Intersil Corporation

Non-GAAP Results

Unaudited

(In thousands, except percentages)

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 gross profit:

GAAP gross profit

$ 78,193

$ 83,849

$ 81,145

$ 326,755

$ 316,607

Equity-based compensation COS

319

294

298

1,326

1,387

   Non-GAAP gross profit

$ 78,512

$ 84,143

$ 81,443

$ 328,081

$ 317,994

Non-GAAP gross margin:

GAAP gross margin

59.6%

58.4%

55.6%

58.1%

55.0%

Equity-based compensation COS

0.2%

0.2%

0.2%

0.2%

0.3%

   Non-GAAP gross margin

59.8%

58.6%

55.8%

58.3%

55.3%

Non-GAAP operating expenses:

GAAP operating expenses

$ 60,766

$ 61,998

$ 59,958

$ 252,018

$ 303,147

Restructuring and related costs

-

-

-

-

(28,694)

Provision for export compliance settlement

-

-

-

(4,000)

(6,000)

Equity-based compensation (excl. COS)

(4,690)

(4,091)

(3,570)

(17,362)

(17,704)

Amortization of purchased intangibles

(5,559)

(5,561)

(5,561)

(22,241)

(24,579)

   Non-GAAP operating expenses

$ 50,517

$ 52,346

$ 50,827

$ 208,415

$ 226,170

Non-GAAP operating income:

GAAP operating income

$ 17,427

$ 21,851

$ 21,187

$   74,737

$   13,460

Restructuring and related costs

-

-

-

-

28,694

Provision for export compliance settlement

-

-

-

4,000

6,000

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 operating income

$ 27,995

$ 31,797

$ 30,616

$ 119,666

$   91,824

Non-GAAP operating margin:

GAAP operating margin

13.3 %

15.2 %

14.5 %

13.3 %

2.3 %

Excluded items as a percent of revenue

8.0 %

6.9 %

6.5 %

8.0 %

13.7 %

   Non-GAAP operating margin 

21.3 %

22.1 %

21.0 %

21.3 %

16.0 %