ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

Three months ended

Year ended

Year ended

December 31,

December 31,

December 31,

2014

2014

2013

(unaudited)

  (unaudited)  

  (audited)  

Operating activities:

Net (loss) income

(12,157)

(30,362)

122

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

  Depreciation of property, plant and equipment

487

1,949

2,072

  Amortization of land use right

9

36

36

  Amortization of acquired intangible assets

1,138

4,991

3,480

  Allowance for doubtful accounts receivable

179

558

-

  Utilization of subsidy from local authorities of Zhuhai, the People's Republic of China ("PRC")

-

-

(1,068)

  Write down of inventories

3,971

6,160

-

  Gain (Loss) on disposal of property, plant and equipment 

2

(1)

-

  Loss on disposal of intangible assets

5

420

-

  Share of net (income) loss of equity method investees

(330)

(564)

264

  Share-based  compensation

29

45

492

  Deferred tax

(299)

(3,576)

279

  Dividend income from an other investment

-

(423)

(493)

  Impairment loss recognised in respect of other investments

-

-

681

  Impairment loss recognised in respect of intangible assets

535

820

-

  Changes in operating assets and liabilities:

    Accounts receivable

1,487

2,349

195

    Amount due from a related party

(618)

(349)

(961)

    Inventories

4,602

(256)

(7,821)

    Amount due from an equity method investee

5

(3)

41

    Prepaid expenses and other current assets

(1,122)

(753)

922

    Accounts payable

901

86

(2,198)

    Accrued expenses and other current liabilities

935

(415)

(3,717)

    Income tax recoverable

(34)

(122)

123

    Income tax payable

1

1

2

    Rental deposit received (paid) 

-

5

(11)

    Note Receivables

(161)

(161)

-

    Dividend received

-

425

-

Net cash used in operating activities

(435)

(19,140)

(7,560)

Investing activities:

  Investment in an equity method investee

-

(9,016)

(3,712)

  Proceeds from redemption of marketable securities

6,019

159,296

112,966

  Purchase of marketable securities

(906)

(54,290)

(113,329)

  Proceeds from disposal of property, plant and equipment

-

20

41

  Purchase of property, plant and equipment

(66)

(1,156)

(706)

  Purchase of intangible assets

(2,606)

(8,044)

(4,134)

  Decrease (increase) in time deposits

156

318

(340)

  Deposit paid for acquisition of intangible assets

(108)

(457)

(145)

  Increase in restricted deposits

(13,089)

(24,974)

(16,819)

  Proceeds from disposal of intangible assets

-

24

-

Net cash (used in) provided by investing activities

(10,600)

61,721

(26,178)

Financing activities:

  Advance subsidy from local authorities of Zhuhai, the PRC

-

232

714

  Proceeds from exercise of share-based awards

132

2,542

3,041

  Repurchase of ordinary shares

(441)

(28,902)

(4,853)

  Raise of short-term bank loans

21,500

31,500

15,000

  Repayment of short-term bank loans

(10,000)

(22,000)

-

Net cash provided by (used in) financing activities

11,191

(16,628)

13,902

Net increase (decrease) in cash and cash equivalents

156

25,953

(19,836)

Cash and cash equivalents at the beginning of the period

78,520

53,263

71,336

Effect of exchange rate changes on cash

(499)

(1,039)

1,763

Cash and cash equivalents at the end of the period

78,177

78,177

53,263