Page 5 of the 10Q
Our trade receivables from amounts billed for contract manufacturing services provided by Avid have historically been derived from a small customer
base. Most contracts require up-front payments and installment payments during the service period. We perform periodic evaluations of the financial condition of
our customers and generally do not require collateral, but we can terminate any contract if a material default occurs. At October 31, 2016 and April 30, 2016, over
98% of our trade receivables were due from four customers.
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