Accounts receivable, net

3 Months Ended

Oct. 31, 2017

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 bad debts charged against the reserve have been minimal.

Our top ten customers combined accounted for approximately 53% and 64% of our total net revenue for each of the three months ended October 31, 2017 and 2016, respectively. Set forth in the table below are customers that individually accounted for 10% or more of our net revenue.

	Three Months Ended
	October 31,
	2017			2016
Koninklijke Philips Electronics N.V., or Philips		12	%		13	%
Siemens AG		12	%		13	%
L-3 Communications Corporation, or L-3	*				10	%

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			As of
	October 31,			July 31,
	2017			2017
Philips		15	%		14	%
Smiths Detection		10	%	*
GE	*				11	%

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