Tue, May 14, 9:33 PM (73 days ago)
GCT Semiconductor Holding, Inc. reported a net income of $757,000 for Q1 2024, a significant improvement from a net loss of $1.4 million in Q1 2023. This turnaround was driven by a $14.6 million gain on extinguishment of liability due to a contract termination, offsetting increased R&D and G&A expenses. Net revenues increased by 7% to $3.3 million, with product revenues rising by 297% to $2.4 million, while service revenues fell by 64% to $887,000. Gross profit improved to $1.95 million, reflecting a higher gross margin of 60%, primarily due to increased sales of higher-margin platform products. Operating expenses surged by 264% to $5.3 million, mainly due to higher R&D expenses related to 5G product development. The company also experienced a $4.6 million loss from the fair value remeasurement of warrants and convertible promissory notes. GCT raised $17.2 million from a reverse recapitalization and PIPE financing and entered into a $50 million equity line of credit with B. Riley Principal Capital II to support future operations.