Included in the fourth quarter 2015 GAAP and non-GAAP net income was approximately $2.5 million, net of tax, of non-cash share-based compensation expense. Excluding share-based compensation expense, both GAAP and non-GAAP diluted EPS would have increased by an additional $0.05 per share for each of the fourth quarter 2015, the third quarter 2015 and the fourth quarter 2014.
EBITDA, which represents earnings before net interest expense, income tax, depreciation and amortization, for the fourth quarter 2015, was $24.4 million, compared to $29.7 million for the third quarter 2015 and $42.7 million for the fourth quarter 2014. For a reconciliation of GAAP net income to EBITDA (non-GAAP), see the table near the end of the release for further details.
For the fourth quarter 2015, net cash provided by operating activities was $21.4 million. Net cash flow was $29.7 million, which reflects the pay-down of $18.8 million of long-term debt. Free cash flow was ($16.9) million, which includes $38.2 million of capital expenditures.
Fiscal 2015
For 2015, revenue was $848.9 million, a decrease of 4.7 percent from the $890.7 million in 2014. Gross profit was $248.8 million, or 29.3 percent of revenue, compared to $277.3 million, or 31.1 percent of revenue, in the prior year.
GAAP net income was $29.8 million, or $0.60 per diluted share, compared to $63.7 million, or $1.31 per diluted share, in 2014. Non-GAAP net income for 2015 was $42.3 million, or $0.86 per diluted share, which excluded, net of tax, $6.9 million of non-cash acquisition-related intangible asset amortization costs, $4.0 million of purchase price accounting adjustments and transaction costs, $1.3 million asset impairment charges and $0.4 million of severance costs, compared to non-GAAP net income of $70.1 million, or $1.44 per diluted share, in the prior year. The following is a summary reconciliation of GAAP net income to non-GAAP net income and per share data, net of tax (in thousands, except per share data):
| Twelve Months Ended | |||||||
| December 31, 2015 | |||||||
| GAAP net income | $ | 29,772 | |||||
| GAAP diluted earnings per share | $ | 0.60 | |||||
| Adjustments to reconcile net income to Non-GAAP net income: | |||||||
| M&A Activities | |||||||
| Pericom | 4,867 | ||||||
| Inventory adjustment | 2,907 | ||||||
| Transaction costs | 971 | ||||||
| Retention costs | 86 | ||||||
| Amortization of acquisition related intangible assets | 903 | ||||||
| Others | 6,037 | ||||||
| Retention costs | 70 | ||||||
| Amortization of acquisition related intangible assets | 5,967 | ||||||
| Impairment loss on long-lived assets | 1,250 | ||||||
| Severance | 419 | ||||||
| Non-GAAP net income | $ | 42,345 | |||||
| Non-GAAP diluted earnings per share | $ | 0.86 | |||||
