On October 26th 2010, CTS (CTS) announced results for the third quarter of fiscal year 2010 ending September 2010. Revenue for the period was $139.4 million, up 0.4% sequentially from $138.9 million and up 10.1% year over year.
Components and Sensors segment sales increased 29% from the same period last year, reflecting both improved global economic conditions and new product introductions. Third quarter 2010 sales of sensor and actuator products increased 20% from the same period last year, primarily from growth in global light vehicle production and new customers and product introductions.
Sales of electronic component products increased 44% across most served markets from general improvement in the economy and new product introductions. Components and Sensors segment sales, as a percent of total company sales, increased to 51% from 44% in the third quarter of 2009 helping overall gross margins and operating earnings returns.
EMS sales decreased 4% from the same period last year, but were up 1% sequentially. The year-over-year decrease resulted primarily from weaker sales in the defense and aerospace and medical markets due to lower demand and timing of new programs.
Strong Design Wins
New design wins are the best indicator of future revenue growth. CTS won seven new automotive sensors and actuator programs in the third quarter of 2010, including a light commercial vehicle diesel engine program in India. The firm also established a private limited company in India to further pursue growth opportunities in sensors, electronic components and EMS.
In electronic components CTS recorded 58 new wireless infrastructure design wins compared to 52 in the third quarter of last year. Most of the design wins were in 3G and 4G wireless applications, and approximately 16% were for defense and aerospace applications.
Bringing Estimates Up
Management increased the full-year 2010 diluted earnings per share to a range of $0.60 to $0.65 compared to the previous range of $0.55 to $0.62 per share, and maintained the full-year 2010 sales estimate to an increase of 10%-15% over 2009.
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