Latest news with #JohnSchlaefer
Business Wire
5 days ago
- Business
- Business Wire
GCT Semiconductor and Iridium Sign MOU to Collaborate on Integrating Iridium NTN Direct
SAN JOSE, Calif.--(BUSINESS WIRE)-- GCT Semiconductor Holding Inc. ('GCT') (NYSE: GCTS), a leading designer and supplier of advanced 5G and 4G semiconductor solutions, today announced its collaboration with Iridium Communications Inc. (NASDAQ: IRDM), a leading provider of global voice and data satellite communication, to integrate the Iridium NTN Direct℠ service into GCT's advanced GDM7243SL chipset. GCT and Iridium will work together to expedite the development of a new Iridium® network-enabled Narrowband Internet of Things (NB-IoT) chipset based on requirements for 3GPP Release 19. Share GCT and Iridium will work together to expedite the development of a new Iridium® network-enabled Narrowband Internet of Things (NB-IoT) chipset based on requirements for 3GPP Release 19. Both companies will jointly explore opportunities, business models, use cases, and commercial deployments requirements for the new Iridium network-enabled NB-IoT chipset, designed for the next wave of 5G Advanced that will integrate satellite technologies into 5G. 'GCT is thrilled to collaborate with Iridium, a leading innovator in satellite IoT applications,' said John Schlaefer, CEO of GCT. 'Building on our expertise in 4G, 5G, and NTN technology, along with our leading multi-mode IoT chip, GDM7243SL, we are excited to broaden our reach into the non-terrestrial market. Working with Iridium, our goal is to address the growing need for trackers, satellite phones, and other IoT solutions.' 'Integrating Iridium NTN Direct with GCT's chipset will enable their customers to experience truly global, reliable standards-based connectivity in a compact, efficient form,' said Greg Pelton, CTO, Iridium. 'GCT is an innovative partner, forward-thinking, and deeply engaged in helping bring this next-generation service to market.' About GCT Semiconductor Holding, Inc. GCT is a leading fabless designer and supplier of advanced 5G and 4G LTE semiconductor solutions. GCT's market-proven solutions have enabled fast and reliable 4G LTE connectivity to numerous commercial devices such as CPEs, mobile hotspots, routers, M2M applications and smartphones, etc., for the world's top wireless carriers. GCT's system-on-chip solutions integrate radio frequency, baseband modem and digital signal processing functions, therefore offering complete 4G and 5G platform solutions with small form factors, low power consumption, high performance, high reliability, and cost-effectiveness. For more information, visit Cautionary Statement Regarding Forward-Looking Statements 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, statements regarding GCT's collaboration with Iridium and ability of GCT's 4G/5G chipsets to address additional markets. 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 of the Company 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 of the Company to raise sufficient capital to fund its operations; 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; and other risks and uncertainties indicated from time to time in the Company's filings with SEC, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 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 to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Business Wire
22-05-2025
- Business
- Business Wire
GCT Semiconductor and Giesecke+Devrient Partner to Launch Innovative eSIM Solution for IoT Devices
SAN JOSE, Calif, & MUNICH--(BUSINESS WIRE)-- GCT Semiconductor Holding Inc. ('GCT') (NYSE: GCTS), a leading designer and supplier of advanced 4G and 5G semiconductor solutions, and Giesecke+Devrient (G+D), a global provider of eSIM technology and developer of the first GSMA SGP.32 fully-certified product, today announced their partnership to launch a cutting-edge SGP.32 eSIM solution with Integrated Profile Activation Device (IPAd) support for multi-network IoT devices. This collaboration for eSIMs, or SIM cards directly embedded into a device, brings intelligent, location-aware connectivity to headless 4G and 5G IoT devices. In addition, the collaboration ensures peak performance based on location, availability, cost and policy – an unprecedented advancement for mission-critical applications across industries. GCT will be including this advanced capability in all future 4G & 5G chipsets. 'The adoption of eSIM technology in IoT devices and wearables has become increasingly popular, driven by the new capabilities of remote SIM,' said John Schlaefer, CEO of GCT. SGP.32 is GSMA's latest eSIM technical specification for IoT that ensures eSIM IoT technologies are secure and interoperable with networks worldwide. By integrating SGP.32 with the software component IPAd's capabilities directly into GCT's multi-network 4G and 5G chipsets and modules, the solution enables out-of-the-box connectivity and flexible lifecycle management without the need for physical SIM swaps or user intervention. 