Seers, a wearable AI diagnostic monitoring company, is pushing for the supply and revenue recognition in the fourth quarter of approximately 20 billion won worth of orders that were not reflected in its third-quarter sales due to delays in the supply and demand of AI servers.
On Monday, Seers said that it turned to a loss in the third quarter due to delays in some supply schedules caused by disruptions in server procurement for its flagship product, the AI bed monitoring platform "thynC," and stated its plan to strengthen supply stability through proactive securing of server inventory and technical responses.
The company's consolidated revenue for the third quarter this year was 9.8 billion won, a 38% decrease compared to the same period last year. Operating loss was 1.9 billion won, marking a shift into the red. However, cumulative revenue for the year stood at 70.7 billion won, and operating profit was 24.9 billion won, maintaining a profitable trend on a cumulative basis.
Although all of the relevant servers were received by the end of October, the company plans to improve its server ordering and inventory management system to prevent similar situations from recurring. Previously, it adjusted server orders and receipt timing according to quarterly demand, but based on funds secured through recent financing, it plans to place advance orders for at least two quarters' worth of AI server requirements to enhance supply stability.
Technical responses to increase flexibility in server procurement have also been completed. A company official stated, "We have completed development to ensure that our proprietary AI engine and software operate smoothly not only on existing Intel CPU-based servers but also on AMD CPU-based servers," emphasizing, "This will expand our options for server procurement and reduce the possibility of supply disruptions due to changes in the supply and demand environment."
The company's thynC operates under a structure where its distributor, Daewoong Pharmaceutical, places orders based on hospital adoption plans and expected demand for the upcoming quarter, and Seers supplies the corresponding volume.
Seers is focusing on revenue recovery and is reportedly in discussions with Daewoong Pharmaceutical regarding the scale of additional orders. It maintains its minimum guidance (forecast) of supplying 30,000 thynC beds annually based on order volumes.
The company expanded its annual production capacity for wearable medical devices and network equipment to approximately 200,000 units with the completion of its second factory in October last month.
Lee Young-shin, CEO of Seers, said, "I apologize for causing concern and disappointment to shareholders and investors due to the underperformance in the third quarter," adding, "We will do our best to lead a recovery in fourth-quarter performance by normalizing AI server supply and strengthening supply stability, adding new demand to the 20 billion won worth of delayed orders, and achieving our annual guidance."
in THEBIO
