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 Sept. 28, June 29, Sept. 29, 2014 2014 2013 $ 137,093 $ 126,302 $ 124,047 55,217 52,293 53,286 81,876 74,009 70,761 Six Months Ended Sept. 28, Sept. 29, 2014 2013 $ 263,395 $ 241,511 107,510 104,628 155,885 136,883 30,742 26,795 57,537 32,050 25,459 57,509 38,937 27,301 66,238 62,792 52,254 115,046 76,876 54,139 131,015 Operating income 24,339 16,500 4,523 40,839 5,868 Gain from divestiture Other income, net Income from continuing operations before income taxes Provision for income taxes 405 24,744 498 862 17,362 251 82,349 756 87,628 217 1,267 42,106 749 82,349 813 89,030 118 Net income from continuing operations 24,246 17,111 87,411 41,357 88,912 Discontinued operations: Gain from divestiture Loss from discontinued operations Provision for (benefit from) income taxes Net income (loss) from discontinued operations (9,747) 57 (9,804) 16,840 (12,153) (45) 4,732 (3,935) (175) (3,760) 16,840 (21,900) 12 (5,072) (7,799) (274) (7,525) Net income $ Basic net income per share - continuing operations Basic net income (loss) per share - discontinued operations Basic net income per share $ Diluted net income per share - continuing operations Diluted net income (loss) per share - discontinued operations Diluted net income per share $ Weighted average shares: Basic Diluted $ $ 14,442 $ 21,843 $ 0.16 (0.06) 0.10 $ 0.11 0.04 0.15 $ 0.16 (0.07) 0.09 $ 0.11 0.03 0.14 $ 148,683 153,784 $ $ 149,283 153,741 $ $ 83,651 $ 0.58 (0.02) 0.56 $ 0.57 (0.03) 0.54 $ 149,814 153,497 $ $ 36,285 $ 0.28 (0.04) 0.24 $ 0.27 (0.03) 0.24 $ 148,983 153,816 $ $ 81,387 0.60 (0.05) 0.55 0.59 (0.05) 0.54 148,157 151,630 INTEGRATED DEVICE TECHNOLOGY, INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (a) (Unaudited) (In thousands, except per share data) Three Months Ended Sept. 28, June 29, Sept. 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 Gain from divestiture Assets impairment and other Other: Stock-based compensation expense 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: Compensation expense (benefit) - deferred compensation plan Stock-based compensation expense Non-GAAP gross profit $ $ 24,246 0.16 2014 $ $ 17,111 0.11 Six Months Ended Sept. 28, Sept. 29, 2013 $ $ 87,411 0.57 2014 $ $ 41,357 0.27 2013 $ $ 88,912 0.59 1,676 - 2,549 - 3,322 240 4,225 - 6,643 708 319 20 401 526 47 2,302 4,499 13 (82,349) 4,080 845 67 2,703 5,673 21 (82,349) 4,044 5,929 (242) 245 (826) $ 31,768 153,784 2,128 155,912 $ 0.20 4,962 494 (480) (859) $ 26,652 153,741 1,867 155,608 $ 0.17 2,320 623 (619) (994) $ 18,546 153,497 3,065 156,562 $ 0.12 10,891 252 (235) (1,685) $ 58,420 153,816 2,017 155,833 $ 0.37 7,140 523 (518) (1,656) $ 29,141 151,630 2,836 154,466 $ 0.19 $ $ $ 70,761 $ 155,885 $ 136,883 2,435 2,950 4,870 81,876 74,009 1,264 1,686 96 334 23 1,935 $ (70) 436 83,936 GAAP R&D expenses: Restructuring related: Severance and retention costs Facility closure costs Assets impairment and other Other: Compensation expense (benefit) - deferred compensation plan Stock-based compensation expense Non-GAAP R&D expenses $ 30,742 $ 147 319 78,119 $ 32,050 86 4 (38) 119 2,269 87 6 (74) $ 192 392 73,832 77 755 $ 162,055 161 725 $ 142,658 $ 38,937 $ $ 62,792 76,876 (136) (67) (240) (367) (2,751) (5) (4,118) (376) (434) (3,843) (7) (4,118) $ 114 (2,464) 28,189 $ (240) (2,521) 28,682 $ (323) (383) 31,357 $ (126) (4,985) 56,871 $ (271) (2,698) 65,939 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 $ 26,795 $ 25,459 $ 27,301 $ 52,254 $ 54,139 GAAP interest income and other, net (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 $ $ $ $ (412) - (863) - (887) (240) (1,275) - (1,773) (708) (87) (20) (263) (47) (1,662) (4) (350) (67) (1,743) (8) 58 (3,029) 23,305 (107) (2,122) 22,057 (108) (1,545) 22,855 (49) (5,151) 45,362 (91) (3,717) 46,099 $ 405 245 650 $ 498 826 1,324 $ $ $ 862 (480) 382 251 859 1,110 $ $ $ $ $ 756 (619) 137 217 994 1,211 $ $ $ $ $ $ 1,267 (235) 1,032 $ 749 1,685 2,434 $ $ $ 813 (518) 295 118 1,656 1,774 (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 $ $ $ Sept. 28, March 30, 2014 2014 105,020 384,493 77,437 37,639 10,688 615,277 65,765 135,644 7,882 23,626 848,194 27,002 28,456 15,497 1,440 14,605 87,000 $ $ $ 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 1,494 272 18,444 107,210 1,494 266 18,683 97,105 Stockholders' equity 740,984 733,855 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 848,194 $ 830,960