New ASX tech company warns customers it can't cope

AI-Media (ASX: AIM) listed just one week ago, but already workload is killing it.

It only listed a week ago, but Access Innovation Holdings Ltd (ASX: AIM) has hit a hurdle.

The captioning tech and services provider, better known as AI-Media, sent a memo Monday to its customers that it's struggling with the workload.

"While we continue to strive for 100% coverage, it has become quite challenging to cover all events, especially those with short turn-around times," the memo read.

"If you're planning to use our live enterprise services, please let us know with as much notice as possible and we will do our best to meet your needs."

As a workaround, the memo suggested clients consider retrospectively captioning from a recording of the event or its transcription service as "high-quality alternatives".

The new public company also stated it was training "a number of new captioners" and upgrading its technology.

"We really appreciate your patience during this time," stated the memo.

"Please know that we understand the importance of your work and we are doing our best to meet the needs expressed."

The Motley Fool understands that the bottleneck is on the demand side, and the company is currently recruiting additional staff.

AI-Media did not comment on the record to The Motley Fool.

AI-Media listed on the ASX last Tuesday with a market capitalisation of $177.4 million and an initial share price of $1.23. It was down 2.96% Monday, to sit at $1.31 after the close of trade.

falling asx share price represented by child looking shocked at computer screen

Image source: Getty Images

What does AI-Media do?

Alex Jones, who was born deaf, identified the need for better captioning technology. He teamed with Tony Abrahams in 2003 to establish AI-Media.

Abrahams is still at the helm as chief executive officer. 

More than $50 million has been invested since 2009 into its main product – a cloud-based artificial intelligence platform.

The tech is combined with human captioners, transcribers and translators to provide the end result to customers.

"Using a combination of machine and human curation provides levels of accuracy that are greater than machines alone," the prospectus read.

"This level of accuracy is a requirement to service AI-Media's enterprise customers."

AI-Media reported pro-forma revenue of $37.9 million for the 2020 financial year, while posting a $8.6 million net loss after tax. 

It forecasts a loss of $5.8 million for the 2021 financial year.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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