MAJOR CUSTOMERS

12 Months Ended

Jun. 30, 2013

Risks and Uncertainties [Abstract]

MAJOR CUSTOMERS

NOTE 10 – MAJOR CUSTOMERS

Information with respect to two customers, the identities of whom are protected by confidentiality agreements, accounting for sales in excess of 10% of our total sales in either of the years ended June 30, 2013 and 2012, is as follows:

	As of and for the year ended June 30,
	2013									2012
	Sales		Percent of Total			Accounts Receivable	Percent of Total			Sales		Percent of Total			Accounts Receivable		Percent of Total
Customer 1	$	5,809,000		47	%	$417,000		31	%	$	5,721,000		33	%	$	812,000		51	%
Customer 2	$	722,000		6	%	$  47,000		3	%	$	6,710,000		39	%	$	57,000		4	%

In December 2009, Customer 2 in the table above, which was our then-largest customer (the “Customer”), informed us that it was in the process of developing, and planned to eventually manufacture, its own surgical devices which were functionally comparable to the products the Company provided to the Customer at that time. Pro-Dex had been the exclusive manufacturer of these products since they were developed. Through May 2012, we provided the Customer with two products and continue to provide repair services for both products. Sales to the Customer for the years ended June 30, 2013 and 2012 were as follows: 

	2013		2012
Products		—	$	5,010,000
Non-warranty repairs	$	722,000		1,700,000
Total	$	722,000	$	6,710,000

The Customer indicated that its plan was to limit repair requests from us to those units covered by our product warranty. Although the warranty  period for such units has since lapsed and we continue to receive non-warranty repair orders from the Customer, such repair revenue will decline to zero or a negligible amount should the Customer decide to cease placing new repair orders with us.

We continue to implement the steps of a strategic plan, the objectives of which are to identify and capture additional revenue opportunities and concurrently reduce operating costs not critical to revenue growth. There can be no assurance, however, as to either the timing or success of achieving these objectives, which, during any period not achieved, may cause a prolonged material and adverse impact on our business.