GCT Semiconductor Holding, Inc. Provides Business Update and Reports Fourth Quarter and Full Year 2024 Financial Results

 

GCT launches “2025GCT” program to commence “Year of 5G” and celebrate upcoming 5G chipset shipments

 

GCT Launches “2025GCT” Program to Commence “Year of 5G”

 

“We welcome 2025 with excitement for what is ahead of us this year with the launch of our 2025GCT program,” said John Schlaefer, Chief Executive Officer of GCT. “When we brought GCTS to the public markets almost exactly a year ago, we were aware that the industry’s transition from 4G to 5G would be a tremendous catalyst for us. We are now doubling down on our efforts in 2025, as we are finally in the position to benefit from the ever-growing demand for high speed, ubiquitous wireless data communications with the upcoming release and shipments of our 5G chipsets to customers. ”

 

Schlaefer added, “Despite reviewing 2024 financials today, we are mostly focused on what will impact our financials going forward and would encourage investors to do so as well. While our 2024 financials were shaped by transitional 4G sales and 5G service revenue, which we expect to remain as revenue sources, we expect the second half of 2025 and onwards to be strongly shaped by 5G chipset sales. With 5G use cases and overall market volume now significantly higher than that of 4G and chipset prices at several times that of 4G, we believe that the launch of our 5G chipset will be a transformative event for the Company.”

 

“The Company has been managing its capital allocation and cash flow tightly with priorities given to funding the development of the 5G chipset and further strengthening our balance sheet. We managed to reduce our debt by nearly 50% during 2024, which positions us better for future growth and profitability,” said Edmond Cheng, Chief

 

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Net revenues were $1.8 million, a 57.4% decrease from $4.2 million.

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Gross margin was 32.3%, a 12.0% point decrease from 44.3%.

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Total operating expenses were $7.9 million, a 28.9% increase from $6.2 million.

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Net loss was $5.0 million, a 51.1% decrease from $10.2 million.

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Net revenues were $9.1 million, a 43.0% decrease from $16.0 million.

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Gross margin was 55.6%, a 13.6% point increase from 42.0%.

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Total operating expenses were $18.2 million, a 14.5% decrease from $21.3 million.

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Net loss was $12.4 million, a 44.9% decrease from $22.5 million.

 

This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1955. These forward-looking statements include, without limitation, the Company’s expectations with respect to its business operations; the expected timeline to commence shipment of 5G chipsets; the anticipated growth of 5G markets and opportunities; the benefits of development agreements with partners; the ability for the Company to improve financial performance; the ability of the Company to raise sufficient capital to fund its operations; the ability of the Company’s technology and products to address new markets and meet customer demands; the execution of go-to-market strategies; and the anticipated size of addressable markets by the Company’s products. Words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause actual future events to differ materially from the expected results, include, but are not limited to: the ability of the Company to develop its 5G products and generate revenue; the ability to enter into and meet the obligations under partnership and collaboration agreements; the ability of the Company to grow and manage growth profitability and retain its key employees; the Company's financial and business performance, including the Company's financial projections and business metrics; changes in the Company's strategy, future operations, financial position, estimated revenues and losses, forecasts, projected costs, prospects and plans; the Company's inability to anticipate the future market demands and future needs of its customers; the impact of component shortages, suppliers' lack of production capacity, natural disasters or pandemics on the Company's sourcing operations and supply chain; the Company's future capital requirements and sources and uses of cash; the ability to implement business plans, forecasts, and other expectations, including the growth of the 5G market; the risk that the Company may not be able to repay its debt; the risk of economic downturns that affects the Company's business operation and financial performance; the risk that the Company may not be able to develop and design its products acceptable to its customers; actual or potential conflicts of interest of the Company's management with its public stockholders; macroeconomic conditions, including market conditions, global and economic conditions, labor disputes, inflationary impacts, and disruptions to the global supply chain; the imposition of duties and tariffs and other trade barriers and retaliatory countermeasures implemented by the U.S. and other governments; and other risks and uncertainties indicated from time to time in Company’s filings with the SEC, including the annual report on Form 10-K, and quarterly reports on Form 10-Q, and those disclosures under the "Risk Factors" section therein. The foregoing list of factors is not exhaustive. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend

 

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