INTEGRATED DEVICE TECHNOLOGY, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (a)

(Unaudited)

(In thousands, except per share data)

Three Months Ended

Six Months Ended

Sep. 30, 2018

Jul. 1, 2018

Oct. 1, 2017

Sep. 30, 2018

Oct. 1, 2017

GAAP net income

$       35,500

$    30,720

$     18,680

$       66,220

$     35,394

GAAP diluted net income per share

$           0.26

$        0.23

$         0.14

$           0.49

$         0.26

   Acquisition-related:

        Amortization of acquisition-related intangibles 

9,365

9,334

8,963

18,699

17,839

        Acquisition-related costs

-

-

-

-

2,225

        Amortization of fair market value adjustment to inventory

-

790

2,011

790

6,092

        Merger-related expense

3,884

-

-

3,884

-

   Restructuring-related:

        Severance costs

1,351

367

1,637

1,718

2,290

        Facility closure costs (benefit)

(125)

121

2,542

(4)

2,542

        Assets impairment and other

-

-

917

-

2,882

   Other:

        Stock-based compensation expense 

15,637

15,063

12,950

30,700

24,770

        Non-cash interest expense

3,881

3,955

3,695

7,836

7,587

        Other-than-temporary impairment loss on investment

-

2,000

-

2,000

-

        Certain unrealized foreign exchange loss (gain)

(144)

1,311

(754)

1,167

(2,429)

        Compensation expense - deferred compensation plan

654

576

469

1,230

881

        Gain on deferred compensation plan securities

(650)

(564)

(443)

(1,214)

(803)

        Non-GAAP tax adjustments

(5,892)

(3,538)

(2,518)

(9,430)

(5,859)

Non-GAAP net income 

$       63,461

$    60,135

$     48,149

$      123,596

$     93,411

GAAP weighted average shares - diluted

134,755

132,806

136,059

133,957

136,434

        Non-GAAP adjustment

1,214

2,378

2,780

2,013

2,465

Non-GAAP weighted average shares - diluted

135,969

135,184

138,839

135,970

138,899

Non-GAAP diluted net income per share

$            0.47

$        0.44

$         0.35

$            0.91

$         0.67

GAAP gross profit

$      143,584

$  136,607

$   116,762

$      280,191

$   226,800

   Acquisition-related:

        Amortization of acquisition-related intangibles 

6,274

6,243

5,822

12,517

11,504

        Amortization of fair market value adjustment to inventory

-

790

2,011

790

6,092

   Restructuring-related:

        Severance costs

397

-

30

397

226

   Other:

-

-

        Compensation expense - deferred compensation plan

153

135

110

288

207

        Stock-based compensation expense 

829

1,028

764

1,857

1,396

Non-GAAP gross profit

$      151,237

$  144,803

$   125,499

$      296,040

$   246,225

GAAP R&D expenses:

$        55,509

$    52,234

$     48,742

$      107,743

$     97,191

   Restructuring-related:

        Severance costs

(587)

(110)

(318)

(697)

(363)

        Facility closure costs 

(315)

-

-

(315)

-

        Assets impairment and other

-

-

(835)

-

(2,800)

   Other:

        Compensation expense - deferred compensation plan

(334)

(294)

(239)

(628)

(449)

        Stock-based compensation expense 

(7,829)

(7,136)

(6,094)

(14,965)

(12,057)

Non-GAAP R&D expenses

$       46,444

$    44,694

$     41,256

$       91,138

$     81,522

GAAP SG&A expenses:

$       46,753

$    42,995

$     44,485

$       89,748

$     86,427

   Acquisition-related:

        Amortization of acquisition-related intangibles 

(3,091)

(3,091)

(3,141)

(6,182)

(6,335)

        Acquisition-related costs

-

-

-

-

(2,225)

        Merger-related expense

(3,884)

-

-

(3,884)

-

   Restructuring-related:

        Severance costs

(367)

(257)

(1,289)

(624)

(1,701)

        Facility closure benefit (costs)

440

(121)

(2,542)

319

(2,542)

        Assets impairment and other

-

-

(82)

-

(82)

   Other:

        Compensation expense - deferred compensation plan

(167)

(147)

(120)

(314)

(225)

        Stock-based compensation expense 

(6,979)

(6,899)

(6,092)

(13,878)

(11,317)

Non-GAAP SG&A expenses

$       32,705

$    32,480

$     31,219

$       65,185

$     62,000

GAAP interest and other expense, net

$        (4,608)

$     (5,514)

$     (4,886)

$      (10,122)

$     (8,801)

        Non-cash interest expense

3,881

3,955

3,695

7,836

7,587

        Gain on deferred compensation plan securities

(650)

(564)

(443)

(1,214)

(803)

        Certain unrealized foreign exchange loss (gain)

(144)

1,311

(754)

1,167

(2,429)

Non-GAAP interest and other expense, net

$        (1,521)

$        (812)

$     (2,388)

$        (2,333)

$     (4,446)

GAAP benefit from (provision for) income taxes

$        (1,214)

$     (3,144)

$            31

$        (4,358)

$       1,013

        Non-GAAP tax adjustments

5,892

3,538

2,518

9,430

5,859

Non-GAAP provision for income taxes 

$        (7,106)

$     (6,682)

$     (2,487)

$      (13,788)

$     (4,846)