DDi Corp. Announces First Quarter 2008 Results

Selected Q1 Highlights: -- Net sales of $47.4 million up 9 percent from prior year first quarter -- Adjusted EBITDA of $6.0 million up 52 percent from prior year first quarter -- Net income of $0.7 million up 172 percent from prior year first quarter -- Repurchased additional 970,052 shares for $5.0 million in cash

ANAHEIM, Calif., Apr 23, 2008 "(PressReleasePoint)" -- DDi Corp. (NASDAQ:DDIC), a leading provider of time-critical, technologically-advanced printed circuit board ("PCB") engineering and manufacturing services, today reported financial results for its first quarter ended March 31, 2008.

First Quarter Results

First quarter 2008 net sales of $47.4 million increased 9 percent from the prior year's first quarter net sales of $43.4 million, and increased 5 percent sequentially from fourth quarter 2007 net sales of $45.2 million.

Gross margin as a percentage of net sales for the first quarter of 2008 increased to 20.6 percent from the prior year's first quarter gross margin of 18.4 percent and also improved sequentially from 17.4 percent in the fourth quarter of 2007.

Mikel Williams, President and CEO of DDi, stated "The first quarter reflects a strong start to 2008. DDi's technology leadership and operational delivery continues to resonate well with both the commercial and military/aerospace printed circuit board markets. We were able to grow our sales and margins while continuing to effectively manage our costs. As we move into the balance of the year, we see continued solid demand and I believe we are well positioned to continue to execute on our strategy."

Total sales and marketing expenses for the first quarter of 2008 were $3.3 million, or 6.9 percent of net sales, compared to $3.1 million, or 7.2 percent of net sales for the prior year's first quarter. On a sequential basis, sales and marketing expenses increased from $2.8 million, or 6.2 percent of net sales in the fourth quarter of 2007. The increase was primarily due to higher variable sales costs on increased sales, as well as higher management incentive accruals.

Total general and administrative expenses were essentially flat at $3.8 million, or 8.1 percent of net sales for the first quarter of 2008 compared to $3.8 million, or 8.8 percent of net sales for the prior year's first quarter, despite the year on year sales growth reflecting management's efforts to control overhead costs. On a sequential basis, general and administrative expenses increased from $3.3 million, or 7.3 percent of net sales for the fourth quarter of 2007, primarily due to audit fees heavily concentrated in the first quarter of the year and higher management incentive accruals.

Adjusted EBITDA for the first quarter of 2008 was $6.0 million, or 12.7 percent of net sales, a 52 percent improvement over $4.0 million, or 9.1 percent of net sales for the prior year's first quarter. Adjusted EBITDA also improved sequentially from $5.1 million, or 11.4 percent of net sales for the fourth quarter of 2007. (A reconciliation of this non-GAAP measure is provided after the GAAP financial statements below.)

The Company reported net income of $718,000, or $0.03 per diluted share for the first quarter of 2008, an improvement compared to a net loss of $1.0 million, or $0.04 loss per share for the prior year's first quarter, and a sequential improvement compared to a net loss of $285,000, or $0.01 loss per share in the fourth quarter of 2007.

Liquidity

As of March 31, 2008, the Company had total cash and cash equivalents of $17.7 million, after using $5.0 in cash to repurchase 970,052 shares of its common stock during the quarter. There were no borrowings outstanding under its revolving credit facility at March 31, 2008 which had a borrowing capacity of approximately $20.0 million.

The Company has used a total of $6.9 million of its cash to repurchase 1,274,505 shares, or over 5 percent of the outstanding shares, of its common stock since the inception of the repurchase program in August 2007.

The Company invested $2.8 million on capital expenditures in the first quarter of 2008.

Conference Call and Webcast

A conference call with simultaneous webcast to discuss first quarter 2008 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 any necessary audio software. A telephone replay of the conference call will be available through May 7, 2008 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and entering the conference ID 21664605. 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. Headquartered in Anaheim, California, DDi and its subsidiaries offer PCB engineering, fabrication and manufacturing services to leading electronics OEMs and contract manufacturers worldwide from its facilities across North America and with manufacturing partners in Asia.

DDi Corp.
Mikel H. Williams, Chief Executive Officer
(714) 688-7200
Sally Goff Edwards, Chief Financial Officer
(714) 688-7200