NOTE 7: COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS ON UNCOMPLETED CONTRACTS AND DEFERRED REVENUES

6 Months Ended

Jun. 30, 2011

Prerequisites for Billing, Long-term Contracts

NOTE 7: COSTS AND ESTIMATED EARNINGS IN EXCESS OF BILLINGS ON UNCOMPLETED CONTRACTS AND DEFERRED REVENUES

The components of costs and estimated earnings in excess of billings on uncompleted contracts are summarized below:

	June 30, 2011			December 31, 2010
Costs incurred on uncompleted contracts	$	10,889		$	5,356
Estimated earnings on uncompleted contracts		918			132
		11,807			5,488
Less: Billings to date on uncompleted contracts		(12,500	)		(5,934	)
	$	(693	)	$	(446	)
Included in the accompanying condensed consolidated balance sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts	$	27		$	-
Billings in excess of costs and estimated earnings on uncompleted contracts		(720	)		(446	)
	$	(693	)	$	(446	)

At June 30, 2011, the asset balance of $27 was related to two contracts that are projected to be completed during the third quarter of 2011. The balance in billings in excess of costs and estimated earnings on uncompleted contracts at June 30, 2011 and December 31, 2010 was $720 and $446, respectively, and consisted of significant milestone billings related primarily to two large carousel fabrication projects. One of the two projects is projected to be completed in the third quarter of 2011 and the second is projected to be completed in the first quarter of 2012.

At June 30, 2011 and December 31, 2010, we reported deferred revenue balances of $320 and $315, respectively. These balances represent prepayments or deposits on time and material and rental projects for which work has not yet been performed. We expect to recognize the deferred revenue at June 30, 2011 during fiscal 2011.