ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

Three months ended

Six months ended

Six months ended

June 30,

June 30,

June 30,

2013

2013

2012

(unaudited)

  (unaudited)  

  (unaudited)  

Operating activities:                                                                                                     

Net income (loss)

679

1,099

(1,214)

Adjustments to reconcile net income (loss) to net cash provided by

  Operating activities:

  Depreciation of property, plant and equipment

508

1,055

1,183

  Amortization of land use right

9

18

18

  Amortization of acquired intangible assets

843

1,709

1,426

  Utilization of subsidy from local authorities of Zhuhai, the
    People's Republic of China ("PRC")

(59)

(59)

(122)

  Write down of inventories

579

583

180

  Loss (gain) on disposal of property, plant and equipment 

4

11

(3)

  Dividend income from another investment

(493)

(493)

-

  Share of net loss of equity method investees

186

259

34

  Share-based  compensation

78

300

922

  Fair value change in trading securities

-

-

(2)

  Deferred taxes

(191)

78

167

  Proceeds from disposal of trading securities

-

-

459

  Changes in operating assets and liabilities:

    Accounts receivable

(665)

41

695

    Amount due from a related party

(607)

(559)

(173)

    Inventories

(11,180)

(16,138)

(3,295)

    Amount due from an equity method investee

(19)

24

(6)

    Prepaid expenses and other current assets

4,812

3,377

(1,204)

    Accounts payable

7,210

10,780

3,904

    Accrued expenses and other current liabilities

(2,787)

(3,350)

(2,688)

    Income tax recoverable

(82)

(82)

-

    Income tax payable

17

103

(36)

    Rental deposit (paid) received

-

(9)

9

Net cash (used in) provided by operating activities

(1,158)

(1,253)

254

Investing activities:

  Investment in an equity method investee

(3,712)

(3,712)

-

  Proceeds from redemption of marketable securities

73,159

80,513

120,008

  Purchase of marketable securities

(10,980)

(27,004)

(92,831)

  Proceeds from disposal of property, plant and equipment

-

-

22

  Purchase of property, plant and equipment

(125)

(149)

(772)

  Purchase of intangible assets

(456)

(498)

(547)

  Increase in time deposits 

-

(5,296)

-

Net cash provided by investing activities

57,886

43,854

25,880

Financing activities:

  Advance subsidy from local authorities of Zhuhai, the PRC

-

290

38

  Proceeds from exercise of share option and restricted stock unit

837

2,207

1,799

  Repurchase of ordinary shares

(645)

(2,182)

(2,418)

Net cash provided by (used in) financing activities

192

315

(581)

Net increase in cash and cash equivalents

56,920

42,916

25,553

Cash and cash equivalents at the beginning of the period

57,511

71,336

33,207

Effect of exchange rate changes on cash

816

995

116

Cash and cash equivalents at the end of the period

115,247

115,247

58,876