Concentration of Credit Risk and Significant Customers

12 Months Ended

Jun. 30, 2015

Concentration of Credit Risk and Significant Customers

The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application of credit approvals, credit ratings and other monitoring procedures. In some instances, the Company also obtains letters of credit from certain customers.

Credit sales, which are mainly on credit terms of 30 to 60 days, are only made to customers who meet the Company's credit standards, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its financial assets to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant bad debt write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, where available.

Summarized below are individual customers whose revenue or accounts receivable balances were 10% or higher than the respective total consolidated amounts:



	Year Ended June 30,
Percentage of revenue	2015		2014		2013
Customer A	25.4	%	21.6	%	24.4	%
Customer B	36.1	%	43.1	%	41.6	%
Customer C	11.7	%	11.6	%	13.0	%



	June 30,
Percentage of accounts receivable	2015		2014
Customer A	29.4	%	23.1	%
Customer B	27.7	%	30.5	%
Customer C	14.7	%	17.4	%