Revenue and Accounts Receivable

12 Months Ended

Dec. 31, 2013

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 98.3%, 99.1%, and 99.1% of consolidated revenue in 2013, 2012, and 2011, 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 95.0% 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,
	2013			2012
Billed accounts receivable	$	29,492		$	21,476
Unbilled receivables		16,461			12,722
Allowance for doubtful accounts		(321	)		(319	)
	$	45,632		$	33,879

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, 2013	$	319	$	2		$	----		$	321
Year ended December 31, 2012	$	375	$	(53	)	$	(3	)	$	319
Year ended December 31, 2011	$	358	$	17		$	----		$	375

(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:

	2013				2012				2011
	(dollar amounts in thousands)
Federal	$	203,917	98.3	%	$	224,010	99.1	%	$	188,162	99.1	%
Commercial		3,477	1.7	%		2,086	0.9	%		1,726	0.9	%
Total	$	207,394	100.0	%	$	226,096	100.0	%	$	189,888	100.0	%