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 first quarter ended March 31, 2025.

“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 ‘2025GCT - 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)