11. Major Customers
The Companys principal business is to provide its customers business intelligence and predictive analytics solutions serving the needs of the aviation industry, primarily airlines, airports, and other aviation related companies. The Company believes it operates under one operating segment. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. Credit losses historically have been immaterial.
Two customers accounted for 24% and 32% of total revenues for fiscal years 2012 and 2011, respectively. One customer, a U.S. government agency, accounted for 14% and 21% of total revenues, or $1,746,000 and $2,843,000, for fiscal years 2012 and 2011, respectively. One customer accounted for 10% of total revenues, or $1,299,000, for fiscal year 2012, and another customer accounted for 11% of total revenues, or $1,500,000, for fiscal year 2011. During fiscal year 2012, the contract with the U.S. government agency was completed. There were no significant past due accounts receivable balances for these customers as of the fiscal year ended October 31, 2012.
American Airlines parent corporation, AMR Corporation, filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code on November 29, 2011. In December 2011, the Company was notified by American Airlines that it will continue operating under the original contract between the Company and American Airlines, with an immaterial revision. The pre-petition receivable from American Airlines is less that the provision of doubtful accounts as of October 31, 2012.
The Company had foreign sales of $139,000 and $217,000 in fiscal years 2012 and 2011, respectively. All sales, including foreign sales, are denominated in U.S. dollars.