DDi Beats Expectations With $268M Deal PendingTuesday, April 24, 2012
Anaheim-based circuit board maker DDi Corp. on Tuesday reported first-quarter revenue and earnings that beat Wall Street expectations.
The better-than-expected quarterly results could be one of the last public filings for DDi, which makes circuit boards for eventual assembly with chips for use in the aerospace, military, industrial, and medical industries as well as networking.
The company is slated to be acquired for $268 million by St. Louis-based Viasystems Group Inc.
DDi had $68.9 million in sales in the March quarter, up 3.7% from a year earlier.
Analyst on average had forecast revenue of $66 million.
Adjusted profits topped $6.3 million, up 26% from a year ago.
Wall Street had expected adjusted profits $5.1 million.
The company also announced a record high of $74.2 million in bookings in the first quarter.
The deal is expected to be completed late in the second quarter or early third quarter.
The buy will increase Viasystems’ market share in the military and aerospace market, and the growing industrial and instrumentation market, while broadening its customer base.
DDi built its name in the industry by turning around boards quickly, especially on prototypes.
Most of the company’s orders are completed in less than 10 days, sometimes within 24 hours.
DDi appears to be positioned to maintain a sizeable presence here.
It recently announced plans to move into new quarters—down the street from its current eight-building campus in Anaheim—that cost 7.5 million. It’s expected to move in by the end of the third quarter, when a lease expires on the company’s home of more than 30 years.
The company went public in April 2000, just as the dot.com bubble burst.
It took months for the stock to recover, and DDi’s choppy ride lasted even longer. The company emerged from court-supervised bankruptcy reorganization in 2003.
Analysts expect DDi to post an adjusted profit in the current quarter of $5.3 million on $67.5 million in sales.