Sustained Revenue DeclineA multiyear revenue contraction of this magnitude erodes scale advantages, reduces bargaining power with suppliers, and pressures fixed-cost absorption. Continued top-line decline weakens long-term profitability prospects and raises strategic questions about market positioning and customer retention.
Negative Net Income And Thin Gross MarginsPersistent negative net income and slim gross margins limit retained earnings and reinvestment capacity, constraining R&D and product upgrades. Over time this undermines competitiveness in fast-evolving device markets and may force margin-damaging cost cuts or loss of higher-margin business.
Declining Shareholders' Equity And Equity RatioA shrinking equity base reduces the balance-sheet buffer against cyclical losses and can limit access to debt or increase its cost. For a manufacturing firm, weaker equity constrains capacity expansion, heightens solvency risk during downturns, and limits strategic investments over the medium term.