MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK

12 Months Ended

Dec. 31, 2011

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK

NOTE 2 MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK

        Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and accounts receivable. With regard to cash, we maintain our excess cash balances in checking accounts at one high-credit quality financial institution. These accounts may at times exceed federally insured limits. We do not require collateral on our receivables.

        Two divisions of General Electric, Co. (G.E.) accounted for 10% or more of our net sales during the past two years. G.E.'s Medical Division accounted for 16% and 19% of net sales for the years ended December 31, 2011 and 2010, respectively. G.E.'s Transportation Division accounted for 7% and 8% of net sales for the years ended December 31, 2011 and 2010, respectively. Together, G.E.'s Medical and Transportation Divisions accounted for 23% and 27% of net sales for the years ended December 31, 2011 and 2010, respectively. Accounts receivable from G.E.'s Medical and Transportation Divisions at December 31, 2011 and 2010 represented 17% and 14% of total accounts receivable, respectively.