CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

6 Months Ended

Jun. 30, 2015

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 two high-credit quality financial institutions.  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.

Our largest customer, General Electric, has two divisions that collectively account for more than 10% of net sales for the three and six months ended June 30, 2015 and 2014:

	Three Months Ended				Six Months Ended
	June 30				June 30
	2015		2014		2015		2014
GE Healthcare	17	%	24	%	17	%	24	%
GE Transportation	8		6		8		5
Total General Electric	25	%	30	%	25	%	29	%

Combined accounts receivable from both divisions represented 18% and 19% of total accounts receivable at June 30, 2015 and December 31, 2014, respectively.

Export sales represented 13% and 14% of net sales for the three months ended June 30, 2015 and 2014, respectively.  Export sales represented 12% and 13% of net sales for the six months ended June 30, 2015 and 2014, respectively.