Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information

9 Months Ended

Mar. 31, 2015

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

NOTE 3 – SIGNIFICANT CUSTOMERS, CONCENTRATION OF CREDIT RISK, AND GEOGRAPHIC INFORMATION

We are exposed to interest rate risks.  Our investment income is sensitive to changes in the general level of U.S. interest rates. 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 56.3% of net revenues in the three months ended March 31, 2015, and 57.2% of net revenues in the three months ended March 31, 2014. Sales outside North America represented approximately 52.8 % of net revenues in the nine months ended March 31, 2015, and 43.6% of net revenues in the nine months ended March 31, 2014.

Two customers accounted for 13.7% and 13.5% of the Company’s net revenue for the three-month period ended March 31, 2015.  The customer’s accounts receivable balance totaled approximately 21.4% and 15.6%, respectively, of net accounts receivable as of March 31, 2015.

One customer accounted for 13.2% of the Company’s net revenue for the three-month period ended March 31, 2014. The customer’s accounts receivable balances totaled approximately 21.4% of net accounts receivable as of March 31, 2014.

One customer accounted for 11.4% of the Company’s net revenue for the nine-month period ended March 31, 2015.  The customer’s accounts receivable balance totaled approximately 15.6%, of net accounts receivable as of March 31, 2015.

Two customers accounted for 12.3% and 10.6% of the Company’s net revenue for the nine-month period ended March 31, 2014. The customer’s accounts receivable totaled approximately 4.8% and 21.4%, respectively, of net accounts receivable as of March 31, 2014.