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7. CONCENTRATIONS AND UNCERTAINTIES
3 Months Ended
Nov. 30, 2013
Concentrations And Uncertainties  
Note 7. CONCENTRATIONS AND UNCERTAINTIES

Revenue concentration shows that International sales accounted for 52% and 55% of net sales for the three months ended November 30, 2013 and 2012, respectively. Four customers accounting for 19%, 13%, 11% (a dealer account in Japan representing various customers), and 10% of net sales during the three months ended November 30, 2013, compared with four customers accounting for 22%, 14% (a dealer account in Japan representing various customers), 12%, and 8% of net sales during the three months ended November 30, 2012.

 

Accounts receivable concentration shows that four customers comprised 18%, 18% (a dealer account in Japan representing various customers), 15%, and 7% of accounts receivable at November 30, 2013, and four customers comprised 17% (a dealer account in Japan representing various customers), 16%, 11%, and 7% of accounts receivable at November 30, 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 recent economic downturn, we have seen consolidations in the pharmaceutical industry. 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.