NYSE$GCTS

GCT Semiconductor Holding Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Announced second quarter 2024 financial results, highlighting progress in 5G chipset development and strategic partnerships despite a decrease in net revenues.

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.

Headline financials

Total Revenue

$1.47M

Previous: $4.3M-65.9%
EPS

-$0.02

Previous: -$0.27+92.6%
Gross margin

62.7%

No prior period
R&D expenses

$4.16M

No prior period
Sales & marketing

$976K

No prior period
General & admin

$2.86M

No prior period
Capital Expenditures

-$131K

Previous: $104K-226.0%
Free Cash Flow

-$1.17M

Previous: -$357K-228.8%
Net Income

-$1.04M

Previous: -$27K-3764.5%
Operating Income

-$7.08M

Previous: -$2.96M-139.0%
Gross Profit

$921K

Previous: $2.83M-67.5%
Cash & Equivalents

$4.04M

Previous: $699K+477.1%
Total Assets

$23.4M

Previous: $43.5M-46.2%
R&D Expense

$4.16M

No prior period
Stock-Based Comp

$323K

Previous: $3K+10666.7%

Revenue & EPS history

GCT · Revenue · Quarterly

$1.47M

Q2 2024-65.9%vs Q2 2023
Beat estimate in 2 of 7 quarters(29%)
ActualEstimate

Revenue by segment

GCT · $4.48M total across 2 segments · Q3 2023

  • Product revenue
    $4.03M
  • Service revenue
    $450K

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.

Tailwinds

  • 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.

Headwinds

  • 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.
  • Nominal product sales in the second quarter.
  • The company's ability to develop its 5G products and generate revenue.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-5.0%

Avg return

Earnings day

-5.4%

Avg return

5 days after

-1.2%

Avg return

30 days after

22%

4 / 18 earnings

Positive

+1.2%

Q1 2026

Best reaction

-41.2%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+0.0%-6.5%
Q1 2026+1.2%+14.4%+58.7%
Q3 2025-12.6%-6.2%+0.0%
Q2 2025-8.3%-6.8%+13.5%
Q1 2025-41.2%-46.4%-37.7%
Q4 2024-16.7%-21.5%-30.6%
Q3 2024-9.1%-11.0%+3.9%
Q2 2024+0.8%-5.9%-24.7%
Q1 2024-4.3%-8.0%-5.7%
Q4 2023+0.0%+0.2%+0.4%
Q3 2023+0.1%+0.0%-0.2%
Q2 2023+0.0%+0.0%+1.1%
Q1 2023-0.2%-0.1%-0.1%
Q4 2022+0.0%+0.4%+0.9%
Q3 2022+0.0%+0.0%+0.1%
Q2 2022+0.0%+0.0%+0.5%
Q1 2022+0.0%+0.0%+0.0%
Q4 2021+0.1%-0.1%-0.4%

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