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4. Customer Concentrations and Accounts Receivable
Sales to Banking Production Centre (“BPC”), one of the Company’s Russian distributors, and Pumps and Service Company (“Pumps and Service”), one of the Company’s domestic distributors, accounted for 27% and 23%, respectively, of revenue for the three months ended December 31, 2011. Sales to BPC and Pumps and Service accounted for 24% and 16% of revenue for the three months ended December 31, 2010, respectively.
BPC and Pumps and Service accounted for 25% and 18% of revenue, respectively, for the nine months ended December 31, 2011. BPC and Pumps and Service accounted for 22% and 13% of revenue, respectively, for the nine months ended December 31, 2010.
Additionally, BPC and Pumps and Service accounted for 31% and 17% of accounts receivable, net, respectively, as of December 31, 2011. BPC and Verdesis S.A., the Company’s Belgian distributor, accounted for 26% and 10%, respectively, of accounts receivable, net as of March 31, 2011.
Accounts receivable, net as of December 31, 2011 and March 31, 2011 includes $0.1 million and $0.2 million, respectively, of other receivables from the U.S. Department of Energy (“DOE”) under grants awarded in 2009 and 2010.
The Company recorded bad debt expense of $1.9 million for the three months ended December 31, 2011. There was no bad debt expense during the three months ended December 31, 2010. The Company recorded bad debt expense of $2.1 million and $0.2 million for the nine months ended December 31, 2011 and 2010, respectively.
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