EZchip Semiconductor Ltd.

Selected Condensed Consolidated Cash Flow Data on a Non-GAAP Basis

(U.S. Dollars in thousands)

(Unaudited)

Three Months Ended

March 31,

December 31,

March 31,

2014

2013

2013

Cash flows from operating activities:

Net income

$       6,086

$       6,513

$       3,510

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

168

161

155

Decrease (increase) in trade and other receivables, net

(1,353)

1,026

(1,174)

Increase in inventory

(102)

(678)

(627)

Increase (decrease) in trade payables and other accrued liabilities, net

(164)

2,199

1,666

Stock-based compensation

3,925

3,633

3,225

Net cash provided by operating activities

8,560

12,854

6,755

Cash flows from investing activities:

Purchase of property and equipment

(196)

(151)

(345)

Purchase of technology

(1,348)

(533)

(131)

Net cash used in investing activities

(1,544)

(684)

(476)

Cash flows from financing activities:

Proceeds from exercise of options

216

79

54

Net cash provided by financing activities

216

79

54

Cash adjustment of marketable securities, net*

(125)

(14)

(13)

Increase in cash, cash equivalents, marketable securities and deposits

7,107

12,235

6,320

Cash, cash equivalents, marketable securities and deposits at the beginning of the period

202,865

190,630

167,968

Cash, cash equivalents, marketable securities and deposits at the end of the period

$      209,972

$      202,865

$     174,288