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8. CONCENTRATIONS AND UNCERTAINTIES
6 Months Ended
Feb. 28, 2017
Risks and Uncertainties [Abstract]  
CONCENTRATIONS AND UNCERTAINTIES

Revenue concentration shows that international sales accounted for 36% and 42.6% of net sales for the six months ended February 28, 2017, and February 29, 2016, respectively. Four customers accounted for 7% (a dealer account in Japan representing various customers), 6%, 6%, and 6% of sales for the six months ended February 29, 2017. Three customers accounted for 10% (a dealer account in Japan representing various customers), 6%, and 6% of sales for the six months ended February 29, 2016.

 

Accounts receivable concentrations shows that two customers comprised 9.1% and 8.6% (a dealer account in Japan representing various customers) of accounts receivable at February 28, 2017, compared to two customers comprising 12% (a dealer account in Japan representing various customers) and 11% of accounts receivable at February 29, 2016.

 

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. Consolidation and downsizing in the pharmaceutical industry could have an impact on our revenues and earnings going forward.