ANAHEIM, CA -- DDi reported third-quarter net income shot up to $6.5 million from $249,000 a year ago as the company benefited from stronger demand and the integration of its acquisition of Coretec.

For the period ended Sept. 30, net sales rose 27.5% over pro-forma third quarter 2009 net sales to $69 million. The 2009 results do not include the net sales of Coretec, which DDi acquired last December. Including the acquisition, sales were up 75.5% over the prior year quarter. It was the fifth consecutive quarter of sequential revenue growth.

Net earnings were up 8% sequentially. Operating income was $6.7 million, up from $400,000 in the prior year period, and down $100,000 sequentially. Gross margin rose 571 basis points from last year to 22.5%.

During the period, DDi consolidated its Toronto-based manufacturing into the ex-Coretec Sheppard Avenue facility, and closed its plant in neighboring Scarborough.

President and chief executive Mikel Williams said, “Looking to the remainder of 2010, we continue to target our 2010 net sales guidance of 20% – 25% growth over 2009 pro-forma net sales of $220 million.”

As of Sept. 30, DDi had total cash and cash equivalents of $15.5 million and total debt of $11.7 million.

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