Software Development Costs

12 Months Ended

Dec. 31, 2011

Software Development Costs [Abstract]

8. Software Development Costs

Software development costs, net, consist of the following:

(in thousands)	December 31,
	2011			2010
Capitalized software development costs	$	3,226		$	2,594
Accumulated amortization		(1,411	)		(804	)
Software development costs, net	$	1,815		$	1,790

Software development costs capitalized were $838,000, $903,000, and $861,000 for the years ended December 31, 2011, 2010, and 2009, respectively. Amortization of software development costs capitalized was $813,000, $978,000, and $483,000, for the years ended December 31, 2011, 2010, and 2009, respectively, and was included in cost of revenue. In the fourth quarter of 2010, the Company wrote off the remaining capitalized value of four generic training simulators totaling $317,000.

F-21

- Definition

Description, amount and terms involving research, development, and computer software activities, including contracts and arrangements to be performed for others and with federal government. Includes costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility and in-process research and development acquired in a business combination consummated during the period.

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