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 Dec. 28, Sept. 28, Dec. 29, 2014 2014 2013 $ 151,160 $ 137,093 $ 124,628 59,796 55,217 49,689 91,364 81,876 74,939 Nine Months Ended Dec. 28, Dec. 29, 2014 2013 $ 414,555 $ 366,139 167,306 154,317 247,249 211,822 32,825 27,165 59,990 30,742 26,795 57,537 31,063 23,687 54,750 95,617 79,419 175,036 107,939 77,826 185,765 Operating income 31,374 24,339 20,189 72,213 26,057 Gain (loss) from divestiture Other income, net Income from continuing operations before income taxes Provision for income taxes 1,558 32,932 91 405 24,744 498 (3,415) 1,108 17,882 543 2,825 75,038 840 78,934 1,921 106,912 661 Net income from continuing operations 32,841 24,246 17,339 74,198 106,251 (14,538) (55) (14,483) (9,747) 57 (9,804) (10,123) 268 (10,391) 16,840 (36,438) (43) (19,555) (17,922) (6) (17,916) Discontinued operations: Gain from divestiture Loss from discontinued operations Provision for (benefit from) income taxes Net loss from discontinued operations 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 $ $ 18,358 $ 0.22 (0.10) 0.12 $ 0.21 (0.09) 0.12 $ 148,552 153,973 $ $ 14,442 $ 6,948 $ 0.16 (0.06) 0.10 $ 0.11 (0.06) 0.05 $ 0.16 (0.07) 0.09 $ 0.11 (0.07) 0.04 $ 148,683 153,784 $ $ 151,018 155,035 $ $ 54,643 $ 0.50 (0.13) 0.37 $ 0.48 (0.12) 0.36 $ 148,844 153,904 $ $ 88,335 0.71 (0.12) 0.59 0.70 (0.12) 0.58 148,835 152,560 INTEGRATED DEVICE TECHNOLOGY, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (a) (Unaudited) (In thousands, except per share data) Dec. 28, Three Months Ended Sept. 28, Dec. 29, 2014 GAAP net income from continuing operations GAAP diluted net income per share continuing operations Acquisition related: Amortization of acquisition related intangibles 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 Assets impairment and other Compensation expense (benefit) - deferred compensation plan (Gain) loss 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: Assets impairment and other Compensation expense (benefit) - deferred compensation plan Stock-based compensation expense Non-GAAP gross profit $ $ 32,841 0.21 2014 $ $ 1,347 (125) 24,246 0.16 2013 $ $ 1,676 - 129 209 - Nine Months Ended Dec. 28, Dec. 29, 319 20 401 17,339 0.11 2014 $ $ 74,198 0.48 2013 $ 106,251 $ 0.70 3,322 21 5,572 (125) 9,965 729 400 6 3,415 (151) 974 276 2,703 6,073 27 (78,934) 3,893 5,878 (104) 525 (500) (1,521) $ 38,679 153,973 1,463 155,436 $ 0.25 5,929 (242) 245 (826) $ 31,768 153,784 2,128 155,912 $ 0.20 3,169 (114) 557 (627) (1,402) $ 25,935 155,035 2,099 157,134 $ 0.17 16,769 (104) 777 (735) (3,206) $ 97,099 153,904 1,802 155,706 $ 0.62 10,309 (114) 1,080 (1,145) (3,058) $ 55,076 152,560 2,659 155,219 $ 0.35 $ $ $ 74,939 $ 247,249 $ 211,822 2,435 3,909 7,305 91,364 959 1,264 (96) - $ 156 592 92,975 GAAP R&D expenses: Restructuring related: Severance and retention costs Facility closure costs Assets impairment and other Other: Assets impairment and other Compensation expense (benefit) - deferred compensation plan Stock-based compensation expense Non-GAAP R&D expenses $ 32,825 81,876 96 334 2 (28) 23 2,269 87 8 (102) 233 1,347 $ 255,030 (114) 333 1,128 $ 220,467 $ $ 107,939 $ (70) 436 83,936 $ (114) 172 403 77,809 $ 30,742 $ 31,063 95,617 (91) (209) - (136) (67) (86) (2) - (467) (209) (434) (3,929) (9) - $ (255) (2,562) 29,708 $ 114 (2,464) 28,189 $ 123 (289) (1,514) 29,295 $ (381) (7,547) 86,579 $ (3,995) (560) (4,212) 95,234 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 Other: Compensation expense (benefit) - deferred compensation plan Stock-based compensation expense Non-GAAP SG&A expenses $ 27,165 $ 26,795 $ 23,687 $ 79,419 $ 77,826 GAAP interest income and other, net Gain from divestiture (Gain) loss 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 $ $ $ $ (388) 125 (412) - (887) (21) (1,663) 125 (2,660) (729) (134) - (87) (20) (314) (2) (484) (67) (2,057) (10) (114) (2,724) 23,930 58 (3,029) 23,305 (96) (1,252) 21,115 (163) (7,875) 69,292 (187) (4,969) 67,214 $ 1,558 (104) (500) 954 $ 91 1,521 1,612 $ $ $ $ 405 245 650 $ 498 826 1,324 $ $ $ $ 1,108 (627) 481 $ 543 1,402 1,945 $ $ $ $ 2,825 (104) (735) 1,986 $ 840 3,206 4,046 $ $ $ 1,921 (1,145) 776 661 3,058 3,719 (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 $ $ $ Dec. 28, March 30, 2014 2014 127,787 383,566 76,294 40,945 15,203 643,795 64,744 135,644 6,535 26,556 877,274 26,043 37,949 15,244 1,396 22,385 103,017 $ $ $ 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 1,494 353 18,469 123,333 1,494 266 18,683 97,105 Stockholders' equity 753,941 733,855 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 877,274 $ 830,960