Ibis Technology Announces First Quarter 2006 Results; Earnings of $1.4 million on sales of $6.3 million.DANVERS Danvers, town (1990 pop. 24,174), Essex co., NE Mass.; settled in the 1630s, set off from Salem 1752, inc. as a town 1757. Danvers has light manufacturing, including electronic equipment, chemicals, machinery, and apparel. , Mass. -- Ibis ibis (ī`bĭs), common name for wading birds with long, slender, decurved bills, found in the warmer regions of both hemispheres. The body is usually about 2 ft (61 cm) long. Most ibises nest in colonies. Technology Corporation (Nasdaq NM: IBIS), a leading provider of SIMOX-SOI implantation implantation /im·plan·ta·tion/ (im?plan-ta´shun) 1. attachment of the blastocyst to the epithelial lining of the uterus, its penetration through the epithelium, and, in humans, its embedding in the stratum compactum of the 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 ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $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 Mitsubishi: see zaibatsu. Silicon Corporation (SUMCO), the world's second largest silicon wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. 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 (programming) acceptance testing - Formal testing conducted to determine whether a system satisfies its acceptance criteria and thus whether the customer should accept the system. 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 (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. 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 The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. and final product quality. We anticipate that SUMCO soon will be using these systems for producing quality 300-millimeter SIMOX-SOI wafers wafers compressed roughage in flat plates useful for feeding to animals in transit. for their customers in response to the increasing demand for cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. SOI (Silicon On Insulator) A chip architecture that increases transistor switching speed by reducing capacitance (build-up of electrical charges in the transistor's elements), and thus reducing the discharge time. The power requirement is also reduced in some designs. 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 June: see month. 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 Danvers is a town in Essex County, Massachusetts, United States. Located on the Danvers River near the northeastern coast of Massachusetts, Danvers is most widely known for its association with the 1692 Salem witch trials. , the Company maintains an additional office in Aptos, California Aptos is a census-designated place (CDP) in Santa Cruz County, California, United States. The population was 9,396 at the 2000 census. Aptos is an unincorporated area of Santa Cruz county, consisting of several small communities:
"Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 This release contains express or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding, among other things, (i) the expected on-site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. 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 cessation Vox populi The stopping of a thing. See Smoking cessation. as a going concern due to the depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able of the Company's cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. 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 See SOI. , 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 fabrication (fab´rikā´sh  n),n the construction or making of a restoration. facilities, the likelihood that implanters, if ordered, will be qualified and accepted by customers without substantial delay, modification, or cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. , 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 Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. and resulting charges, equipment capacity and supply constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 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
============= ============
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