Financial Data and Key Metrics Changes - Net revenues decreased from $2.6 million for Q3 2024 to $0.4 million for Q3 2025, primarily due to a $1.6 million decline in product sales [9] - Cost of net revenue increased by 50% from $1 million in Q3 2024 to $1.5 million in Q3 2025, attributed to additional production overhead and a $0.5 million write-down of slow-moving 4G LTE inventory [10] - Gross margin for Q3 2025 was negative, reflecting insufficient product revenue to cover production overhead costs [10] - Research and development expenses decreased by 23% from $4.2 million in Q3 2024 to $3.3 million in Q3 2025 [11] - General and administrative expenses increased by 64% from $2.4 million in Q3 2024 to $3.9 million in Q3 2025, mainly due to higher stock-based compensation and personnel costs [12] Business Line Data and Key Metrics Changes - The company recognized its first 5G product revenue this quarter, marking a significant milestone in its commercialization path [3][9] - The initial demand for the 5G chipset has exceeded 2,500 units, indicating strong engagement from lead customers [5] Market Data and Key Metrics Changes - Gogo, the first 5G network operator, is set to activate full service before year-end 2025, representing a significant commercial deployment using GCT's 5G chipset [4] - The company is preparing for increased production and shipment volumes in late Q4 2025, aligning with customer launches [6] Company Strategy and Development Direction - The focus remains on scaling production efficiently and ensuring alignment with supply chain partners to support the transition to volume production and sustained 5G sales [8] - The company has secured $10.7 million in debt financing to accelerate production readiness and support working capital requirements [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving break-even adjusted EBITDA by Q3 2026, with positive cash flow expected in Q4 2026 [18] - The company anticipates substantial margin improvements as 5G product sales increase significantly starting in Q1 2026 [11] Other Important Information - The company ended the quarter with cash and cash equivalents of $8.3 million, net accounts receivable of $3.7 million, and net inventory of $1.9 million [12] Q&A Session Summary Question: What volumes are expected to ship later this year? - The company expects to ship around 2,500 units, which includes both shipped and backlogged orders for Q4 [15] Question: How will customer shipments evolve in Q1? - The company is adding more wafers to significantly increase supply in Q1, supporting ongoing demand from Airspan and other customers [17] Question: What is the confidence level for reaching break-even adjusted EBITDA? - The company has been tracking adjusted EBITDA trends and anticipates reaching break-even by Q3 2026, with positive cash flow in Q4 2026 [18] Question: How is pricing holding up for the 5G products? - The company is seeing prices both above and below the expected average selling price, which remains a good benchmark [19] Question: What are the key focus areas for preparing the supply chain for higher volume production? - Key areas include ensuring wafer production starts early, having proper testing in place, and preparing assembly houses for increased demand [21]

Financial Data and Key Metrics Changes - Net revenues decreased by $2.8 million or 85% from $3.3 million for the three months ended March 31, 2024, to $500,000 for the three months ended March 31, 2025 [8] - Cost of net revenues decreased by $900,000 or 69% from $1.3 million for the three months ended March 31, 2024, to $400,000 for the three months ended March 31, 2025 [9] - Gross margin decreased to 18% for the three months ended March 31, 2025, from 60% for the three months ended March 31, 2024 [10] Business Line Data and Key Metrics Changes - The decrease in net revenues was primarily due to low five gs platform shipments in the first fiscal quarter of 2025, compared to two five gs platform shipments in the first fiscal quarter of 2024 [9] - Research and development expenses decreased by $1.4 million or 26% from $5.5 million for the three months ended March 31, 2024, to $4.1 million for the three months ended March 31, 2025 [11] - Sales and marketing expenses increased by $100,000 or 12% from $1 million for the three months ended March 31, 2024, to $1.1 million for the three months ended March 31, 2025 [11] Market Data and Key Metrics Changes - The company anticipates that the average selling price of its five gs chipset will be approximately four times higher than that of its current four gs offering [7] - The company expects to benefit from higher global market demand and market prices in the five gs chip market once five gs chipset sales commence [9] Company Strategy and Development Direction - The company has officially begun the five gs product era and is focused on customer sampling starting this month, leading to volume shipments in Q3 and beyond [4] - The company has accelerated and prioritized partnerships and customer programs focused on five gs, including collaborations with Globalstar, Aramco Digital, Samsung, and Kyocera [4] - A letter of intent has been signed with Orbit North America to jointly develop