I could only guess the laser is out of alignment.
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I remember the old Kyo units i.e. Cybernet. When CD's first came out, these and the Nak and ReVox were about the only listenable ones with the Kyo being the cheapest of the three. While I'm sure that the Kyocera is of good build quality, i have to wonder about the viability of its' filtering, aging of capacitors, etc... a whole LOT has been learned about digital in the 15 or so years that these units were introduced.
With that in mind, i would think about doing a "rebuild" on this unit strictly as a "project" or "labor of love". I don't know or think that it could compete with units of modern design. Sean