NOTE 9 - CONCENTRATION OF RISK
Because the Company sells into markets dominated by a few large service providers, a significant percentage of consolidated revenues and consolidated accounts receivable relate to a small number of customers. One customer of the Company's Satellite business unit accounted for 21% and 24% of consolidated revenues for the quarters ended August 31, 2012 and 2011, respectively, and accounted for 24% and 30% of consolidated revenues for the respective six-month periods then ended. This customer accounted for 14% and 33% of consolidated net accounts receivable at August 31, 2012 and February 28, 2012, respectively. One customer of the Company's Wireless DataCom segment accounted for 11% of consolidated revenue for the three months ended August 31, 2011.
A substantial portion of the Company’s inventory is purchased from one supplier which functions as an independent foreign procurement agent and contract manufacturer. This supplier accounted for 53% and 50% of Company's total inventory purchases in the six months ended August 31, 2012 and 2011, respectively. As of August 31, 2012, this supplier accounted for 50% of the Company's total accounts payable.
Some of the Company's components, assemblies and electronic manufacturing services are purchased from sole source suppliers.