Inventory And Supply Chain IssuesWith sales down 40% from its peak, the largest decline among peers, and DecQ Days of Inventory (DOI) at 185 days, MarQ estimated ~225-230 days (target 130-150), the stock faces risks from elevated inventory levels and potential oversupply.
Revenue Guidance And Demand WeaknessSharper Inventory Correction Drives Significant Cuts To Model, with revenue guidance down and management planning to lower factory utilization due to broad-based demand weakness across geographies and most end markets.
Underutilization And Margin PressureUnderutilization will pressure gross margins (GMs), and with the expectation of trough margins to be well worse than originally anticipated, the stock could see further downside as factory shutdowns and inventory write-downs are expected.