PCB | August 02, 2007
DDi's Q2 net sales increased 13%
DDi Corp reported financial results for its second quarter ended June 30, 2007. The Company reported second quarter 2007 net sales of $49.1 million, adjusted EBITDA of $7.1 million, and net income of $2.0 million.
Second quarter 2007 net sales of $49.1 million increased 13 percent sequentially from the first quarter 2007 net sales of $43.4 million, and increased 12 percent over PCB sales of $43.7 million in the second quarter of 2006. Second quarter 2007 total net sales decreased 6 percent over the same period in 2006 of $52.5 million which included the assembly business of approximately $8.8 million in sales. Gross margin as a percentage of net sales increased to 22.9 percent for the second quarter of 2007 from 18.4 percent in the first quarter of 2007. Gross margin also increased from the prior year second quarter of 19.2 percent of total net sales and 21.3 percent of PCB sales. Mikel Williams, Chief Executive Officer of DDi Corp., stated, “I am very pleased with our second quarter's operating performance as well as the financial results for the period. During the quarter, we registered solid gains in meeting customer demand and loaded our facilities with a better mix of work, which along with improved manufacturing performance and tight cost controls, resulted in our best quarter's performance in years." Total sales and marketing expenses for the second quarter of 2007 were $3.3 million, or 6.8 percent of net sales, compared on a sequential basis to $3.1 million, or 7.2 percent of net sales, for the first quarter of 2007, and were down from the prior year second quarter of $4.0 million, or 7.7 percent of net sales. The decrease in dollars spent from the prior year second quarter is primarily due to the elimination of sales and marketing costs associated with the assembly business sold in September 2006. Total general and administrative expenses for the second quarter of 2007 were $3.9 million, or 7.9 percent of net sales, slightly higher on a sequential basis compared to $3.8 million, or 8.8 percent of net sales, for the first quarter of 2007, primarily due to higher management incentives partially offset by lower audit costs in the second quarter compared to the first quarter. Compared to the prior year second quarter, general and administrative expenses increased from $3.4 million, or 6.4 percent of net sales, primarily due to higher non-cash compensation expense and management incentives in 2007 compared to 2006.