ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

Three months ended

Three months ended

Three months ended

March 31,

December 31,

March 31,

2015

2014

2014

(unaudited)

(unaudited)

(unaudited)

Operating activities:

Net loss

(4,997)

(12,157)

(5,495)

Adjustments to reconcile net loss to net cash provided by

  Operating activities:

  Depreciation of property, plant and equipment

475

487

503

  Allowance for doubtful accounts receivable

490

179

-

  Amortization of land use right

9

9

9

  Amortization of acquired intangible assets

1,228

1,138

1,138

  (Reversal of) write down of inventories

(776)

3,971

-

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

-

2

(3)

  Loss on disposal of intangible assets

-

5

-

  Share of net loss (gain) of equity method investees

27

(332)

(3)

  Share-based compensation

5

29

6

  Deferred taxes

(343)

(299)

(179)

  Impairment loss recognised in respect of intangible assets

-

535

-

  Changes in operating assets and liabilities:

    Accounts receivable

(491)

1,487

(1,046)

    Amount due from a related party

1,095

(618)

576

    Inventories

(232)

4,602

(5,468)

    Amount due from an equity method investee

(7)

5

(4)

    Prepaid expenses and other current assets

(1,178)

(1,120)

415

    Accounts payable

833

901

4,058

    Accrued expenses and other current liabilities

(1,214)

935

(1,232)

    Amount due to a related party

(97)

-

-

    Income tax recoverable

(159)

(34)

19

    Income tax payable

-

1

-

    Rental deposit paid

(11)

-

(11)

    Notes Receivable

161

(161)

-

Net cash used in operating activities

(5,182)

(435)

(6,717)

Investing activities:

  Proceeds from redemption of marketable securities

-

6,019

41,432

  Purchase of marketable securities

(4,649)

(906)

(39,284)

  Proceeds from disposal of property, plant and equipment

-

-

18

  Purchase of property, plant and equipment

(76)

(66)

(483)

  Purchase of intangible assets

(111)

(2,606)

(20)

  Increase in restricted deposits

(195)

(13,089)

(11,021)

  (Increase) decrease in time deposits

(5,627)

156

-

  Deposit paid for acquisition of intangible assets

-

(108)

(240)

  Proceeds from disposal of intangible assets

-

-

24

Net cash used in investing activities

(10,658)

(10,600)

(9,574)

Financing activities:

  Proceeds from exercise of share option

147

132

757

  Repurchase of ordinary shares

(632)

(441)

(1,061)

  Raise of short-term bank loans

-

21,500

10,000

  Repayment of short-term bank loans

-

(10,000)

(5,000)

Net cash (used in) provided by financing activities

(485)

11,191

4,696

Net (decrease) increase in cash and cash equivalents

(16,325)

156

(11,595)

Cash and cash equivalents at the beginning of the period

78,177

78,520

53,263

Effect of exchange rate changes on cash

3

(499)

(1,072)

Cash and cash equivalents at the end of the period

61,855

78,177

40,596