Note 3 - Concentration of Credit Risk, Other Concentration Risks and Significant Customers

9 Months Ended

Mar. 31, 2013

Concentration Risk Disclosure [Text Block]

Note 3 – Concentration of Credit Risk, Other Concentration Risks and Significant Customers

We are exposed to interest rate risks.  Our investment income is sensitive to changes in the general level of U.S. interest rates, particularly since the majority of our investments are in shorter duration fixed income securities. We have no outstanding debt nor do we utilize auction rate securities or derivative financial instruments in our investment portfolio.

Our financial results could be affected by changes in foreign currency exchange rates or weak economic conditions in foreign markets. As all sales are currently made in U.S. dollars, a strengthening of the dollar could make our products less competitive in foreign markets. Sales outside North America represented approximately 65.6% of net revenues in the three months ended March 31, 2013, and 54.8% of net revenues in the three months ended March 31, 2012. Sales outside North America represented approximately 50.7% of net revenues in the nine months ended March 31, 2013, and 45.3% of net revenues in the nine months ended March 31, 2012.

Two customers accounted for 17.2% and 11.6% of the Company’s revenue for the three-month period ended March 31, 2013.  The customers’ accounts receivable balances, net of specific allowances, totaled approximately 18.8% and 7.4%, respectively, of net accounts receivable as of March 31, 2013. One customer accounted for 11.1% of the Company’s revenue for the three-month period ended March 31, 2012. The customer’s accounts receivable balance, net of specific allowances, totaled approximately 9.4% of net accounts receivable as of March 31, 2012.

Two customers accounted for 10.2% and 9.4% of the Company’s revenue for the nine-month period ended March 31, 2013.  The customers’ accounts receivable balances, net of specific allowances, totaled approximately 18.8% and 7.4%, respectively, of net accounts receivable as of March 31, 2013. One customer accounted for 11.1% of the Company’s revenue for the nine-month period ended March 31, 2012. The customer’s accounts receivable balance, net of specific allowances, totaled approximately 9.4% of net accounts receivable as of March 31, 2012.