CTS Corporation (NYSE:CTS) Q3 2023 Earnings Call Transcript

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Kieran O’Sullivan: And, Hendi, one thing I want to highlight is where we have those challenges and we feel they’re not best to market, we’re not shy about turning on new sources.

Unidentified Analyst: I see. And, Kieran, may I seek your insight in terms of the UAW strike, whether the impact can go beyond Q4?

Kieran O’Sullivan: I would hope not, Hendi. The impact is big enough. You obviously heard last night that the Ford is up for proposed settlement at this stage. Our bigger customers are with GM and Stellantis. But, given what’s happening with Ford, I would hope things would converge soon and not get into next year at all.

Unidentified Analyst: I see. And, Kieran, congratulations on securing the first win in eBrake. May I know when the commercial sales of eBrake associated with that win may start?

Kieran O’Sullivan: Hendi, it’s a new product. It’s complex. The first revenues come in either late ’26 or ’27. And the product is very popular with our customer. We have a lot of interest in it as well. We see this as a platform that can be, just like our accelerator modules, a $50 million-plus platform over years.

Unidentified Analyst: Okay. Yeah. And then, the awards that you have in the AC motor current sensors, what is the timing of the commercial sales?

Kieran O’Sullivan: On the current sensors, in actual fact, with what we’ve done out of the maglab acquisition, we already have some impact in sales in industrial applications. The automotive ones take a little bit longer, but they’re on a good trajectory. It’s not going to be three or four years, it’s going to be closer to two years.

Unidentified Analyst: I see. Okay. Thank you, Kieran. Thank you, Ashish.

Kieran O’Sullivan: Thanks, Hendi.

Ashish Agrawal: Thanks, Hendi.

Operator: Thank you. At this time, we currently have no further questions. So, I’ll hand back to Kieran O’Sullivan for any further remarks.

Kieran O’Sullivan: Thanks, Alex, and thank you all for your time. Despite the near-term headwinds, CTS is well-positioned for future growth, driven by the megatrends of increased automation, connectivity, and energy efficiency. Overall, we’re focused on our long-term goals to drive profitable growth. The solid wins in the quarter, expansion of customers, new development contracts, and pipeline of opportunities underscore our strong confidence in CTS’ future. I want to thank our global teams for their support in driving our strategic initiatives, successfully launching several new products, and continuing to give back to those less fortunate in our communities during the quarter. We also continue to work hard to enhance our operational performance. Thank you all for joining us today. This concludes our call.

Operator: Thank you for joining today’s call. You may now disconnect your lines.

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