How does CPSH's latest earnings surprise compare to past quarters?

CPSH's latest earnings report for Q4 2024 reflects a challenging period for the company, marked by a decline in revenues and a net loss. The following analysis compares the latest earnings figures with the past quarters: 1. **Revenue Decline**: The latest report shows a revenue of $5.9 million for Q4 2024, which is a decrease from the previous year's revenue of $6.7 million for the same quarter. This decline is a continuation of a trend observed in the previous quarter, where revenues decreased from $7.4 million in Q3 2024 to $6.7 million in Q4 2024. 2. **Net Loss**: CPSH reported a net loss of $1.0 million in Q4 2024, compared to a net income of $0.1 million in the same quarter of the previous year. This indicates a significant deterioration in profitability over the past quarters. 3. **Sequential Increase**: Despite the decline year-over-year, CPSH achieved a 40% sequential increase in revenues from the previous quarter, reaching $5.9 million in Q4 2024. This suggests that the company's performance is improving on a quarterly basis, although it remains below the peak levels seen in earlier quarters. 4. **Gross Margin**: The gross margin for Q4 2024 was reported at $(0.1) million, or (1)% of sales, compared to $6.8 million, or 25% of sales, in the same quarter of the previous year. This indicates a substantial decrease in profitability margins, which is a concerning trend. 5. **Operating Loss**: CPSH recorded an operating loss of $4.4 million in 2024, compared to an operating income of $1.7 million in the previous year. This reflects a significant downturn in operational performance. 6. **Net Income**: The net loss for 2024 was $3.1 million, compared to a net income of $1.4 million in the previous year. This indicates a substantial deterioration in overall financial performance over the past quarters. In conclusion, CPSH's latest earnings figures represent a low point in the company's recent financial performance, with significant declines in revenues, gross margins, and net income. However, the sequential increase in revenues from the previous quarter suggests that the company is experiencing some improvement, albeit from a lower base. The company's ability to bounce back from this downturn will be crucial in determining its future financial health.