CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

3 Months Ended

Mar. 31, 2012

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

NOTE 2. CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

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 grant credit to customers in the normal course of business and do not require collateral on our accounts receivable.

One customer accounted for 10% or more of our net sales for the three months ended March 31, 2012 and 2011.  G.E.’s Medical Division accounted for 17% and 15% of net sales for the three months ended March 31, 2012 and 2011, respectively.  GE’s Transportation Division accounted for 5% and 4% of net sales for the three months ended March 31, 2012 and 2011, respectively.  GE’s Medical and Transportation Divisions combined accounted for 22% and 19% of net sales for the three month periods ended March 31, 2012 and 2011, respectively.  Accounts receivable from G.E.’s Medical and Transportation Divisions represented 15% and 17% of total accounts receivable at March 31, 2012 and December 31, 2011, respectively.

Export sales represented 7% and 6% of consolidated net sales for the three months ended March 31, 2012 and 2011, respectively.