ANAHEIM, CA -- DDi Corp. today reported fourth-quarter net sales increased 7.5% sequentially and slipped 1.9% to $42.2 million.

For the quarter ended Dec. 31, the printed circuit board fabricator reported GAAP net income of $600,000, versus a loss of $37.3 million last year. Gross margin rose 370 basis points sequentially and 90 basis points year-over-year to 20.5%. DDi completed its acquisition of Coretec Inc. at quarter's end. Operating income was $1.5 million compared to an operating loss of $37.6 million in the prior year period, which included a $38.9 million goodwill impairment charge.

In a press release, president and chief executive Mikel Williams said, “Our fourth quarter’s financial performance marked another quarter of sequential revenue growth, led by continued increasing demand in our end markets. We have experienced strong order in-take to date in 2010 and, if this trend continues, we would expect net sales to grow at least 10% over the combined companies’ 2009 pro-forma net sales of $220 million."

The integration and restructuring of the company's two Toronto plants will generate annual cost savings of approximately $8 million, he added.

 

For the year, net sales were $158 million, down 17.2% from 2008. Gross margin fell to 18.5% of net sales from 20.3%. Operating income was $3.4 million and GAAP net income was $1.8 million.

As of Dec. 31, DDi had total cash and cash equivalents of $19.4 million and total debt of $17.2 million.