Note 9—Major Customers

The Company's customers operate in industries that are, to a varying extent, subject to rapid technological change, vigorous competition and short product life cycles. Developments adverse to the electronics industry, the Company's customers or their products could impact the Company's overall credit risk.

The Company extends credit based on evaluation of its customers' financial condition and generally does not require collateral or other security from its customers and would incur a loss equal to the carrying value of the accounts receivable if its customer failed to perform according to the terms of the credit arrangement.

Sales to the ten largest customers represented 56%, 53% and 47% of total sales for 2012, 2011 and 2010, respectively. Sales to our largest customer were as follows for the indicated periods:


	Year ended December 31,
(in thousands)	2012		2011		2010
International Business Machines Corporation	$	506,126	$	319,411	$	*

* amount is less than 10% of total sales