* Diluted net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders, calculated as net income less income allocable to preferred stockholders for the period prior to their conversion upon our initial public offering, by the weighted average number of common shares outstanding, including unvested shares subject to repurchase, and potential dilutive securities assuming the dilutive effect of outstanding stock options and warrants using the treasury stock method.

Peregrine Semiconductor Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited)
	September 28,				December 29,
	2013				2012
Assets
Current assets:
Cash and cash equivalents	$	17,206			$	44,106
Short-term marketable securities	23,213				30,361
Accounts receivable, net	18,322				13,353
Inventories	52,311				57,017
Prepaids and other current assets	7,955				11,108
Total current assets	119,007				155,945
Property and equipment, net	23,358				22,871
Long-term marketable securities	22,664				18,892
Other assets	211				210
Total assets	$	165,240			$	197,918
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	12,465			$	22,306
Accrued liabilities	9,151				12,672
Accrued compensation	3,664				5,726
Customer deposits	4,954				24,425
Deferred revenue	5,627				12,755
Current portion of obligations under capital leases	10				11
Total current liabilities	35,871				77,895
Obligations under capital leases, less current portion	18				18
Other long-term liabilities	826				886
Stockholders’ equity:
Common stock	33				32
Additional paid-in capital	346,837				340,221
Accumulated deficit	(218,158		)		(220,935		)
Accumulated other comprehensive loss	(187		)		(199		)
Total stockholders’ equity	128,525				119,119
Total liabilities and stockholders’ equity	$	165,240			$	197,918

Peregrine Semiconductor Corporation CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
		Nine Months Ended
		September 28,				September 29,
		2013				2012
Operating activities
Net income		$	2,777			$	1,645
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		4,825				3,132
Stock-based compensation		4,854				3,116
Revaluation of warrants to fair value		—				633
Imputed interest related to deposit arrangements, net		(307		)		273
Amortization of premium and discount on investments, net		293				48
Cash received for lease incentives		135				—
Changes in operating assets and liabilities:
Accounts receivable		(4,956		)		(8,727		)
Inventories		4,717				(26,709		)
Prepaids and other current and noncurrent assets		3,676				(6,354		)
Accounts payable and accrued liabilities		(16,144		)		21,606
Customer deposits		(11,425		)		29,791
Deferred revenue		(6,787		)		7,122
Net cash provided by (used in) operating activities		(18,342		)		25,576
Investing activities
Purchases of property and equipment		(5,304		)		(13,157		)
Purchase of marketable securities		(28,552		)		(48,462		)
Sale of marketable securities		31,607				—
Net cash used in investing activities		(2,249		)		(61,619		)
Financing activities
Proceeds from customer deposit financing arrangement		—				13,000
Payments on customer deposit financing arrangement		(8,046		)		—
Proceeds from line of credit		—				3,000
Payments on line of credit		—				(10,749		)
Payments on obligations under capital leases		(7		)		(661		)
Payments on notes payable		—				(1,618		)
Proceeds from exercise of stock options		1,759				369
Proceeds from exercise of warrants		—				31
Proceeds from initial public offering, net of offering cost		—				80,278
Costs paid in connection with initial public offering		—				(1,707		)
Net cash provided by (used in) financing activities		(6,294		)		81,943
Effect of exchange rate changes on cash and cash equivalents		(15		)		(12		)
Net change in cash and cash equivalents		(26,900		)		45,888
Cash and cash equivalents at beginning of period		44,106				12,119
Cash and cash equivalents at end of period		$	17,206			$	58,007

Peregrine Semiconductor Corporation RECONCILIATION OF GAAP TO NON-GAAP RESULTS (in thousands, except per share data) (unaudited)
	Three Months Ended																Nine Months Ended
	September 28, 2013								September 29, 2012								September 28, 2013								September 29, 2012
Gross profit - GAAP	$	25,253			42.1		%		$	25,015			41.3		%		$	65,789			41.4		%		$	52,491			37.3	%
Non-cash compensation expense (1)	238				0.4				133				0.2				652				0.4				404				0.2
Gross profit - Non-GAAP	$	25,491			42.5		%		$	25,148			41.5		%		$	66,441			41.8		%		$	52,895			37.5	%
Income from operations - GAAP	$	4,266			7.1		%		$	4,670			7.7		%		$	2,885			1.8		%		$	2,790			2.0	%
Non-cash compensation expense (1)	1,728				2.9				1,152				1.9				4,854				3.1				3,116				2.2
Income from operations - Non-GAAP	$	5,994			10.0		%		$	5,822			9.6		%		$	7,739			4.9		%		$	5,906			4.2	%
Net income - GAAP	$	4,433			7.4		%		$	4,713			7.8		%		$	2,777			1.7		%		$	1,645			1.2	%
Non-cash compensation expense (1)	1,728				2.9				1,152				1.9				4,854				3.1				3,116				2.2
Net income - Non-GAAP	$	6,161			10.3		%		$	5,865			9.7		%		$	7,631			4.8		%		$	4,761			3.4	%
Diluted net income per share attributable to common stockholders - GAAP	$	0.12							$	0.10							$	0.08							$	0.02
Adjustment to reflect conversion of preferred stock at the beginning of period	—								0.04								—								0.03
Non-cash compensation expense	0.05								0.03								0.13								0.10
Diluted net income per share - Non-GAAP	$	0.17							$	0.17							$	0.21							$	0.15
Net income attributable to common stockholders - GAAP	$	4,433							$	2,434							$	2,777							$	283
Net income - Non-GAAP	$	6,161							$	5,865							$	7,631							$	4,761
Shares used to compute diluted net income per share attributable to common stockholders - GAAP	35,804								24,351								35,738								12,692
Adjustment to reflect conversion of preferred stock at the beginning of period	—								9,347								—								18,039
Shares used to compute diluted net income per share - Non-GAAP	35,804								33,698								35,738								30,731
(1) Includes stock-based compensation as follows:
	Three Months Ended																Nine Months Ended
	September 28, 2013								September 29, 2012								September 28, 2013								September 29, 2012
Cost of net revenue	$	238							$	133							$	652							$	404
Research and development	537								368								1,534								935
Selling, general and administrative	953								651								2,668								1,777
Total	$	1,728							$	1,152							$	4,854							$	3,116