'The adoption of eSIM technology in IoT devices and wearables has become increasingly popular, driven by the new capabilities of remote SIM,' said John Schlaefer, CEO of GCT. 'However, many IoT devices lack a user interface to fully access this functionality - a challenge that IPAd effectively addresses. We look forward to working closely with G+D to provide advanced device flexibility and improved security for the growing market of IoT products worldwide.' 'The eSIM market continues to grow, both in importance and size, and is one of the core connectivity solutions of the future especially in the IoT area. Since introducing the first eSIM in 2012, and to date having provided over 500 million eSIM downloads, G+D has pioneered this space with solution innovation and by driving industry adoption and collaboration,' said BeeGek Lim, Global Head of Digital Connectivity Solutions at G+D. 'To stay at the forefront of this technology it is important to collaborate with the right partners. We are pleased to work closely with GCT to continue to define and shape the cellular connected future of the IoT.' About GCT Semiconductor Holding, Inc. GCT is a leading fabless designer and supplier of advanced 5G and 4G LTE semiconductor solutions. GCT's market-proven solutions have enabled fast and reliable 4G LTE connectivity to numerous commercial devices such as CPEs, mobile hotspots, routers, M2M applications and smartphones, etc., for the world's top wireless carriers. GCT's system-on-chip solutions integrate radio frequency, baseband modem and digital signal processing functions, therefore offering complete 4G and 5G platform solutions with small form factors, low power consumption, high performance, high reliability, and cost-effectiveness. For more information, visit About Giesecke+Devrient Giesecke+Devrient (G+D) is a global SecurityTech company headquartered in Munich, Germany. G+D makes the lives of billions of people more secure. The company shapes trust in the digital age, with built-in security technology in three segments: Digital Security, Financial Platforms and Currency Technology. G+D was founded in 1852 and today has a workforce of more than 14,000 employees. In the fiscal year 2024, the company generated a turnover of 3.1 billion euros. G+D is represented by 118 subsidiaries and joint ventures in 41 countries. Further information: Cautionary Statement Regarding Forward-Looking Statements 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, statements regarding GCT's partnership with G+D and ability of GCT's 4G/5G chipsets to address additional markets, including IoT markets. 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 of the Company 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 of the Company to raise sufficient capital to fund its operations; 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; and other risks and uncertainties indicated from time to time in the Company's filings with SEC, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 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 to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Yahoo
22-05-2025
- Business
- Yahoo
GCT Semiconductor and Giesecke+Devrient Partner to Launch Innovative eSIM Solution for IoT Devices
SAN JOSE, Calif, & MUNICH, May 22, 2025--(BUSINESS WIRE)--GCT Semiconductor Holding Inc. ("GCT") (NYSE: GCTS), a leading designer and supplier of advanced 4G and 5G semiconductor solutions, and Giesecke+Devrient (G+D), a global provider of eSIM technology and developer of the first GSMA SGP.32 fully-certified product, today announced their partnership to launch a cutting-edge SGP.32 eSIM solution with Integrated Profile Activation Device (IPAd) support for multi-network IoT devices. This collaboration for eSIMs, or SIM cards directly embedded into a device, brings intelligent, location-aware connectivity to headless 4G and 5G IoT devices. In addition, the collaboration ensures peak performance based on location, availability, cost and policy – an unprecedented advancement for mission-critical applications across industries. GCT will be including this advanced capability in all future 4G & 5G chipsets. SGP.32 is GSMA's latest eSIM technical specification for IoT that ensures eSIM IoT technologies are secure and interoperable with networks worldwide. By integrating SGP.32 with the software component IPAd's capabilities directly into GCT's multi-network 4G and 5G chipsets and modules, the solution enables out-of-the-box connectivity and flexible lifecycle management without the need for physical SIM swaps or user intervention. "The adoption of eSIM technology in IoT devices and wearables has become increasingly popular, driven by the new capabilities of remote SIM," said John Schlaefer, CEO of GCT. "However, many IoT devices lack a user interface to fully access this functionality - a challenge that IPAd effectively addresses. We look forward to