Other Accrued Liabilities And Accrued Payables To Customers

6 Months Ended

Jun. 30, 2011

Other Accrued Liabilities And Accrued Payables To Customers

Other Accrued Liabilities And Accrued Payables To Customers

Note 5 — Other Accrued Liabilities and Accrued Payables to Customers

Other accrued liabilities balances were comprised of the following (in thousands):

	June 30, 2011		December 31, 2010
Amounts refundable to end customers	$	1,177	$	2,083
Accrued professional fees		953		2,485
Deferred revenue		215		151
Deferred rent obligations		805		477
Employee-related		840		353
Other		2,924		2,026
	$	6,914	$	7,575

Accrued Payable to Customers

For a limited number of historical customer arrangements that included both sales of customer service contracts and other payment collection and account management services, the Company recorded advances to and accrued payables to customers to account for the timing differences between when the Company collected cash from end customers and when it made payments to its customers. The accrued payable to customers balance at December 31, 2010 consisted primarily of net payments due to Sun Microsystems, Inc. from end customers renewing their service contracts with Sun Microsystems through the Company. Oracle terminated the Company's contracts with Sun Microsystems effective as of September 30, 2010. In the first quarter of 2011, the Company repaid amounts it owed to Oracle/Sun, net of amounts owed to the Company, resulting in net cash payments to Oracle/Sun of approximately $18.1 million which were funded from existing cash and borrowings under a revolving credit facility. The Company recognized $1.8 million in additional net revenue in the quarter ended March 31, 2011 resulting from this settlement.