ANAHEIM, Calif., Oct. 9 /PRNewswire/ -- DDi Corp. (Nasdaq: DDIC), a leading provider of time-critical, technologically advanced interconnect services for the electronics industry today announced revised outlook for the Company's third quarter financial results due to continued slowing in end-market demand. For the third quarter ended September 30, 2001, the Company expects to report revenue of approximately $70 million and a cash loss per share of $0.03 to $0.05.

Commenting on the Company's third quarter expectations, Chief Executive Officer Bruce McMaster stated, "Contracted end-market demand is continuing to impact our operating momentum, and pricing constraints are putting pressure on gross margins. While we had hoped to see some market stabilization during the third quarter, we continue to face the challenges of the weak economy and limited visibility.

"We are taking additional steps aimed at improving cost absorption relative to lower capacity utilization," McMaster continued. "Specifically, we will be reducing overall capacity within the next 90 days to align with softer production levels, while maintaining a critical mass in technologically advanced quick-turn operations, our core service offering. This keeps us in a strong position to respond aggressively when economic conditions improve. We remain committed to practical investments in technology and engineering resources, areas that will continue to be the long-term value and future growth drivers of the Company."

Management expects to record a fourth quarter pre-tax restructuring charge of approximately $60 million to $80 million comprised of non-cash charges for costs relating to capacity reduction, equipment write-offs and impairment of intangible assets.

Executive Management Transitions

In addition, the Company announced that two executives, Greg Halvorson, Vice President of Operations and John Peters, Vice President of Sales and Marketing, are retiring from DDi. Michael Moisan and Kevin McClelland (as Vice President of East Coast Operations and Vice President of West Coast Operations, respectively) have been named jointly to assume Halvorson's responsibilities, while Tom Ingham, Vice President of Sales & Marketing, will assume sales and marketing leadership following Peters' retirement.

Commenting on the executive changes, McMaster stated, "Greg Halvorson and John Peters have contributed significantly to our Company's success. We will miss their leadership and wish them every success in their future endeavors." Halvorson will continue to work out of the Company's Milpitas facility to effect a smooth transition of his duties to his successors. Similarly, Peters has entered into a consulting arrangement with the company by which his talents can be utilized on an ongoing basis.

On Halvorson's successors, McMaster commented, "Both Michael Moisan and Kevin McClelland have extensive backgrounds in EMS (electronics manufacturing services) operations and business development, and have worked closely with Greg Halvorson in their executive roles. They are ideally qualified to assume Greg's duties, and we eagerly welcome them to take the helm of the Company's operations."

Michael Moisan has over two decades of experience in the EMS/PCB industry. For the past several years, he has overseen the Company's Anaheim operation, which is regarded as the Company's testbed for new technological applications and equipment, and, in the year 2000, delivered nearly one-third of the Company's total net sales. Prior to joining DDi, he was Director of Engineering at Circuitwise, Director of Operations at AMP AKZO and Director of Research at PCK Technology. Moisan holds Master's Degrees in both Chemistry and Business Administration.

Kevin McClelland's background also boasts more than two decades in electronics manufacturing services including electronics engineering, operations and business development. Before joining DDi, he was Vice President of Business Development for EMS provider Multek (acquired by Flextronics) where he was involved extensively in acquisitions and transition management domestically and in Europe and Mexico. McClelland holds Bachelor's Degrees in Electronics Engineering, Business Administration, and Chemistry.

With respect to the transition in sales and marketing, McMaster remarked, "We are very excited about having Tom Ingham head up our sales force. Tom has served DDi in positions of increasing responsibility in sales and marketing over the last five years, starting as Regional Manager. Prior to DDi, he worked for 12 years at Insulectro, a highly regarded supplier of PCB materials and laminates, culminating in the position of Vice President of Sales - Western Region. Tom possesses the drive, responsiveness, and leadership necessary to retain existing business and capture new business in the future. He commands the respect of our sales force, works extremely well with our customers, and is completely focused on the Company's commitment to providing unexcelled service to our customers worldwide."

Conference Call and Webcast

Management will host a brief conference call and simultaneous webcast today, Tuesday, October 9, 2001, at 2:00 p.m. Pacific/ 5:00 p.m. Eastern to discuss today's announcement. To participate, log on to the DDi web site at www.ddiglobal.com and go to the link on the News & Events page under Presentations and Webcasts. For those who cannot listen to the live broadcast, a phone replay will be available through October 16, 2001, by dialing (888) 266-2086 or (703) 925-2435 and entering the passcode # 5592905. The online replay will be available through October 16, 2001, on www.ddiglobal.com.

DDi Corp. will report results for the third quarter of 2001 the week of October 22, 2001, and intends to provide additional guidance regarding its fourth quarter outlook at that time.

About DDi Corp.

DDi is a leading provider of time-critical, technologically advanced design, development and manufacturing services. Headquartered in Anaheim, California, with design and manufacturing facilities across North America and in England, DDi and its subsidiaries service over 2,000 customers worldwide. DDi Corp. common stock trades on the Nasdaq National Market.

Press releases made by DDi Corp. may contain information about future expectations, plans and prospects that may constitute forward-looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. Statements of Mr. McMaster herein constitute such forward-looking statements. Actual results or developments may differ materially from those projected or implied in the forward-looking statements. More information about the risks and challenges faced by DDi Corp. is contained in the Securities and Exchange Commission filings made by DDi and its subsidiaries.

SOURCE DDi Corp.

CONTACT: Joe Gisch, Chief Financial Officer of DDi Corp.,
+1-714-688-7200; or Kristen Kopay McNally, General Information/Media,
+1-310-996-7458, kmcnally@webershandwick.com, or Jill Fukuhara,
Investor/Analyst Information, +1-310-996-7464, jfukuhara@webershandwick.com,
both of FRB/Weber Shandwick, for DDi Corp./