working closely with G+D to provide advanced device flexibility and improved security for the growing market of IoT products worldwide." "The eSIM market continues to grow, both in importance and size, and is one of the core connectivity solutions of the future especially in the IoT area. Since introducing the first eSIM in 2012, and to date having provided over 500 million eSIM downloads, G+D has pioneered this space with solution innovation and by driving industry adoption and collaboration," said BeeGek Lim, Global Head of Digital Connectivity Solutions at G+D. "To stay at the forefront of this technology it is important to collaborate with the right partners. We are pleased to work closely with GCT to continue to define and shape the cellular connected future of the IoT." About GCT Semiconductor Holding, Inc. GCT is a leading fabless designer and supplier of advanced 5G and 4G LTE semiconductor solutions. GCT's market-proven solutions have enabled fast and reliable 4G LTE connectivity to numerous commercial devices such as CPEs, mobile hotspots, routers, M2M applications and smartphones, etc., for the world's top wireless carriers. GCT's system-on-chip solutions integrate radio frequency, baseband modem and digital signal processing functions, therefore offering complete 4G and 5G platform solutions with small form factors, low power consumption, high performance, high reliability, and cost-effectiveness. For more information, visit About Giesecke+Devrient Giesecke+Devrient (G+D) is a global SecurityTech company headquartered in Munich, Germany. G+D makes the lives of billions of people more secure. The company shapes trust in the digital age, with built-in security technology in three segments: Digital Security, Financial Platforms and Currency Technology. G+D was founded in 1852 and today has a workforce of more than 14,000 employees. In the fiscal year 2024, the company generated a turnover of 3.1 billion euros. G+D is represented by 118 subsidiaries and joint ventures in 41 countries. Further information: Cautionary Statement Regarding Forward-Looking Statements 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, statements regarding GCT's partnership with G+D and ability of GCT's 4G/5G chipsets to address additional markets, including IoT markets. 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 of the Company 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 of the Company to raise sufficient capital to fund its operations; 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; and other risks and uncertainties indicated from time to time in the Company's filings with SEC, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 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 to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. View source version on Contacts G+D: Press contact Giesecke+DevrientChristoph LangHead of Corporate Brand Communications and Government RelationsPhone: +49 89 4119-2164E-Mail: GCT: Investor relations website: relations contact: Gateway Group, Ralf Esper, GCT@ Media contact: media@
Yahoo
15-05-2025
- Business
- Yahoo
Q1 2025 GCT Semiconductor Holding Inc Earnings Call
John Schlaefer; Chief Executive Officer, Director; GCT Semiconductor Inc Edmond Cheng; Chief Financial Officer; GCT Semiconductor Inc Operator Good afternoon. Thank you for attending GCT Semiconductor Holding, Inc.'s first quarter 2025 financial results call. (Operator Instructions) Joining the call today are John Schlaefer, GCT's Chief Executive Officer; and Edmond Cheng, CFO, to discuss the first quarter 2025 results. During this call, certain statements we make will be forward-looking. These statements are subject to risks and uncertainties, including those set forth in our Safe Harbor provision for forward-looking statements that can be found at the end of our earnings press release and also in our Form 10-Q that will be filed today, which provide further detail about the risks related to our business. Additionally, except as required by law, we undertake no obligation to update any forward-looking statement. I will now turn the call over to John Schlaefer. John Schlaefer Thank you, and thanks to everyone for joining us today for our first quarter 2025 earnings call. I'll focus my remarks on our 5G chipset and important partnership updates within our 2025GCT-Year of 5G program, and Edmond, our CFO, will provide details for our first quarter financial disclosure. And without any further delay, I am pleased to say that we've officially begun the 5G product era here at GCT. And as I use the 1-yard line analogy during last quarter's earnings call, we are officially in the end zone. As a result of our focused efforts under the 2025GCT-Year of 5G program, we are currently evaluating our finalized 5G chipset in our own lab facilities. This is following successful acceleration and completion of our production milestones through early May. This marks a monumental milestone for us here at GCT, a binary