PCB |
DDi increase 15%, sells assembly ops
DDi reported a 15 % increase in net sales in its second quarter, and agreed to a sale and acquisition.
On August 8, 2006, DDi signed an agreement providing for the sale of its assembly business to Veritek Manufacturing Services LLC, for approximately $12.0 million in cash. The assembly business had unaudited net sales of $15.6 million for the six months ended June 30, 2006 and $31.1 million for 2005, with gross margins of 13.0 percent and 10.0 percent, respectively.
DDi has also signed a definitive merger agreement to acquire the outstanding stock of Sovereign Circuits, Inc. for approximately $14.8 million, expected to be paid with a combination of cash (not to exceed $5.7 million). Additionally, DDi will assume net debt of no more than $3.3 million at closing. DDi's Board of Directors approved both transactions in August 2006.
The sale of DDi's assembly business and the acquisition of Sovereign Circuits are both subject to a variety of customary closing conditions, including obtaining various third party consents, and both transactions are expected to close in the second half of 2006.
DDi reported net sales in the quarter of $52.5 million, up from $45.5 million in the year-ago period. Net loss was $3.95 million, down from a net loss of $40 million, or $9.63 a share, in the year-ago period. For the first six months of fiscal 2006, net sales were $103.5 million, up from $90.5 million in the year-ago period. Net loss was $6.3 million, down from $34.2 million in the first six months of fiscal 2005.