and supply a mobile hotspot and FWA gateway utilizing a Verizon certified five gs module [5] Management Comments on Operating Environment and Future Outlook - Management expressed excitement about the impact of five gs on the company's income statement and balance sheet starting from the second half of the year [7] - Management emphasized that the current results are transitional and not representative of expected performance once five gs chipset sales begin [7] - The company is focused on driving innovation and supporting the global transition to five gs solutions, aiming for substantial growth based on the five gs chipset launch [13] Other Important Information - The company closed the quarter with cash and cash equivalents of $1 million, net accounts receivable of $4.5 million, and net inventory of $3.1 million [12] - The company has filed shelf registrations providing up to $200 million in capacity, enhancing financial flexibility [12] Q&A Session Summary Question: Can you talk about the relationship with Orbit on the five gs mobile hotspot for Verizon? - Management expressed excitement about the Orbit relationship, noting that they expect to be part of Verizon's mid-tier space and will be sampling products this quarter [18][19] Question: Can you provide more details on the sampling and commercial shipments for five gs? - Management indicated that six primary customers will be sampling first, with plans to work with as many customers as possible to move forward into the second half of the year [25][26] Question: How is the supply chain prepared for volume production? - Management stated that the supply chain is ready for the transition to five gs, as they have been working with the same partners for four gs [27] Question: Any insights on OpEx as the company moves into more intensive sampling and volume shipments? - Management does not expect OpEx to increase at the same scale as revenue in the second half of the year, with most major R&D investments already made [29]

Financial Data and Key Metrics Changes - Net revenues decreased by $2,800,000 or 85% from $3,300,000 for the three months ended March 31, 2024, to $500,000 for the three months ended March 31, 2025 [8] - Cost of net revenues decreased by $900,000 or 69% from $1,300,000 for the three months ended March 31, 2024, to $2,400,000 for the three months ended March 31, 2025 [10] - Gross margin decreased to 18% for the three months ended March 31, 2025, from 60% for the three months ended March 31, 2024 [11] Business Line Data and Key Metrics Changes - The decrease in net revenues was primarily due to a reduction of $2,300,000 in product sales and a decrease of $500,000 in service revenue [9] - The gross margin for product sales was at negative 120%, mainly due to low volume of product sales [11] Market Data and Key Metrics Changes - The company anticipates that the average selling price of the new 5G chipset will be approximately four times higher than that of the current 4G offering [7] - The company expects to benefit from higher global market demand and market prices in the 5G chip market once sales commence [10] Company Strategy and Development Direction - The company has officially begun the 5G product era and is focused on customer sampling starting this month, leading to volume shipments in Q3 and beyond [4] - The company has accelerated partnerships with renowned partners like Globalstar, Aramco Digital, Samsung, and Kyocera to enhance its 5G initiatives [4][5] - A letter of intent has been signed with Orbit North America to jointly develop and supply a mobile hotspot and FWA gateway utilizing a Verizon certified 5G module [5] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the impact of 5G on the company's income statement and balance sheet starting from the second half of the year [7] - The company is focused on driving innovation and supporting the global transition to 5G solutions, aiming for substantial growth based on the 5G chipset launch [12] Other Important Information - The company closed the quarter with cash and cash equivalents of $1,000,000, net accounts receivable of $4,500,000, and net inventory of $3,100,000 [11] - The company has filed shelf registrations providing up to $200,000,000 in capacity, including a $75,000,000 at-the-market facility to enhance financial flexibility [11] Q&A Session Summary Question: Follow-up on the partnership with Orbit for the 5G mobile hotspot - Management expressed excitement about the Orbit relationship, indicating it will involve collaboration for multiple operators and products [16][18] Question: Details on the sampling and commercial shipments for 5G - Management confirmed that sampling will commence with six primary customers, with plans to move into commercial shipments in the second half of the year [23][25] Question: Supply chain readiness for volume production - Management indicated confidence in the supply chain's capability to transition to volume production, leveraging existing relationships [26] Question: Operational expenses outlook for the second half of the year - Management stated that operational expenses are not expected to scale at the same rate as revenue, with tight cost control processes in place [28]