Conference Call
Given the recent close of the business combination and public listing of GCT, the Company anticipates hosting its inaugural earnings conference call for the second quarter ending June 30, 2024, in August. The conference call date and details will be shared closer to the date of the call.
Additionally, GCT’s management will be presenting and holding one-on-one meetings at the 24th Annual B. Riley Securities Institutional Investor Conference on Thursday, May 23, 2024. The management presentation is scheduled for 9 a.m. Pacific Time. To receive updates visit GCT's investor relations website and sign up for email alerts.
About GCT Semiconductor Holding, Inc.
GCT is a leading fabless designer and supplier of advanced 5G and 4G LTE semiconductor solutions. GCT’s market-proven solutions have enabled fast and reliable 4G LTE connectivity to numerous commercial devices such as CPEs, mobile hotspots, routers, M2M applications and smartphones, etc., for the world’s top wireless carriers. GCT’s system-on-chip solutions integrate radio frequency, baseband modem and digital signal processing functions, therefore offering complete 4G and 5G platform solutions with small form factors, low power consumption, high performance, high reliability, and cost-effectiveness. For more information, visit www.gctsemi.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1955. These forward-looking statements include, without limitation, statements about the anticipated benefits of the business combination with Concord Acquisition Corp. III ("Concord"). Words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause actual future events to differ materially from the expected results, include, but are not limited to: the inability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition and the ability of the post-combination company to grow and manage growth profitability and retain its key employees; costs related to the business combination; the Company's financial and business performance, including the Company's financial projections and business metrics; changes in the Company's strategy, future operations, financial position, estimated revenues and losses, forecasts, projected costs, prospects and plans; the Company's inability to anticipate the future market demands and future needs of its customers; the impact of component shortages, suppliers' lack of production capacity, natural disasters or pandemics on the Company's sourcing operations and supply chain; the Company's future capital requirements and sources and uses of cash; the ability to implement business plans, forecasts, and other expectations after the completion of the proposed business combination, including the growth of the 5G market; the risk of economic downturns that affects the Company's business operation and financial performance; the risk that the Company may not be able to develop and design its products acceptable to its customers; the ability of the Company to maintain development agreements with major partners or collaborations; and other risks and uncertainties indicated from time to time in the Company’s filings with the SEC, including those under the “Risk Factors” section in the Company’s registration statement on Form S-1 filed on April 19 and the Form 8-K filed on April 1, 2024. The foregoing list of factors is not exhaustive. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
GCT Semiconductor Holding, Inc. |
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Condensed Consolidated Balance Sheets |
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(in thousands, except per share data) |
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March 31, 2024 |
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December 31, 2023 |
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(unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
16,122 |
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$ |
258 |
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Accounts receivable, net |
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5,103 |
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|
4,920 |
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| Inventory |
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1,784 |
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1,486 |
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| Contract assets |
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4,313 |
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3,439 |
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| Prepaid expenses and other current assets |
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5,466 |
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2,906 |
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| Total current assets |
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32,788 |
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13,009 |
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| Property and equipment, net |
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644 |
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|
772 |
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| Operating lease right-of-use assets |
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1,343 |
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1,521 |
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| Intangibles, net |
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187 |
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|
245 |
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| Other assets |
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|
857 |
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|
881 |
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| Total assets |
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$ |
35,819 |
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$ |
16,428 |
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| Liabilities and Stockholders’ Deficit |
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| Current liabilities: |
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| Accounts payable |
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$ |
1,242 |
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$ |
17,814 |
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| Contract liabilities |
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35 |
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|
48 |
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| Accrued and other current liabilities |
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25,152 |
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23,956 |
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| Borrowings |
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39,840 |
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44,509 |
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| Convertible promissory notes, current |
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5,645 |
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27,794 |
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| Operating lease liabilities, current |
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679 |
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|
680 |
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| Total current liabilities |
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72,593 |
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114,801 |
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| Convertible promissory notes, net of current |
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4,672 |
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6,239 |
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| Net defined benefit liabilities |
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7,488 |
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7,689 |
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| Long-term operating lease liabilities |
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674 |
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|
850 |
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| Income taxes payable |
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2,096 |
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2,178 |
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| Warrant liabilities |
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10,584 |
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— |
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| Other liabilities |
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72 |
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|
108 |
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| Total liabilities |
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98,179 |
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131,865 |
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| Stockholders’ deficit: |
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| Preferred stock, par value $0.0001 per share; 40,000 and 82,352 shares authorized as of March 31, 2024 and December 31, 2023, respectively; no shares issued and outstanding as of March 31, 2024 and December 31, 2023 |
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— |
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— |
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| Common stock, par value $0.0001 per share; 400,000 and 200,000 shares authorized as of March 31, 2024 and December 31, 2023, respectively; 45,833 and 24,166 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively (1) |
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5 |
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3 |
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| Additional paid-in capital (1) |
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487,006 |
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435,752 |
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| Accumulated other comprehensive loss |
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(474 |
) |
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(1,538 |
) |
| Accumulated deficit |
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(548,897 |
) |
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(549,654 |
) |
| Total stockholders’ deficit |
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(62,360 |
) |
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(115,437 |
) |
| Total liabilities and stockholders’ deficit |
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$ |
35,819 |
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$ |
16,428 |
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| (1) |
Amounts as of December 31, 2023 differ from those in prior year consolidated financial statements as they were retrospectively adjusted as a result of the accounting for the Business Combination (as defined in the Notes to the Unaudited Condensed Consolidated Financial Statements.) |
| GCT Semiconductor Holding, Inc. |
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| Condensed Consolidated Statements of Operations |
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| (unaudited, in thousands, except per share amounts) |
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Three Months Ended |
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March 31, |
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2024 |
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2023 |
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| Net revenues: |
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| Product |
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$ |
2,378 |
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$ |
599 |
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| Service |
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887 |
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2,463 |
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| Total net revenues |
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3,265 |
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3,062 |
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| Cost of net revenues: |
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| Product |
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654 |
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|
978 |
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| Service |
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|
658 |
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|
563 |
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| Total cost of net revenues |
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1,312 |
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1,541 |
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| Gross profit |
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1,953 |
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1,521 |
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| Operating expenses: |
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| Research and development |
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5,521 |
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|
902 |
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| Sales and marketing |
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996 |
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|
836 |
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| General and administrative |
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2,836 |
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1,477 |
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| Gain on extinguishment of liability |
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(14,636 |
) |
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— |
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| Total operating (income) expenses |
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(5,283 |
) |
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|
3,215 |
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| Income (loss) from operations |
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|
7,236 |
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(1,694 |
) |
| Interest expense |
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(2,082 |
) |
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|
(935 |
) |
| Other (expenses) income, net |
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(4,338 |
) |
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|
1,286 |
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| Income (loss) before provision for income taxes |
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|
816 |
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(1,343 |
) |
| Provision for income taxes |
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|
59 |
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50 |
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| Net income (loss) |
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|
757 |
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(1,393 |
) |
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| Net income (loss) per common share (1) : |
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| Basic |
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$ |
0.03 |
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$ |
(0.06 |
) |
| Diluted |
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$ |
0.03 |
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$ |
(0.06 |
) |
| Weighted-average shares used in computing net income (loss) per common shares (1) : |
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| Basic |
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25,468 |
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23,862 |
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| Diluted |
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26,257 |
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23,862 |
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| (1) |
Amounts as of December 31, 2023 and before that date differ from those in prior year consolidated financial statements as they were retrospectively adjusted as a result of the accounting for the Business Combination (as defined in the Notes to the Unaudited Condensed Consolidated Financial Statements). |
