Exhibit 99.1
Ibis Technology Announces Fourth Quarter and Fiscal Year 2006 Results
Annual earnings of $0.4 million on revenues of $14.0 million
Ibis Technology signs definitive agreements for $5.0 million financing
DANVERS, Mass.--(BUSINESS WIRE)--Feb. 22, 2007--Ibis Technology
Corporation (Nasdaq GM: 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, 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 Company press
releases, two Ibis i2000 implanters purchased by SUMCO achieved final
customer acceptance during the year; accordingly, revenue in the
amount of $6 million was recognized in the first quarter and $7
million was recognized in the third quarter of 2006.
Total revenues for the fourth quarter of 2006 were $0.5 million.
This compares to total revenues of $7.2 million in the preceding
quarter, which included approximately $7.0 million of equipment
revenue related to the sale of an i2000 implanter mentioned above.
This compares to total revenues of $0.1 million in the fourth quarter
of 2005.
Net loss for the 2006 fourth quarter was $1.0 million, or a loss
of $0.09 per share, compared to a net income for the preceding quarter
of $2.2 million, or $0.20 per diluted share. Net loss in the fourth
quarter of 2005 was $2.0 million, or a loss of $0.19 per basic share.
Net loss for the fourth quarter of 2006 reflects stock based
compensation charges of $107,000, or $0.01 per share, associated with
the implementation of Statement of Financial Accounting Standards No.
123(R).
Fiscal year 2006 total revenues were $14.0 million, compared to
$0.6 million for fiscal year 2005. Net income for fiscal year 2006 was
$0.4 million, or $0.04 per share, compared to a loss of $9.2 million,
or a loss of $0.86 per share, for fiscal year 2005. Net income for
fiscal year 2006 reflects stock based compensation charges of
$395,000, or $0.04 per share, associated with the implementation of
Statement of Financial Accounting Standards No. 123(R).
Commenting on the results--which are in accord with the Company's
updated guidance published on January 17, 2007--Charles M. McKenna,
Ph.D., president and CEO of Ibis Technology Corporation, said, "We are
pleased to have achieved a profitable year. Our financial performance,
primarily driven by the sale of just two i2000 systems, illustrates
the leverage attainable in our equipment-based business model."
As stated in the company's January 17th press release, the Company
has demonstrated that the i2000 implanter is capable of increased SOI
uniformity, reduced particulate contamination and reduced handling
time, resulting in increased throughput. In addition, Ibis' customer,
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 SUMCO is, "working
as a team with us 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 also
will become customers of ours as the SOI market takes off."
"Additionally, as we reported this past Tuesday February 20th, we
have completed the first close of a two stage financing. We will ask
our shareholders to approve the second portion at our Annual Meeting
currently scheduled for early May. We believe it was prudent to
provide additional cash to the business at this time rather than to
rely solely on future orders to support our needs for working capital
and other cash requirements."
Corporate Outlook
"Our long term view remains positive," said McKenna. "Our strategy
focuses on providing our i2000 oxygen implanters to the world's
largest silicon wafer manufacturers, and we anticipate renewed order
activity late in the second half of this year. We believe SIMOX-SOI
has significant inherent cost advantages associated with its
processing, and the end market is beginning to move into applications
that should be capable of supporting significantly increased SOI
substrate volumes."
Notice
The securities sold in the recent financing have not been
registered under the Securities Act of 1933, as amended, or any state
securities laws, and were sold in a private placement pursuant to
Regulation D of the Securities Act. The securities may not be offered
or sold in the United States absent registration or pursuant to an
exemption from the registration requirements of the Securities Act and
applicable state securities laws. Ibis has agreed to file a
registration statement covering the resale of the shares of common
stock acquired by the investors and shares of common stock issuable
upon exercise of the warrants acquired by the investors. This press
release shall not constitute an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of these securities in any
state in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of
any such state.
Teleconference and Simultaneous Webcast
Ibis will host a teleconference to discuss its fourth quarter and
fiscal year 2006 results and outlook for the future on February 22,
2007 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 and is headquartered in Danvers,
Massachusetts. Ibis Technology is traded on the Nasdaq Global 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
February 22, 2007, 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,
2005 2006 2005 2006
License and other
revenue $40,000 $94,000 $324,000 $560,000
Equipment revenue 34,000 366,000 278,000 13,427,000
------------------------ -----------------------
Total revenue 74,000 460,000 602,000 13,987,000
------------------------ -----------------------
Cost of contract and
other revenue 0 0 0 0
Cost of equipment
revenue 89,000 210,000 750,000 5,893,000
------------------------ -----------------------
Gross profit
(loss) (15,000) 250,000 (148,000) 8,094,000
------------------------ -----------------------
General and
administrative 479,000 526,000 2,217,000 2,401,000
Marketing and sales 255,000 260,000 1,319,000 1,096,000
Research and
development 1,371,000 1,367,000 5,993,000 5,396,000
------------------------ -----------------------
Loss from
operations (2,120,000) (1,903,000) (9,677,000) (799,000)
Other income
(expense) 62,000 872,000 218,000 1,205,000
Income tax expense 0 0 1,000 1,000
------------------------ -----------------------
Income (loss) from
continuing
operations (2,058,000) (1,031,000) (9,460,000) 405,000
Gain from
discontinued
operations 65,000 0 215,000 0
------------------------ -----------------------
Net income (loss) ($1,993,000)($1,031,000) ($9,245,000) $405,000
------------------------ -----------------------
Income (loss) from
continuing
operations per
share:
Basic ($0.19) ($0.09) ($0.88) $0.04
Diluted ($0.19) ($0.09) ($0.88) $0.04
Weighted average
number of shares
used in income
(loss) from
continuing
operations per share
calculation:
Basic 10,765,982 10,887,867 10,737,924 10,853,304
Diluted 10,765,982 10,887,867 10,737,924 10,979,783
Net income (loss) per
share:
Basic ($0.19) ($0.09) ($0.86) $0.04
Diluted ($0.19) ($0.09) ($0.86) $0.04
Weighted average
number of shares
used in net income
(loss) per share
calculation:
Basic 10,765,982 10,887,867 10,737,924 10,853,304
Diluted 10,765,982 10,887,867 10,737,924 10,979,783
Condensed Balance Sheets
Unaudited Unaudited
December 31, December 31,
2005 2006
Assets
Current assets:
Cash and cash equivalents $6,857,000 $4,813,000
Accounts receivable 91,000 349,000
Inventories 6,276,000 3,575,000
Other current assets 616,000 291,000
Current assets 13,840,000 9,028,000
Property and equipment 5,097,000 3,984,000
Other assets 1,055,000 777,000
------------ ------------
Total assets $19,992,000 $13,789,000
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 231,000 410,000
Accrued Liabilities 1,201,000 973,000
Deferred revenue 7,263,000 150,000
------------ ------------
Current liabilities 8,695,000 1,533,000
------------ ------------
Total liabilities 8,695,000 1,533,000
------------ ------------
Stockholders' equity 11,297,000 12,256,000
------------ ------------
Total liabilities and stockholders'
equity $19,992,000 $13,789,000
============ ============
CONTACT: Ibis Technology Corporation
William J. Schmidt, 978-777-4247
Chief Financial Officer