Ladies and gentlemen we would like to thank you for standing by and welcome to the CTS Q2 earnings teleconference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session with instructions being given at that time. (Operator Instructions) As a reminder, today’s conference call will be recorded. I would now like to turn the conference over to your host and your facilitator, Mr. Tom Kroll. Please go ahead, sir.

Thank you, Steven. My name is Tom Kroll and I'm the CFO of CTS Corporation. Thank you all for join us today. Joining me today is Kieran O'Sullivan, our CEO. Before beginning the business discussion, I would like to remind our listeners that the conference call contains forward-looking statements. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Additional information regarding these risks and uncertainties was set forth in last evening’s press release and more information can be found in the company’s SEC filings. To the extent that today’s discussion refers to any non-GAAP measures relative to Regulation G, the required explanations and reconciliations are available on our website in the Investor Relations section. I will now turn the discussion over to our CEO, Kieran O'Sullivan.

Thanks, Tom, and good morning everyone and welcome. In addition to reviewing the second quarter performance, I will also provide an update on the initial steps we've taken to simplify our business as discussed in our June press release. First, the second quarter results. Sales for the second quarter were $151.6 million, up 1.4% from the first quarter of 2013 and down slightly from the second quarter of 2012, driven primarily by the EMS softness we highlighted in our last call. While our Components and Sensor segment displays sales and earnings growth, we are disappointed with our EMS results. Our EMS management team is fully mobilized and we have the improvement actions started to deliver the return to more normal margins for the fourth quarter. Overall, gross margins improved nearly 3 percentage points from first quarter 2013. Operating expenses reduced by 1% from the first quarter to the second quarter 2013 which was at 17%. We clearly understand that we have more improvements to work on as part of lean corporate and business structure. R&D comps were slightly lower in Q2 and SG&A improved by 0.6 points. This resulted in an adjusted operating earnings for the quarter at 7% and an adjusted EPS of $0.20. Our balance sheet performance was only marginally improved controllable working capital of 17.9% versus 18% for the first quarter. Operating cash flow improved to $13.7 million, but we need further improvement in management of our inventory. Tom will take you through the financial details, including restructuring and cash repatriation. Year-over-year with strong sales growth performance in the Components and Sensors segment of 37%, which included 20% organic growth, EMS sales declined to $46.2 million, down 10% from the first quarter of 2013 and further down from last year’s performance. Production of our smart actuator in…

Thank you, Kieran. Before reviewing the financial results, I would like to make comments on two second quarter financial events. First, in late June we repatriated $30 million of cash from Singapore to the US with an associated tax expense of $0.32 per share. That cash was used to pay down debt. Second, we incurred $8.1 million or $0.17 per share of restructuring and related cost as part of the restructuring plan announced on June 11. These costs include severance and asset impairment towards reducing our cost structure and improving our global manufacturing utilization. Now our results. Our second quarter 2013 sales were $151.6 million, an increase of $2 million from prior quarter and a decrease of $2.7 million from the prior year. Our gross margins were 23.4% versus 16.8% last year or a 6.6 percentage point improvement from two major reasons. First, the component and sensor segment sales mix grew to 70% of total sales in the second quarter 2013 versus 50% in the second quarter 2012. This segment sales mix shift had a positive impact on gross margin of approximately 5 percentage points. In addition, the second quarter of last year included Thailand flood related expenses which lowered the gross margins in that quarter. Our gross margins of 23.4% also compare favorably to the 20.9% in the first quarter, reflecting both the more favorable segment sales mix and our emphasis on gross margin improvement. Our selling, general and administrative expenses were $20.7 million versus $19.4 million last year. The increase from last year was primarily due to the D&R acquisition related amortization expense of about $0.6 million and CEO transition cost. The second quarter 2013 R&D expenses were $5.8 million increasing from the $5.1 million last year and reflects our continued commitment to invest in our future. As…

(Operator Instructions) Our first question will come from the line of John Franzreb with Sidoti & Company. John Franzreb - Sidoti & Company: I actually want to first focus on that 20% organic revenue growth that you were up on discussed in your prepared remarks. How much of that is new program growth versus recovery of your core business, can you [color] that a little bit?

John there are several programs in there but if you look at the growth in smart actuator on Piezo were the biggest drivers, [growth at our] actuator as well will be part of that for the year, they are probably some of the bigger things. John Franzreb - Sidoti & Company: Okay. The automobile side of the business is doing relatively well despite the problems in Europe. Europe companywide, I believe is on 10% of sales. How much exposure does the [other] side of the business have to Europe?

