Declining Revenue And Persistent Net LossesSustained revenue decline and persistent net losses indicate structural demand or competitive issues. Ongoing losses erode retained earnings, limit reinvestment in products and distribution, and make it harder to fund growth initiatives without continued cash flow improvement or external financing.
Declining Equity And Negative ROEDecreasing equity and negative ROE reflect accumulated losses and weaken the capital base. This reduces financial buffers against shocks, constrains strategic investments, and can increase borrowing costs, impairing the firm's ability to scale or pursue structural turnaround actions.
Exposure To Cyclical Demand And Price CompetitionHeavy reliance on unit volumes, product mix and price-sensitive TV markets makes margins vulnerable to competition and seasonality. In a crowded consumer electronics market, this structural exposure can cause recurring revenue pressure and compress gross margins over multiple quarters.