LONDON – GCT Semiconductor Inc., a loss-making fabless chip company that supplies chips for WiMax and LTE communications, has filed papers for an initial public offering of stock to be traded on NASDAQ that would raise up to $100 million.
The number of shares to be offered and the price range for the offering have not yet been determined.
Formerly known as Global Communication Technology Inc., GCT (San Jose, Calif.) was founded in 1998, has offices in South Korea and is led by CEO and co-founder Kyeongho Lee. The company supplies combined RF and baseband chips for LTE, single-chip WiMax solutions and CMOS RF chips for cellular communications handsets.
The company is going to market on a 4G and LTE pitch where it claims it is achieving traction. In its S-1 file the company said that as of June 30, 2001 it had shipped over 960,000 LTE chips in support of the initial LTE deployments by AT&T, Verizon and Vodafone and over 4.7 million WiMax semiconductors supporting many major WiMax operators globally.
The company is filing its IPO despite the fact it has made a net loss in each of the last three years. However, the company's annual revenues are rising quickly. In the fiscal years ended June 30 2009, 2010 and 2011 the company's revenue was $22.4 million, $33.1 million and $68.6 million, respectively. The net loss was $14.5 million, $19.9 million and $11.5 million for the fiscal years ended June 30, 2009, 2010 and 2011, respectively.
Requires a mjor thrust towards LTE and rapid deployment if this company is to see profits soon. The reason not many have jumped into LTE chipsets is the slow progress from 3G to 4G. 3G itself is coming at a not so cheap price for portable handsets so this will not be going like hot cakes anytime soon.
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