Why did LINK's EPS underperform in mid-2024?

The EPS of Interlink Electronics Inc (LINK) underperformed in mid-2024 due to several factors: 1. **Revenue Decline in Traditional Force-Sensor Products**: There was a decrease in shipments of traditional force-sensor products, which negatively impacted revenue and, consequently, EPS. This decline was partially offset by increased sales in the Gas and Environmental Sensors division and other products. 2. **Gross Margin Pressure**: The gross profit margin declined to 39.6% from 41.0% year-over-year, primarily due to lower revenue and an unfavorable product mix. This reduction in gross margin can lead to lower profitability, resulting in lower EPS. 3. **Operating Expenses Increase**: Operating expenses increased by 11% to $2.8 million in Q4 2024 compared to $2.5 million in Q4 2023. This increase in expenses can outpace revenue growth, leading to a negative impact on EPS. In summary, the underperformance in EPS was likely a result of a combination of factors including revenue decline in traditional force-sensor products, gross margin pressure and operating expenses increase.