10.	INDUSTRY SEGMENTATION AND SALES BY MAJOR CUSTOMER:

Industry Segmentation

Current Activities

The Company focuses on

two

primary activities, Professional Services and Aerospace Products.

Aerospace Products:

Aircraft Modifications principally includes the modification of customer and company owned business-size aircraft from passenger to freighter configuration, radar systems, addition of aerial photography capabilities, and stability enhancing modifications for Learjet, Beechcraft, Cessna, and Dassault Falcon aircraft along with other specialized modifications. We provide these services through our subsidiary, Avcon Industries, Inc. ("Aircraft Modifications" or "Avcon").

Avionics principally includes the manufacture, sale, and service of airborne electronic switching units used in DC-

DC-

10,

DC-

9/80,

MD-

80,

MD-

90,

and the KC-

aircraft, Transient Suppression Devices (TSDs) for fuel tank protection on Boeing Classic

737

and

747

aircraft, and other Classic aircraft using a capacitance fuel quantity indicating system ("FQIS"), airborne electronics upgrades for classic weapon control systems used on military aircraft and vehicles, and consulting services with airlines and equipment manufacturers regarding fuel system safety requirements. We provide the products through our subsidiary, Butler National Corporation - Tempe, Arizona and the services through Butler National Corporation - Olathe, Kansas ("Avionics", "Classic Aviation Products", "Safety Products", or "Switching Units").

Butler Avionics sells, installs and repairs avionics equipment (airplane radio equipment and flight control systems). These systems are flight display systems which include intuitive touchscreen controls with large display to give users unprecedented access to high-resolution terrain mapping, graphical flight planning, geo-referenced charting, traffic display, satellite weather and much more. Butler Avionics is also recognized nationwide for its troubleshooting and repair work particularly on autopilot systems.

Professional Services:

BCS Design, Inc. provides licensed architectural services. These services include commercial and industrial building design.

Butler National Service Corporation ("BNSC") provides management services to the Boot Hill Casino, a "state-owned casino" and to The Stables, an "Indian-owned casino".

Year ended April 30, 2017	Professional Services		Aerospace Products		Consolidated
Total revenues	$	30,849	$	19,770	$	50,619
Depreciation and amortization		1,423		562		1,985
Operating income		1,622		1,878		3,500
Capital expenditures, net		2,296		884		3,180
Interest expense		-		-		(403	)
Other income (expense)		-		-		(16	)
Income before taxes		-		-		3,082
Income tax expense		-		-		768
Net income attributable to Butler National Corporation		-		-		1,534
Identifiable assets, net		21,863		20,915		42,778

Year ended April 30, 2016	Professional Services		Aerospace Products			Consolidated
Total revenues	$	29,784	$	15,010		$	44,794
Depreciation and amortization		1,390		784			2,174
Operating income (loss)		1,597		(975	)		622
Capital expenditures, net		1,183		1,574			2,757
Interest expense		-		-			(471	)
Other income (expense)		-		-			21
Income before taxes		-		-			908
Income tax expense		-		-			93
Net income attributable to Butler National Corporation		-		-			24
Identifiable assets, net		22,462		20,235			42,697

Major Customers:

Revenue from major customers (

percent or more of consolidated revenue) were as follows:

	2017			2016
Aerospace Products – one customer		10.5	%		N/A *
Professional Services		N/A *			N/A *

*Revenue represented less than

10%

of consolidated revenue.

In fiscal

201

the Company derived

25.2%

of total sales from

five

Aerospace customers. The top customer provided

10.5%

of total sales while the next top

four

customers ranged from

0.9%

9.2%.