ANAHEIM, CA -- DDi Corp. reported first-quarter net sales rose 65% to $64.7 million as the printed circuit fabricator absorbed its former competitor Coretec.

For the period ended March 31, on a pro-forma basis, net sales rose 16.4% over the prior year. The company said the quarter was marked by stronger customer demand and the net sales contribution from the Coretec acquisition.

Net income increased 660% from last year to $3.8 million. Gross margin increased 310 basis points from last year and 110 basis points sequentially to 21.6% of net sales from 20.5% of net sales. Operating income was $4.9 million, up 600% from the prior year period.

Bookings increased 65% sequentially to $71.7 million, good for a 1.11 book-to-bill ratio.

In a press release, chief executive and president Mikel Williams said, “We are off to a very strong start for 2010 as evidenced by our first quarter financial performance. In addition to delivering solid organic growth in our core business, the acquisition of Coretec is proving highly complementary and contributed to our improved top and bottom line performance. Based on our first quarter financial results, we are now targeting at least 15% growth over our 2009 pro-forma DDi and Coretec net sales of $220 million.”

As of March 31, 2010, DDi had total cash and cash equivalents of $12.2 million and total debt of $12.6 million. During the first quarter of 2010, DDi repaid, in full, Coretec’s outstanding line of credit, which amounted to $4.2 million at Dec. 31.

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