ANAHEIM, CA -- DDi today reported third-quarter sales rose 6% sequentially to $39.3 million as the company recovers from the ailing economy.

For the quarter ended Sept. 30, sales were down 20% from a year ago. The net income was $249,000, down 84% from a year ago and 43% from last quarter.

For the quarter, gross margin fell to 16.8% of net sales, versus 20.8% last year and 18% sequentially. Cash and cash equivalents rose to $25.6 million. Adjusted EBITDA was $3 million, or 7.7% of net sales, compared to $7.1 million, or 14.3% of net sales last year.

In a press statement, president and CEO Mikel Williams said, “We are pleased to see top line growth return, continued profitability and positive cash generation during the third quarter, given the continued market pressures in the general economy. Further, we are seeing solid signs of success with our entry into the ATE market as we continue to gain qualifications with customers in this segment."

Speaking on the company's proposed acquisition of rival Coretec, Williams said, “We believe the combination of DDi and Coretec would create a powerful player in the PCB industry. The combined company would be able to more effectively meet customer demand, drive significant operational cost synergies and overall accelerate value creation for both companies’ shareholders." He said DDi recently purchased 515,000 shares of Coretec common stock.

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