CONCENTRATION OF RISK

3 Months Ended

May. 31, 2015

CONCENTRATION OF RISK [Abstract]

CONCENTRATION OF RISK

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 one customer of the Company's Satellite segment. This customer accounted for 12% and 19% of consolidated revenues for the three months ended May 31, 2015 and 2014, respectively, and 13% and 12% of consolidated net accounts receivable at May 31, 2015 and February 28, 2015, respectively.

A substantial portion of the Company's inventory is purchased from one supplier that functions as an independent foreign procurement agent and contract manufacturer. This supplier accounted for 56% and 60% of the Company's total inventory purchases in the three months ended May 31, 2015 and 2014, respectively. As of May 31, 2015, this supplier accounted for 58% of the Company's total accounts payable. Another supplier accounted for 16% of the Company's total inventory purchases in the three months ended May 31, 2015, and 15% of the Company's total accounts payable as of May 31, 2015.

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