INTEGRATED DEVICE TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data) Revenues Cost of revenues Gross profit Operating expenses: Research and development Selling, general and administrative Total operating expenses Three Months Ended Mar. 29 Dec. 28, Mar. 30, 2015 2014 2014 $ 158,350 $ 151,160 $ 118,640 60,295 59,796 57,560 98,055 91,364 61,080 Twelve Months Ended Mar. 29 Mar. 30, 2015 2014 $ 572,905 $ 484,779 227,601 211,877 345,304 272,902 32,071 27,050 59,121 32,825 27,165 59,990 32,860 23,322 56,182 127,688 106,469 234,157 140,799 101,148 241,947 Operating income 38,934 31,374 4,898 111,147 30,955 Gain (loss) from divestiture Other income, net Income from continuing operations before income taxes Provision for income taxes 1,966 40,900 517 1,558 32,932 91 (302) 786 5,382 320 4,791 115,938 1,357 78,632 2,707 112,294 981 Net income from continuing operations 40,383 32,841 5,062 114,581 111,313 Discontinued operations: Gain from divestiture Loss from discontinued operations Provision for (benefit from) income taxes Net loss from discontinued operations (799) 318 (1,117) (14,538) (55) (14,483) (5,016) 17 (5,033) 16,840 (37,237) 275 (20,672) (22,938) 11 (22,949) Net income $ Basic net income per share - continuing operations Basic net loss per share - discontinued operations Basic net income per share $ Diluted net income per share - continuing operations Diluted net loss per share - discontinued operations Diluted net income per share $ Weighted average shares: Basic Diluted $ $ 39,266 $ 0.27 (0.01) 0.26 $ 0.26 (0.01) 0.25 $ 148,326 154,111 $ $ 18,358 $ 0.22 (0.10) 0.12 $ 0.21 (0.09) 0.12 $ 148,552 153,973 $ $ 29 $ 0.03 (0.03) - $ 0.03 (0.03) - $ 150,033 154,390 $ $ 93,909 $ 0.77 (0.14) 0.63 $ 0.74 (0.13) 0.61 $ 148,714 153,983 $ $ 88,364 0.74 (0.15) 0.59 0.73 (0.15) 0.58 149,480 153,369 INTEGRATED DEVICE TECHNOLOGY, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (a) (Unaudited) (In thousands, except per share data) Mar. 29 2015 GAAP net income from continuing operations GAAP diluted net income per share continuing operations Acquisition related: Amortization of acquisition related intangibles Impairment of in-process research and development Acquisition related legal and consulting fees Restructuring related: Severance and retention costs Facility closure costs Loss (gain) from divestiture Assets impairment and other Other: Stock-based compensation expense Gain from divestiture Compensation expense - deferred compensation plan Gain on deferred compensation plan securities Tax effects of Non-GAAP adjustments Non-GAAP net income from continuing operations GAAP weighted average shares - diluted Non-GAAP adjustment Non-GAAP weighted average shares - diluted Non-GAAP diluted net income per share continuing operations GAAP gross profit Acquisition related: Amortization of acquisition related intangibles Restructuring related: Severance and retention costs Facility closure costs Assets impairment and other Other: Compensation expense - deferred compensation plan Stock-based compensation expense Non-GAAP gross profit $ $ Three Months Ended Dec. 28, Mar. 30, 2014 2014 40,383 0.26 $ $ 1,001 - 32,841 0.21 $ $ 1,347 (125) 265 5,062 0.03 Twelve Months Ended Mar. 29 Mar. 30, 2015 2014 $ 114,581 $ 0.74 11,999 2,433 73 129 209 - 383 107 302 334 $ 111,313 $ 0.73 6,573 (125) 21,964 2,433 802 974 276 2,968 6,456 134 (78,632) 4,113 5,684 (168) 213 (205) (1,391) $ 45,782 154,111 1,558 155,669 $ 0.29 5,878 (104) 525 (500) (1,521) $ 38,679 153,973 1,463 155,436 $ 0.25 2,368 185 (171) (1,331) $ 21,744 154,390 1,492 155,882 $ 0.14 22,453 (272) 990 (940) (4,596) $ 142,882 153,983 2,014 155,997 $ 0.92 12,677 1,265 (1,316) (4,389) $ 76,820 153,369 1,981 155,350 $ 0.49 $ $ $ 61,080 $ 345,304 $ 272,902 11,016 4,534 18,321 117 105 23 2,489 311 1,936 $ 354,597 388 1,189 $ 292,901 $ 127,688 $ 140,799 98,055 91,364 625 959 220 (96) - $ 78 589 99,567 GAAP R&D expenses: Acquisition related: Impairment of in-process research and development Restructuring related: Severance and retention costs Facility closure costs Assets impairment and other Other: Compensation expense - deferred compensation plan Stock-based compensation expense Non-GAAP R&D expenses $ 32,071 $ 156 592 92,975 $ 55 61 72,434 $ 32,825 $ 32,860 - (2,433) 204 8 (111) - (2,433) (45) (91) (209) - (264) (63) (467) (209) (479) (4,193) (9) (4,058) $ (83) (2,266) 29,677 $ (255) (2,562) 29,708 $ (90) (1,389) 28,621 (464) (9,813) $ 116,256 (650) (5,601) $ 123,855 GAAP SG&A expenses: Acquisition related: Amortization of acquisition related intangibles Acquisition related legal and consulting fees Restructuring related: Severance and retention costs Facility closure costs Assets impairment and other Other: Compensation expense - deferred compensation plan Stock-based compensation expense Non-GAAP SG&A expenses $ 27,050 $ 27,165 $ 23,322 $ 106,469 $ 101,148 GAAP interest income and other, net Gain from divestiture Gain on deferred compensation plan securities Non-GAAP interest income and other, net $ GAAP provision for income taxes - continuing operations Tax effects of Non-GAAP adjustments Non-GAAP provision for income taxes - continuing operations $ (376) - $ $ $ (52) (2,829) 23,793 $ 1,966 (168) (205) 1,593 $ 517 1,391 1,908 $ $ $ (388) 125 (983) (73) (2,039) 125 (3,643) (802) (134) - (2) (107) (166) (484) (67) - (2,059) (117) (166) (114) (2,724) 23,930 (40) (918) 21,033 (215) (10,704) $ 93,085 $ (227) (5,887) 88,247 $ 4,791 (272) (940) 3,579 $ 1,357 4,596 5,953 $ $ 1,558 (104) (500) 954 $ 91 1,521 1,612 $ $ $ 786 (171) 615 320 1,331 1,651 $ $ $ $ $ 2,707 (1,316) 1,391 981 4,389 5,370 (a) Refer to the accompanying “Notes to Non-GAAP Financial Measures” for a detailed discussion of management’s use of non-GAAP financial measures. INTEGRATED DEVICE TECHNOLOGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Prepaid and other current assets Total current assets Property, plant and equipment, net Goodwill Acquisition-related intangibles Other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued compensation and related expenses Deferred income on shipments to distributors Deferred taxes liabilities Other accrued liabilities Total current liabilities $ $ $ Mar. 29 March 30, 2015 2014 116,945 438,115 63,618 45,410 16,041 680,129 65,508 135,644 5,535 26,843 913,659 28,006 43,649 15,694 1,401 17,582 106,332 $ $ $ 91,211 362,604 68,904 49,622 13,034 585,375 69,827 135,644 18,741 21,373 830,960 25,442 24,343 14,006 1,346 11,525 76,662 Deferred tax liabilities Long term income taxes payable Other long-term obligations Total liabilities 1,121 347 17,605 125,405 1,494 266 18,683 97,105 Stockholders' equity 788,254 733,855 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 913,659 $ 830,960