It's pretty small and we've won significant customer in the region but we've got that pretty well managed and we feel we're in good control of it. John Franzreb - Sidoti & Company: Okay, any guess on what kind of percentage we're talking about here?

John, I can get that for you in just one second here. If you want to ask another question? John Franzreb - Sidoti & Company: I am guessing that's less than 10%.

Oh, it definitely is. John Franzreb - Sidoti & Company: Okay, have you used all of the cash from the repatriation or you still have some left that you're going to put to work?

John, as soon as the cash came to the U.S., it was immediately used to pay down the debt and your answer of the automotive piece, it's right in that 10% range. John Franzreb - Sidoti & Company: Okay. Tom, actually you mentioned delays in EMS orders in your remarks. I wondered if you could talk a little bit about that. Will EMS bounce back meaningfully or are we looking at a scenario where the revenues have been significantly brought down just by executing those businesses?

Well, certainly in Q2, the revenues, we see that impact of exiting two of the factories last year. We probably average about $8 million per quarter in both Q1 and Q2 of the sales that we voluntarily walked away from by closing those two factories.

Yeah. I would say it and if you look forward in terms of bouncing back was the other part of your question? We've put a strong emphasis during the quarter in terms of engagement with particular segments, what we want really focus going forward and certainly you will see an improvement back above the topline level of Q1 and that even improving again Q4. So the message we gave on the last call was getting back to more normal operating earnings in the fourth quarter that is still on track. John Franzreb - Sidoti & Company: Great, great and one, this question, what kind of tax rates you'd be thinking about for the second half of the year, Tom.

John in order to stay on that 25% average that I talked about Q3 and Q4 would both be about 29.5%. John Franzreb - Sidoti & Company: Okay. Thank you very much guys good quarter.

Thank you.

(Operator Instructions) And we have a question from the line of Hendi Susanto of Gabelli & Company. Please go ahead. Hendi Susanto - Gabelli & Company, Inc.: Good morning, can you hear me okay?

Yes. We do. Good morning, Hendi. Hendi Susanto - Gabelli & Company, Inc.: Hi, Kieran and Tom. It is not the third time, (inaudible) explained the [word] full year revenue guidance and simultaneously maintain the EPS guidance, what contributed to your ability to sustain the EPS guidance, is that product mix shift toward more of electronic components and sensors, I am wondering whether there are like anything else that contributed to that?

Sure, Hendi, the decrease that we are seeing on the topline is primarily EMS related. And that shortfall in EMS margin contribution is being absorbed by the restructuring actions for that we just announced in Q2 and that like I said in my prepared remarks, that will be between $1.5 million and $2 million and the residual from just a higher percentage of component and sensor sales relative to EMS and improved overall margins due to some of the margin improvement actions that we've taken and the tightening of our belt within SG&A. So those two things have been able to offset the contribution margin associated with the lower EMS sales.

And Hendi just to add to that, you can expect this part of the simplification plan, we will continue to focus on obviously growing the business, but also driving margin improvement and managing operating expenses. Hendi Susanto - Gabelli & Company, Inc.: Okay. And then second question for Kieran. As part of the strategic review like what is your view towards EMS operation at this point. For example, like how will if the EMS facility at this point and whether there are still room for more consolidation in EMS?

The first focus for me in short term is to make sure it's healthy and that's been a strong focus in the last number of weeks here and driving that. There are improvements we can make they're focused on the teams engaged on them. But of course the top line was the first thing that got attention and there are improvements to be made on the operating expenses still and the utilization and you will then hear us talk more about that in the next quarter. Hendi Susanto - Gabelli & Company, Inc.: Okay. Thank you.

You're welcome.

(Operator Instructions) Gentlemen on the panel and ladies, if there are any present, there are no further questions in queue at this time, please continue.

Okay, thank you, Steven. At this point, I would like to remind our listeners that a replay of this conference call will be available from 1:30 pm eastern daylight time today through 11:59 pm on Tuesday July 30th 2013. The telephone number for the replay is 800-475-6701 or 320-365-3844 if calling from the outside the U.S. the access code is 29-76-78. Thank you for joining us today.

Ladies and Gentlemen, and that conclude our conference call for today. We would like to thank you for your participation. Thank you for using AT&T, have a wonderful day. You may now disconnect.