Economic Dependency

12 Months Ended

Jun. 30, 2013

Economic Dependency

I. Economic Dependency

We had substantial net sales to certain customers during the fiscal years ended June 30 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 year’s total private-label contract manufacturing net sales were as follows (dollars in thousands):

	2013					2012
	Net Sales by Customer		% of Total Net Sales			Net Sales by Customer		% of Total Net Sales
Customer 1	$	28,404		50	%	$	31,994		51	%
Customer 2		10,638		19	%		13,884		22	%
	$	39,042		69	%	$	45,878		73	%

Accounts receivable from these customers totaled $3.0 million at June 30, 2013 and $2.6 million at June 30, 2012.

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. During fiscal 2013 and 2012, we did not have any suppliers that individually represented greater than 10% of our raw material purchases.