GCT Semiconductor Reports Business Update and Full Year 2024 Financial Results
GCT Semiconductor Holding, a leading global provider of cutting-edge 5G and 4G semiconductor solutions, has released its business update and financial results for the fourth quarter and full year ended December 31, 2024. The Company is also launching the “2025GCT” program, a strategic initiative designed to capitalize on the accelerating demand for 5G technology.
GCT Unveils “2025GCT” Program to Usher in the “Year of 5G”
GCT Semiconductor is positioning itself at the forefront of the global 5G revolution with its newly launched “2025GCT” program. The initiative aims to accelerate the development, commercialization, and mass production of next-generation 5G chipsets, reinforcing the Company’s commitment to technological innovation and market leadership.
Key highlights of the 2025GCT program include:
- 5G Chipset Availability: On track to launch in the first half of 2025, as previously announced.
- Strategic Partnerships: Strengthening collaborations with world-class technology leaders to enhance 5G adoption across various industries.
- Globalstar Collaboration: Working with Globalstar to enable seamless connectivity across cellular, private, and satellite networks worldwide.
- European Telecommunications Alliance: Partnering with a European Tier One telecommunications supplier to develop Fixed Wireless Access (FWA) solutions.
- Saudi Arabian Expansion: Supporting Aramco Digital’s efforts to build a robust 5G ecosystem in Saudi Arabia.
- Samsung Collaboration: Continuing collaboration with Samsung Electronics Co., Ltd. to drive the adoption of 5G chipsets and modules among device manufacturers.
- Kyocera Partnership: Leveraging Kyocera’s advanced 5G mmWave antenna module for enhanced FWA capabilities.
- Financial Strategy: Aligning the Company’s balance sheet with the anticipated growth in 5G chipset sales, ensuring sustainable business expansion.
Leadership’s Perspective on Growth and Market Transition
John Schlaefer, Chief Executive Officer of GCT, expressed enthusiasm for the Company’s direction in 2025, stating:
“We enter 2025 with a heightened sense of optimism and readiness as we launch the 2025GCT program. When we took GCTS public nearly a year ago, we recognized that the transition from 4G to 5G would serve as a transformative force for our business. Now, with our 5G chipsets set to be released and shipped to customers, we are poised to meet the increasing demand for high-speed, ubiquitous wireless data connectivity.”
Schlaefer emphasized that while reviewing the 2024 financials, investors should focus on future growth drivers rather than historical numbers. He added:
“Our 2024 financials were largely influenced by transitional 4G sales and service revenue from 5G-related projects. However, we anticipate a significant shift starting in the second half of 2025 as our 5G chipset sales take center stage. The demand for 5G technology is now far greater than that of 4G, with chipset prices reflecting a premium. We believe that the launch of our 5G chipset will be a defining moment for the Company.”
Edmond Cheng, Chief Financial Officer of GCT, highlighted the Company’s prudent financial management, stating:
“Our primary focus remains on capital allocation and cash flow management, ensuring that we prioritize the development of our 5G chipset while simultaneously strengthening our financial position. In 2024, we successfully reduced our debt by nearly 50%, providing us with a stronger foundation for future profitability. Additionally, we are in advanced discussions with potential investors to secure near-term funding, which will support our growth initiatives leading into the second half of 2025.”
Fourth Quarter 2024 Financial Results
The financial performance of GCT for the fourth quarter of 2024 is compared to the same period in 2023:
- Net Revenues: $1.8 million, representing a 57.4% decline from $4.2 million in Q4 2023.
- Gross Margin: 32.3%, a decrease of 12 percentage points from 44.3%.
- Total Operating Expenses: $7.9 million, a 28.9% increase from $6.2 million.
- Net Loss: $5.0 million, reflecting a 51.1% improvement from the $10.2 million loss in Q4 2023.
Full Year 2024 Financial Results
The financial results for the full year of 2024 compared to 2023 are as follows:
- Net Revenues: $9.1 million, a 43.0% decline from $16.0 million in the prior year.
- Gross Margin: Improved to 55.6%, a 13.6 percentage point increase from 42.0%.
- Total Operating Expenses: $18.2 million, a 14.5% decrease from $21.3 million.
- Net Loss: $12.4 million, a 44.9% reduction from the $22.5 million loss reported in 2023.
Liquidity Position
As of December 31, 2024, GCT’s liquidity position includes:
- Cash and Cash Equivalents: $1.4 million.
- Net Accounts Receivable: $5.7 million.
- Inventory: $3.0 million.
These financial resources are expected to support ongoing operations and the anticipated ramp-up in 5G chipset sales.
Outlook for 5G Development
GCT remains highly confident in the progress of its 5G chipset development. The Company reiterates its expectation to begin shipping 5G chipsets in the first half of 2025, marking a crucial milestone in its growth strategy. The strong demand for high-performance 5G solutions, coupled with GCT’s strategic partnerships, positions the Company well for substantial revenue growth in the coming years.
Conference Call and Webcast Details
GCT Semiconductor will host a conference call and live webcast to discuss the financial results and provide additional business updates. The event will include a Q&A session.
- Date: Tuesday, March 25, 2025
- Time: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)
- Dial-in Registration: Please register in advance here.
- Webcast (Listen-Only): Access the webcast via the following link.
A replay of the webcast will be available on the Company’s investor relations website at investors.gctsemi.com.
GCT Semiconductor is entering an exciting new phase, with 2025 set to be a pivotal year for its 5G business. With a solid foundation, strategic partnerships, and a clear financial trajectory, the Company is well-positioned to capitalize on the next wave of wireless innovation. Investors and stakeholders can look forward to meaningful growth as GCT transitions into a leading force in the 5G semiconductor market.
