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8. CONCENTRATIONS AND UNCERTAINTIES	9 Months Ended
May 31, 2014
Concentrations And Uncertainties
Note 8. CONCENTRATIONS AND UNCERTAINTIES	Revenue concentration shows that International sales accounted for 53% and 42% of net sales for the nine months ended May 31, 2014 and 2013, respectively. Three customers accounted for 14% (a dealer account in Japan representing various customers), 9% and 5% of sales for the nine months ended May 31, 2014 compared to three customers who accounted for 10% (a dealer account in Japan representing various customers) 9% and 7% of net sales during the nine months ended May 31, 2013. Accounts receivable concentration shows that three customers comprised 23%, 18% (a dealer account in Japan representing various customers) and 10% of accounts receivable at May 31, 2014 compared to three customers comprising 18%, 13% and 11% (a dealer account in Japan representing various customers) of accounts receivable at May 31, 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.

8. CONCENTRATIONS AND UNCERTAINTIES

9 Months Ended

May 31, 2014

Note 8. CONCENTRATIONS AND UNCERTAINTIES

Revenue concentration shows that International sales accounted for 53% and 42% of net sales for the nine months ended May 31, 2014 and 2013, respectively. Three customers accounted for 14% (a dealer account in Japan representing various customers), 9% and 5% of sales for the nine months ended May 31, 2014 compared to three customers who accounted for 10% (a dealer account in Japan representing various customers) 9% and 7% of net sales during the nine months ended May 31, 2013.

Accounts receivable concentration shows that three customers comprised 23%, 18% (a dealer account in Japan representing various customers) and 10% of accounts receivable at May 31, 2014 compared to three customers comprising 18%, 13% and 11% (a dealer account in Japan representing various customers) of accounts receivable at May 31, 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.