CONCENTRATION OF RISK

3 Months Ended

May 31, 2016

CONCENTRATION OF RISK [Abstract]

CONCENTRATION OF RISK

NOTE 11 - CONCENTRATION OF RISK

One Wireless DataCom customer in the heavy equipment industry accounted for 9% and 15% of consolidated accounts receivable at May 31, 2016 and February 29, 2016, respectively. The sole customer of the Company's Satellite segment accounted for 9% and 10% of consolidated accounts receivable at May 31, 2016 and February 29, 2016.

The Company has a contract manufacturing arrangement with a sole source supplier for our LoJack units and components. As of May 31, 2016, this supplier accounted for less than 10% of the Company's total accounts payable. Some of the Company's other components, assemblies and electronic manufacturing services are also purchased from sole source suppliers. In addition, 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 47% and 56% of the Company's total inventory purchases in the three months ended May 31, 2016 and 2015, respectively. As of May 31, 2016, this supplier accounted for 53% of the Company's total accounts payable. A third supplier accounted for 9% and 16% of the Company's total inventory purchases in the three months ended May 31, 2016 and 2015, respectively, and 9% of the Company's total accounts payable as of May 31, 2016.