CTS Signs Four-Year Supply Agreement for Hard Disk Drive Piezoceramic Micro Actuators
ELKHART, Ind.--(BUSINESS WIRE)-- CTS Corporation (CTS), a global leader in the design and manufacture of electronic components, today announced the signing of a four-year supply agreement with a piezoceramic hard disk drive (HDD) customer. This customer provides the disk drive arm incorporating CTS patented piezoceramic product for the primary global supplier of the HDD. The demand for the HDD continues to be fueled by the increased use of video content and cloud computing.
Estimated sales from this agreement are expected to be in the range of $50 to $60 million over the next four-years with production at its Tianjin, China facility. CTS is currently ramping this new business, although some sales were delayed as a result of the floods in Thailand late last year and into this year.
Commenting on the award, Vinod M. Khilnani, CTS Chairman and Chief Executive Officer, stated, We are very pleased to secure this long-term agreement. After several years of design, development and testing, we have started shipments of the piezoceramic components. We expect sales from this new product to contribute to annual double-digit growth in our fast growing Components and Sensors segment.
For more information on CTS piezoceramic products, please contact Scott Hulick, Piezo Product Sales Manager, at 505-348-4213.
About CTS Electronic Components
CTS Electronic Components is a leading provider of engineered electronic components used in communications, medical, defense and aerospace, industrial and computer applications for OEMs and Contract Manufacturers worldwide. The Company has manufacturing locations in Albuquerque, New Mexico; Tucson, Arizona; Hopkinton, Massachusetts; Nogales, Mexico; Singapore; Zhongshan and Tianjin, China; Kaohsiung, Taiwan; and BrËgg, Switzerland.
CTS is a leading designer and manufacturer of electronic components and sensors and a provider of electronics manufacturing services (EMS) to OEMs in the automotive, communications, medical, defense and aerospace, industrial and computer markets. CTS manufactures products in North America, Europe and Asia. CTS' stock is traded on the NYSE under the ticker symbol "CTS. To find out more, visit the CTS Web site at www.ctscorp.com.
Safe Harbor Statement
This press release contains statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, any financial or other guidance, statements that reflect our current expectations concerning future results and events and any other statements that are not based solely on historical fact. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on various assumptions as to future events, the occurrence of which necessarily are subject to uncertainties. These forward-looking statements are made subject to risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from those presented in the forward-looking statements, including, without limitation: changes in the economy generally and in respect to the businesses in which CTS operates; unanticipated issues in integrating acquisitions; rapid technological change; general market conditions in the automotive, communications and computer industries, as well as conditions in the industrial, defense and aerospace and medical markets; reliance on key customers; unanticipated natural or other events such as the Japan earthquake and floods in Thailand; the ability to protect our intellectual property; pricing pressures and demand for our products; and risks associated with our international operations, including trade and tariff barriers, exchange rates and political and geographical risks. For more detailed information on the risks and uncertainties associated with CTS business, see the reports CTS files with the SEC available at http://www.ctscorp.com/investor_relations/investor.htm. CTS undertakes no obligation to publicly update its forward-looking statements to reflect new information or events or circumstances that arise after the date hereof, including market or industry changes.
Thomas A Kroll, Vice President and Chief Financial Officer, 574-523-3800
Mitchell J. Walorski, Director of Investor Relations, 574-523-3800
Source: CTS CorporationCopyright Business Wire 2012