Contract Receivables

9 Months Ended

Sep. 30, 2011

5.	Contract Receivables

Contract receivables represent balances due from a broad base of both domestic and international customers. All contract receivables are considered to be collectible within twelve months. Recoverable costs and accrued profit not billed represent costs incurred and associated profit accrued on contracts that will become billable upon future milestones or completion of contracts. The components of contract receivables are as follows:

(in thousands)	September 30,			December 31,
	2011			2010

Billed receivables	$	9,343		$	7,733
Recoverable costs and accrued profit not billed		12,834			11,508
Allowance for doubtful accounts		(366	)		(2,040	)
Total contract receivables, net	$	21,811		$	17,201

Recoverable costs and accrued profit not billed totaled $12.8 million and $11.5 million as of September 30, 2011 and December 31, 2010, respectively. During October 2011, the Company invoiced $4.2 million of the unbilled amounts; the balance of the September 30, 2011 unbilled amounts is expected to be invoiced and collected within one year. In October 2011, the Company collected 53% of the September 30, 2011 billed receivables; the balance of the net billed receivables is expected to be collected within one year.

During the first quarter of 2011, the Company wrote off $1.6 million of billed receivables related to the Emirates Simulation Academy LLC that had been fully reserved as of December 31, 2010.

The following customers account for more than 10% of the Company’s consolidated contract receivables for the indicated periods:

	September 30,	December 31,
	2011	2010
Slovenské elektrárne, a.s.	30.8%	12.1%
Genden Information System Co.	12.8%	7.1%
British Energy Generation Ltd.	0.0%	10.9%