Significant Customers And Concentration Of Credit Risk

12 Months Ended

Dec. 31, 2011

Significant Customers And Concentration Of Credit Risk [Abstract]

Significant Customers And Concentration Of Credit Risk

11.          SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK

Royalty income from Econolite comprised 43%, 40% and 49% of revenue in the years ended December 31, 2011, 2010 and 2009, respectively. Accounts receivable from Econolite were $4.3 million and $2.6 million at December 31, 2011 and 2010, respectively. Major disruptions in the manufacturing and distribution of our products by Econolite or the inability of Econolite to make payments on its accounts receivable with us could have a material adverse effect on our business, financial condition and results of operations. Econolite was the only customer that comprised more than 10% of accounts receivable as of December 31, 2011. In April 2011, the Chief Executive Officer of the parent company of Econolite was elected to our Board of Directors.

In addition to Econolite, one international customer comprised more than 10% of accounts receivable, accounting for 15% of the balance at December 31, 2010.