Exhibit 99.1
Ibis Technology Provides Guidance for Fiscal Year 2006 Results
Company Expects Earnings of $0.4 Million on Record Equipment Sales
of $14.0 Million, Resulting in First Profitable Year Based Solely on
Equipment Sales
Reiterates Order Guidance for Fiscal 2007
Reiterates Expectation of Near Term Financing and Implements
Cost-Cutting Measures
DANVERS, Mass.--(BUSINESS WIRE)--January 17, 2007--Ibis Technology
Corporation (Nasdaq NM: IBIS), a leading provider of SIMOX-SOI implantation
equipment to the worldwide semiconductor industry, today provided financial
guidance for its fiscal year ending December 31, 2006 and reiterated its order
guidance for 2007. The Company plans on releasing full results of its fourth
quarter and fiscal year 2006 during the last week of February 2007.
Based on its current estimates, the Company expects total revenues for the
fiscal year ended December 31, 2006 to be approximately $14.0 million, compared
to total revenues of $0.6 million for fiscal year 2005. These record equipment
revenues in 2006 are based primarily on the sale of two Ibis i2000(TM) oxygen
implanters to SUMCO during the year. In addition, the 2006 revenues include
approximately $0.6 million from license and royalty revenues.
Net income for the year 2006 is expected to be approximately $0.4 million,
or $0.04 per share. This compares to a net loss of $9.2 million, or a net loss
of $0.86 per share, in the preceding year.
Commenting on these expected results, Charles M. McKenna, Ph.D., president
and chief executive officer of Ibis Technology Corporation, said, "This
represents the first year of profitability for Ibis since the Company
discontinued the sale of SOI wafers in mid-2004 in order to concentrate on its
equipment business. Clearly, the Company has demonstrated the ability of its
equipment business model to leverage its margins, leading to earnings that we
expect could ramp significantly as revenues increase."
Reiterating its previous guidance on orders of Dec. 19, 2006, the Company,
following recent discussions with its largest customer and others, believes that
implanter orders should come late in the second half of 2007. In recognition of
this recent push out of the next round of implanter orders, Ibis has responded
quickly to conserve its cash by reducing its operating expenses by approximately
40 percent. These cost cutting measures included headcount reductions, taking on
outside paid contract work, and radically reducing the consumption of materials,
process gases and utilities.
The Company is currently exploring equity offerings and other forms of
financing and anticipates that the Company may be required to raise additional
capital in the near future in order to finance future growth and our research
and development programs. There can be no assurance, however, that any
additional required longer-term financing will be available through additional
bank borrowings, debt or equity offerings or otherwise, or that if such
financing is available, that it will be available on terms acceptable to us.
Within the last nine months, Ibis has demonstrated that the i2000 implanter
is capable of increased SOI uniformity, reduced particulate contamination and
reduced handling time, resulting in increased throughput.
SUMCO now has two Ibis i2000 implanters, which are capable of producing
quality, cost-effective SOI wafers. McKenna explained that Ibis has an excellent
relationship with SUMCO, and is, "working as a team with them to advance the
quality and productivity of the i2000 implanter, and to bring SIMOX-SOI wafers
to market as the economical solution needed by the world's chip makers. In
short," said McKenna, "we are enabling an increase in wafer quality and a
reduction in the processed wafer cost. Other leading silicon wafer manufacturers
are watching the progress that has been made, and we believe they will also
become customers of ours as the SOI market takes off."
Additional highlights of Ibis' fiscal year 2006 include:
-- Appointment of Charles M. McKenna, Ph.D., as president and chief
executive officer. Former president and CEO, Martin J. Reid, continues
as executive chairman.
-- Agreement in principle to settle securities litigation.
-- Multiple U.S. and international patents issued on various new
SIMOX-related technologies, including a joint patent issued with Shin
Etsu Handotai (SEH) for High Resistivity SIMOX-SOI.
Finally, Ibis plans to increase its level of communications with the intent
of promoting the general knowledge about SOI and specifically SIMOX SOI in the
investment community. "We believe it is time for a higher degree of
transparency, clarity and accessibility," said McKenna. "We will do what it
takes to be responsive to investor inquiries and to provide the investment
community with the latest information on the growing SOI marketplace."
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 Company's expectations
regarding future orders for 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 timing of SUMCO's ramping to
production quantities on their 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 January 17, 2007, and Ibis undertakes no
duty to update this information unless required by law.
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