catalyst, as we are moving directly to 5G customer sampling starting this month, which will then lead to volume shipments in Q3 and beyond. And within our 2025GCT-Year of 5G program, we have also further accelerated and prioritized our partnership and customer programs that are focused on 5G. On our last earnings call, I already mentioned that we have taken action to accelerate the ongoing announced and unannounced programs with world-renowned partners like Globalstar, European Tier 1 telco supplier, Aramco Digital, Samsung and Kyocera. Additionally, we have recently signed a letter of intent with Orbic North America to jointly develop and supply a mobile hotspot and FWA gateway utilizing a Verizon-certified 5G module based on our new 5G chipset. The LOI outlines the framework for collaboration between the parties, including terms related to volume purchase for supply to Verizon and other operators. Before I turn the microphone over to Edmond, I do want to stress again how pivotal this moment is for us here at GCT. The 5G chipset is now becoming available and is finding its way into our customers' products. And while we expect certain use cases to continue to benefit from our advanced 4G solutions, we are fully focused on driving sales for our 5G chipsets and expect Edmond to have a very different story to tell regarding our income statement in our future earnings calls. And with that, Edmond? Edmond Cheng Thank you, John. As John said, we are incredibly excited about the impact 5G will have to our company and specifically to our income statement and balance sheet starting from the second half of the year. In the meantime and until we see that impact coming through, I want to remind all listeners that we are reporting the transitional 4G results. They are not in all representative of what we are expecting in the second half of the year once 5G chipset sales are occurring. We anticipate that the average selling price of our 5G chipset will be approximately 4 times higher than that of our current 4G offerings. As we focus on sampling and launching our 5G chipsets, we have fully aligned our internal resources with this strategic priority, including our marketing and sales teams' focus on new business development activities in building the potential pipeline. Turning now to our first quarter 2025 financial results. Further details can be found in the 10-Q that will be on file with the SEC. Net revenues decreased by $2.8 million or 85% from $3.3 million for the three months ended March 31, 2024, to $0.5 million for the three months ended March 31, 2025. The reduction was primarily attributable to a decrease of $2.3 million in product sales and a decrease of $0.5 million in service revenue. The decrease was due to no 5G platform shipments in the first fiscal quarter of 2025 as compared to two 5G platform shipments in the first fiscal quarter of 2024, which account for the most of the differences. Again, when modeling our expected upcoming 5G revenue, we will be benefited from both higher global market demand and market prices in the 5G chip market. Cost of net revenues decreased by $0.9 million or 69% from $1.3 million for the three months ended March 31, 2024, to $0.4 million for the three months ended March 31, 2025. This decrease in the cost of net revenues was driven primarily by the reduction of our product sales and involvement in service projects. Once our 5G chipsets have been launched, we expect new service revenues in terms of NRE in assisting our customers in their product development projects in using our 5G chipsets. Our gross margin decreased to 18% for the three months ended March 31, 2025, from 60% for the three months ended March 31, 2024. The gross margin for our service business was at 50.4%. This gross margin for our product sales was at negative 120%, mainly due to the low volume of product sales, which cannot cover the overhead costs. Our gross margin is distorted by the low volume of product sales, which makes it less indicative of the underlying profitability of our future product sales, especially for the upcoming 5G product. Nevertheless, we are actively exploring measures to improve operational efficiencies and look forward to restoring product sales and service projects volume with 5G. Research and development expenses decreased by $1.4 million or 26% from $5.5 million for the three months ended March 31, 2024, to $4.1 million for the three months ended March 31, 2025. This decrease was primarily due to $1.3 million related to project-specific intellectual property expenses incurred during the first fiscal quarter of 2024. Sales and marketing expenses increased by $0.1 million or 12% from $1 million for the three months ended March 31, 2024, to $1.1 million for the three months ended March 31, 2025. This increase was primarily due to personnel-related and other costs. General and administrative expenses decreased by $0.2 million or 8% from $2.8 million for the three months ended