Intersil Corporation

Non-GAAP Results

Unaudited

(In thousands, except per share amounts)

Quarter Ended

Year Ended

Jan. 2,

Oct. 3,

Jan. 3,

Jan. 2, 

Jan. 3, 

2015

2014

2014

2015

2014

Q4 2014

Q3 2014

Q4 2013

Non-GAAP net income:

GAAP net income

$ 17,274

$ 13,887

$   7,509

$ 54,812

$   2,855

Tax adjustments from non-cash and discrete items

(2,025)

1,821

8,570

173

(3,452)

Restructuring and related costs

-

-

-

-

28,694

Provision for export compliance settlement

-

-

-

4,000

6,000

Gain on recovery from auction rate securities

(615)

(191)

-

(1,075)

(866)

Equity-based compensation

5,009

4,385

3,868

18,688

19,091

Amortization of purchased intangibles

5,559

5,561

5,561

22,241

24,579

   Non-GAAP net income

$ 25,202

$ 25,463

$ 25,508

$ 98,839

$ 76,901

GAAP weighted average shares - diluted

132,276

132,626

129,158

132,657

127,998

Non-GAAP adjustment

4,099

4,409

2,423

2,117

2,689

   Non-GAAP weighted average shares - diluted

136,375

137,035

131,581

134,774

130,687

Non-GAAP earnings per diluted share:

GAAP earnings per diluted share

$     0.13

$     0.10

$     0.06

$     0.41

$     0.02

Excluded items per share impact

0.05

0.09

0.13

0.32

0.57

   Non-GAAP earnings per diluted share

$     0.18

$     0.19

$     0.19

$     0.73

$     0.59

Equity-based compensation expense by classification:

Cost of revenue ("COS")

$      319

$      294

$      298

$   1,326

$   1,387

Research and development 

$   2,500

$   1,967

$   1,642

$   8,468

$   7,777

Selling, general and administrative 

$   2,190

$   2,124

$   1,928

$   8,894

$   9,927