DDi Corp. Reports First Quarter 2001 Results

-- Quarterly Net Sales Increase 87%

-- Achieves Adjusted Quarterly EPS of $0.37

-- Delivers Strong Returns on Invested Capital of 34%



Apr 26, 2001, 01:00 ET from DDI Corp.

    ANAHEIM, Calif., April 26 /PRNewswire/ -- DDi Corp. (Nasdaq:   DDIC), a
 leading provider of time-critical, technologically advanced interconnect
 services for the electronics industry today announced financial results for
 the first quarter ended March 31, 2001, and provided revised outlook for
 fiscal 2001.
 
     First Quarter Operating Performance
     Net sales for the first quarter ended March 31, 2001 increased 87% to
 $140.7 million, from $75.3 million for the first quarter of 2000.  In terms of
 organic growth, net sales increased 19% from the same period in 2000.  Gross
 profit for first quarter 2001 was $52.6 million, generating a gross margin of
 37%, compared to a $26.3 million gross profit and a 35% gross margin for the
 first quarter of last year.
     The Company achieved a 195% increase in operating income, to $30.3 million
 in the first quarter of 2001, from $10.3 million in the first quarter of 2000.
 Operating margin was 22% compared to 14% in the first quarter of last year.
     EBITDA (earnings before income taxes, depreciation, amortization and net
 interest expense) increased 114% to $41.0 million compared with $19.2 million
 for the first quarter of 2000.  EBITDA margin was 29% for the first quarter of
 2001, up from 25% one year ago, reflective of the Company's increased average
 panel price and improved operating efficiencies.
     As a result of DDi Corp.'s debt reductions following its initial public
 offering in April 2000, follow-on offering in October 2000, and follow-on
 equity and debt offerings in February 2001, net interest expense decreased
 43% compared to the year ago period.  The Company recorded an extraordinary
 loss of $7.0 million in the first quarter ended March 31, 2001 due to the
 retirement of debt.
     Adjusted net income increased 786% for the first quarter of 2001 to
 $17.5 million compared with $2.0 million for the first quarter of 2000.  On a
 diluted per share basis, first quarter adjusted net income was $0.37 compared
 with $0.08 for the first quarter of 2000.
     On the basis of generally accepted accounting principles, DDi Corp.
 achieved income (before the extraordinary loss) of $12.7 million, or $0.27 per
 diluted share, for the first quarter of 2001, compared with a net loss of
 $2.0 million or $(0.08) per diluted share for the first quarter of 2000.
     "Our solid first quarter results are the direct result of our strong
 customer relationships and the value of our core quick-turn prototyping
 business," said Chief Executive Officer Bruce McMaster.  "Demand for these
 services was healthy, and overall, the telecommunications and networking
 end-market segment accounted for 62% of net sales for the quarter.  We secured
 85 new customers and continued to build upon our existing relationships while
 maintaining favorable pricing levels and high average layer counts."
     "Strong execution resulted in improved operating leverage through
 efficient cost control and effective acquisition integration, delivering
 significant increases in sales and cash earnings," McMaster added.  "Looking
 ahead, we remain focused on building our value platform through investments in
 technological diversity and innovation to capture a growing share of our
 customers' new product development and R&D programs."
 
     Balance Sheet Highlights
     At March 31, 2001, DDi Corp. had total assets of $646.2 million, including
 cash, cash equivalents and short-term investments totaling $129.8 million.
 With the first quarter equity and debt offerings, the Company's debt-to-equity
 ratio has improved to 1.64.  During the normal course of operations, the
 Company utilizes excess cash flow to reduce its outstanding debt.  DDi Corp.
 had long-term debt of $315.7 million and total stockholders' equity of
 $202.5 million at March 31, 2001.
     Annualized pre-tax Return on Invested Capital (ROIC) based on EBITA for
 the first quarter was 34%, up from 20% for the first quarter last year.  The
 Company manages its business according to a pre-tax ROIC target of
 20% to 25%.
 
