Rapid Increase In Total LiabilitiesAlthough leverage is low, a swift rise in total liabilities can signal growing short-term obligations or supplier financing that may pressure working capital. If liabilities rise faster than earnings or cash, financial flexibility could deteriorate and limit strategic options.
Negative Investing Cash Flow From Heavy ReinvestmentSubstantial reinvestment supports capacity and product development, but sustained negative investing cash flow increases reliance on operating cash or external financing. If operating cash dips, heavy capex or R&D spending could strain liquidity and slow returns on investment.
Exposure To Cyclical End Markets And Design-win DependencyRevenue depends on design wins and production cycles in consumer electronics, appliances, automotive and industrial markets. That creates structural revenue volatility and potential customer concentration risk: losing a platform or delayed OEM programs can materially affect orders.