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GCT Semiconductor Holding, Inc.(GCTS) - 2025 Q2 - Quarterly Results

Company Announcement & Overview Introduction & Key Highlights GCT Semiconductor announced Q2 2025 results, highlighting 5G chipset sample deliveries and an $11 million offering for 5G development - GCT Semiconductor has delivered initial 5G chipset samples to key customers and is preparing for mass production and volume shipments in the second half of fiscal year 202513 - The company completed an $11 million registered direct offering, with proceeds allocated for 5G chipset sampling and debt repayment35 Second Quarter 2025 Financial Snapshot GCT Semiconductor's Q2 2025 saw a year-over-year decline in net revenue and a significant drop in gross margin Second Quarter 2025 Financial Snapshot | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change (%) | | :----- | :--------------------- | :--------------------- | :--------- | | Net Revenue | $1.2 | $1.5 | -19.0% | | Gross Margin | 32.0% | 62.7% | -30.7 percentage points | Business Developments & Strategy 2025GCT – Year of 5G Program Update and other Highlights GCT's 'Year of 5G' program advances with 5G chipset evaluations, sample deliveries, and supply chain coordination - Successfully completed initial 5G chipset evaluations and initiated supply chain coordination for mass production5 - Delivered initial 5G chipset samples to key customers, including Orbic North America and Airspan Networks, with more samples to follow for initial demand5 Strategic Collaborations & Capital Activities GCT expanded market reach through Iridium and Giesecke+Devrient partnerships, raising $11 million for 5G and debt - Partnered with Iridium Communications Inc. to integrate Iridium NTN Direct℠ services into GCT's GDM7243SL chipset, expanding into the non-terrestrial market5 - Collaborated with Giesecke+Devrient to launch innovative eSIM solutions for IoT devices5 - Completed an $11 million registered direct offering, with net proceeds partially used for 5G chipset sampling and debt repayment5 Financial Performance & Position Detailed Second Quarter 2025 Financial Results GCT Semiconductor reported a $13.5 million net loss in Q2 2025, due to revenue decline, foreign exchange losses, and higher interest expense Consolidated Statements of Operations (Three Months Ended June 30, Thousands USD) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Total Net Revenue | $1,182 | $1,468 | -19.5% | | Product Revenue | $408 | $18 | +2166.7% | | Service Revenue | $774 | $1,450 | -46.6% | | Gross Profit | $378 | $921 | -59.0% | | Total Operating Expenses | $7,970 | $8,000 | -0.4% | | Operating (Loss) | $(7,592) | $(7,079) | -7.2% | | Interest Expense | $(1,532) | $(760) | +101.6% | | Foreign Exchange Transaction (Loss) Net | $(3,217) | $816 | N/A (from gain to loss) | | Net Loss | $(13,538) | $(1,043) | +1197.9% | | Basic and Diluted Loss Per Share | $(0.26) | $(0.02) | +1200.0% | Liquidity and Capital Resources GCT's June 30, 2025 liquidity included cash, receivables, and inventory, supplemented by ATM offering and S-3 registration capacity Liquidity Position (As of June 30, 2025) | Asset Category | Amount (Millions USD) | | :------------- | :-------------------- | | Cash and Cash Equivalents | $1.3 | | Net Accounts Receivable | $3.8 | | Inventory | $3.0 | - The company has access to an effective ATM offering program of up to $75 million and approximately $114 million remaining under its $200 million S-3 registration statement6 Outlook & Corporate Information 5G Outlook GCT Semiconductor expects to begin production of initial 5G chipsets in Q3 2025, with mass shipments planned for Q4 2025 - Production of finalized initial 5G chipsets is anticipated to commence in Q3 20257 - Mass shipments of 5G chipsets are projected to begin in Q4 20257 About GCT Semiconductor Holding, Inc. GCT Semiconductor is a leading fabless designer and supplier of advanced 5G and 4G LTE semiconductor solutions for commercial devices - GCT is a leading fabless designer and supplier of advanced 5G and 4G LTE semiconductor solutions10 - Its system-on-chip solutions integrate RF, baseband modem, and digital signal processing functions, offering complete 4G and 5G platform solutions10 Conference Call & Investor Relations GCT Semiconductor will host an August 12, 2025 conference call and webcast to discuss business and financial results, with investor contacts provided - A conference call and webcast are scheduled for Tuesday, August 12, 2025, at 4:30 PM ET, to discuss business updates and financial results8 - Investor Relations contact: Gateway Group, Ralf Esper, GCT@gateway-grp.com. Media contact: media@gctsemi.com14 Cautionary Statement Regarding Forward-Looking Statements This section cautions on forward-looking statements, highlighting inherent risks and uncertainties that may cause actual results to differ - Forward-looking statements are subject to significant risks and uncertainties that could cause actual results to differ materially from expected outcomes13 - Factors include the company's ability to develop 5G products, fulfill partnership obligations, manage growth, raise sufficient capital, and meet market demand13 Consolidated Financial Statements Consolidated Balance Sheets Consolidated balance sheets show a decrease in total assets and an increase in total liabilities from December 2024 to June 2025 Consolidated Balance Sheet Highlights (Thousands USD) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------------- | :------------ | :---------------- | :----- | | Total Assets | $17,619 | $19,897 | $(2,278) | | Total Liabilities | $87,595 | $79,212 | $8,383 | | Total Stockholders' Deficit | $(69,976) | $(59,315) | $(10,661) | | Current Assets | $15,746 | $17,591 | $(1,845) | | Current Liabilities | $74,044 | $60,922 | $13,122 | Consolidated Statements of Operations Consolidated statements of operations show a significant increase in net loss for both periods, driven by revenue decline and increased expenses Consolidated Statements of Operations (Six Months Ended June 30, Thousands USD) | Metric | 2025 | 2024 | YoY Change | | :-------------------- | :----- | :----- | :--------- | | Total Net Revenue | $1,678 | $4,733 | -64.6% | | Product Revenue | $499 | $2,396 | -79.2% | | Service Revenue | $1,179 | $2,337 | -49.6% | | Gross Profit | $466 | $2,874 | -83.8% | | Total Operating Expenses | $15,798 | $2,717 | +481.5% | | Operating (Loss) | $(15,332) | $157 | N/A (from gain to loss) | | Net Loss | $(20,506) | $(286) | +7069.9% | | Basic and Diluted Loss Per Share | $(0.41) | $(0.01) | +4000.0% |