Net income

$ 26   

$ 19   

$  7,759   

Adjustments to reconcile net income to net cash provided by
  operating activities:

    Depreciation and amortization

536   

676   

668   

     Deferred taxes

381   

(106)   

(455)   

    Tax benefit from exercise of stock options

—   

1   

91   

    Change in assets and liabilities:

      Accounts receivable

2,424   

1,523   

2,063   

      Prepaid expenses and other assets

(289)   

(55)   

270   

      Accounts payable

(219)   

(436)   

132   

      Accrued expenses and other liabilities

(1,169)   

(518)   

1,279   

      Billings in excess of costs and estimated earnings on contracts

44   

42   

(640)   

      Federal and state income taxes

(343)   

(74)   

(413)   

Net cash provided by operating activities

1,391   

1,072   

10,754   

Long-term investment

(3,000)   

—   

—   

Purchase of property and equipment

(246)   

(249)   

(1,019)   

Net cash used in investing activities

(3,246)   

(249)   

(1,019)   

Principal payments under capital lease obligation

—   

(13)   

(22)   

Proceeds from exercise of stock options under stock option plans

163   

211   

841   

Net proceeds from initial public offering

—   

—   

23,371   

Net cash provided by financing activities

163   

198   

24,190   

Net increase (decrease) in cash and cash equivalents

(1,692)   

1,021   

33,925   

Cash and cash equivalents, beginning of year

38,347   

37,326   

3,401   

Cash and cash equivalents, end of year

$36,655   

$38,347   

$37,326   

Cash paid during the year for:

   Taxes

$     759   

$     853   

$  6,689