SAN JOSE, CALIF. -- GCT Semiconductor Holding, Inc. (“GCT” or the “Company”) (NYSE: GCTS), a leading designer and supplier of advanced 5G and 4G semiconductor solutions, provided an update on business developments and reported financial results for the fourth quarter and full year ended December 31, 2024.

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

· 5G chipset availability commencing in the first half of 2025, as previously guided
· Taking action to accelerate ongoing announced programs with world-renowned partners focused on development and mass production of 5G chipsets:
- Recently announced partnership with Globalstar aimed at seamless connectivity across cellular, private and satellite networks worldwide
- FWA Collaboration with European Tier One Telecommunications Supplier
- Development of Aramco Digital’s Ecosystem in Saudi Arabia
- Collaboration with Samsung Electronics Co., Ltd on 5G chipsets and modules, as well as drive the adoption by device makers
- FWA Collaboration with Kyocera, using Kyocera’s 5G mmWave antenna module
· Further aligning the Company’s balance sheet with the expected upcoming ramp in sales

“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 Financial Officer of GCT. “We also remain in advanced discussions with potential investors to fill some of our near-term capital funding needs aiming at supporting us to bridge to the second half of the year.”

Fourth Quarter 2024 Financial Results

Results compare the 2024 fiscal fourth quarter ended December 31, 2024 to the 2023 fiscal fourth quarter ended December 31, 2023.

· Net revenues were $1.8 million, a 57.4% decrease from $4.2 million.
· Gross margin was 32.3%, a 12.0% point decrease from 44.3%.
· Total operating expenses were $7.9 million, a 28.9% increase from $6.2 million.
· Net loss was $5.0 million, a 51.1% decrease from $10.2 million.

Full Year 2024 Financial Results

Results compare the 2024 fiscal full year ended December 31, 2024 to the 2023 fiscal full year ended December 31, 2023.

· Net revenues were $9.1 million, a 43.0% decrease from $16.0 million.
· Gross margin was 55.6%, a 13.6% point increase from 42.0%.
· Total operating expenses were $18.2 million, a 14.5% decrease from $21.3 million.
· Net loss was $12.4 million, a 44.9% decrease from $22.5 million.

Liquidity

The Company’s existing sources of liquidity as of December 31, 2024, include cash and cash equivalents of $1.4 million, net accounts receivable of $5.7 million, and inventory of $3.0 million.

5G Outlook

The Company remains confident based on the progress of its 5G chipset development and reiterates the expectation to commence shipments of 5G chipsets in the first half of 2025.

Conference Call

The Company will hold a conference call and live webcast 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: Tuesday, March 25, 2025
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
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 investors.gctsemi.com.