March 31, 2024, to $2.6 million for the three months ended March 31, 2025. This decrease was primarily due to a $0.7 million reduction in stock-based compensation related to the vesting of performance-based funded shares in the first fiscal quarter of 2024, partially offset by a $0.3 million increase in business liability insurance premiums and $0.2 million increase in personnel-related costs, driven by our transition to public company operations during the first fiscal quarter of 2024. We closed the quarter with cash and cash equivalents of $1 million. We also had net accounts receivable of $4.5 million and net inventory of $3.1 million. As we advance towards securing external financing, our recently filed shelf registration providing up to $200 million in capacity, including a $75 million at-the-market facility, which will significantly enhance the company's financial flexibility and expands our available funding options. With this, I will turn it back over to John. John Schlaefer Thanks, Edmond. In closing, we are thrilled about what is ahead of us. With the announcement of our 5G chipset availability under our 2025GCT-Year of 5G program, we are in the final stages of putting the product, customer and financial building blocks in place for substantial growth based on our 5G chipset launch and are excited about the impact of that for our company and for our stock as we value all of our shareholders. Finally, I would like to thank our employees, partners and our customers for their continued efforts and dedication to the company, which ultimately drives our success as an organization. Together, we are focused on driving innovation, supporting the global transition to 5G solutions and delivering strong profitable growth. We are entering a new phase here at GCT and are thrilled to have you with us. I will now turn the call back over to the operator, who will assist us in taking your questions. Operator (Operator Instructions) Craig Elli, B. Riley Securities. Congratulations on continued 5G progress. John, I wanted to start just by following up on one of the newer announcements that the company has made, the announcement with Orbic on the 5G mobile hotspot for Verizon. Can you just talk a little bit more about how that relationship will proceed going forward and what you would expect for the second half of '25 and '26, even at a high level for what might be possible in terms of what you'd be able to do with that partnership and what you'd be able to ship? John Schlaefer Thanks, Craig. Yes. So we're excited about the Orbic relationship. As you know, they're a major supplier into Verizon right now in the mid-tier space. And we expect to be a part of that actually going forward. So the plan -- and not just for Verizon, but they have -- they're working with other operators around the world. So I think that the -- we'll be sampling them as part of the activities for this quarter. And then they'll go through their normal process of implementing that in their device. We'll be working with them. I think we mentioned in our announcement that this will be module-based. So we'll go through the process of actually providing them a module that we'll work on together. And also, we'll be working on hotspot and FWA gateway together, so for multiple operators. So we're going to have to take this a step at a time. I don't want to get over our skis here, but we're very excited about this as we go into in the second half of the year and 2026. So the bottom line, though, is that this is something that's multiproduct and looks like it can be multi-region for you. So without specifying specific volume numbers, there's a number of angles that the company can engage with the product set with this one partner. -- Moving on and -- that was just my reflection back, John. John Schlaefer Yes. I agree with you. So moving on, can you talk a little bit more about the sampling that commences in the second half of this quarter for 5G? It sounds like Orbic may be one of the entities. But any color there? And then related to that, I think the company conveyed that we'll be moving into commercial shipments in the second half of the year. Can you talk a little bit more about the breadth of that activity and what we can expect? John Schlaefer Yes. So we've been talking about our work with our alpha customers for a long time, and we've done announcements about that -- about those engagements over the last six months. So there's six customers that are -- in particular, that we'll be sampling first as actually primary activities. And then very shortly after that, and even in this quarter, there will be others that we'll be sampling. And then again, each one is going to have their own product focus, each one is going to have their own schedule. And so we'll be working with as many as we can as fast as we can to move forward into the second half and then beyond that. Sounds good. And then two more for me. First one is probably more for you, the second