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GCT Semiconductor Holding Inc (GCTS-4.50%). has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a decrease in net revenues to $2.6 million from $4.5 million in the same quarter the previous year, attributed to reduced product sales due to excess LTE channel inventory and shifting customer priorities to 5G products.
Cost of net revenues decreased to $1.0 million from $3.9 million, with gross profit increasing to $1.6 million from $0.5 million, reflecting a shift in revenue mix towards higher-margin services.
Research and development expenses rose to $4.2 million from $2.4 million, driven by increased professional services for 5G chip design.
Sales and marketing expenses increased to $0.9 million from $0.7 million, primarily due to higher personnel-related costs.
General and administrative expenses increased to $2.4 million from $1.4 million, with the rise attributed to stock-based compensation and costs associated with public company operations.
Interest expense decreased to $0.7 million from $1.2 million, reflecting the conversion of convertible notes upon the Business Combination.
The company reported a net loss of $7.1 million for the quarter, compared to a net loss of $4.3 million in the previous year.
Cash used in operating activities was $28.7 million for the nine months ended September 30, 2024, compared to $7.9 million in the previous year, with the increase due to changes in working capital and higher operating expenses.
The filing outlines various financial transactions, including a $17.2 million cash inflow from a Business Combination and PIPE Financing, and a $7.8 million inflow from a common stock purchase agreement.
GCT Semiconductor Holding Inc. continues to focus on 5G product development and anticipates increased revenues following the launch of its 5G products.
The company highlights its dependence on securing additional financing to support ongoing operations and future growth initiatives.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the GCT Semiconductor Holding Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.