I don't know anything about Philips bikes, but I don't think I've heard anything great. If you're just looking for a decent riding beater, this could work for you.

From the photo, one thing I'd check immediately is whether the seatpost is seized in the seat tube. It's jammed down very deep. Beyond that, spin the wheels and look down from the top, see if there's any wobble side-to-side. Anything more than a mm or so in either direction means you're going to have to get the wheels trued--either pay or do it yourself. ($10 minimum).

Look at the tires and note if there's cracking in the rubber. Any cracks or breaks in the sidewalls means you're going to want to replace the tires. ($10 minimum).

Bring a ruler and measure the length of the chain from one link to another. If there's more than 12 1/8" between two links, you're going to want to replace the chain. If there's a lot more, you might have to replace the cogs (look at the teeth on the cogs). That'll add a lot more dough. ($15 for the chain, $20 for a new freewheel). And if you have to replace the freewheel, it's probably not worth it for the whole bike (unless you're looking for a fun, cheap project to learn a bit on). If you don't have a ruler, assume you're going to want to replace the chain unless it looks brand new.

See how worn down the brake pads look. And if the cables for the derailleurs or brakes are frayed at the ends. That'll be another $10 minimum to replace w/ your own labor.

Are the wheel rims aluminum alloy or steel? Use a magnet to check. Steel rims are basically outdated these days, and replacing/upgrading will cost you at least $50 scavenging on ebay or CL, likely more.

When looking over a potential buy, you have to take into account any work and money you're going to end up putting into it. I've found that most old 10-speeds are at that point of age and neglect where, unless they're a very nice frame, or they've been upgraded/refurbished, they're just not in good enough shape to be worth the work and money you're going to have to put in. That being said, if you spent the $40 on a frame that's very nice (I'm not convinced a Philips is), then after putting in the money, you can have yourself a very fun project and a nice, old-school bike. YMMV.