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You have a bad Rotary Encoder or Display Microprocessor(computer inside your Philips). If you are interested in having it repaired, please visit my website at audioserviceclinic.com. You may contact me there. Thank you.
Presuming that other sources work okay and the the cables are connected correctly.....Try a CD Lens cleaner.
If that doesn't work then it's time to open up the unit and manually clean the laser lens. If that still doesn't work then the laser might be dead. Replacement parts may be available. Whether or not you can do this as a DIY repair though is questionable. It depends on your skill.
Unfortuneately this is a job for Bose, they repair all products on site and have access to all parts inventory. They only use authorized technicians to repair their products at the factory, to get your item fixed right that is the place to send it.
My unit has started doing the same thing about 6 months ago (the record cd tray keeps opening again after a new disc is inserted.) My unit is about 10 years old so I figured it might be because I've recorded so many CD's and it's not sensing the disc correctly. I'm stubborn, so every time this happens I press the button to reload the disc and keep doing that until it loads correctly and starts reading/initializing. Sometimes it loads after a couple of opening/closing attempts, sometimes it takes a dozen or so attempts. But eventually it loads. It's frustrating to do this but it's worth it because this is such a good unit. However, most importantly the best possible and correct type of discs must be used. The only ones that have worked consistently for me (very rarely is there a bad disc) are Sony CRM80RS. I use these exclusively now. As of April 2011 they're still available online from Amazon and Walmart, and other sites too. Sold in 30 or 50 packages and fairly inexpensive. I've just read some of the other answers on this site and realize the problem could also be connected to a dirty laser, so I'm going to try wiping the 'eye' very gently with a Q-tip. It might help.