Concentrations

9 Months Ended

Sep. 30, 2011

Concentrations

Concentrations

8. Concentrations

Our operations are concentrated in one area—security software/entity identification.  Sales to the U.S. Government through direct and indirect channels totaled 38.0% of total revenues for the third quarter of 2011 compared to 31.5% of total revenues for the third quarter of 2010.  During the third quarter of 2011, approximately 33.5% of total revenues were attributable to two government customers compared to approximately 31.4% of total revenues attributable to two government customers in the third quarter of 2010.  There was one individual commercial customer in the third quarter of 2011 compared to one individual commercial customer for the same period in 2010 that exceeded 10% of total revenues for that quarter.  Our similar product and service offerings are not viewed as individual segments, as our management analyzes the business as a whole and expenses are not allocated to each product offering.