ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

Three months ended

Nine months ended

Nine months ended

September 30,

September 30,

September 30,

2014

2014

2013

(unaudited)

  (unaudited) 

  (unaudited) 

Operating activities:

Net (loss) income

(9,243)

(18,205)

947

Adjustments to reconcile net (loss) income to net cash provided by

  Operating activities:

  Depreciation of property, plant and equipment

457

1,462

1,564

  Allowance for doubtful accounts receivable

194

379

-

  Amortization of land use right

9

27

27

  Amortization and impairment of acquired intangible assets

1,777

4,138

2,557

  Utilization of subsidy from local authorities of Zhuhai,
  the People's Republic of China ("PRC")

-

-

(222)

  Write down of inventories

902

2,189

583

  Gain on disposal of property, plant and equipment

-

(3)

-

  Loss on disposal of intangible assets

-

415

-

  Share of net (gain) loss of equity method investees

(27)

(234)

182

  Share-based  compensation

5

16

390

  Deferred taxes

(288)

(3,277)

185

  Dividend income from another investment

-

(423)

(493)

  Changes in operating assets and liabilities:

    Accounts receivable

510

862

(1,330)

    Amount due from a related party

(295)

269

340

    Inventories

3,852

(4,858)

(13,748)

    Amount due from an equity method investee

(3)

(8)

4

    Prepaid expenses and other current assets

325

369

6,852

    Accounts payable

(2,158)

(815)

(1,868)

    Accrued expenses and other current liabilities

30

(1,350)

(3,399)

    Income tax recoverable

(68)

(88)

110

    Income tax payable

-

-

1

    Rental deposit received (paid)

7

5

(16)

    Note Receivables

-

-

(37)

  Dividend received

425

425

-

Net cash used in operating activities

(3,589)

(18,705)

(7,371)

Investing activities:

  Investment in an equity method investee

-

(9,016)

(3,712)

  Proceeds from redemption of marketable securities

57,955

153,277

99,532

  Purchase of marketable securities

(4,990)

(53,384)

(82,800)

  Proceeds from disposal of property, plant and equipment

1

20

16

  Purchase of property, plant and equipment

(307)

(1,090)

(522)

  Purchase of intangible assets

(159)

(5,438)

(2,685)

  Increase in restricted deposits

(6,165)

(11,885)

(11,199)

  Decrease in time deposits

162

162

-

  Deposit paid for acquisition of intangible assets

-

(349)

(759)

  Proceeds from disposal of intangible assets

-

24

-

Net cash provided by (used in) investing activities

46,497

72,321

(2,129)

Financing activities:

  Advance subsidy from local authorities of Zhuhai, the PRC

232

232

302

  Proceeds from exercise of share option and restricted stock unit

757

2,410

2,570

  Repurchase of ordinary shares

(25,872)

(28,461)

(3,008)

  Raise of short-term bank loans

-

10,000

5,000

  Repayment of short-term bank loans

(1,000)

(12,000)

-

Net cash (used in) provided by financing activities

(25,883)

(27,819)

4,864

Net increase (decrease) in cash and cash equivalents

17,025

25,797

(4,636)

Cash and cash equivalents at the beginning of the period

60,888

53,263

71,336

Effect of exchange rate changes on cash

607

(540)

1,184

Cash and cash equivalents at the end of the period

78,520

78,520

67,884