ACCOUNTS RECEIVABLE

6 Months Ended

Jun. 30, 2013

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

Accounts receivable consist of the following:

	June 30, 2013		December 31, 2012
	(In thousands)
Accounts Receivable
Billed AR	$	44,760	$	40,689
Unbilled AR	15,031		17,793
Total AR	$	59,791	$	58,482

Unbilled amounts represent revenue recognized which could not be billed by the period end based on contract terms. The majority of the unbilled amounts were billed subsequent to period end. Retainages typically exist at the end of a project and/or if there is a disputed item on an invoice received by a customer. At June 30, 2013 and December 31, 2012, retained amounts are insignificant and are expected to be collected subsequent to the balance sheet date.

As part of the acquisitions in 2012, an allowance for doubtful accounts was acquired in the amount of $351,000. The accounts receivable recorded in the acquisition accounting were net of this reserve. This reserve comprises both a specific and generic accounts receivable reserve which are evaluated at each quarter end.

Most of the Company's revenues are derived from contracts with the U.S. Government, in which we are either the prime contractor or a subcontractor, depending on the award.