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Note 6 - Significant Customers
6 Months Ended
Jun. 30, 2014
Significant Customers Disclosure [Abstract]  
Significant Customers Disclosure [Text Block]

NOTE F—SIGNIFICANT CUSTOMERS


The Company sells its products primarily through distributors and directly to original equipment manufacturers (OEMs) and original design manufacturers (ODMs) who incorporate the Company’s products into consumer products. The Company’s future performance will depend, in part, on the continued success of its distributors in marketing and selling its products. The loss of the Company’s distributors and the Company’s inability to obtain satisfactory replacements in a timely manner may harm the Company’s sales and results of operations. In addition, the Company expects that a limited number of customers, varying in identity from period-to-period, will account for a substantial portion of its revenues in any period. The loss of, or reduced demand for products from, any of the Company’s major customers could have a material adverse effect on the Company’s business, financial condition and results of operations.


Sales to Hong Kong-based VTech Holdings Ltd. (“VTech”) represented 37% and 39% of the Company’s total revenues for the three months ended June 30, 2014 and 2013, respectively. Sales to VTech represented 36% of the Company’s total revenues for both the six months ended June 30, 2014 and 2013.


Revenues derived from sales through one distributor, Tomen Electronics Corporation (“Tomen Electronics”), accounted for 21% and 17% of the Company’s total revenues for the three months ended June 30, 2014 and 2013, respectively. Additionally, Tomen Electronics accounted for 20% and 16% of the Company's total revenues for the six months ended June 30, 2014 and 2013, respectively. The Japanese market and the OEMs that operate in that market are among the largest suppliers in the world with significant market share in the U.S. market for residential wireless products. Tomen Electronics sells the Company’s products to a limited number of customers. One customer, Panasonic Communications Co., Ltd. (“Panasonic”), has continually accounted for a majority of the sales of Tomen Electronics. Sales to Panasonic through Tomen Electronics generated 16% and 12% of the Company’s total revenues for the three months ended June 30, 2014 and 2013, respectively. Sales to Panasonic through Tomen Electronics generated 14% and 11% of the Company’s total revenues for the six months ended June 30, 2014 and 2013, respectively.