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ELKHART, ID -- CTS Corp.'s EMS sales fell 20% year-over-year to $75.8 million on lower demand for computer, industrial and communications products.

The company said it saw strength in the defense and aerospace and medical markets.

EMS operating earnings rose $1.2 million from 2008. EMS sales fell 28% sequentially, while operating earnings were down 17.5% from the fourth quarter to $3.3 million.

Overall first quarter revenues were $118.1 million, down 32% from a year ago. The adjusted net loss was $1.1 million, down from net earnings of $6.3 million last year. The GAAP net loss includes $2.2 million of restructuring charges and $33.2 million of non-cash charges for goodwill, was $35.6 million.

Since last year, the company has cut its global headcount by approximately 20%,

The lower EMS sales reflected previously announced planned end-of-life sales reductions to Hewlett-Packard. Sales into defense and aerospace and medical markets improved more than 10% year-over-year.

Cash flow used in operations was $4 million, up $1.5 million from the same period last year. Capital expenditures were $1.4 million, down from $3.5 million last year.

The company declined to give guidance.

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