Concentration of Credit Risk and Significant Customers

9 Months Ended

Mar. 31, 2016

Concentration of Credit Risk and Significant Customers

The Company manages its credit risk associated with exposure to distributors and direct customers on outstanding accounts receivable through the application and review of credit approvals, credit ratings and other monitoring procedures. In some instances, the Company also obtains letters of credit from certain customers.

Credit sales, which are mainly on credit terms of 30 to 60 days, are only made to customers who meet the Company's credit requirements, while sales to new customers or customers with low credit ratings are usually made on an advance payment basis. The Company considers its trade accounts receivable to be of good credit quality because its key distributors and direct customers have long-standing business relationships with the Company and the Company has not experienced any significant write-offs of accounts receivable in the past. The Company closely monitors the aging of accounts receivable from its distributors and direct customers, and regularly reviews their financial positions, when available.

Summarized below are individual customers whose revenue or accounts receivable balances were more than 10% of the respective total consolidated amounts:



	Three Months Ended March 31,				Nine Months Ended March 31,
Percentage of revenue	2016		2015		2016		2015
Customer A	24.8	%	25.1	%	24.0	%	24.5	%
Customer B	36.0	%	32.5	%	37.2	%	36.6	%
Customer C	12.9	%	12.3	%	12.7	%	12.2	%



	March 31, 2016		June 30, 2015
Percentage of accounts receivable	March 31, 2016		June 30, 2015
Customer A	28.4	%	29.4	%
Customer B	23.5	%	27.7	%
Customer C	21.8	%	14.7	%