About CTS

CTS Corporation (CTS) operates as a global manufacturer of sensors, connectivity components, and actuators. The company designs, manufactures, and sells a broad line of sensors, connectivity components, and actuators primarily to original equipment manufacturers ('OEMs') and tier one suppliers for the aerospace and defense, industrial, medical, and transportation markets. The company operates manufacturing facilities in North America, Asia, and Europe. Sales and marketing are accomplished through the company's sales engineers while also using independent manufacturers' representatives and distributors as an extension of the company's sales capability. During 2022 and 2023, the company acquired TEWA Temperature Sensors SP. Zo.o. ('TEWA'), Meggitt A/S (a/k/a Ferroperm Piezoceramics A/S, 'Ferroperm') and maglab AG ('Maglab'). Products By Major Markets The company's products perform specific electronic functions for a given product family and are intended for use in products assembled by the company's customers. Products are sold to several industry OEMs, tier one suppliers, and distributors. The company's devices are categorized by their ability to Sense, Connect or Move. Sense products provide vital inputs to electronic systems. Connect products allow systems to function in synchronization with other systems. Move products ensure required movements are effectively and accurately executed. The company's major products are Sense (Controls, Pedals, Piezo Sensing Products, Sensors, Switches, and Transducers), Connect (EMI/RFI Filters, Capacitors, Frequency Control Products, Resistors, and RF filters), and Move (Piezo Microactuators and Rotary Actuators). Marketing and Distribution Sales and marketing to customers is accomplished through the company's sales engineers, independent manufacturers' representatives, and distributors. The company maintains sales offices in China, the Czech Republic, Denmark, Germany, Japan, Singapore, Taiwan, and the United States. Approximately 91% of 2023 net sales were attributable to the company's sales engineers. The company's sales engineers generally service its largest customers with application-specific products. A vast majority of the company's products are engineered solutions. The sales engineers work closely with major customers in designing and developing products to meet specific customer requirements. In 2023, independent distributors accounted for approximately 6% of net sales. The company uses distributors for a small portion of its product portfolio that are standard and require less design support, to service smaller customers, and to provide supply chain fulfillment for certain customers. The company's key distribution partners include large global and regional distributors, such as Avnet, Inc., Digi-Key Electronics, Master Electronics, Future Electronics, and TTI, Inc. In addition, the company utilizes the services of independent manufacturers' representatives for customers not serviced directly by the company's sales engineers. Independent manufacturers' representatives receive commissions from the company. During 2023, approximately 3% of net sales were attributable to independent manufacturers' representatives. Patents, Trademarks, and Licenses In 2023, CTS continued its practice of innovation and protecting its intellectual property by obtaining patents in the U.S. and abroad. CTS's patents cover inventions relating to products that its engineers have designed, as well as for methods and technology related to CTS's manufacturing processes. CTS obtained 23 patents in 2023, including four U.S. patents, 13 patents in Asia, and six patents in Europe. CTS owns approximately 285 patents worldwide, including 131 active U.S. patents. The company owns seven registered U.S. trademarks, most of which are also registered in jurisdictions throughout the world. The company has also licensed certain patents and the company's license and royalty income for 2023 was less than 1% of net sales. Major Customers For the year ended December 31, 2023, the company's net sales to significant customers as a percentage of total net sales were as follows: Cummins, Inc. (15.0%) and Toyota Motor Corporation (12.5%). The company sells parts to these two transportation customers for certain vehicle platforms under purchase agreements that have program lifetime volume estimates and are subject to purchase orders issued from time to time. Research and Development The company's research and development expenses were $24,918 in 2023. History CTS Corporation was founded in 1896. The company was incorporated as an Indiana corporation in 1929.