Note E - Concentrations |
12 Months Ended |
|---|---|
Sep. 30, 2011 | |
| Concentration Risk Disclosure [Text Block] |
NOTE E – CONCENTRATIONS
Suppliers: The
Company purchases critical components for our products,
including injection molded parts and connectors from third
parties, some of whom are single- or limited-source
suppliers. If any of our suppliers are unable to ship
critical components, we may be unable to manufacture and ship
products to our distributors or customers. If the price of
these components increases for any reason, or if these
suppliers are unable or unwilling to deliver, we may have to
find another source, which could result in interruptions,
increased costs, delays, loss of sales and quality control
problems.
Customers:
One customer, Power & Telephone Supply Company (Power and
Tel), who serves as a reseller of our product to a range of
independent telephone carriers as well as cable service
operators, comprised approximately 21% and 20% of total sales
for the periods ended September 30, 2011 and September 30,
2010, respectively.
At
September 30, 2011 and 2010, two customers accounted for 24%
and 35% of accounts receivable. Graybar Electric,
Inc., also a reseller, accounted for 14% and 13%, and Power
and Tel accounted for 10% and 22% of accounts
receivable. Graybar sales did not exceed 10%
of total sales for the year ended September 30, 2011 and
2010. Power & Tel and Graybar purchase our product
through a standard form of purchase order.
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