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Concentrations of Credit Risk
 3 Months Ended
Jan. 31, 2012
Concentrations of Credit Risk

Note 7 - Concentrations of Credit Risk

 

One customer accounted for approximately 14% and 17% of the Company’s net sales for the three month periods ended January 31, 2012 and 2011, respectively. At January 31, 2012 and October 31, 2011, this customer’s account receivable balance accounted for approximately 10% and 14%, respectively, of the Company’s total net accounts receivable balances.  Although this customer has been an on-going major customer of the Company continuously during the past 14 years, the written agreements with this customer do not have any minimum purchase obligations and the customer could stop buying the Company’s products at any time and for any reason. A reduction, delay or cancellation of orders from this customer or the loss of this customer could significantly reduce the Company’s revenues and profits.