ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(in thousands of U.S. dollars, except number of shares and per share amounts)

Three months ended

Three months ended

Six months ended

Six months ended

June 30,

June 30,

June 30,

June 30,

2014

2013

2014

2013

  (unaudited) 

  (unaudited) 

  (unaudited) 

  (unaudited) 

Revenues:

  Third-parties:

   System-on-a-chip products

10,317

16,923

19,883

32,692

   Semiconductor product testing services

27

35

54

52

10,344

16,958

19,937

32,744

  Related-parties:

   System-on-a-chip products

1,631

1,559

3,350

2,188

  Total revenues

11,975

18,517

23,287

34,932

Cost of revenues:

  Third-parties:

   System-on-a-chip products

(8,411)

(11,446)

(15,862)

(21,509)

   Semiconductor product testing services

(9)

(13)

(27)

(18)

(8,420)

(11,459)

(15,889)

(21,527)

  Related-parties:

   System-on-a-chip products

(1,356)

(1,090)

(2,583)

(1,489)

  Total cost of revenues

(9,776)

(12,549)

(18,472)

(23,016)

Gross profit

2,199

5,968

4,815

11,916

Other operating income

150

78

629

152

Operating expenses:

  Research and development

(6,614)

(7,340)

(13,390)

(13,362)

  General and administrative

(2,787)

(2,107)

(4,824)

(4,084)

  Selling and marketing

(634)

(501)

(1,018)

(996)

Total operating expenses

(10,035)

(9,948)

(19,232)

(18,442)

Loss from operations

(7,686)

(3,902)

(13,788)

(6,374)

Other income (expenses)

7

1,150

(2,497)

1,370

Dividend income from an other investment

423

493

423

493

Interest income

2,803

2,993

5,883

6,191

Interest expense

(159)

(124)

(296)

(224)

(Loss) income before income taxes, equity in net

(4,612)

610

(10,275)

1,456

  income (loss) of equity method investees

  and non-controlling interest

Income tax credit (expense)

941

255

1,106

(98)

Equity in net income (loss) of equity method investees

204

(186)

207

(259)

Net (loss) income

(3,467)

679

(8,962)

1,099

Add: Net loss attributable to non-controlling interest

-

-

-

1

Net (loss) income attributable to Actions Semiconductor Co., Ltd.

(3,467)

679

(8,962)

1,100

Net (loss) income attributable to Actions Semiconductor Co., Ltd.

Basic (per share)

(0.008)

0.002

(0.022)

0.003

Diluted (per share)

(0.008)

0.002

(0.022)

0.003

Basic (per ADS)

(0.050)

0.010

(0.130)

0.016

Diluted (per ADS)

(0.050)

0.010

(0.130)

0.016

Weighted-average shares used in computation:

Basic

413,599,856

412,242,251

412,556,305

411,185,535

Diluted

413,599,856

427,401,804

412,556,305

424,606,224

Weighted-average ADS used in computation :

Basic

68,933,309

68,707,042

68,759,384

68,530,923

Diluted

68,933,309

71,233,634

68,759,384

70,767,704

Note: Share-based compensation recorded in each

expense classification above is as follows:

  Research and development

3

41

7

205

  General and administrative

2

16

4

69

  Selling and marketing

-

3

-

11

  Cost of revenues

-

15

-

15