Intersil Corporation

Non-GAAP Results

Unaudited

(In thousands, except percentages)

Quarter Ended

Apr. 3,

Jan. 2,

Apr. 4,

2015

2015

2014

Q1 2015

Q4 2014

Q1 2014

Non-GAAP gross profit:

  GAAP gross profit

$   80,326

$ 78,193

$ 78,905

  Equity-based compensation COS

392

319

319

    Non-GAAP gross profit

$   80,718

$ 78,512

$ 79,224

Non-GAAP gross margin:

  GAAP gross margin

59.9%

59.6%

56.3%

  Equity-based compensation COS

0.3%

0.2%

0.3%

    Non-GAAP gross margin

60.2%

59.8%

56.6%

Non-GAAP operating expenses:

  GAAP operating expenses

$ 144,131

$ 60,766

$ 64,127

  Provision for export compliance settlement

-

-

(4,000)

  Provision for TAOS litigation

(81,100)

-

-

  Equity-based compensation (excl. COS)

(5,364)

(4,689)

(3,391)

  Amortization of purchased intangibles

(5,561)

(5,559)

(5,561)

    Non-GAAP operating expenses

$   52,106

$ 50,518

$ 51,175

Non-GAAP operating income:

  GAAP operating (loss) income

$  (63,805)

$ 17,427

$ 14,778

  Provision for export compliance settlement

-

-

4,000

  Provision for TAOS litigation

81,100

-

-

  Equity-based compensation

5,756

5,008

3,710

  Amortization of purchased intangibles

5,561

5,559

5,561

    Non-GAAP operating income

$   28,612

$ 27,994

$ 28,049

Non-GAAP operating margin:

  GAAP operating margin

13.3 %

10.6 %

  Excluded items as a percent of revenue

68.9 %

8.0 %

9.4 %

    Non-GAAP operating margin 

21.3 %

21.3 %

20.0 %