What caused LTRX's surprising EPS drop in Q1 2025?

The most recent report period for Lantronix (LTRX) is for Q2 2025. Therefore, there is no data available regarding the EPS drop in Q1 2025. However, I can provide analysis on the factors that may have impacted LTRX's financial performance based on the available data. 1. **Strategic Moves and Financial Challenges**: Lantronix has been making strategic moves, such as reducing non-GAAP operating expenses by approximately $700,000. These strategic changes could have had an impact on the company's profitability, leading to a drop in EPS. Additionally, the company's accumulated deficit widened to $227.9 million, indicating ongoing challenges in achieving sustained profitability. 2. **Revenue Decline**: There is a decrease in revenue from the previous quarter, with Q2 FY 2025 showing $31.2 million compared to $34.4 million in Q1 FY 2025. This decline in revenue could be a contributing factor to the EPS drop, as revenue is a key component in the calculation of EPS. 3. **Analyst Expectations**: Analysts were expecting a higher EPS than what was reported. For instance, the forecast for non-GAAP EPS in Q2 fiscal 2025 was $0.10, but Lantronix reported $0.04. This discrepancy could be due to various factors, including the ones mentioned above. In conclusion, the EPS drop in Q1 2025 of Lantronix could be attributed to a combination of strategic changes, revenue decline, and analyst expectations. Further details about the specific events or decisions that led to this drop would require additional information.