The Company has not experienced any significant difficulty in collecting its accounts receivable in the past and is not aware of any financial difficulties being experienced by its major customers. There was no bad debt expense during the three months ended March 31, 2011 and 2010, respectively. Our credit term for distributors with good credit history is from 30 days to 120 days. There was no accounts receivable over 120 days outstanding as of March 31, 2011. Accounts receivable over 120 days accounted for 3.1% of accounts receivable outstanding as of December 31, 2010.
=============== The following was not in the 10-Q but was in the earnings release. Not sure why this is the case.
Accounts receivable were $36.2 million, compared to $46.0 million as of December 31, 2010; accounts receivable turnover was 193 days in the first quarter of 2011 . =======================
I now believe that the company's definition of Accounts Receivable turnover equals the number of days it takes to cycle thru the dollars spent to buy the raw materials, process it, sell it, and collect the cash.