DDi Corp. Announces Third Quarter 2009 Results.ANAHEIM Anaheim (ăn`əhīm), city (1990 pop. 266,406), Orange co., S Calif., SE of Los Angeles; inc. 1870. Anaheim was founded by Germans in 1857 as an experiment in communal living. , Calif. -- DDi Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : DDIC DDIC Data Dictionary (SAP) DDIC DVB/DAVIC Interoperability Consortium DDIC Digital Display Indicator Control DDIC Dvb Davic Interoperability Consortium ), a leading provider of time-critical, technologically-advanced printed circuit board ("PCB") engineering and manufacturing services, today reported financial results for its third quarter ended September September: see month. 30, 2009. Highlights: * Sequential One after the other in some consecutive order such as by name or number. quarterly net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight growth of 6% with continued profitability * Increased cash and cash equivalents to $25.6 million at September 30, 2009 * Year to date bookings of $1 million on entry into ATE market segment * New NextGen-SMV[TM] technology launched with strategic customers * Announced proposal to acquire Coretec Inc. Third Quarter Results The Company reported third quarter 2009 net sales of $39.3 million, adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of $3.0 million, and net income of $249,000, or $0.01 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. On a year to date basis, net sales were $115.8 million, adjusted EBITDA was $10.2 million, and net income was $1.2 million, or $0.06 per diluted share. Mikel Williams, 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 DDi, stated, "We are pleased to see top line growth return, continued profitability and positive cash generation during the third quarter, given the continued market pressures in the general economy. Further, we are seeing solid signs of success with our entry into the ATE market as we continue to gain qualifications with customers in this segment. "We also have taken the NextGen-SMV[TM] out to key strategic customers and are receiving strong interest in this new and disruptive technology A new technology that has a serious impact on the status quo and changes the way people have been dealing with something, perhaps for decades. Music CDs all but wiped out the phonograph industry within a few years, and digital cameras are destined to eliminate the film industry. and have begun delivering product on live production orders. This technology provides a new way to build printed circuit boards, and allows for quicker manufacturing cycles and enhanced design and product capabilities. We see this as a disruptive technology and another key differentiator Dif`fer`en´ti`a`tor n. 1. One who, or that which, differentiates. Noun 1. differentiator - a person who (or that which) differentiates discriminator in DDi's technical capabilities in the marketplace," Williams added. Additionally, DDi announced on October October: see month. 26, 2009 that it had proposed to acquire all of the outstanding common shares of Coretec Inc., a Canada-based North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. PCB manufacturer, for CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $0.20 (US $0.19) per share. "We believe the combination of DDi and Coretec would create a powerful player in the PCB industry. The combined company would be able to more effectively meet customer demand, drive significant operational cost synergies and overall accelerate value creation for both companies' shareholders," stated Mr. Williams. "To demonstrate DDi's interest in pursuing a transaction with Coretec, we recently purchased 515,000 shares of Coretec common stock in the open market at an average purchase price of CDN$0.0975 per share." DDi's third quarter 2009 net sales of $39.3 million represented a 20 percent decrease from the prior year's third quarter net sales of $49.3 million, but a 6 percent sequential increase from second quarter 2009 net sales of $37.2 million. On a year to date basis, net sales decreased 22 percent to $115.8 million for the first nine months of 2009 compared to $147.8 million for the same period in 2008. Gross margin for the third quarter of 2009 decreased to 16.8 percent of net sales compared to the prior year's third quarter gross margin of 20.8 percent and was also down on a sequential basis from 18.0 percent of net sales in the second quarter of 2009. On a year to date basis, gross margin decreased to 17.8 percent of net sales for the first nine months of 2009 compared to 20.5 percent for the same period in 2008. The Company's adjusted EBITDA for the third quarter of 2009 was $3.0 million, or 7.7 percent of net sales, compared to $7.1 million, or 14.3 percent of net sales for the prior year's third quarter. On a sequential basis, adjusted EBITDA decreased compared to $3.6 million, or 9.6 percent of net sales for the second quarter of 2009. On a year to date basis, adjusted EBITDA decreased to $10.2 million, or 8.8 percent of net sales in the first nine months of 2009, compared to $20.5 million, or 13.9 percent of net sales for the same period in 2008. (Reconciliations of this non-GAAP measure are provided after the GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge below.) The Company reported net income of $249,000, or $0.01 per diluted share for the third quarter of 2009, compared to net income of $1.6 million, or $0.08 per diluted share for the prior year's third quarter, and compared to net income of $434,000, or $0.02 per diluted share in the second quarter. On a year to date basis, net income and earnings per share were $1.2 million, or $0.06 per diluted share in the first nine months of 2009, compared to $3.8 million, or $0.18 per diluted share for the same period in 2008. As of September 30, 2009, the Company had total cash and cash equivalents of $25.6 million. The Company had a borrowing capacity of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $13.3 million and no borrowings outstanding under its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility at September 30, 2009. The Company has invested approximately $2.7 million year to date on capital expenditures. Conference Call and Webcast A conference call with simultaneous webcast to discuss the third quarter 2009 financial results will be held today at 5:00 p.m. Eastern / 2:00 p.m. Pacific. The call is being webcast and can be accessed at the Company's web site: www.ddiglobal.com/investor. Participants should access the website at least 15 minutes early to register and download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. any necessary audio software. A telephone replay of the conference call will be available through November November: see month. 