GCT Semiconductor Holding, Inc. (formerly Concord Acquisition Corp III) reported significant financial developments in its latest 10-Q filing for the period ending September 30, 2024. The company, which specializes in communication semiconductors, experienced a notable decline in net revenues, reporting $2.6 million for the third quarter of 2024, down 42% from $4.5 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues were $7.3 million, a decrease of 38% compared to $11.8 million in the prior year. This decline was primarily attributed to a significant drop in product sales, which fell 53% to $4.1 million, largely due to excess inventory in LTE products and a shift in customer focus towards 5G technologies.

Despite the revenue drop, GCT Semiconductor reported an improvement in gross profit margins, which increased to 62% in Q3 2024 from 12% in Q3 2023. This improvement was driven by a higher proportion of reference platform sales and increased margins from service offerings. The company’s total operating expenses rose to $7.5 million in Q3 2024, up 66% from $4.5 million in Q3 2023, primarily due to increased research and development costs associated with 5G chip product design.

The net loss for the third quarter of 2024 was $7.1 million, a 64% increase from a net loss of $4.3 million in Q3 2023. For the nine-month period, the net loss improved to $7.4 million from $12.3 million in the previous year. The company’s accumulated deficit as of September 30, 2024, stood at $557.1 million, reflecting ongoing challenges in achieving profitability.

GCT Semiconductor's balance sheet showed total current assets of $20.0 million, up from $13.0 million at the end of 2023, while total liabilities decreased to $80.9 million from $131.9 million. The company’s cash position improved, with cash and cash equivalents reaching $1.8 million, compared to $120,000 at the same time last year. The company also reported net cash used in operating activities of $28.7 million for the nine months ended September 30, 2024, a significant increase from $7.9 million in the same period of 2023.

Strategically, GCT Semiconductor completed a reverse recapitalization with Legacy GCT in March 2024, which provided $17.2 million in cash proceeds. The company has also entered into a common stock purchase agreement with B. Riley, allowing for the sale of up to $50 million in shares, with $7.8 million raised by September 30, 2024. Looking ahead, GCT anticipates significant expenditures related to the manufacturing and commercialization of its first 5G chipset, expected in the first half of 2025.