Significant Customers

12 Months Ended

Dec. 31, 2016

The Company markets its products and services throughout the world to original equipment manufacturers (OEMs) and systems integrators in the building, industrial, transportation, utility/home, and other automation markets. During the years ended December 31, 2016, 2015 and 2014, the Company had two customers that accounted for a significant portion of its revenues: Avnet Europe Comm VA (“Avnet”), the Company’s primary distributor of its IIoT products in Europe and Japan, and Enel Distribuzione Spa ("Enel"), an Italian utility company. For the years ended December 31, 2016, 2015 and 2014, the percentage of the Company’s revenues attributable to sales made to these customers was as follows:



	Year ended December 31,
	2016	2015	2014
Avnet	28.7%	24.5%	26.2%
Enel	4.1%	12.7%	7.7%
Total	32.8%	37.2%	33.9%

Avnet is an indirect subsidiary of Avnet, Inc., a New York corporation, which is a distributor of electronic parts, enterprise computing and storage products, and embedded subsystems. Our agreement with Avnet renews automatically on May 31 of each year unless either party, in its sole discretion, gives notice of its desire not to renew at least 90 days before the expiration of the then current term.

We do not currently expect additional shipments to Enel. As such, we expect our revenues from Enel will decrease significantly in 2017 as compared to 2016.