ACTIONS SEMICONDUCTOR CO., LTD.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(in thousands of U.S. dollars)

Three months ended

Three months ended

Three months ended

March 31,

December 31,

March 31,

2014

2013

2013

(unaudited)

(unaudited)

(unaudited)

Operating activities:

Net (loss) income 

(5,495)

(826)

420

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

  Depreciation of property, plant and equipment

503

508

547

  Amortization of land use right

9

9

9

  Amortization of acquired intangible assets

1,138

923

866

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

-

(846)

-

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

(3)

-

7

  Impairment loss recognised in respect of other investments

-

681

-

  Equity in net (income) loss of equity method investees

(3)

82

73

  Share-based  compensation

6

102

222

  Deferred tax

(179)

94

269

  Changes in operating assets and liabilities:

    Accounts receivable

(1,046)

1,525

706

    Notes receivable

-

37

-

    Amount due from a related party

576

(1,301)

48

    Amount due from an equity method investee

(4)

37

43

    Inventories

(5,468)

5,344

(4,954)

    Prepaid expenses and other current assets

415

(930)

(1,435)

    Accounts payable

4,058

(330)

3,570

    Accrued expenses and other current liabilities

(1,232)

348

(563)

    Income tax recoverable

19

13

-

    Income tax payable

-

1

86

    Rental deposit (paid) received 

(11)

5

(9)

Net cash (usded in) provided by operating activities

(6,717)

5,476

(95)

Investing activities:

  Proceeds from redemption of marketable securities

41,432

13,434

7,354

  Proceeds from disposal of property, plant and equipment

18

25

-

  Proceeds from disposal of intangible assets

24

-

-

  Purchase of marketable securities

(39,284)

(30,529)

(16,024)

  Purchase of property, plant and equipment

(483)

(340)

(24)

  Purchase of intangible assets

(20)

(1,199)

(42)

  Deposit paid for acquisition of intangible assets

(240)

(145)

  Increase in restricted deposits

(11,021)

(5,960)

(5,296)

Net cash used in investing activities

(9,574)

(24,714)

(14,032)

Financing activities:

  Raise of short-term bank loans

10,000

5,000

-

  Advance subsidy from local authorities of Zhuhai, the PRC

-

412

290

  Proceeds from exercise of share-based awards

757

471

1,370

  Repayment of short-term bank loan

(5,000)

-

-

  Repurchase of ordinary shares

(1,061)

(1,845)

(1,537)

Net cash provided by financing activities

4,696

4,038

123

Net decrease in cash and cash equivalents

(11,595)

(15,200)

(14,004)

Cash and cash equivalents at the beginning of the period

53,263

67,884

71,336

Effect of exchange rate changes on cash

(1,072)

579

179

Cash and cash equivalents at the end of the period

40,596

53,263

57,511