Note 12—Major Customers and Suppliers

The Company's product sales have historically been concentrated in a small number of customers. The following table sets forth sales to customers comprising 10% or more of the Company's net sales as follows:


	Year Ended
	December 31, 2011			January 1, 2011
Customer A		70	%		59	%
Customer B		*			19	%

less than 10% of net sales

Sales of the Company's NVvault products represented 66% and 54% of net sales in 2011 and 2010, respectively.

The Company's accounts receivable primarily are concentrated with one customer at December 31, 2011, representing approximately 80%; and two customers at January 1, 2011, representing approximately 75% and 13% of aggregate gross receivables. A significant reduction in sales to, or the inability to collect receivables from, a significant customer could have a material adverse impact on the Company.

The Company's purchases have historically been concentrated in a small number of suppliers. The following table sets forth purchases from suppliers comprising 10% or more of the Company's total purchases as follows:


	Year Ended
	December 31, 2011			January 1, 2011
Supplier A		24	%		10	%
Supplier B		*			11	%
Supplier C		*			10	%

less than 10% of total purchases

While the Company believes alternative suppliers could be utilized, any inability to obtain components or products in the amounts needed on a timely basis or at commercially reasonable prices could result in delays in product introductions, interruption in product shipments or increases in product costs, which could have a material adverse effect on the Company.