Concentrations:

12 Months Ended

Sep. 30, 2011

Concentrations:

Concentrations:

2. Concentrations:

• Major Customers and Products

        In fiscal 2011, 2010 and 2009, the Company derived 61%, 48%, and 56%, respectively, of total sales from five customers, although not all the same customers in each year. Accounts receivable related to those top five customers was $1.8 million, $0.3 million, and $2.8 million for the twelve month period ended September 30, 2011, 2010, and 2009, respectively.

        In fiscal 2011 two of the Company's customers, Eclipse and FedEx, accounted for 20% and 15% of total sales, respectively. In fiscal 2010 two of the Company's customers, Lockheed Martin and FedEx, accounted for 11% and 10% of total sales, respectively. In fiscal 2009 two of the Company's customers, American Airlines and United States Department of Defense, accounted for 24% and 11% of total sales, respectively.

        Sales of air data systems and components were 21%, 32%, and 25% of total sales for the years ended September 30, 2011, 2010 and 2009, respectively. Flat Panel sales were 79%, 68%, and 75% of total sales in the years ended September 30, 2011, 2010 and 2009, respectively. Sales to government contractors and agencies accounted for approximately 30%, 43%, and 46% of total sales during fiscal years 2011, 2010 and 2009, respectively. While under these contracts the government agency or general contractor typically retains the right to terminate the contract at any time at its convenience, to date these contracts generally have included provisions requiring the payment to the Company of all revenue earned and costs incurred by the Company through the date of contract termination and do not entitle the customer to receive a refund of any previously paid fees.

        On November 29, 2011, AMR Corporation, the parent company of American Airlines, Inc. and certain of its other U.S.-based subsidiaries filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of New York. The Company's revenues from American Airlines, Inc. accounted for 8%, 8% and 24% total revenue for the fiscal years 2011, 2010 and 2009, respectively. (See also Note 18—Subsequent Event).

• Major Suppliers

        The Company currently buys several of its components from sole source suppliers. Although there are a limited number of manufacturers of particular components, management believes other suppliers could provide similar components on comparable terms.

        During fiscal 2011 the Company had one supplier who accounted for 27% of the Company's total inventory related purchases. During fiscal 2010 the Company had one supplier who accounted for 22% of the Company's total inventory related purchases.

• Concentration of Credit Risk

        Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash balances and accounts receivable. The Company invests its excess cash where preservation of principal is the major consideration. The Company's customer base consists principally of companies within the aviation industry. The Company routinely requests advance payments and/or letters of credit from new customers.

        The Company maintained a reserve for doubtful accounts in the amount of $0.2 million and $0.2 million for fiscal year 2011 and 2010, respectively. The reserve balance for both fiscal 2011 and 2010 is related to sales of Engineering—modification and development services ("EMD") to a customer that was negatively impacted by the current economic environment.