Revenue CyclicalityRevenues are tied to semiconductor and electronics capex cycles, producing material year-to-year swings. This cyclicality makes revenue visibility weak, complicates capacity planning and revenue guidance, and increases the chance of next-period declines when end markets cool.
Volatile Cash Flows And Negative FCF GrowthLarge working-capital swings and prior periods of negative operating cash flow highlight lumpiness in cash conversion. Persistently volatile FCF can constrain reinvestment, dividend consistency and debt repayment when revenue weakens, raising operational financing risk.
Meaningful Debt For A Cyclical BusinessAlthough leverage has improved, remaining debt burdens a business with modest net margins (~4%). Interest and principal obligations reduce headroom during downturns, limiting agility to invest in solutions or absorb prolonged industry slowdowns without cutting costs.