Accounts receivable, net

6 Months Ended

Jan. 31, 2018

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 55% and 63% of our total net revenue for each of the three months ended January 31, 2018 and 2017, respectively and 54% and 63% of our total net revenue for the six months ended January 31, 2018 and 2017, respectively. Set forth in the table below are customers that individually accounted for 10% or more of our net revenue.

	Three Months Ended						Six Months Ended
	January 31,						January 31,
	2018			2017			2018			2017
Koninklijke Philips Electronics N.V., or Philips		13	%		14	%		13	%		13	%
Siemens AG		11	%		11	%		11	%		12	%
L-3 Communications Corporation, or L-3	*				10	%	*				10	%
Toshiba Corporation or Toshiba	*				11	%	*				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
	January 31,			July 31,
	2018			2017
Philips		16	%		14	%
Smiths Detection		10	%	*
GE	*				11	%

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