CONCENTRATION OF RISK

9 Months Ended

Nov. 30, 2012

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

NOTE 9 - CONCENTRATION OF RISK

Because the Company sells into markets dominated by a few large service providers, a significant percentage of consolidated revenues and consolidated accounts receivable relate to a small number of customers. One customer of the Company's Satellite business unit accounted for 18% and 21% of consolidated revenues for the quarters ended November 30, 2012 and 2011, respectively, and accounted for 22% and 27% of consolidated revenues for the respective nine-month periods then ended. This customer accounted for 16% and 33% of consolidated net accounts receivable at November 30, 2012 and February 28, 2012, respectively.

A substantial portion of the Company’s inventory is purchased from one supplier which functions as an independent foreign procurement agent and contract manufacturer. This supplier accounted for 52% and 50% of Company's total inventory purchases in the nine months ended November 30, 2012 and 2011, respectively. As of November 30, 2012, this supplier accounted for 55% of the Company's total accounts payable.

Some of the Company's components, assemblies and electronic manufacturing services are purchased from sole source suppliers.