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Concentrations of Risks
3 Months Ended
Jun. 30, 2013
Concentrations of Risks  
Concentrations of Risks

Note 11. Concentrations of Risks

 

The Company sells to customers globally.  Monthly the Company evaluates customer account balances in order to assess the Company’s financial risks of collection as the Company generally does not require collateral from its customers.  Two customers each accounted for over 10% of the Company’s net sales in the quarter ended June 30, 2013 and one customer accounted for over 10% of the Company’s net sales in the quarter ended June 30, 2012.  There were no customers’ accounts receivable balances exceeding 10% of gross accounts receivable at June 30, 2013 and March 31, 2013.

 

Electronics distributors are an important distribution channel in the electronics industry and accounted for 46% of the Company’s net sales in the quarters ended June 30, 2013 and 2012.  As a result of the Company’s concentration of sales to electronics distributors, the Company may experience fluctuations in the Company’s operating results as electronics distributors experience fluctuations in end-market demand or adjust their inventory stocking levels.