Economic Dependency

6 Months Ended

Dec. 31, 2012

Economic Dependency

F.  Economic Dependency

We had substantial net sales to certain customers during the periods shown in the following table. The loss of any of these customers, or a significant decline in sales, or the growth rate of sales to these customers, or in their ability to make payments when due, could have a material adverse impact on our net sales and net income. Net sales to any one customer representing 10% or more of the respective period’s total private label contract manufacturing net sales were as follows (dollars in thousands):

	Three Months Ended December 31,								Six Months Ended December 31,
	2012				2011				2012				2011
	Net Sales by    Customer		% of Total    Net Sales		Net Sales by   Customer		% of Total   Net Sales		Net Sales by   Customer		% of Total   Net Sales		Net Sales by Customer		% of Total   Net Sales
Customer 1	$	7,335		59 %	$	8,056		54 %	$	15,059		55 %	$	16,481		52 %
Customer 2		1,709		14		3,551		24		4,618		17		7,836		25
Customer 3		1,361		11		(a)		(a)		(a)		(a)		(a)		(a)
	$	10,405		84 %	$	11,607		78 %	$	19,677		72 %	$	24,317		77 %

(a) Sales were less than 10% of the respective period’s total private label contract manufacturing net sales.

We buy certain products, including beta-alanine, from a limited number of raw material suppliers. The loss of any of these suppliers could have a material adverse impact on our net sales and net income. Raw material purchases from any one supplier representing 10% or more of the respective period’s total raw material purchases were as follows (dollars in thousands):

	Three Months Ended December 31,								Six Months Ended December 31,
	2012				2011				2012				2011
	Raw Material Purchases by Supplier		% of Total  Raw Material Purchases		Raw Material Purchases by Supplier		% of Total  Raw Material Purchases		Raw Material Purchases by Supplier		% of Total  Raw Material Purchases		Raw Material Purchases by Supplier		% of Total  Raw Material Purchases
Supplier 1	$	732		13 %		(a)		(a)	$	1,223		10 %		(a)		(a)
Supplier 2		(a)		(a)	$	2,106		21 %		(a)		(a)	$	2,106		13 %
	$	732		13 %	$	2,106		21 %	$	1,223		10 %	$	2,106		13 %

(a) Purchases were less than 10% of the respective period’s total raw material purchases.