Intersil Corporation

Non-GAAP Results

Unaudited

(In thousands, except percentages)

Quarter Ended

Apr. 1,

Jan. 1,

Apr. 3, 

2016

2016

2015

Q1 2016

Q4 2015

Q1 2015

Non-GAAP gross profit:

  GAAP gross profit

$ 75,960

$ 72,919

$   80,326

  Equity-based compensation COS

458

268

392

Non-GAAP gross profit

$ 76,418

$ 73,187

$   80,718

Non-GAAP gross margin:

GAAP gross margin

58.8%

57.6%

59.9%

  Equity-based compensation COS

0.3%

0.2%

0.3%

Non-GAAP gross margin

59.1%

57.8%

60.2%

Non-GAAP R&D expenses:

  GAAP R&D expenses

$ 33,678

$ 29,983

$   32,017

Equity-based compensation

(3,103)

(2,368)

(2,751)

Non-GAAP R&D expenses:

$ 30,575

$ 27,615

$   29,266

Non-GAAP SG&A expenses:

GAAP SG&A expenses

$ 23,549

$ 22,784

$   25,453

Equity-based compensation

(2,921)

(2,512)

(2,613)

Acquisition-related costs

(585)

-

-

Non-GAAP SG&A expenses:

$ 20,043

$ 20,272

$   22,840

Non-GAAP operating expenses:

GAAP operating expenses

$ 60,755

$ 57,028

$ 144,131

  Provision for TAOS litigation

-

-

(81,100)

  Equity-based compensation (excl. COS)

(6,024)

(4,880)

(5,364)

  Amortization of purchased intangibles

(3,528)

(4,261)

(5,561)

Acquisition-related costs

(585)

-

-

Non-GAAP operating expenses

$ 50,618

$ 47,887

$   52,106

Non-GAAP operating income:

GAAP operating income (loss)

$ 15,205

$ 15,891

$ (63,805)

  Provision for TAOS litigation

-

-

81,100

  Equity-based compensation

6,482

5,148

5,756

  Amortization of purchased intangibles

3,528

4,261

5,561

Acquisition-related costs

585

-

-

Non-GAAP operating income

$ 25,800

$ 25,300

$   28,612

Non-GAAP operating margin:

GAAP operating margin

11.8%

12.5%

  Excluded items as a percent of revenue

8.2%

7.5%

68.9%

Non-GAAP operating margin 

20.0%

20.0%

21.3%