Intersil Corporation

Non-GAAP Results

Unaudited

(In thousands, except per share amounts)

Quarter Ended

Sep. 30

Jul. 1

Oct. 2

2016

2016

2015

Q3 2016

Q2 2016

Q3 2015

Non-GAAP net income:

GAAP net income

$             15,883

$        1,389

$      16,984

  Restructuring and related costs

14

13,508

-

  Equity-based compensation

5,563

8,122

5,565

  Amortization of purchased intangibles

2,669

2,867

3,777

  Provision for the TAOS litigation

-

1,255

-

  Merger related expenses

4,639

-

-

  Gain on recovery from auction rate securities

(135)

(70)

(460)

  Tax impact of non-cash and discrete items

2,683

(3,469)

(5,049)

Non-GAAP net income

$             31,316

$      23,602

$      20,817

GAAP weighted average shares - diluted

138,760

137,332

132,445

  Non-GAAP adjustment

2,583

3,014

5,273

Non-GAAP weighted average shares - diluted

141,343

140,346

137,718

Non-GAAP earnings per diluted share:

GAAP earnings per diluted share

$                 0.11

$          0.01

$          0.13

  Excluded items per share impact

0.11

0.16

0.02

Non-GAAP earnings per diluted share

$                 0.22

$          0.17

$          0.15

Equity-based compensation expense by classification:

Cost of revenue ("COS")

$                  207

$           284

$           304

Research and development 

$               2,779

$        3,834

$        2,390

Selling, general and administrative 

$               2,577

$        4,004

$        2,871