6. Customer Concentrations	6 Months Ended
Jun. 30, 2014
Notes to Financial Statements
Customer Concentrations	The Company sells its products primarily through high-volume retailers and distributors, Internet service providers, value-added resellers, PC system integrators, and original equipment manufacturers ("OEMs"). The Company supports its major accounts in their efforts to discern strategic directions in the market, to maintain appropriate inventory levels, and to offer a balanced selection of attractive products. Relatively few customers have accounted for a substantial portion of the Company’s revenues. In the second quarter of 2014, three customers accounted for 78% of our total net sales with our largest customer accounting for 56% of our net sales. In the first six months of 2014, three customers accounted for 74% of the Company’s total net sales with our largest customer accounting for 56% of our net sales. At June 30, 2014, three customers accounted for 86% of our gross accounts receivable, with our largest customer representing 63% of our gross accounts receivable. In the second quarter of 2013, three customers accounted for 73% of our net sales with our largest customer accounting for 54% of our net sales. In the first six months of 2013, three customers accounted for 66% of our total net sales with our largest customer accounting for 49% of our net sales. At December 31, 2013, three customers accounted for 84% of our gross accounts receivable, with our largest customer representing 71% of our gross accounts receivable. The Company’s customers generally do not enter into long-term agreements obligating them to purchase products. The Company may not continue to receive significant revenues from any of these or from other large customers. A reduction or delay in orders from any of the Company’s significant customers, or a delay or default in payment by any significant customer, could materially harm the Company’s business and prospects. Because of the Company’s significant customer concentration, its net sales and operating income (loss) could fluctuate significantly due to changes in political or economic conditions, or the loss, reduction of business, or less favorable terms for any of the Company's significant customers.

6. Customer Concentrations

6 Months Ended

Jun. 30, 2014

The Company sells its products primarily through high-volume retailers and distributors, Internet service providers, value-added resellers, PC system integrators, and original equipment manufacturers ("OEMs"). The Company supports its major accounts in their efforts to discern strategic directions in the market, to maintain appropriate inventory levels, and to offer a balanced selection of attractive products.

Relatively few customers have accounted for a substantial portion of the Company’s revenues. In the second quarter of 2014, three customers accounted for 78% of our total net sales with our largest customer accounting for 56% of our net sales. In the first six months of 2014, three customers accounted for 74% of the Company’s total net sales with our largest customer accounting for 56% of our net sales. At June 30, 2014, three customers accounted for 86% of our gross accounts receivable, with our largest customer representing 63% of our gross accounts receivable. In the second quarter of 2013, three customers accounted for 73% of our net sales with our largest customer accounting for 54% of our net sales. In the first six months of 2013, three customers accounted for 66% of our total net sales with our largest customer accounting for 49% of our net sales. At December 31, 2013, three customers accounted for 84% of our gross accounts receivable, with our largest customer representing 71% of our gross accounts receivable.

The Company’s customers generally do not enter into long-term agreements obligating them to purchase products. The Company may not continue to receive significant revenues from any of these or from other large customers. A reduction or delay in orders from any of the Company’s significant customers, or a delay or default in payment by any significant customer, could materially harm the Company’s business and prospects. Because of the Company’s significant customer concentration, its net sales and operating income (loss) could fluctuate significantly due to changes in political or economic conditions, or the loss, reduction of business, or less favorable terms for any of the Company's significant customers.