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 second quarter ended June 30, 2025.

“2025GCT - Year of 5G” Program Update and other Highlights

·Successfully completed initial evaluation of 5G chipset and initialized transition to coordinating supply chain operations for mass production.
·Delivered initial 5G chipsets to lead customers, including Orbic North America and Airspan Networks, which has reported successful milestone testing (see press release). Additional samples will be provided over the coming weeks to meet initial demand from GCT’s key customers.
·Partnered with Iridium Communications Inc. (Nasdaq: IRDM) to integrate the Iridium NTN Direct℠ service into GCT’s advanced GDM7243SL chipset, expanding GCT’s reach into the non-terrestrial market.
·Collaborating with Giesecke+Devrient to launch innovative eSIM solutions for IoT devices.
·Completed an $11 million registered direct offering, with parts of the net proceeds allocated to 5G chipset sampling and debt retirement; the offering was made under the company’s S-3 shelf registration filed on April 1, 2025, for up to $200 million, including a $75 million at-the-market (“ATM”) offering program.

“During the second quarter we delivered the initial samples of our 5G chipsets to our leading customers and are entering the final stage ahead of commercialization,” said John Schlaefer, Chief Executive Officer of GCT. “The ‘Year of 5G’ is progressing steadily as we prepare for volume production and shipments of our 5G chipsets in the second half of fiscal 2025. With our key customers conducting their own product evaluation, GCT is poised to capitalize on this growing momentum to drive growth in the remainder of 2025 and onwards.”

“We’re continuing to build out a solid foundation to commence the commercial launch of our 5G chipset,” said Edmond Cheng, Chief Financial Officer of GCT. “As mentioned during our previous updates, we have strategically aligned our capital resources and fund-raising activities with the launch of the 5G chipset. The recently completed registered direct offering was a part of our funding plan as we used some of the proceeds from the offering to successfully complete the initial 5G chipset development and sampling.”

Second Quarter 2025 Financial Results

Results compare the 2025 fiscal second quarter ended June 30, 2025, to the 2024 fiscal second quarter ended June 30, 2024.

·Net revenues were $1.2 million, a 19.0% decrease from $1.5 million.
·Gross margin was 32.0%, a 30.7 percentage point decrease from 62.7%.
·Total operating expenses were $8.0 million, materially unchanged from $8.0 million.

Liquidity

The Company’s existing sources of liquidity as of June 30, 2025 include cash and cash equivalents of $1.3 million, net accounts receivable of $3.8 million, and inventory of $3.0 million. As a result of the completion of the registered direct offering, the Company retains access to its effective ATM offering program of up to $75 million and has approximately $114 million of remaining availability under its $200 million shelf registration statement on Form S-3.

5G Outlook

The Company expects to commence production of the finalized inaugural 5G chipsets during the third quarter of 2025 with volume shipments to begin in the fourth quarter of 2025.