Revenue and Accounts Receivable

12 Months Ended

Dec. 31, 2012

Revenue and Accounts Receivable [Abstract]

Revenue and Accounts Receivable

Note 6.  Revenue and Accounts Receivable

Revenue resulting from contracts and subcontracts with the U.S. Government accounted for 99.1%, 99.1%, and 97.4% of consolidated revenue in 2012, 2011, and 2010, respectively.  As our primary customer base includes agencies of the U.S. Government, we have a concentration of credit risk associated with our accounts receivable, as 97.0% of our billed accounts receivable were directly with U.S. Government customers. While we acknowledge the potentially material and adverse risk of such a significant concentration of credit risk, our past experience of collecting substantially all of such receivables provide us with an informed basis that such risk, if any, is manageable.  We perform ongoing credit evaluations of all of our customers and generally do not require collateral or other guarantee from our customers.  We maintain allowances for potential losses.

The components of accounts receivable are as follows (in thousands):

	December 31,
	2012			2011
Billed accounts receivable	$	21,476		$	26,299
Unbilled receivables		12,722			11,022
Allowance for doubtful accounts		(319	)		(375	)
	$	33,879		$	36,946

The activities in the allowance for doubtful accounts are set forth below (in thousands):

	Balance Beginning of Year		Bad Debt Expenses (1)			Deductions (2)			Balance End  of Year
Year ended December 31, 2012	$	375	$	(53	)	$	(3	)	$	319
Year ended December 31, 2011	$	358	$	17		$	----		$	375
Year ended December 31, 2010	$	363	$	(3	)	$	(2	)	$	358

(1) Accounts receivable reserves and reversal of allowance for subsequent collections, net

(2) Accounts receivable written-off and subsequent recoveries, net

Revenue by Major Market and Significant Customers

         We derived substantially all of our revenues from contracts and subcontracts with the U.S. Government.  Revenue by customer sector for the last three fiscal years is as follows:

	2012				2011				2010
					(dollar amounts in thousands)
Federal	$	224,010	99.1%		$	188,162	99.1%		$	220,017	97.4%
Commercial		2,086	0.9%			1,726	0.9%			5,780	2.6%
Total	$	226,096	100.0	%	$	189,888	100.0	%	$	225,797	100.0	%