Question-and-Answer Session
Operator
Thank you. (Operator Instructions) And we'll go to the line of John Franzreb with Sidoti & Company. Please go ahead.
John Franzreb – Sidoti & Company
Good morning Donna and Vinod.
Vinod Khilnani
Good morning John.
Donna Belusar
Good morning John.
John Franzreb – Sidoti & Company
Actually my first question is around the EMS business. The organic revenue growth in the fourth quarter, so I think if I heard it correct it was around 9% or so. Does that sound right?
Vinod Khilnani
I think that sounds about right.
John Franzreb – Sidoti & Company
Okay. Could you talk a little bit about trends in the EMS sector? I know we had some of the larger competitors report last night. It seemed like they had a down quarter and you seem to be bucking that trend. Can you talk a little bit of what’s the difference if any, you versus some of the more well known names in that sector?
Vinod Khilnani
John, I will tell you as we have said in the past that EMS business, it’s easier to talk about trends on an annual basis. Sometimes it's difficult to talk about trends on a quarterly basis because as we have said EMS business tends to be lumpy. Having said that we had sales growth as I indicated in my comments, more in defense and aerospace and medical arena, and what we’re finding out is that medical and defense areas are staying in a better shape than computers or communication or industrial. So, we do have industrial customers, which clearly saw their demand go down and did affect us adversely. However, we were able to more than offset that with either customers and defense, which increased purchases from us. We also saw at least one example where CTS benefited from the weakness of a competitor, where the competitor had some cash difficulties and I believe the bank took over one of their facilities and closed them down. And we were able to step in and because of our global footprint we were able to convince the customer that CTS is a better EMS supplier than their existing supplier. So, it is a combination of those two kinds of things, which helped us in the fourth quarter and full year.
John Franzreb – Sidoti & Company
Well, that’s great. Now you said and if we still kind of to say a small word on mid and annualized basis, as Companies shutdown production, are they more apt to outsource material before bringing production back on themselves? Or are they more apt to keep as much production in-house as possible? What kind of assessment is on the EMS side of business? What they are more likely to do?
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