CUSTOMER CONCENTRATION AND RISK

6 Months Ended

Mar. 31, 2013

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 government Clients. Typically, our contracts with these Clients allow them to terminate all or part of the contract for convenience or cause. We have one Client, the Internal Revenue Service, or IRS, which is the source of more than 10% of our revenues from Payment Solutions operations.

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

	Six months ended March 31,
(in thousands, except percentages)	2013			2012
Revenue	$	10,607		$	8,779
Percentage of Payment Solutions revenue		16.1	%		13.0	%

Accounts receivable, net. We reported $3.9 million and $5.3 million in Accounts receivable, net on our Consolidated Balance Sheets for March 31, 2013 and September 30, 2012, respectively. This item represents thereceivables from our Clients that we expect to receive.  Approximately 7.4% and 3.1% of the balances reported at March 31, 2013 and September 30, 2012, respectively, represent Accounts receivable, net that is attributable to operations that we intend to wind down during fiscal year 2013 and fiscal 2014.  The remainder of the Accounts receivable, net balance is composed of receivables from certain of our Payment Solutions Clients. None of our Clients have receivables that exceed 10% of our total receivable balance. As of March 31, 2013 and September 30, 2012, Accounts receivable, net included an allowance for uncollectible accounts of $0.2 million and $0.2 million, respectively, representing the balance of receivables for which we believe collectability is not reasonably assured.

Settlements receivable As of March 31, 2013 and September 30, 2012, we reported $28.3 million and $15.3 million, respectively, in Settlements receivable 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 using credit or debit cards or via ACH payments.  We record a receivable for the amount due from the credit or debit card company or bank, and a corresponding 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.