Economic Dependency

9 Months Ended

Mar. 31, 2013

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 March 31,											Nine Months Ended March 31,
	2013					2012						2013						2012
	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	$	7,304		50	%	$	7,963			53	%	$	22,172			53	%	$	24,444			53	%
Customer 2		2,455		17			2,893			19			7,072			17			10,730			23
Customer 3		1,483		10			(a	)		(a	)		(a	)		(a	)		(a	)		(a	)
	$	11,242		77	%	$	10,856			72	%	$	29,244			70	%	$	35,174			76	%

(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 March 31,												Nine Months Ended March 31,
	2013						2012						2013						2012
	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		(a	)		(a	)		(a	)		(a	)		(a	)		(a	)	$	2,419			10	%
Supplier 2	$	829,000			14	%		(a	)		(a	)		(a	)		(a	)		(a	)		(a	)
	$	829,000			14	%		(a	)		(a	)		(a	)		(a	)	$	2,419			10	%

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