COMPUTER TASK GROUP INC Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q) – Marketscreener.com

Forward-Looking Statements
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Foreign Currency Exchange Rate Fluctuations
Due to the nature of our operations, we have exposure to the impact of fluctuations in exchange rates associated with the Company’s European operations. Our foreign operations will continue to expose us to foreign currency exchange rate fluctuations. The impact of future foreign currency exchange rate fluctuations on our results of operations cannot be accurately predicted.
Revenue Recognition
The Company’s revenue from contracts accounted for under time-and-material, progress billing and percentage-of-completion methods as a percentage of consolidated revenue for the quarter and three quarters ended September 30, 2022 and October 1, 2021 was as follows:
Accordingly, the Company now reports its operations in three segments within its business: North America IT Solutions and Services, Europe IT Solutions and Services, and Non-Strategic Technology Services.
The Company’s operating segments recorded revenue in the quarter and three quarters ended September 30, 2022 and October 1, 2021 was as follows:
Year-over-Year
Year-over-Year
53,835
7,601
provided. Finally, as a third part of its plan, the Company is focused on disengaging from its lowest margin staffing business, which are included in the Non-Strategic Technology Services segment.
The Company recorded revenue by geography in the quarter and three quarters ended September 30, 2022 and October 1, 2021 as follows:
Year-over-Year
There were 63 billable days in both the 2022 and 2021 third quarters. Reimbursable expenses billed to clients and included in revenue were approximately $0.2 million in both of the 2022 and 2021 third quarters.
No other client accounted for 10% or more of the Company’s revenue during the 2022 or 2021 third quarters or year-to-date periods.
The Company recorded operating results in the quarters ended September 30, 2022 and October 1, 2021 in its operating segments as follows:
The Company recorded operating results in the three quarters ended September 30, 2022 and October 1, 2021 in its operating segments as follows:
Consolidated operating income was 3.0% of revenue in both the 2022 and 2021 third quarters, and 3.5% in the 2022 year-to-date period, as compared with 2.7% in the corresponding 2021 period.
Critical Accounting Policies and Estimates
Income Taxes-Valuation Allowances on Deferred Tax Assets
Other Estimates
Financial Condition and Liquidity
Off-Balance Sheet Arrangements
The Company has guarantees in our European operations that support office leases and the performance under government contracts. These guarantees totaled approximately $2.8 million at September 30, 2022.
Recently Issued Accounting Standards
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