CUSTOMER CONCENTRATION AND RISK

3 Months Ended

Dec. 31, 2011

CUSTOMER CONCENTRATION AND RISK [Abstract]

CUSTOMER CONCENTRATION AND RISK

NOTE 5—CUSTOMER CONCENTRATION AND RISK

We derive a significant portion of our revenue from a limited number of governmental customers.  Typically, the contracts allow these customers to terminate all or part of the contract for convenience or cause.  More than 10% of our revenues from Payment Solutions operations are attributable to one client, the Internal Revenue Service, or IRS.

The following table shows the revenues specific to our contract with the IRS:

	Three months ended December 31,
(in thousands, except percentages)	2011			2010
Revenue	$	4,379		$	4,455
Percentage of Payment Solutions revenue		12.8	%		13.7	%

Accounts receivable, net. We reported $5.5 million and $4.5 million in Accounts receivable, net on our Consolidated Balance Sheets for December 31, 2011 and September 30, 2011, respectively.  This item represents thereceivables from our customers and other parties and retainers that we expect to receive.  Approximately 8.6% and 7.0% of the balances reported at December 31, 2011 and September 30, 2011, respectively, represent accounts receivable, net that is attributable to operations that we intend to wind down during fiscal year 2013.  The remainder of the Accounts receivable, net balance is composed of receivables from certain of our Payment Solutions customers.  None of our customers have receivables that exceed 10% of our total receivable balance.  As of December 31, 2011 and September 30, 2011, Accounts receivable, net included an allowance for uncollectible accounts of $0.4 million and $0.4 million, respectively, which represents the balance of receivables that we believe are likely to become uncollectible.

Settlements receivable, net. As of December 31, 2011 and September 30, 2011, we reported $23.7 million and $7.6 million, respectively, in Settlements receivable, net on our Consolidated Balance Sheets, which represents amounts due from credit or debit card companies or banks.  Individuals and businesses settle their obligations to our various clients, primarily utility and other public sector clients, using credit or debit cards or via ACH payments.  We create a receivable for the amount due from the credit or debit card company or bank and an offsetting payable to the client.  Once we receive confirmation the funds have been received, we settle the obligation to the client.  See Note 8 — Contingencies and Commitments for information about the settlements payable to our clients.