Shuttle, which specializes in PC barebone systems, has been transforming its business, expecting to return to profitability in 2020, according to company president Andy Cheng.

It also expects profit growth in 2021.

Shuttle has cooperated with subsidiary Carilex Medical to develop IT products for medical purposes, with the segment's revenue proportion to rise to over 20% in 2021, said Cheng.

Shuttle and Carilex have cooperated to develop a contactless temperature scanning kiosk, a smart health kiosk and a negative pressure wound therapy device, Cheng said.

The scanning kiosk features integration of AI and facial recognition technologies to scan human body temperatures even when their faces are masked, Cheng noted, adding that the kiosk has been used in many large hospitals in Taiwan.

The negative pressure wound therapy device will be soon launched in the US, UK, Brazil and other European countries, Cheng said, adding that the global market value for negative pressure wound therapy will keep growing from US$21.4 million in 2020 to US$33.4 million in 2027.

Shuttle has adjusted production strategy by ending ODM production of notebooks and outsourcing production of mini PCs to First International Computer, Cheng indicated.

January-September 2020 consolidated revenues decreased 48.44% on year but the corresponding gross margin hiked 16.49pp, Cheng said. Currently, Shuttle ships 15,000 own-brand mini PCs a month on average, taking up nearly 80% of consolidated revenues, Cheng noted.

Shuttle posted consolidated revenues of NT$387.7 million (US$13.4 million), gross margin of 37.87%, operating profit of NT$5.9 million and net profit of NT$5.5 million for third-quarter 2020, leading to consolidated revenues of NT$1.273 billion, gross margin of 37.08%, operating loss of NT$12.8 million and net loss of NT$21.5 million for the first three quarters of the year.

Shuttle has reported consolidated revenues of NT$137.0 million for November, increasing 3.96% sequentially but decreasing 43.52% on year.

Shuttle president Andy Cheng
Photo: Monica Chen, Digitimes, December 2020