Intersil Corporation

Non-GAAP Results

Unaudited

(In thousands, except percentages)

Quarter Ended

Jul. 1

Apr. 1,

Jul. 3

2016

2016

2015

Q2 2016

Q1 2016

Q2 2015

Non-GAAP gross profit:

  GAAP gross profit

$    79,588

$ 75,960

$   78,493

  Equity-based compensation COS

284

458

436

Non-GAAP gross profit

$    79,872

$ 76,418

$   78,929

Non-GAAP gross margin:

GAAP gross margin

59.4%

58.8%

59.3%

  Excluded items as a percent of revenue

0.2%

0.3%

0.3%

Non-GAAP gross margin

59.6%

59.1%

59.6%

Non-GAAP R&D expenses:

  GAAP R&D expenses

$    34,211

$ 33,678

$   33,098

  Equity-based compensation

(3,834)

(3,103)

(2,658)

Non-GAAP R&D expenses:

$    30,377

$ 30,575

$   30,440

Non-GAAP SG&A expenses:

GAAP SG&A expenses

$    25,248

$ 23,549

$   25,194

  Equity-based compensation

(4,004)

(2,921)

(3,595)

  Acquisition-related costs

-

(585)

-

Non-GAAP SG&A expenses:

$    21,244

$ 20,043

$   21,599

Non-GAAP operating expenses:

GAAP operating expenses

$    77,089

$ 60,755

$   62,318

  Restructuring and related costs

(13,508)

-

-

  Provision for TAOS litigation

(1,255)

-

-

  Equity-based compensation (excl. COS)

(7,838)

(6,024)

(6,253)

  Amortization of purchased intangibles

(2,867)

(3,528)

(4,026)

  Acquisition-related costs

-

(585)

-

Non-GAAP operating expenses

$    51,621

$ 50,618

$   52,039

Non-GAAP operating income:

GAAP operating income

$      2,499

$ 15,205

$   16,175

  Restructuring and related costs

13,508

-

-

  Provision for TAOS litigation

1,255

-

-

  Equity-based compensation

8,122

6,482

6,689

  Amortization of purchased intangibles

2,867

3,528

4,026

  Acquisition-related costs

-

585

-

Non-GAAP operating income

$    28,251

$ 25,800

$   26,890

Non-GAAP operating margin:

GAAP operating margin

1.9%

11.8%

12.2%

  Excluded items as a percent of revenue

19.2%

8.2%

8.1%

Non-GAAP operating margin 

21.1%

20.0%

20.3%