     First Quarter Highlights
     In February, DDi Corp. completed a follow-on offering of common stock
 raising net proceeds of $67.0 million, net of underwriting expenses.
 Concurrent with the equity offering, the Company completed a new issuance of
 convertible subordinated notes, raising an additional $97.0 million in
 proceeds, net of underwriting expenses.  The proceeds were raised in order to
 further pay down existing debt.
     In March, DDi Corp.'s wholly-owned subsidiary, DDi Europe Limited,
 completed the acquisition of Thomas Walter Limited, based in Marlow, England.
 DDi Europe's integration of Thomas Walter, a well-established manufacturer of
 complex quick-turn interconnect products, brings added technological diversity
 and flexibility to the Company's European subsidiary, in addition to an
 enhanced capability for market penetration in the U.K. and mainland Europe.
     The Company continues to seek opportunities for geographic expansion in
 North American, European and Asian markets.
 
     Outlook
     "While demand for our core prototyping and quick-turn manufacturing
 services remains strong, volume pre-production order flow has softened due to
 overall weaknesses in end-market demand.  Accordingly, as current market
 conditions and limited visibility mandate a more conservative outlook, we have
 modified our financial targets for fiscal 2001," McMaster concluded.
     The Company is currently targeting net sales in the range of flat to 10%
 growth for 2001, and adjusted earnings per share of $1.20 to $1.30 for the
 year.
 
     Conference Call and Webcast
     Management of DDi Corp. will host a conference call and simultaneous
 webcast today at 1:30 p.m. Pacific/ 4:30 p.m. Eastern to discuss first quarter
 operating performance and outlook.  To participate, log on to the DDi web site
 at www.ddiglobal.com .  For those who cannot listen to the live broadcast, a
 phone replay will be available through May 3, 2001, by dialing 888-266-2086 or
 703-925-2435 and entering the passcode # 5141571, or the online replay will be
 available for 90 days on www.ddiglobal.com .
 
     About DDi Corp.
     DDi is a leading provider of time-critical, technologically advanced
 design, development and manufacturing services.  Headquartered in Anaheim,
 California, with design and manufacturing facilities across the U.S. and in
 England, DDi and its subsidiaries service over 2,000 customers worldwide.
 DDi Corp. common stock trades on the Nasdaq National Market.
     This press release issued by DDi Corp. contains information about future
 expectations, plans and prospects that may constitute forward-looking
 statements for purposes of the Safe Harbor provisions under the Private
 Securities Litigation Reform Act of 1995.  Actual results or developments may
 differ materially from those projected or implied in the forward-looking
 statements.  More information about the risks and challenges faced by DDi
 Corp. is contained in the Securities and Exchange Commission filings made by
 DDi and its subsidiaries.
 
 
                                   DDi Corp.
                Condensed Consolidated Statements of Operations
                  (in thousands, except for per share amounts)
                                  (unaudited)
 
                                                  Three Months Ended March 31,
                                                       2001           2000
 
     Net sales                                       $140,709        $75,285
     Cost of goods sold                                88,150         49,035
      Gross profit                                     52,559         26,250
 
     Operating expenses:
      General and administration                        7,137          3,938
      Sales and marketing                               9,444          6,891
      Amortization of intangibles                       5,708          5,168
     Operating income                                  30,270         10,253
 
     Interest expense (net) and other expense (net)     7,218         12,155
     Income (loss) before income taxes                 23,052         (1,902)
     Income tax expense                               (10,323)           (75)
     Income (loss) before extraordinary loss           12,729         (1,977)
     Extraordinary loss                                 7,046              -
     Net income (loss)                                 $5,683        $(1,977)
 
     Basic income (loss) per share                      $0.28         $(0.08)
     Diluted income (loss) per share                    $0.27         $(0.08)
     Weighted average basic shares outstanding**       45,998         24,809
     Weighted average diluted shares outstanding**     47,685         24,809
 
 
     Supplemental Financial Information
                                                        2001          2000
 
     EBITDA*                                          $40,978        $19,162
 
      Interest expense (net)                            6,861         11,984
      Amortization of intangibles                       5,708          5,168
      Depreciation                                      5,000          3,741
      Amortization of deferred debt issue costs           357            171
      Income tax expense                               10,323             75
     Income (loss) before extraordinary loss           12,729         (1,977)
 
     Adjustments, net of income tax:
      Amortization of intangibles                      (4,593)        (3,852)
      Amortization of deferred debt issue costs          (218)          (104)
       Total adjustments                               (4,811)        (3,956)
     Adjusted net income                              $17,540         $1,979
 
     Basic adjusted net income per share                $0.38          $0.08
     Diluted adjusted net income per share              $0.37          $0.08
     Weighted average basic shares outstanding**       45,998         24,809
     Weighted average diluted shares outstanding**     47,685         24,809
 
      *Earnings before income taxes, depreciation, amortization and net
       interest expense.
     **The number of weighted shares outstanding for 2000 reflects the number
       of shares in existence prior to DDi Corp.'s initial public offering, as
       denominated in the class of stock issued.
 
