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Major Customers
 3 Months Ended
Sep. 30, 2012
Major Customers [Abstract]  
MAJOR CUSTOMERS

NOTE 9. MAJOR CUSTOMERS

Information with respect to two customers who accounted for sales in excess of 10% of our total sales in either of the three-month periods ended September 30, 2012 or 2011, is as follows:

 

                                                                 
    As of and for the three months ended September 30,  
    2012     2011  
    Sales     Percent of
Total		     Accounts
Receivable		     Percent of
Total		     Sales     Percent of
Total		     Accounts
Receivable		     Percent of
Total		  

Customer 1

   $ 118,000       3 %    $ —         —   %    $ 2,388,000       47 %    $ 632,000       40 % 

Customer 2

   $ 1,936,000       56 %    $ 1,082,000       59 %    $ 1,661,000       33 %    $ 545,000       34 % 

In December 2009, Customer 1 (the “Customer”), our then-largest 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 (“Product A” and “Product B”) and we continue to provide repair services for both products. Sales for each of these categories for the three months ended September 30, 2012 and 2011 were as follows:

 

                 
    Three months ended September 30,  
    2012     2011  

Product A

   $ —       $ 793,000  

Product B

     —         1,191,000  

Repairs

     118,000       404,000  
   

 

 

    

 

 

  

Total

   $ 118,000     $ 2,388,000  
   

 

 

    

 

 

  

In June 2011, the Customer informed us that its product development had progressed to the point at which it did not plan to place any new orders with us for these products beyond those orders already placed with delivery dates through May 2012, and we have received no such new orders.

In addition, the Customer indicated that it planned to limit repair requests from us to those Products A and B that are covered by our product warranty. Although we continue to receive repair orders from the Customer, repair revenue (for out-of-warranty products) would decline to zero or a negligible amount should the Customer decide at any time in the future to cease placing new repair orders with us.

We are continuing 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, will cause us to experience a prolonged material and adverse impact on our business.