11, 2009 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and entering the conference ID 57440573. An online replay of the webcast will be available for 12 months at www.ddiglobal.com/investor under "Financial Calendar." For more information, visit www.ddiglobal.com. About DDi DDi is a leading provider of time-critical, technologically-advanced, electronics manufacturing services Electronic manufacturing services (EMS) is term used for companies that design, test, manufacture, distribute and provide return/repair services for electronic component and assemblies for original equipment manufacturers (OEMs). . Headquartered in Anaheim, California “Anaheim” redirects here. For Annaheim, see Annaheim, Saskatchewan. Anaheim is a city in Orange County, California, located 28 miles southeast of Los Angeles. , DDi and its subsidiaries offer PCB engineering, fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and manufacturing services to leading electronics OEMs and contract manufacturers worldwide from its facilities across North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and with manufacturing partners in Asia. Non-GAAP Financial Measures This release includes 'adjusted EBITDA', a non-GAAP financial measure as defined in Regulation G of the Securities Exchange Act of 1934. Management believes that the disclosure of non-GAAP financial measures, when presented in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the corresponding GAAP measures, provide useful information to the Company, investors and other users of the financial statements and other financial information in identifying and understanding operating performance for a given level of net sales and business trends. Management believes that adjusted EBITDA is an important factor of the Company's business because it reflects financial performance that is unencumbered Unencumbered Property that is not subject to any creditor claims or liens. Notes: For example, if a house is owned free and clear (meaning the owner owes no mortgage to anyone), it is unencumbered. by debt service and other non-cash, non-recurring or unusual items. This financial measure is commonly used in the Company's industry. It is also used by the Company's lenders to determine components of covenant covenant (kŭv`ənənt), agreement entered into voluntarily by two or more parties to do or refrain from doing certain acts. In the Bible and in theology the covenant is the agreement or engagement of God with man as revealed in the compliance. However, adjusted EBITDA should not be considered as an alternative to cash flow from operating activities, as a measure of liquidity or as an alternative to net income as a measure of operating results in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . The Company's definition of adjusted EBITDA may differ from definitions of such financial measure used by other companies. The Company has provided a reconciliation of adjusted EBITDA to GAAP financial information in the attached Schedule of Non-GAAP reconciliations. "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 Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding the Company's assumptions, projections, expectations, targets, intentions or beliefs about future events. Words or phrases such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "projects," "targets," "will likely result," "will continue," "may," "could" or similar expressions identify forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed. The Company cautions that while it makes such statements in good faith and it believes such statements are based on reasonable assumptions, including without limitation, management's examination of historical operating trends, data contained in records, and other data available from third parties, it cannot assure you that the Company's projections will be achieved. In addition to other factors and matters discussed from time to time in the Company's filings with the U.S. Securities and Exchange Commission, or the SEC, some important factors that could cause actual results or outcomes for DDi or its subsidiaries to differ materially from those discussed in forward-looking statements include changes in general economic conditions in the markets in which it may compete and fluctuations in demand in the electronics industry; the Company's ability to sustain historical margins; increased competition; increased costs; loss or retirement of key members of management; increases in the Company's cost of borrowings or unavailability un·a·vail·a·ble adj. Not available, accessible, or at hand. un  a·vail of additional debt
or equity capital on terms considered reasonable by management; and
adverse state, federal or foreign legislation or regulation or adverse
determinations by regulators. In addition, although DDi Corp. has
proposed to acquire all of the outstanding common stock of Coretec Inc.,
no definitive agreements have been executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. and such acquisition would
be subject to various conditions. There can be no assurances that any
definitive offer by DDi Corp. will be made nor that any definitive
agreement will be approved or consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. between the parties. Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for management to predict all such factors. Any proposed acquisition may only be completed in accordance with applicable state and federal laws. This press release shall not constitute an offer or a solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to buy any securities nor shall it constitute a solicitation of a proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. to vote with respect to any transaction. If the parties sign a definitive merger agreement and a decision is made to register securities of DDi Corp., DDi Corp. will likely file a registration statement on Form S-4 containing a proxy statement/prospectus and other relevant documents regarding the transaction with the SEC. The definitive proxy statement/prospectus will be mailed to shareholders of Coretec Inc. STOCKHOLDERS OF DDI CORP., THOSE CONSIDERING INVESTING IN DDI CORP. SECURITIES AND SECURITY HOLDERS OF CORETEC INC. ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC, INCLUDING RELATED FORM 8-K'S WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the proxy statement/prospectus and the Forms 8-K (when available) and other documents filed by DDi Corp. with the securities regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. authorities in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of through the website maintained at www.sedar.com and with the SEC through the Web site maintained by the SEC at http://www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . Free copies of the registration statement and the proxy statement/prospectus (when available) and other documents filed with the SEC can also be obtained by directing a request to Investor Relations Investor relations The process by which the corporation communicates with its investors. Department, DDi Corp., 1220 N. Simon Circle, Anaheim, CA 92806. [Financial Tables follow]
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ment n. 
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