Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Richard Ryan – Dougherty & Company.
Richard Ryan – Dougherty & Company
Can you run through cash flow a little bit for the quarter?
William Bambarger
Our cash from operations was just under $3 million and a couple of things come into play there. Our fourth quarter had significant cash outlays in the form of annual bonuses. We had a significant tax payment that we made in December as a result of closing out our estimates for FAS 109 and things like that, and a lot of pre-paid expenses that relate to the new year like insurance and things of that nature.
So we expect our cash to continue to grow. Our EBITDA target for 2009 is a $33 million to $35 million and as we mentioned, the large non cash stock compensation expense, we add that back in calculating EBITDA since it is non cash.
Richard Ryan – Dougherty & Company
What would you think of CapEx for the year?
William Bamberger
CapEx was normal in the first quarter. It was just under $800,000 and that mostly is computer refresh, typical computer refresh expenditures. In the third quarter of 2009, we will have significant one time CapEx relating to our new office, our new facility in Colombia, Maryland. We're going to be acquiring about $2.5 million of furniture and about $2.5 million of IT infrastructure; servers, and network centers and things like that.
That will be forthcoming in the third quarter. Other than that, we expect our routine $500,000 to $800,000 a quarter of computer expenditures and routine CapEx.
Richard Ryan – Dougherty & Company
What's needed to get the funding ceiling increased to get the deferred revenue through?
William Bamberger
We have to request from our contracting officer that they procure additional funds to raise the ceiling on each individual claim. On the contract as a whole, we have plenty of funding, but they have to do it claim by claim, so we have to work with the contracting officer, give them the estimates and have them do the appropriate contracting documents.
From a DCA perspective, all the costs have been submitted through 2007. We will be submitting our 2008 incurred cost submission on time by the end of March and hopefully we can work to get them to review those costs and accept those costs which will make it easier for us to move forward.
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