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SAN JOSE, Calif. - GCT Semiconductor Holding Inc. (NYSE: GCTS), a $92.6 million market cap provider of advanced 4G and 5G semiconductor solutions, has joined forces with Globalstar, Inc. (Nasdaq: NASDAQ:GSAT), a leader in satellite communications, to create two-way satellite messaging systems for Globalstar’s mobile devices and modules. This collaboration marks a significant step towards integrating cellular, private, and satellite networks globally. According to InvestingPro data, GCT’s shares have declined over 82% in the past year, reflecting challenges in the semiconductor sector.
The partnership leverages GCT’s GDM7243i IoT chip for Globalstar’s RM200M product, with plans to incorporate GCT’s 4G LTE chip GDM7243SL and future 5G IoT-enabled chipsets. These technologies aim to enable Globalstar devices to seamlessly transition between different network types worldwide. With revenue declining 17.6% and a weak financial health score of 1.26 on InvestingPro, this partnership could be crucial for GCT’s future growth.
GCT and Globalstar are presenting their solutions at the Mobile World Congress in Barcelona, which runs from Sunday through Wednesday. The companies are showcasing their products at respective stands in Halls 5 and 2.
Alex Katko, VP of Product Engineering at Globalstar, highlighted the importance of GCT’s GDM7243i chip for narrowband IoT applications, praising its low-power capability and the flexibility of the GDM7243SL chip. John Schlaefer, CEO of GCT, expressed enthusiasm for the partnership, emphasizing the potential growth in the satellite communications industry and the combined strengths of both companies in this sector.
The collaboration is poised to enhance Globalstar’s product offerings with several LTE and IoT products, positioning the companies as leaders in the satellite messaging system market.
This partnership is based on a press release statement and reflects the companies’ forward-looking strategy. However, it’s important to note that forward-looking statements are subject to various risks and uncertainties, and actual results may differ from expectations. InvestingPro subscribers have access to 10 additional key insights about GCT Semiconductor, including detailed financial health metrics and valuation analysis that can help assess the company’s future prospects.
In other recent news, GCT Semiconductor Holding, Inc. has secured a new financial agreement involving a loan of approximately 6.5 billion South Korean Won, equivalent to USD $4,522,998. This loan, arranged with the company’s Chairman of the Board, Kyeongho Lee, carries a 12% annual interest rate and is set to mature on February 24, 2025. The agreement also limits interest payments to a maximum of $120,000 within any 12-month period. Additionally, GCT Semiconductor has amended a prior loan agreement from November 2024, increasing the penalty for late payment from 1.25% to 3.00% per month of the unpaid principal amount. The initial November Loan Facility was valued at up to 4 billion South Korean Won, or USD $2,721,088, with the same interest rate terms and a maturity date of December 31, 2024. These financial developments may influence the company’s cash flow and debt servicing capabilities. The details of these agreements are expected to be disclosed in the company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2024.
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