 
                                     DDi Corp.
                       Condensed Consolidated Balance Sheets
                                   (in thousands)
 
                                                     March 31,    December 31,
                                                       2001           2000
     Assets                                        (Unaudited)
     Current assets:
      Cash and cash equivalents                      $113,410        $66,874
      Marketable securities - available for sale       16,430              -
      Accounts receivable, net                         81,935         99,828
      Inventories                                      26,847         30,290
      Prepaid expenses and other                        4,318          3,145
      Deferred income taxes                            10,978         14,584
         Total current assets                         253,918        214,721
 
     Property, plant and equipment, net               106,815         92,726
     Debt issue costs, net                             12,030          9,217
     Goodwill and other intangibles, net              272,151        263,456
     Other                                              1,312          1,247
         Total Assets                                $646,226       $581,367
 
     Liabilities and Stockholders' Equity
     Current liabilities:
      Current maturities of long-term debt and
       capital lease obligations                      $16,499        $16,935
      Accounts payable                                 41,135         37,099
      Accrued expenses and other                       36,999         44,452
       Income tax payable                              11,840          8,215
         Total current liabilities                    106,473        106,701
 
     Long-term debt and capital lease obligations     315,724        316,308
     Deferred income taxes                             17,947         20,493
     Notes payable and other                            3,581          1,468
        Total liabilities                             443,725        444,970
 
     Commitments and contingencies
 
     Stockholders' equity:
      Common stock, additional paid-in-capital
       and other                                      536,421        468,595
      Accumulated other comprehensive loss            (10,453)        (3,048)
      Accumulated deficit                            (323,467)      (329,150)
        Total stockholders' equity                    202,501        136,397
      Total Liabilities and Stockholders' Equity     $646,226       $581,367
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X02707637
 
 

SOURCE DDI Corp.
    ANAHEIM, Calif., April 26 /PRNewswire/ -- DDi Corp. (Nasdaq:   DDIC), a
 leading provider of time-critical, technologically advanced interconnect
 services for the electronics industry today announced financial results for
 the first quarter ended March 31, 2001, and provided revised outlook for
 fiscal 2001.
 
     First Quarter Operating Performance
     Net sales for the first quarter ended March 31, 2001 increased 87% to
 $140.7 million, from $75.3 million for the first quarter of 2000.  In terms of
 organic growth, net sales increased 19% from the same period in 2000.  Gross
 profit for first quarter 2001 was $52.6 million, generating a gross margin of
 37%, compared to a $26.3 million gross profit and a 35% gross margin for the
 first quarter of last year.
     The Company achieved a 195% increase in operating income, to $30.3 million
 in the first quarter of 2001, from $10.3 million in the first quarter of 2000.
 Operating margin was 22% compared to 14% in the first quarter of last year.
     EBITDA (earnings before income taxes, depreciation, amortization and net
 interest expense) increased 114% to $41.0 million compared with $19.2 million
 for the first quarter of 2000.  EBITDA margin was 29% for the first quarter of
 2001, up from 25% one year ago, reflective of the Company's increased average
 panel price and improved operating efficiencies.
     As a result of DDi Corp.'s debt reductions following its initial public
 offering in April 2000, follow-on offering in October 2000, and follow-on
 equity and debt offerings in February 2001, net interest expense decreased
 43% compared to the year ago period.  The Company recorded an extraordinary
 loss of $7.0 million in the first quarter ended March 31, 2001 due to the
 retirement of debt.
     Adjusted net income increased 786% for the first quarter of 2001 to
 $17.5 million compared with $2.0 million for the first quarter of 2000.  On a
 diluted per share basis, first quarter adjusted net income was $0.37 compared
 with $0.08 for the first quarter of 2000.
     On the basis of generally accepted accounting principles, DDi Corp.
 achieved income (before the extraordinary loss) of $12.7 million, or $0.27 per
 diluted share, for the first quarter of 2001, compared with a net loss of
 $2.0 million or $(0.08) per diluted share for the first quarter of 2000.
     "Our solid first quarter results are the direct result of our strong
 customer relationships and the value of our core quick-turn prototyping
 business," said Chief Executive Officer Bruce McMaster.  "Demand for these
 services was healthy, and overall, the telecommunications and networking
 end-market segment accounted for 62% of net sales for the quarter.  We secured
 85 new customers and continued to build upon our existing relationships while
 maintaining favorable pricing levels and high average layer counts."
     "Strong execution resulted in improved operating leverage through
 efficient cost control and effective acquisition integration, delivering
 significant increases in sales and cash earnings," McMaster added.  "Looking
 ahead, we remain focused on building our value platform through investments in
 technological diversity and innovation to capture a growing share of our
 customers' new product development and R&D programs."
 
