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7. CONCENTRATIONS AND UNCERTAINTIES	9 Months Ended
May 31, 2013
Concentrations And Uncertainties
Note 7. CONCENTRATIONS AND UNCERTAINTIES	NOTE 7: CONCENTRATIONS AND UNCERTAINTIES Revenue concentration shows that International sales accounted for 42% and 48% of net sales for the nine months ended May 31, 2013 and 2012, respectively. Three customers accounting for 10% (a dealer account in Japan representing various customers), 7%, and 6% of net sales during the nine months ended May 31, 2013, compared with two customers accounting for 9% (a dealer account in Japan representing various customers) and 7% of net sales during the nine months ended May 31, 2012. Accounts receivable concentration shows that three customers comprised 18%, 10%, and 7% of accounts receivable at May 31, 2013, and three customers comprised 23%, 13% and 11% (a dealer account in Japan representing various customers) of accounts receivable at May 31, 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.

7. CONCENTRATIONS AND UNCERTAINTIES

9 Months Ended

May 31, 2013

Note 7. CONCENTRATIONS AND UNCERTAINTIES

NOTE 7: CONCENTRATIONS AND UNCERTAINTIES

Revenue concentration shows that International sales accounted for 42% and 48% of net sales for the nine months ended May 31, 2013 and 2012, respectively. Three customers accounting for 10% (a dealer account in Japan representing various customers), 7%, and 6% of net sales during the nine months ended May 31, 2013, compared with two customers accounting for 9% (a dealer account in Japan representing various customers) and 7% of net sales during the nine months ended May 31, 2012.

Accounts receivable concentration shows that three customers comprised 18%, 10%, and 7% of accounts receivable at May 31, 2013, and three customers comprised 23%, 13% and 11% (a dealer account in Japan representing various customers) of accounts receivable at May 31, 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.