GCT Semiconductor Q2 Earnings Call Highlights

GCT Semiconductor reported second-quarter 2026 revenue of $1 million, down 18% from $1 million a year earlier, as the company continued its transition from 5G chipset development to commercialization.

Management said customer deployment schedules shifted during the quarter, but it maintained that engagement and long-term demand for its technology remain intact.

Chief Executive Officer John Schlaefer said the company’s commercialization pipeline has broadened across three areas: terrestrial broadband, satellite and non-terrestrial connectivity, and industrial IoT and specialized networking applications.

He said the company is seeking to reduce its dependence on any individual customer deployment by pursuing opportunities across multiple end markets.

“The primary variable today is deployment timing rather than customer interest,” Schlaefer said, adding that customer production schedules may shift as certification activities are completed and deployment plans are finalized.

GCT shipped more than 5,100 5G chipsets during the second quarter, a sequential increase of about 71% from the first quarter.

Schlaefer said the shipments went primarily to four customers across four applications: fixed wireless access, aviation, mobile hotspots and push-to-talk phones.

During the question-and-answer session, Schlaefer said customer program delays were meaningful enough that the company had expected “significantly higher revenue” in the quarter.

He attributed the timing changes to customers’ corporate restructuring and refocusing efforts in some cases, as well as external factors affecting launch schedules in others.

He said the affected programs remain active and viable, with expected activity later in the year.

For the second half of 2026, GCT expects chipset shipments to exceed first-half levels, both in the quantity of chips shipped and the number of customers receiving them.

However, management declined to provide specific shipment forecasts through the first quarter of 2027, citing variability in customer ramp schedules.

Schlaefer said the company sees the largest near-term revenue potential in terrestrial broadband and satellite and non-terrestrial connectivity, where it has been working on fixed wireless access and satellite programs for some time.

He said these segments have substantial activity that has not yet ramped.

IoT and specialized networking represent the broadest set of potential applications, according to Schlaefer, including industrial, positioning, aviation and defense-related uses.

He noted that average selling prices in IoT could be lower than in the fixed wireless and satellite markets.

After the quarter ended, GCT signed a customer in the unmanned aerial vehicle market, with potential consumer and defense applications.

Schlaefer said the company’s technology can support control and telemetry functions.