one probably for Edmond. As you get ready for the volume ramp in the second half of the year obviously, you've had a supply chain in place for some time. But now we're turning the knobs a little bit as we get ready for 5G. How are you feeling about your supply chain's capability to move into volume production around the corner? John Schlaefer I think we've -- I mean, this is -- we've been doing this with 4G for a long time now. So this is just a different product on the same supply line and the same relationship. So I think that our supply partners are ready for this and are very excited about this as well. Great. And then lastly, Edmond, for you, helpful color as you went through the income statement, especially with some of the specifics in OpEx. As we think about the general arc of things as we move into more intensive sampling and then volume shipments, anything that we should have our eye on with the OpEx line items in 2Q or the second half of the year? Edmond Cheng As we look into the second half of the year and looking at our OpEx line, we don't expect our OpEx will run up the same type of scale as what our revenue will be in the second half. So at this point of time, most of the major investment in R&D has been done in our 5G chips. So we will be running the cost as we usually will do from that sense and we have a very tight control process, cost control process in place. Operator (Operator Instructions) I'm showing no further questions in queue at this time. That will conclude today's question-and-answer session. Thank you for joining us. That concludes our first quarter 2025 conference call. A replay will be available for a limited time on our website later today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
14-05-2025
- Business
- Business Wire
GCT Semiconductor Holding, Inc. Provides Business Update and Reports First Quarter 2025 Financial Results
SAN JOSE, Calif.--(BUSINESS WIRE)--GCT Semiconductor Holding, Inc. ('GCT' or the 'Company') (NYSE: GCTS), a leading designer and supplier of advanced 5G and 4G semiconductor solutions, today provided an update on business developments and reported financial results for the first quarter ended March 31, 2025. 5G chipset sampling to customers scheduled to begin at the end of May, following completion of fab, wafer processing and delivery of finalized 5G chipsets to GCT facility Share '2025GCT – Year of 5G' Program Update and other Highlights 5G chipset sampling expected to be commencing at the end of May 2025: Finalized 5G chipsets are now being evaluated at GCT's facility following successful acceleration and completion of production milestones through early May Signed a letter of intent with Orbic North America to jointly develop and supply a mobile hotspot and FWA gateway utilizing a Verizon-certified 5G module based on GCT's new 5G chipset Announcing upcoming attendance of the B. Riley Securities 25th Annual Investor Conference on May 21-22 at the Ritz-Carlton, Marina Del Rey (Los Angeles) 'We are thrilled to have our finalized 5G chipsets in hand, as our upcoming customer sampling will act as a binary catalyst for our company and our shareholders,' said John Schlaefer, Chief Executive Officer of GCT. 'I'm pleased to say that our '202 5G CT – Year of 5G' initiative is starting to yield positive results, as we've successfully accelerated the wafer fabrication and assembly processes, while further strengthening customer engagement.' 'We are now entering the next phase of our 5G transition. As we focus on sampling and launching our 5G chipsets, we have fully aligned our internal resources with this strategic priority. We expect this shift to begin positively impacting both our revenue and gross margin in the second half of the year, as 5G product shipments increase with an average selling price of approximately four times that of our 4G offering,' said Edmond Cheng, Chief Financial Officer of GCT. 'In the meantime, as we advance toward securing external financing, our recently filed shelf registration—providing up to $200 million in capacity, including a $75 million at-the-market (ATM) facility—significantly enhances the Company's financial flexibility and expands our available funding options.' First Quarter 2025 Financial Results Results compare the 2025 fiscal first quarter ended March 31, 2025 to the 2024 fiscal first quarter ended March 31, 2024. Fiscal first quarter 2024 results included a one-time gain on extinguishment of liability of $14.6 million, which impacted total operating expenses and net income. Net revenues were $0.5 million, an 84.8% decrease from $3.3 million. Gross margin was 17.7%, a 42.1 percentage point decrease from 59.8%. Total operating expenses (income) were $7.8 million, a 248.2% increase from $(5.3) million, primarily due to the one-time gain on extinguishment of liability of $14.6 million in the first quarter of 2024. Excluding the one-time gain, total operating expenses would have decreased by $1.5 million or 16.3%. Net income (loss) was $(7.0) million, a 1020.5% decrease from $0.8 million, primarily due to the one-time gain on extinguishment of liability of $14.6 million in the first quarter of 2024. Liquidity The Company's existing sources of liquidity as of March 31, 2025, include cash and cash equivalents of $1.0 million, net accounts receivable of $4.5 million, and inventory of $3.1 million. 