12.	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, ISR modifications, 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 electronics upgrades for classic weapon control systems used on military aircraft and vehicles. We provide the products through our subsidiary, Butler National Corporation - Tempe, Arizona ("Avionics").

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:

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

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

Year ended April 30, 2019	Professional Services		Aerospace Products		Consolidated
Total revenues	$	32,017	$	26,693	$	58,710
Depreciation and amortization		1,068		778		1,846
Operating income		1,480		3,798		5,278
Capital expenditures, net		1,023		3,962		4,985
Interest expense		-		-		(248	)
Refund of sales/use tax		-		-		1,995
Income before taxes		-		-		7,025
Income tax expense		-		-		1,375
Net income attributable to Butler National Corporation		-		-		3,853
Identifiable assets, net		22,432		26,470		48,902

Year ended April 30, 2018	Professional Services		Aerospace Products		Consolidated
Total revenues	$	31,283	$	16,977	$	48,260
Depreciation and amortization		1,256		504		1,760
Operating income		1,721		402		2,123
Capital expenditures, net		631		1,658		2,289
Interest expense		-		-		(331	)
Other income (expense)		-		-		4
Income before taxes		-		-		1,796
Income tax expense		-		-		540
Net income attributable to Butler National Corporation		-		-		341
Identifiable assets, net		21,538		19,893		41,431

Major Customers:

Revenue from major customers (

percent or more of consolidated revenue) were as follows:

	2019			2018
Aerospace Products – one customer		15.1	%		12.3	%
Professional Services		-			-

In fiscal

2019

the Company derived

25.5%

of total sales from

five

Aerospace customers. The top customer provided

15.1%

of total sales while the next top

four

customers ranged from

2.2%

3.0%.