Quarterly report pursuant to Section 13 or 15(d)

Revenue

v3.22.2.2
Revenue
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue
Note R – Revenue
The table below presents revenues by customer grouping for the following periods:
Three Months Ended Nine Months Ended
  September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
Civil space
 $ 13,391  $ 18,166  $ 46,405  $ 49,032 
National security
 12,032  6,896  29,242  22,649 
Commercial and other
 11,826  7,618  31,197  24,845 
Total revenues
 $ 37,249  $ 32,680  $ 106,844  $ 96,526 

Contract Balances
The table below presents the contract assets and contract liabilities included on the condensed consolidated balance sheets for the following periods:
September 30,
2022		 December 31,
2021
Contract assets
 $ 16,319  $ 11,748 
 
Contract liabilities $ 17,373  $ 15,734 

The increase in contract assets was primarily driven by growth in revenue recognized and timing of billable milestones occurring during the nine months ended September 30, 2022.

The change in contract liabilities was related to timing of billable milestones occurring during the nine months ended September 30, 2022. Revenue recognized in the nine months ended September 30, 2022 that was included in the contract liability balance as of December 31, 2021 was $12.8 million. Revenue recognized in the nine months ended September 30, 2021 that was included in the contract liability balance as of December 31, 2020 was $15.0 million.

The Company evaluates the contract value and cost estimates at completion (“EAC”) for performance obligations at least quarterly and more frequently when circumstances significantly change. Due to the nature of the work required to be performed on many of the Company’s performance obligations, the estimate of total revenue and cost at completion is complex, subject to many variables and requires significant judgment by management on a contract by contract basis. As part of this process, management reviews information including, but not limited to, labor productivity, the nature and technical complexity of the work to be performed, availability and cost volatility of materials, subcontractor and vendor performance, volume assumptions, inflationary trends, and schedule and performance delays. Management’s judgment related to these considerations has become increasingly more significant given the current economic environment and COVID-19 pandemic.

When the Company’s estimate of total costs to be incurred to satisfy a performance obligation exceeds the expected revenue, the Company recognizes the loss immediately. When the Company determines that a change in estimate has an impact on the associated profit of a performance obligation, the Company records the cumulative positive or negative adjustment to the statement of operations and comprehensive income (loss). Changes in estimates and assumptions related to the status of certain long-term contracts may have a material effect on the Company’s operating results.

The following table summarizes the favorable (unfavorable) impact of the net EAC adjustments for the periods presented:
Three Months Ended Nine Months Ended
  September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
Net EAC adjustments, before income taxes $ (1,159) $ (278) $ (4,377) $ (1,418)
Net EAC adjustments, net of income taxes (962) (226) (4,106) (1,215)
Net EAC adjustments, net of income taxes, per diluted share (0.02) (0.01) (0.07) (0.03)
Remaining Performance Obligations
As of September 30, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $125.7 million. The Company expects to recognize approximately 86% of its remaining performance obligations as revenue within the next 12 months and the balance thereafter.

Geographic Information and Significant Customers
The table below presents revenues based on the geographic location of the Company’s customers for the following periods:
Three Months Ended Nine Months Ended
  September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
U.S.
 $ 36,190  $ 31,367  $ 102,813  $ 93,205 
Luxembourg
 911  1,156  3,315  3,071 
South Korea
 11  68  271  144 
Germany
 51  38  279  55 
Poland
 —  51  —  51 
Other 86  —  166  — 
Total revenues
 $ 37,249  $ 32,680  $ 106,844  $ 96,526 
The majority of the Company’s revenues are derived from government contracts. Customers comprising 10% or more of revenues were as follows for the periods presented:
Three Months Ended Nine Months Ended
  September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
NASA $ 4,796  $ 10,589  $ 19,203  $ 29,604 
Boeing Co. 4,338  4,446  15,979  13,484 
Moog Inc.(1)
4,105  —  —  — 
Total $ 13,239  $ 15,035  $ 35,182  $ 43,088 
(1) While revenue was generated in each of the periods presented, amounts are only disclosed for the periods in which revenue represented 10% or more of total revenue.