Annual report pursuant to Section 13 and 15(d)

Note E - Concentrations

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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.