     Balance Sheet Highlights
     At March 31, 2001, DDi Corp. had total assets of $646.2 million, including
 cash, cash equivalents and short-term investments totaling $129.8 million.
 With the first quarter equity and debt offerings, the Company's debt-to-equity
 ratio has improved to 1.64.  During the normal course of operations, the
 Company utilizes excess cash flow to reduce its outstanding debt.  DDi Corp.
 had long-term debt of $315.7 million and total stockholders' equity of
 $202.5 million at March 31, 2001.
     Annualized pre-tax Return on Invested Capital (ROIC) based on EBITA for
 the first quarter was 34%, up from 20% for the first quarter last year.  The
 Company manages its business according to a pre-tax ROIC target of
 20% to 25%.
 
     First Quarter Highlights
     In February, DDi Corp. completed a follow-on offering of common stock
 raising net proceeds of $67.0 million, net of underwriting expenses.
 Concurrent with the equity offering, the Company completed a new issuance of
 convertible subordinated notes, raising an additional $97.0 million in
 proceeds, net of underwriting expenses.  The proceeds were raised in order to
 further pay down existing debt.
     In March, DDi Corp.'s wholly-owned subsidiary, DDi Europe Limited,
 completed the acquisition of Thomas Walter Limited, based in Marlow, England.
 DDi Europe's integration of Thomas Walter, a well-established manufacturer of
 complex quick-turn interconnect products, brings added technological diversity
 and flexibility to the Company's European subsidiary, in addition to an
 enhanced capability for market penetration in the U.K. and mainland Europe.
     The Company continues to seek opportunities for geographic expansion in
 North American, European and Asian markets.
 
     Outlook
     "While demand for our core prototyping and quick-turn manufacturing
 services remains strong, volume pre-production order flow has softened due to
 overall weaknesses in end-market demand.  Accordingly, as current market
 conditions and limited visibility mandate a more conservative outlook, we have
 modified our financial targets for fiscal 2001," McMaster concluded.
     The Company is currently targeting net sales in the range of flat to 10%
 growth for 2001, and adjusted earnings per share of $1.20 to $1.30 for the
 year.
 
     Conference Call and Webcast
     Management of DDi Corp. will host a conference call and simultaneous
 webcast today at 1:30 p.m. Pacific/ 4:30 p.m. Eastern to discuss first quarter
 operating performance and outlook.  To participate, log on to the DDi web site
 at www.ddiglobal.com .  For those who cannot listen to the live broadcast, a
 phone replay will be available through May 3, 2001, by dialing 888-266-2086 or
 703-925-2435 and entering the passcode # 5141571, or the online replay will be
 available for 90 days on www.ddiglobal.com .
 
     About DDi Corp.
     DDi is a leading provider of time-critical, technologically advanced
 design, development and manufacturing services.  Headquartered in Anaheim,
 California, with design and manufacturing facilities across the U.S. and in
 England, DDi and its subsidiaries service over 2,000 customers worldwide.
 DDi Corp. common stock trades on the Nasdaq National Market.
     This press release issued by DDi Corp. contains information about future
 expectations, plans and prospects that may constitute forward-looking
 statements for purposes of the Safe Harbor provisions under the Private
 Securities Litigation Reform Act of 1995.  Actual results or developments may
 differ materially from those projected or implied in the forward-looking
 statements.  More information about the risks and challenges faced by DDi
 Corp. is contained in the Securities and Exchange Commission filings made by
 DDi and its subsidiaries.
 
