DDi Corp. (ticker: DDIC, exchange: NASDAQ Global Market (.O))
News Release -
DDi Corp.'s Board of Directors Approves the Implementation of Reverse Stock Split and Announces Preliminary Fourth Quarter 2005 Revenues
ANAHEIM, Calif., Jan. 19 /PRNewswire-FirstCall/ -- DDi Corp.
(Nasdaq: DDIC), a leading provider of technologically advanced engineering and
manufacturing services, today announced that its Board of Directors has
authorized a reverse split of the Company's common stock at a ratio of
1-for-7. DDi expects the reverse split of shares to take effect after the
close of business on February 3, 2006.
DDi today also announced its preliminary revenues for the fourth quarter
ended December 31, 2005, of approximately $48 million, reflecting an 8%
sequential quarterly growth in the Company's PCB manufacturing business.
The reverse stock split will reduce the number of DDi's outstanding shares
from approximately 127.9 million to approximately 18.3 million shares. The
reverse split was approved by the Company's shareholders at a shareholder
meeting held on August 5, 2005 in connection with the shareholders approval of
DDi's $75 million rights offering, in which the Company issued 100 million
shares of common stock at $0.75 per share. DDi believes that the reverse
stock split will permit it to regain compliance with Nasdaq Marketplace Rule
4450(a)(5) and maintain continued listing on Nasdaq, while increasing the
effective marketability of its common stock and make it more attractive to
As a result of the reverse stock split, every seven shares of DDi's issued
and outstanding common stock will be automatically converted into one share of
common stock. DDi will not issue fractional shares of common stock in
connection with the reverse split. Rather, shareholders will receive a cash
payment equal to the value of the fractional shares that they otherwise would
have received. The reverse split will also result in a proportionate
adjustment to the number of shares issuable upon conversion of DDi's Series B
Preferred Stock and the number of shares underlying stock options and warrants
outstanding immediately prior to the effective date of the reverse split.
Proportionate adjustments will be made to the per share exercise price of all
outstanding options and warrants. Additionally, the reverse split affects the
total shares issuable in the future under the Company's stock option plans.
Shares of DDi's common stock will be listed on the Nasdaq National Markets
on a post-split basis on February 6, 2006, under the temporary trading symbol
"DDICD" for approximately 20 trading days before reverting to "DDIC" on or
about March 6, 2006.
DDi's transfer agent, Mellon Investor Services, will notify the Company's
shareholders and request that they surrender their certificates representing
shares of pre-split common stock so that certificates representing the
appropriate number of shares of post-split common stock.
About DDi Corp.
DDi is a leading provider of time-critical, technologically advanced,
electronics manufacturing services. Headquartered in Anaheim, California, DDi
and its subsidiaries offer fabrication and assembly services to customers on a
global basis from its facilities located across North America.
Except for historical information contained in this release, statements in
this release may constitute forward-looking statements regarding our
assumptions, projections, expectations, targets, intentions or beliefs about
future events. Words or phrases such as "anticipates," "believes,"
"estimates," "expects," "intends," "plans," "predicts," "projects," "targets,"
"will likely result," "will continue," "may," "could," "should" or similar
expressions identify forward-looking statements. Forward-looking statements
involve risks and uncertainties, which could cause actual results or outcomes
to differ materially from those expressed. We caution that while we make such
statements in good faith and we believe such statements are based on
reasonable assumptions, including without limitation, management's examination
of historical operating trends, data contained in records, and other data
available from third parties, we cannot assure you that our projections will
be achieved. In addition to other factors and matters discussed from time to
time in our filings with the U.S. Securities and Exchange Commission, or the
SEC, some important factors that could cause actual results or outcomes for
DDi or our subsidiaries to differ materially from those discussed in
forward-looking statements include: changes in general economic conditions in
the markets in which we may compete and fluctuations in demand in the
electronics industry; our ability to sustain historical margins; increased
competition; increased costs; loss or retirement of key members of management;
increases in our cost of borrowings or unavailability of additional debt or
equity capital on terms considered reasonable by management; and adverse
state, federal or foreign legislation or regulation or adverse determinations
by regulators. Any forward-looking statement speaks only as of the date on
which such statement is made, and, except as required by law, we undertake no
obligation to update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made or to reflect the
occurrence of unanticipated events. New factors emerge from time to time, and
it is not possible for management to predict all such factors.
For Further Information:
AT THE COMPANY:
Chief Executive Officer
AT FINANCIAL RELATIONS BOARD:
SOURCE DDi Corp.
Chief Executive Officer of DDi Corp.
Financial Relations Board, for DDi Corp.
CO: DDi Corp.
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6544 01/19/2006 17:57 EST http://www.prnewswire.com