Concentrations:	12 Months Ended
Sep. 30, 2014
Concentrations:
Concentrations:	2.Concentrations: Major Customers and Products In fiscal 2014, 2013 and 2012, the Company derived 59%, 64% and 63%, respectively, of total sales from five customers, although not all the same customers in each year. Accounts receivable and unbilled receivables related to those top five customers was $7.9 million, $5.9 million, and $2.4 million as at September 30, 2014, 2013 and 2012, respectively. In fiscal 2014, three of the Company’s customers, Pilatus, Eclipse and FedEx, accounted for 17%, 14% and 12% of total sales, respectively. In fiscal 2013, two of the Company’s customers, Eclipse and American Airlines Inc. (“AAI”), accounted for 24% and 14% of total sales, respectively. In fiscal 2012, three of the Company’s customers, Eclipse, FedEx and National Nuclear Security Administration, accounted for 20%, 14%, and 13% of total sales, respectively. Flat panel sales were 88%, 88% and 87% of total sales in the years ended September 30, 2014, 2013 and 2012, respectively. Sales of air data systems and components were 12%, 12% and 13% of total sales for the years ended September 30, 2014, 2013 and 2012, respectively. Sales to government contractors and agencies accounted for approximately 39%, 28% and 45% of total sales during fiscal years 2014, 2013 and 2012, respectively. The government agency or general contractor typically retains the right to terminate the contract at any time at its convenience. Upon alteration or termination of these contracts, IS&S is entitled typically to an equitable adjustment to the contract price so that it would be compensated for delivered items and allowable costs incurred. Accordingly, because these contracts can be terminated, the Company cannot be assured that its backlog will result in sales. Major Suppliers The Company buys several of its components from sole source suppliers. Although there are a limited number of suppliers of particular components, management believes other suppliers could provide similar components on comparable terms. During fiscal 2014 the Company had one supplier that accounted for 15% of the Company’s total inventory related purchases. During fiscal 2013 the Company had one supplier that accounted for 30% 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. Cash balances are maintained with two major banks. Balances on deposit with certain money market accounts and operating accounts may exceed the Federal Deposit Insurance Corporation (“FDIC”) limits. The Company’s customer base consists principally of companies within the aviation industry. The Company requests advance payments and/or letters of credit from customers that it considers to be credit risks. The Company has recorded a charge for impairment for unbilled receivables in the amount of $3.7 million related to the Delta contract as of September 30, 2014, (See Note 5. Unbilled Receivable in Notes to Consolidated Financial Statements). The Company had no such charge at September 30 2013.

2.Concentrations:

Major Customers and Products

In fiscal 2014, 2013 and 2012, the Company derived 59%, 64% and 63%, respectively, of total sales from five customers, although not all the same customers in each year. Accounts receivable and unbilled receivables related to those top five customers was $7.9 million, $5.9 million, and $2.4 million as at September 30, 2014, 2013 and 2012, respectively.

In fiscal 2014, three of the Company’s customers, Pilatus, Eclipse and FedEx, accounted for 17%, 14% and 12% of total sales, respectively. In fiscal 2013, two of the Company’s customers, Eclipse and American Airlines Inc. (“AAI”), accounted for 24% and 14% of total sales, respectively. In fiscal 2012, three of the Company’s customers, Eclipse, FedEx and National Nuclear Security Administration, accounted for 20%, 14%, and 13% of total sales, respectively.

Flat panel sales were 88%, 88% and 87% of total sales in the years ended September 30, 2014, 2013 and 2012, respectively. Sales of air data systems and components were 12%, 12% and 13% of total sales for the years ended September 30, 2014, 2013 and 2012, respectively. Sales to government contractors and agencies accounted for approximately 39%, 28% and 45% of total sales during fiscal years 2014, 2013 and 2012, respectively. The government agency or general contractor typically retains the right to terminate the contract at any time at its convenience. Upon alteration or termination of these contracts, IS&S is entitled typically to an equitable adjustment to the contract price so that it would be compensated for delivered items and allowable costs incurred. Accordingly, because these contracts can be terminated, the Company cannot be assured that its backlog will result in sales.

Major Suppliers

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

During fiscal 2014 the Company had one supplier that accounted for 15% of the Company’s total inventory related purchases. During fiscal 2013 the Company had one supplier that accounted for 30% 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. Cash balances are maintained with two major banks. Balances on deposit with certain money market accounts and operating accounts may exceed the Federal Deposit Insurance Corporation (“FDIC”) limits. The Company’s customer base consists principally of companies within the aviation industry. The Company requests advance payments and/or letters of credit from customers that it considers to be credit risks.

The Company has recorded a charge for impairment for unbilled receivables in the amount of $3.7 million related to the Delta contract as of September 30, 2014, (See Note 5. Unbilled Receivable in Notes to Consolidated Financial Statements). The Company had no such charge at September 30 2013.