 
                                   DDi Corp.
                Condensed Consolidated Statements of Operations
                  (in thousands, except for per share amounts)
                                  (unaudited)
 
                                                  Three Months Ended March 31,
                                                       2001           2000
 
     Net sales                                       $140,709        $75,285
     Cost of goods sold                                88,150         49,035
      Gross profit                                     52,559         26,250
 
     Operating expenses:
      General and administration                        7,137          3,938
      Sales and marketing                               9,444          6,891
      Amortization of intangibles                       5,708          5,168
     Operating income                                  30,270         10,253
 
     Interest expense (net) and other expense (net)     7,218         12,155
     Income (loss) before income taxes                 23,052         (1,902)
     Income tax expense                               (10,323)           (75)
     Income (loss) before extraordinary loss           12,729         (1,977)
     Extraordinary loss                                 7,046              -
     Net income (loss)                                 $5,683        $(1,977)
 
     Basic income (loss) per share                      $0.28         $(0.08)
     Diluted income (loss) per share                    $0.27         $(0.08)
     Weighted average basic shares outstanding**       45,998         24,809
     Weighted average diluted shares outstanding**     47,685         24,809
 
 
     Supplemental Financial Information
                                                        2001          2000
 
     EBITDA*                                          $40,978        $19,162
 
      Interest expense (net)                            6,861         11,984
      Amortization of intangibles                       5,708          5,168
      Depreciation                                      5,000          3,741
      Amortization of deferred debt issue costs           357            171
      Income tax expense                               10,323             75
     Income (loss) before extraordinary loss           12,729         (1,977)
 
     Adjustments, net of income tax:
      Amortization of intangibles                      (4,593)        (3,852)
      Amortization of deferred debt issue costs          (218)          (104)
       Total adjustments                               (4,811)        (3,956)
     Adjusted net income                              $17,540         $1,979
 
     Basic adjusted net income per share                $0.38          $0.08
     Diluted adjusted net income per share              $0.37          $0.08
     Weighted average basic shares outstanding**       45,998         24,809
     Weighted average diluted shares outstanding**     47,685         24,809
 
      *Earnings before income taxes, depreciation, amortization and net
       interest expense.
     **The number of weighted shares outstanding for 2000 reflects the number
       of shares in existence prior to DDi Corp.'s initial public offering, as
       denominated in the class of stock issued.
 
 
                                     DDi Corp.
                       Condensed Consolidated Balance Sheets
                                   (in thousands)
 
                                                     March 31,    December 31,
                                                       2001           2000
     Assets                                        (Unaudited)
     Current assets:
      Cash and cash equivalents                      $113,410        $66,874
      Marketable securities - available for sale       16,430              -
      Accounts receivable, net                         81,935         99,828
      Inventories                                      26,847         30,290
      Prepaid expenses and other                        4,318          3,145
      Deferred income taxes                            10,978         14,584
         Total current assets                         253,918        214,721
 
     Property, plant and equipment, net               106,815         92,726
     Debt issue costs, net                             12,030          9,217
     Goodwill and other intangibles, net              272,151        263,456
     Other                                              1,312          1,247
         Total Assets                                $646,226       $581,367
 
     Liabilities and Stockholders' Equity
     Current liabilities:
      Current maturities of long-term debt and
       capital lease obligations                      $16,499        $16,935
      Accounts payable                                 41,135         37,099
      Accrued expenses and other                       36,999         44,452
       Income tax payable                              11,840          8,215
         Total current liabilities                    106,473        106,701
 
     Long-term debt and capital lease obligations     315,724        316,308
     Deferred income taxes                             17,947         20,493
     Notes payable and other                            3,581          1,468
        Total liabilities                             443,725        444,970
 
     Commitments and contingencies
 
     Stockholders' equity:
      Common stock, additional paid-in-capital
       and other                                      536,421        468,595
      Accumulated other comprehensive loss            (10,453)        (3,048)
      Accumulated deficit                            (323,467)      (329,150)
        Total stockholders' equity                    202,501        136,397
      Total Liabilities and Stockholders' Equity     $646,226       $581,367
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X02707637
 
 SOURCE  DDI Corp.