Why did BKYI's EPS forecasts miss in Q4 2024?

The EPS of BKYI missed forecasts in Q4 2024 due to a combination of factors:

1. **Revenue Decline in Service and Hardware Sales**: BIO-key International Inc. (BKYI) experienced a decrease in service and hardware revenue. Service revenue dropped to $1.1 million from $2.2 million in 2023, while hardware revenue declined to $632,000 from $1.2 million in 2023. This reduction in revenue from services and hardware sales contributed to the lower-than-expected earnings.
2. **Strategic Exits Impacting Short-Term Revenue**: The company's strategic exits, such as exiting a low-margin services agreement with Swivel Secure, had an immediate impact on revenue. This transition resulted in short-term revenue headwinds, affecting the overall financial performance in Q4 2024.

In summary, the EPS miss for BKYI in Q4 2024 was primarily due to a decline in service and hardware sales and strategic exits impacting short-term revenue.