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.”