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Jun 30, 2024
GCT Q2 2024 Earnings Report
Announced second quarter 2024 financial results, highlighting progress in 5G chipset development and strategic partnerships despite a decrease in net revenues.
Key Takeaways
GCT Semiconductor reported a decrease in net revenues to $1.5 million for Q2 2024, primarily due to lower product sales, although service revenue increased. The company is focusing on its 5G chipset launch and has formed significant partnerships. They have also restructured debt and are utilizing an ELOC facility to strengthen their capital structure.
Net revenues decreased to $1.5 million due to a decline in product sales, partially offset by increased service revenue.
Cost of net revenues decreased by 63% to $0.5 million.
Gross margin decreased to 63% due to decreased product sales.
The company expects initial deliveries of 5G chipsets to commence during Q4.
Revenue by Segment
Forward Guidance
GCT Semiconductor anticipates its 5G chipsets will be available for broad sampling in Q4 2024, with volume shipments starting in the first half of 2025. The company expects a positive rebound of 4G chipset sales in the future and anticipates continuous demand for existing and new 4G products.
Positive Outlook
- 5G chipsets available for broad sampling to customers during the fourth quarter of 2024.
- Volume shipments commencing in the first half of 2025.
- Expected positive rebound of 4G chipset sales.
- Anticipated continuous demand for existing and new 4G products.
- Multi-mode 4G chipset GDM7243SL is ideal for industrial, utility and satellite applications.
Challenges Ahead
- Q2 marked an anomaly regarding 4G product sales.
- Decrease in net revenues due to a decrease in product sales.
- Gross margin decreased due to decreased product sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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