Concentrations

9 Months Ended

Sep. 30, 2012

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 34.3% of total revenues for the third quarter of 2012 compared to 38.0% of total revenues for the third quarter of 2011, and 35.2% of total revenues for the nine months ended September 30, 2012 compared to 32.9% of total revenues for the nine months ended September 30, 2011.  During the third quarter of 2012, approximately 26.1% of total revenues were attributable to two government customers compared to approximately 33.5% of total revenues attributable to two government customers in the third quarter of 2011.  There was one individual commercial customer in the third quarter of 2012 attributable for 64.0% of total revenue compared 59.4% of total revenue to one individual commercial customer for the same period in 2011 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.