,469 10,971,358
Net income (loss) per
share:
Basic ($0.18) $0.21 ($0.68) $0.13
Diluted ($0.18) $0.20 ($0.68) $0.13
Weighted average number
of shares used in net
income (loss) per share
calculation:
Basic 10,739,291 10,872,928 10,728,469 10,841,656
Diluted 10,739,291 10,991,264 10,728,469 10,971,358
Condensed Balance Sheets
Unaudited Unaudited
December 31, September 30,
2005 2006
Assets
Current assets:
Cash and cash equivalents $6,857,000 $5,772,000
Accounts receivable 91,000 382,000
Inventories 6,276,000 3,388,000
Other current assets 616,000 384,000
Current assets 13,840,000 9,926,000
Property and equipment 5,097,000 4,259,000
Other assets 1,055,000 860,000
-----------------------------
Total assets $19,992,000 $15,045,000
=============================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 231,000 797,000
Accrued Liabilities 1,201,000 1,150,000
Deferred revenue 7,263,000 0
-----------------------------
Current liabilities 8,695,000 1,947,000
-----------------------------
Total liabilities 8,695,000 1,947,000
-----------------------------
Stockholders' equity 11,297,000 13,098,000
-----------------------------
Total liabilities and stockholders'
equity $19,992,000 $15,045,000
=============================
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