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7. CONCENTRATIONS AND UNCERTAINTIES
6 Months Ended
Feb. 28, 2014
Concentrations And Uncertainties  
Note 7. CONCENTRATIONS AND UNCERTAINTIES

Revenue concentration shows that International sales accounted for 61% and 53% of net sales for the six months ended February 28, 2014 and 2013, respectively. One customer (a dealer account in Japan representing various customers) accounted for 10% of sales for the six months ended February 28, 2014 compared to two customers who accounted for 11% (a dealer account in Japan representing various customers) and 10% of net sales during the six months ended February 28, 2013.

 

Accounts receivable concentration shows that two customers comprised 13% (a dealer account in Japan representing various customers) and 11% of accounts receivable at February 28, 2014 compared to three customers comprising 12%, 10% (a dealer account in Japan representing various customers), and 10% of accounts receivable at February 28, 2013.

 

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.