Ibis Technology Corporation Reports Profitable Second Quarter, Improved First
Half Results
Company Anticipates Increased Commercial Adoption of SIMOX-SOI by the Industry in 1999
DANVERS, Mass.--(BUSINESS WIRE)--Aug. 5, 1998-- Ibis Technology Corporation (NASDAQ:IBIS - news), the leading manufacturer
of Ibis 1000 high current oxygen implanters and supplier of SIMOX-SOI (Separation by IMplanted OXygen / Silicon-On-Insulator) wafers to
the semiconductor industry, today announced its financial results for the second quarter and six months ended June 30, 1998.
Total revenues for the second quarter ended June 30, 1998 were $5,304,000, substantially ahead of the $1,412,000 reported in the
comparable 1997 quarter. For the first half of 1998, total revenues more than doubled to $7,001,000 from $3,050,000 reported for the first six
months of 1997.
Net income for the 1998 second quarter was $86,000, or $0.01 per share, compared to a net loss of $907,000, or $0.17 per share, in the
similar period a year ago. For the six months ended June 30, 1998, the net loss sharply narrowed to $823,000, or $0.12 per share, compared
to a net loss of $1,344,000, or $0.26 per share, a year ago.
Martin J. Reid, President and Chief Executive Officer of Ibis Technology Corporation, stated: ''Our substantial progress in the 1998 second
quarter Ibis' first profitable quarter as a public company - reflects the growing acceptance of SIMOX-SOI technology by the semiconductor
industry. As a result of our sustained and expanded marketing efforts both domestically and internationally, we are increasing the number of
strategically placed Ibis 1000 oxygen implanters with the sale of two additional implanters to IBM and one implanter to Mitsubishi Materials
Silicon Corporation, as previously announced. We view these sales as both a sign of growing acceptance of SIMOX-SOI technology and as a
catalyst to increase the sales of our SIMOX-SOI wafers. We will continue to pursue additional implanter sales in appropriate situations.
''We believe that a significant indication that SIMOX-SOI is moving towards mainstream applications was the recent public announcement by
IBM that they are coupling SIMOX-SOI and copper interconnects into their manufacturing process in order to produce semiconductor
integrated circuits that can achieve higher speeds or significantly reduced power consumption. IBM has said it will produce chips using the
SIMOX-SOI process beginning in 1999.
''We were also encouraged by the high visibility of SIMOX-SOI at the recent Semicon West trade show, which included a well-attended
Symposium on Silicon-On-Insulator (SOI) Manufacturing Technology. This year's symposium focused on practical issues related to large scale
manufacturing of SOI wafers and state-of-the-art integrated circuits built on SOI wafers. Presenting organizations included Ibis Technology,
Lucent, Motorola, AMD, and MIT Lincoln Laboratory.
''We feel that the emphasis on high performance processors, which the industry has seen lately, and the advancing portable electronics market
are presenting opportunities tailored to the use of SIMOX-SOI technology. SIMOX-SOI combined with other complementary technologies,
such as copper wiring and shrinking device sizes, are enabling silicon CMOS devices to reach new levels of performance previously limited to
more expensive technologies. We anticipate that sampling and evaluation efforts by a variety of major industry players will intensify over the next
twelve to eighteen months. The typical adoption cycle of a new technology, as well as the continuing recovery of the semiconductor industry may
affect the rate of adoption and continue to result in fluctuations in our quarterly wafer revenues and profits. However, we remain very excited
about the prospects for Ibis Technology and believe that 1999 will see increased commercial adoption and production of devices built on
SIMOX-SOI in a variety of application settings.''
''Safe Harbor'' Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release which are
not historical fact are forward-looking statements based upon management's current expectations that are subject to risks and uncertainties that
could cause actual results to differ materially from those set forth in or implied by forward-looking statements, including, but not limited to,
product demand and market acceptance risks, general economic conditions, the impact of competitive products, technologies and pricing,
equipment capacity and supply constraints or difficulties, the cyclical nature of the semiconductor industry, and other risks described in the
Company's Securities and Exchange Commission filings.
Ibis Technology Corporation is an advanced materials company which manufactures Ibis 1000 high current oxygen implanters and supplies
SIMOX-SOI wafers to the semiconductor industry. SIMOX-SOI wafers are silicon-on-insulator wafers which enable the production of
integrated circuits with significant advantages over circuits constructed on bulk silicon or epitaxial wafers. The Company produces SIMOX-SOI
wafers on advanced proprietary Ibis 1000 oxygen implantation equipment, utilizing proprietary processing technologies which the Company
believes will enable it to produce SIMOX-SOI wafers for demanding high volume commercial applications. NOTE: Information about Ibis
Technology Corporation and SIMOX-SOI is available on Ibis's World Wide Web site on the Internet located at: ibis.com
IBIS TECHNOLOGY CORPORATION
Summary of Results
2nd Quarter Ended June 30, 6 Months Ended June 30,
1998 1997 1998 1997
Product sales $1,011,000 $512,000 $ 2,018,000 $ 1,626,000
Contract and
other revenue 293,000 900,000 783,000 1,424,000
Equipment revenue 4,000,000 -- 4,200,000 --
Total revenue 5,304,000 1,412,000 7,001,000 3,050,000
Cost of sales, excluding
depreciation 3,800,000 1,055,000 5,182,000 1,934,000
Depreciation 420,000 450,000 842,000 894,000
Gross profit
(loss) 1,084,000 (93,000) 977,000 222,000
Operating
expenses 1,152,000 840,000 2,093,000 1,635,000
Loss from
operations (68,000) (933,000) (1,116,000) (1,413,000)
Other income 154,000 26,000 293,000 69,000
Net income (loss) $ 86,000 $ (907,000) $ (823,000) $(1,344,000)
Net income
(loss) per share
Basic $0.01 $(0.17) $(0.12) $(0.26)
Diluted $0.01 $(0.17) $(0.12) $(0.26)
Weighted average number of shares
used in per share calculation
Basic 6,738,536 5,221,257 6,704,814 5,207,301
Diluted 7,071,017 5,221,257 6,704,814 5,207,301
IBIS TECHNOLOGY CORPORATION
Condensed Balance Sheets
June 30, 1998 December 31, 1997
Assets
Current Assets
Cash and equivalents $13,764,000 $13,310,000
Accounts receivable 2,035,000 1,065,000
Unbilled revenue 1,948,000 230,000
Inventories 4,966,000 487,000
Other current assets 154,000 125,000
22,867,000 15,217,000
Property and equipment 5,466,000 9,445,000
Other assets 168,000 257,000
$28,501,000 $24,918,000
Liabilities and Stockholder's Equity
Current Liabilities
Capital lease obligation,
current $ 510,000 $ 474,000
Accounts payable and
other current liabilities 5,772,000 1,885,000
6,282,000 2,359,000
Capital lease obligation,
long-term 235,000 499,000
Other liabilities 1,275,000 1,303,000
Stockholder's equity 20,709,000 20,757,000
$28,501,000 $24,918,000 |
