ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS

(in thousands of U.S. dollars, except number of shares and per share amounts)

Three months ended

Three months ended

Year ended

Year ended

December 31,

December 31,

December 31,

December 31,

2014

2013

2014

2013

(unaudited)

(unaudited)

(unaudited)

(audited)

Revenues:

  Third-parties:

   System-on-a-chip products

10,425

15,095

40,932

64,617

   Semiconductor product testing services

36

29

117

135

10,461

15,124

41,049

64,752

  Related-parties:

   System-on-a-chip products

3,401

2,451

9,211

4,639

  Total revenues

13,862

17,575

50,260

69,391

Cost of revenues:

  Third-parties:

   System-on-a-chip products

(12,920)

(11,567)

(37,743)

(44,324)

   Semiconductor product testing services

(18)

(13)

(46)

(58)

(12,938)

(11,580)

(37,789)

(44,382)

  Related-parties:

   System-on-a-chip products

(3,585)

(2,094)

(8,405)

(3,583)

  Total cost of revenues

(16,523)

(13,674)

(46,194)

(47,965)

Gross (loss) profit

(2,661)

3,901

4,066

21,426

Other operating income

231

1,517

890

2,170

Operating expenses:

  Research and development

(7,066)

(6,086)

(31,123)

(25,994)

  General and administrative

(2,661)

(2,547)

(10,330)

(8,764)

  Selling and marketing

(601)

(614)

(2,175)

(2,057)

  Impairment on intangible assets

(535)

-

(820)

-

Total operating expenses

(10,863)

(9,247)

(44,448)

(36,815)

Loss from operations

(13,293)

(3,829)

(39,492)

(13,219)

Other (expense) income

(1,085)

779

(2,736)

2,336

Dividend income from an other investment

-

-

423

493

Other-than-temporary impairment loss on investments

-

(681)

-

(681)

Interest income

1,699

3,241

9,611

12,358

Interest expense

(147)

(146)

(530)

(498)

(Loss) income before income taxes, equity in net income (loss) of
equity method investees and non-controlling interest

(12,826)

(636)

(32,724)

789

Income tax credit (expense) 

337

(108)

1,796

(403)

Equity in net income (loss) of equity method investees

332

(82)

566

(264)

Net (loss) income

(12,157)

(826)

(30,362)

122

Less: Net loss attributable to non-controlling interest

1

1

1

2

Net (loss) income attributable to Actions Semiconductor Co., Ltd. Shareholders

(12,156)

(825)

(30,361)

Net (loss) income attributable to Actions Semiconductor Co., Ltd. Shareholders

Basic (per share)

(0.034)

(0.002)

(0.077)

0.000

Diluted (per share)

(0.034)

(0.002)

(0.077)

0.000

Basic (per ADS)

(0.206)

(0.012)

(0.461)

0.002

Diluted (per ADS)

(0.206)

(0.012)

(0.461)

0.002

Weighted-average shares used in computation:

Basic

353,508,683

412,162,575

395,380,921

412,103,255

Diluted

353,508,683

412,162,575

395,380,921

425,415,011

Weighted-average ADS used in computation :

Basic

58,918,114

68,693,763

65,896,820

68,683,876

Diluted

58,918,114

68,693,763

65,896,820

70,902,502

Note: Share-based compensation recorded in each

expense classification above is as follows:

  Research and development

-

74

10

347

  General and administrative

-

25

5

79

  Selling and marketing

1

3

1

17

  Cost of revenues

28

-

28

49