DDi Corp. Completes Sale of Assembly Division14 October 2006
DDi Corp. (NASDAQ: DDIC), a leading provider of technologically advanced PCB engineering and manufacturing services, announced today that is has completed the sale of its assembly business to Veritek Manufacturing Services, LLC, for approximately $12 million in cash. The sale reflects the company's previously announced strategy to focus on its core PCB fabrication, engineering and manufacturing business. In addition to the sale of its assembly division, DDi is acquiring Sovereign Circuits Inc., a privately held, premier printed circuit board manufacturing company serving the military, aerospace and high reliability commercial markets. The acquisition of Sovereign Circuits is expected to be completed during October of 2006. About DDi DDi is a leading provider of time-critical, technologically advanced, electronics manufacturing services. Headquartered in Anaheim, California, DDi and its subsidiaries offer PCB engineering, fabrication and manufacturing services to leading electronics OEM's and contract manufacturers worldwide from its facilities across North America and with manufacturing partners in Asia. About Veritek Manufacturing Services, LLC Veritek Manufacturing Services, LLC is a contract manufacturer of customer designed electronic products, including the assembly of surface mount interconnect printed circuit boards and the production and sale of completely assembled and tested electronic products. Highlighted Links http://www.ddiglobal.com "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995 Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding the Company's 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" or similar expressions identify forward-looking statements. Forward-looking statements include, but are not limited to, statements above that the proposed transactions will be accretive to stockholders, DDi's ability to extend its presence in other markets which it believes are less vulnerable to other manufacturers, and the anticipated benefits of the proposed transaction with Sovereign Circuits. 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 the Company's projections will be achieved. In addition to other factors and matters discussed from time to time in the Company's 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 its subsidiaries to differ materially from those discussed in forward-looking statements include: that the proposed divestiture of the assembly business and the proposed acquisition of Sovereign Circuits may not close on a timely basis or at all, including due to the failure to satisfy closing conditions or otherwise; the anticipated benefits to the Company of the sale of the assembly business and the acquisition of Sovereign Circuits may not be realized; the final purchase prices received as a result of the sale of the assembly business and the price paid for Sovereign Circuits may be different than anticipated due to post-closing adjustments; changes in general economic conditions in the markets in which we may compete and fluctuations in demand in the electronics industry; the Company's ability to sustain historical margins; increased competition; increased costs; loss or retirement of key members of management; increases in the Company's 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: Sally Goff Chief Financial Officer (714) 688-7200 Email Contact AT NMC Partners: Kathleen Buczko Investor/Analyst Information (562) 366-1552 Email Contact SOURCE: DDi Corp.
Source: marketwire
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