Accounts receivable, net

3 Months Ended

Oct. 31, 2016

3. Accounts receivable, net

Our accounts receivable arise primarily from products sold and services provided in North America, Europe and Asia. The balance in accounts receivable represents the amount due from our domestic and foreign original equipment manufacturers, or OEM, customers, distributors and end users. We perform ongoing credit evaluations of our customers’ financial condition and continuously monitor collections and payments from our customers and maintain a provision for estimated credit losses based upon specific customer collection issues that have been identified. We accrue reserves against trade receivables for estimated losses that may result from a customer’s inability to pay. Amounts determined to be uncollectible are charged or written off against the reserve. To date, our historical write-offs of accounts receivable have been minimal.

Our top ten customers combined accounted for approximately 64% and 62% of our total net revenue for each of the three months ended October 31, 2016 and 2015, respectively. Set forth in the table below are customers which individually accounted for 10% or more of our net revenue.


	Three Months Ended October 31,
	2016			2015
Koninklijke Philips Electronics N.V., or Philips		13	%		13	%
Siemens AG		13	%		14	%
L-3 Communications Corporation, or L-3		10	%			*
Toshiba Corporation, or Toshiba			*		11	%

Note (*): Total net revenue was less than 10% in this period.

The following table summarizes our customers with net accounts receivable balances greater than or equal to 10% of our total net accounts receivable balance:


	As of October 31, 2016			As of July 31, 2016
L-3		17	%		17	%
Philips		13	%		15	%