5G Outlook The Company expects the sampling of its 5G chipsets to commence at the end of May 2025 and volume shipments to increase through the third and fourth fiscal quarters of 2025. Conference Call The Company will hold a conference call and live webcast today at 4:30 p.m. ET or 1:30 p.m. PST, which will be open to the public. During the conference call, the Company will discuss business updates and review the financial results, followed by a Q&A period. Date: Wednesday, May 14, 2025 Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time) Dial-in information: Please register in advance of the call here. Webcast (listen-only): To listen to the webcast use the following LINK. A replay of the webcast will be available via the Investors section of the GCT website at Upcoming Conference Schedule GCT's management team is scheduled to attend the B. Riley Securities 25th Annual Investor Conference on May 21-22 at the Ritz-Carlton, Marina Del Rey (Los Angeles). For additional information or to schedule a one-on-one meeting, please contact your representative or email GCT's investor relations contact at gct@ About GCT Semiconductor Holding, Inc. GCT is a leading fabless designer and supplier of advanced 5G and 4G LTE semiconductor solutions. GCT's market-proven solutions have enabled fast and reliable 4G LTE connectivity to numerous commercial devices such as CPEs, mobile hotspots, routers, M2M applications, smartphones, etc., for the world's top wireless carriers. GCT's system-on-chip solutions integrate radio frequency, baseband modem and digital signal processing functions, therefore offering complete 4G and 5G platform solutions with small form factors, low power consumption, high performance, high reliability, and cost-effectiveness. For more information, visit Cautionary Statement Regarding Forward-Looking Statements 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 to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. GCT Semiconductor Holding, Inc. Consolidated Balance Sheets December 31, 2024 Assets Current assets: Cash and cash equivalents $ 1,039 $ 1,435 Accounts receivable, net 4,541 5,740 Inventory 3,124 2,977 Contract assets 5,499 5,107 Prepaid expenses and other current assets 1,211 2,332 Total current assets 15,414 17,591 Property and equipment, net 851 869 Operating lease right-of-use assets 680 849 Intangibles, net 32 65 Other assets 499 523 Total assets $ 17,476 $ 19,897 Liabilities and Stockholders' Deficit Current liabilities: Accounts payable $ 1,438 $ 1,031 Contract liabilities 36 48 Accrued and other current liabilities 19,168 21,205 Common stock forward liability 20 315 Borrowings 45,216 37,626 Convertible promissory notes, current 4,966 — Operating lease liabilities, current 583 697 Total current liabilities 71,427 60,922 Convertible promissory notes, net of current — 4,947 Net defined benefit liabilities 7,300 7,055 Long-term operating lease liabilities 120 177 Income taxes payable 2,074 2,076 Warrant liabilities 2,101 3,750 Other liabilities 80 285 Total liabilities 83,102 79,212 Commitments and contingencies Stockholders' deficit: Common stock 5 5 Additional paid-in capital 501,903 501,195 Accumulated other comprehensive income 1,467 1,518 Accumulated deficit (569,001 ) (562,033 ) Total stockholders' deficit (65,626 ) (59,315 ) Total liabilities and stockholders' deficit $ 17,476 $ 19,897 Expand GCT Semiconductor Holding, Inc. Consolidated Statements of Operations (unaudited, in thousands, except per share amounts) Three Months Ended March 31, 2025 2024 Net revenues: Product $ 91 $ 2,378 Service 405 887 Total net revenues 496 3,265 Cost of net revenues: Product 207 654 Service 201 658 Total cost of net revenues 408 1,312 Gross profit 88 1,953 Operating expenses: Research and development 4,096 5,521 Sales and marketing 1,118 996 General and administrative 2,614 2,836 Gain on extinguishment of liability — (14,636 ) Total operating expenses 7,828 (5,283 ) Income (loss) from operations (7,740 ) 7,236 Interest expense (1,070 ) (2,082 ) Gain on foreign currency transactions, net 21 1,472 Change in fair value of common stock forward liability 295 — Change in fair value of common stock warrant liabilities 1,649 (4,626 ) Change in fair value of convertible promissory notes (19 ) (1,203 ) Other income, net 1 19 Income (loss) before provision for income taxes (6,863 ) 816 Provision for income taxes 105 59 Net income (loss) $ (6,968 ) $ 757 Net income (loss) per common share: Basic and diluted $ (0.15 ) $ 0.03 Weighted average common shares outstanding: Basic 47,606 25,468 Diluted 47,606 26,257 Expand
