ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

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

Three months  ended

Three months ended

Three months ended

March 31,

December 31,

March 31,

2014

2013

2013

(unaudited)

(unaudited)

(unaudited)

Revenues:

  Third-parties:

   System-on-a-chip products

9,566

15,095

15,769

   Semiconductor product testing services

27

29

17

9,593

15,124

15,786

  Related-parties:

   System-on-a-chip products

1,719

2,451

629

  Total revenues

11,312

17,575

16,415

Cost of revenues:

  Third-parties:

   System-on-a-chip products

(7,451)

(11,567)

(10,063)

   Semiconductor product testing services

(18)

(13)

(5)

(7,469)

(11,580)

(10,068)

  Related-parties:

   System-on-a-chip products

(1,227)

(2,094)

(399)

  Total cost of revenues

(8,696)

(13,674)

(10,467)

Gross profit

2,616

3,901

5,948

Other operating income

479

1,517

74

Operating expenses:

  Research and development

(6,776)

(6,086)

(6,022)

  General and administrative

(2,037)

(2,547)

(1,977)

  Selling and marketing

(384)

(614)

(495)

Total operating expenses

(9,197)

(9,247)

(8,494)

Loss from operations

(6,102)

(3,829)

(2,472)

Other (loss) income

(2,504)

779

220

Other-than-temporary impairment loss on investments

-

(681)

-

Interest income

3,080

3,241

3,198

Interest expense

(137)

(146)

(100)

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

(5,663)

(636)

846

Income tax credit (expense)

165

(108)

(353)

Equity in net income (loss) of equity method investees

3

(82)

(73)

Net (loss) income 

(5,495)

(826)

420

Add: Net loss attributable to non-controlling interest

-

1

1

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

(5,495)

(825)

421

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

Basic (per share)

(0.013)

(0.002)

0.001

Diluted (per share)

(0.013)

(0.002)

0.001

Basic (per ADS)

(0.080)

(0.012)

0.006

Diluted (per ADS)

(0.080)

(0.012)

0.006

Weighted-average shares outstanding used in computation:

Basic

411,501,170

412,162,575

410,117,085

Diluted

411,501,170

412,162,575

419,861,988

Weighted-average ADS outstanding used in computation :

Basic

68,583,528

68,693,763

68,352,848

Diluted

68,583,528

68,693,763

69,976,998

Note: Share-based compensation recorded in each

expense classification above is as follows:

  Research and development

4

74

164

  General and administrative

3

25

50

  Selling and marketing

(1)

3

8

  Cost of revenues

-

-

-