XML 33 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
7. CONCENTRATIONS AND UNCERTAINTIES
6 Months Ended
Feb. 28, 2013
Concentrations And Uncertainties  
Note 7. CONCENTRATIONS AND UNCERTAINTIES

Revenue concentration shows that International sales accounted for 53% and 50% of net sales for the six months ended February 28, 2013 and 29, 2012, respectively. Two customers accounted for 11% (a dealer account in Japan representing various customers) and 10% of net sales during the six months ended February 28, 2013, compared with three customers accounting for 11%, 8% (a dealer account in Japan representing various customers), and 6% of net sales during the six months ended February 29, 2012.

 

Accounts receivable concentration shows that three customers comprised 12%, 10% (a dealer account in Japan representing various customers), and 10% of accounts receivable at February 28, 2013, and two customers comprised 14% and 13% (a dealer account in Japan representing various customers) of accounts receivable at February 29, 2012.

 

We operate in the computer software industry, which is highly competitive and changes rapidly. Our operating results could be significantly affected by our ability to develop new products and find new distribution channels for new and existing products.

 

The majority of our customers are in the pharmaceutical industry. During the current economic downturn, we have seen consolidations in the pharmaceutical industry, especially in this first fiscal quarter of 2013. Although we have not seen any significant reduction in total revenues to date, our growth rate has been affected. Continued consolidation and downsizing in the pharmaceutical industry could have an impact on our revenues and earnings going forward.