CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2012 and 2011:

	Three Months Ended				Six Months Ended
	June 30				June 30
	2012		2011		2012		2011
GE Medical Division	16	%	15	%	16	%	15	%
GE Transportation Division	10		9		7		7
Total GE Medical & Transportation Division	26	%	24	%	23	%	22	%

Accounts receivable from G.E.’s Medical and Transportation Divisions represented 20% and 17% of total accounts receivable at June 30, 2012 and December 31, 2011, respectively.

Export sales represented 6% of consolidated net sales for the three months ended June 30, 2012 and 2011.  Export sales represented 7% and 6% of net sales for the six months ended June 30, 2012 and 2011, respectively.