<PAGE>
EXHIBIT 99.1
CONTACT:
Debra L. Nelson
Chief Financial Officer
Ibis Technology Corporation
(978) 777-4247
FOR IMMEDIATE RELEASE
IBIS TECHNOLOGY ANNOUNCES THIRD QUARTER RESULTS
NEW RECORDS CONTINUE IN SIMOX-SOI WAFER SHIPMENTS
DANVERS, MA, October 25, 2000 -- Ibis Technology Corporation (NASDAQ: IBIS), a
leading manufacturer and supplier of SIMOX-SOI (Separation by IMplantation of
OXygen / Silicon-On-Insulator) implantation equipment and wafers to
semiconductor manufacturers, today announced its financial results for the third
quarter ended September 30, 2000.
SIMOX wafer shipments in the third quarter set a new record, surpassing the $2
million mark and growing 56% over the third quarter of 1999. Total revenues for
the third quarter ended September 30, 2000 were $2,522,000 compared to
$4,682,000 reported in the prior year quarter. As expected, total revenue
decreased from the prior year quarter as there were no implanter equipment sales
in the 2000 third quarter.
The net loss for the 2000 third quarter was $798,000 or $0.10 per share,
compared to net income of $287,000, or $0.03 per share, in the similar period a
year ago. Operating expenses for the 2000 third quarter increased to $1,957,000
from $1,056,000 for the third quarter of 1999, primarily due to increased R&D
spending on the Company's next-generation Ibis 2000 oxygen implanter.
Martin J. Reid, President and Chief Executive Officer of Ibis Technology
Corporation, stated: "Ibis continued to make solid progress in its plans to ramp
up SIMOX-SOI wafer and equipment manufacturing capacity in anticipation of
increased demand. We recently announced the completion of our new implantation
equipment manufacturing facility for production of the Ibis 1000 and development
of our Ibis 2000 oxygen implanters. The completion of that facility paved the
way for us to embark upon a fifteen thousand square foot SIMOX wafer fab
expansion. SIMOX wafer sales hit a new record and consist entirely of thin SOI
(.4 microns or less). We now have five implanters for internal wafer production
and anticipate that wafer sales will increase further in the fourth quarter.
Last week, a leading market research and consulting firm published an update on
the SOI wafer market forecast in which it stated that thin SOI (1 micron or
less) wafer demand is expected to grow at a CAGR of 63% between 1999 and 2005."
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IBIS TECHNOLOGY CORPORATION
October 25, 2000
Page Two
Mr. Reid continued: "We are also are very encouraged by the frequent press that
SOI has been given and the number of major semiconductor manufacturers in the
U.S., Europe and the Pacific Rim that have publicly committed to using SOI in
their future products. During the recent Microprocessor Forum, an EE Times
article stated that Motorola unveiled a G4 PowerPC design ported to a 0.18
micron SOI process. The article also stated that Intel's process technology
research group is taking a fresh look at SOI and could recommend an SOI-based
process for Intel products where power consumption is critical, including mobile
processors and certain communications integrated circuits. We believe that the
decision of these and other major semiconductor manufacturers to explore or use
SOI in future products will result in increased business to Ibis over the next
several years."
TELECONFERENCE AND SIMULTANEOUS WEBCAST
Ibis will host a teleconference to discuss its third quarter 2000 results and
its outlook on October 26, 2000 at 10:00 a.m. ET. Internet users will be able to
access a simultaneous, listen-only webcast of the teleconference through the
investor relations section of Ibis' website www.ibis. An archive of the webcast
will also be available at this site for one week.
ABOUT IBIS TECHNOLOGY
Ibis Technology Corporation is a premier manufacturer and supplier of enhanced
silicon-on-insulator substrates and equipment for the worldwide semiconductor
industry. SIMOX-SOI wafers are silicon-on-insulator wafers that enable the
production of integrated circuits which the Company believes offer significant
advantages over circuits constructed on conventional silicon or epitaxial
wafers. These advantages include improved microprocessor speed, reduced power
consumption, lower soft error rates and higher temperature operation. Ibis'
SIMOX-SOI implantation equipment consists of advanced proprietary high current
oxygen implanters. The company is headquartered in Danvers, Massachusetts and
maintains an office in Aptos, California.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: This release may contain forward-looking statements that are subject to
certain risks and uncertainties including statements regarding the anticipated
increase in SIMOX-SOI wafer sales, the Company's expectations regarding the
evolving SOI market, and the anticipated increase in business to Ibis. Such
statements are 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, the
impact of rapidly changing technology, equipment capacity and supply constraints
or difficulties, limitations on the ability to protect the Company's patents and
proprietary technology, the Company's limited history with regard to sales of
implanters, the cyclical nature of the semiconductor industry, and other risks
described in the Company's Securities and Exchange Commission filings.
- STATISTICAL TABLES FOLLOW -
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IBIS TECHNOLOGY CORPORATION
October 25, 2000
Page Three
IBIS TECHNOLOGY CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
3 MONTHS ENDED 9 MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Product sales $ 2,067,000 $ 1,322,000 $ 5,152,000 $ 3,970,000
Contract and other revenue 48,000 155,000 382,000 555,000
Equipment revenue 407,000 3,205,000 4,947,000 9,712,000
------------ ------------ ------------ ------------
Total revenue 2,522,000 4,682,000 10,481,000 14,237,000
------------ ------------ ------------ ------------
Cost of product sales 1,605,000 1,122,000 3,689,000 3,509,000
Cost of contract and other revenue 58,000 139,000 278,000 362,000
Cost of equipment revenue 169,000 2,385,000 3,050,000 6,937,000
------------ ------------ ------------ ------------
Gross profit 690,000 1,036,000 3,464,000 3,429,000
------------ ------------ ------------ ------------
General & Administrative 428,000 409,000 1,502,000 1,367,000
Marketing & Sales 400,000 261,000 1,256,000 714,000
Research & Development 1,129,000 386,000 3,352,000 1,164,000
------------ ------------ ------------ ------------
Income (loss) from operations (1,267,000) (20,000) (2,646,000) 184,000
Other income 469,000 307,000 1,453,000 597,000
------------ ------------ ------------ ------------
Net income (loss) $ (798,000) $ 287,000 $ (1,193,000) $ 781,000
============ ============ ============ ============
Net income (loss) per share
Basic ($0.10) $0.04 ($0.14) $0.11
Diluted ($0.10) $0.03 ($0.14) $0.10
Weighted average number of shares
used in per share calculation
Basic 8,309,867 7,643,845 8,272,000 7,162,780
Diluted 8,309,867 8,224,887 8,272,000 7,624,525
</TABLE>
CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
SEPTEMBER 30, 2000 DECEMBER 31, 1999
------------------ -----------------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $27,762,000 $36,362,000
Accounts receivable 3,704,000 3,586,000
Unbilled revenue 119,000 1,469,000
Inventories 8,973,000 6,876,000
Other current assets 376,000 333,000
----------- -----------
Total current assets 40,934,000 48,626,000
Property and equipment 14,383,000 4,976,000
Other assets 103,000 125,000
----------- -----------
Total assets $55,420,000 $53,727,000
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Capital lease obligation, current $ 11,000 $ 10,000
Accounts payable and other current liabilities 7,568,000 5,307,000
----------- -----------
Total current liabilities 7,579,000 5,317,000
Capital lease obligation, long-term 21,000 30,000
Other liabilities -- --
Stockholders' equity 47,820,000 48,380,000
----------- -----------
Total liabilities and stockholders' equity $55,420,000 $53,727,000
=========== ===========
</TABLE>
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