Revenue Decline And LossesSustained revenue decline and persistent net losses even after margin improvement indicate structural demand or competitiveness issues. Continued unprofitability erodes reserves, limits reinvestment capacity, and raises risk that operating deficits persist absent sustained revenue recovery.
Eroding Equity And Negative ROEDeclining equity and negative ROE reflect cumulative losses that shrink the capital buffer. This weakens the firm's ability to absorb shocks, constrains future equity funding options, and may increase cost of capital, limiting long-term strategic investments and growth initiatives.
Concentrated, Competitive Business MixHeavy dependence on TV and adjacent electronics sales exposes the company to cyclical demand, component cost swings and intense price competition. Limited revenue diversification makes margins vulnerable and reduces resilience to structural shifts in consumer preferences or channel dynamics.