Annual report pursuant to Section 13 and 15(d)

Concentrations of Credit Risk

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Concentrations of Credit Risk
12 Months Ended
Dec. 31, 2016
Concentrations of Credit Risk [Abstract]  
CONCENTRATIONS OF CREDIT RISK
14. CONCENTRATIONS OF CREDIT RISK

 

Financial instruments that potentially subject the Company to concentration of credit risk consist of cash in financial institutions. The Company maintains deposits in federally-insured financial institutions. Cash held with financial institutions may exceed the amount of insurance provided on such deposits; however, management believes the Company is not exposed to significant credit risk due to the financial position of the financial institutions in which those deposits are held.

 

The Company grants credit under normal payment terms, generally without collateral, to its customers. These customers primarily consist of telephone companies, cable television multiple system operators and electric and gas utilities. With respect to a portion of the services provided to these customers, the Company has certain statutory lien rights that may in certain circumstances enhance the Company’s collection efforts. Adverse changes in overall business and economic factors may impact the Company’s customers and increase credit risks. These risks may be heightened as a result of the current economic developments and market volatility. In the past, some of the Company’s customers have experienced significant financial difficulties and likewise, some may experience financial difficulties in the future. These difficulties expose the Company to increased risks related to the collectability of amounts due for services performed. The Company believes that none of its significant customers were experiencing financial difficulties that would impact the collectability of the Company’s trade accounts receivable as of December 31, 2016 and 2015.


The Company did not have a customer accounting for 10% or greater of consolidated revenues for the year ended December 31, 2016. As of, and for the year ended, December 31, 2015, concentrations of significant customers within the professional services segment were as follows:

 

2015   Accounts Receivable     Revenues  
Ericsson, Inc.     9 %     14 %

 

Geographic Concentration Risk

 

Substantially all of the Company’s customers are located within the United States and Puerto Rico.