DDi Corp. (ticker: DDIC, exchange: NASDAQ Global Market (.O))
News Release -
DDi Corp. Revises Third Quarter Outlook, Comments on Cost Restructuring Initiatives, and Announces Executive Management Transitions
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
"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
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
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
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.
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