Intersil Corporation

Non-GAAP Results

Unaudited

(In thousands, except per share amounts)

Quarter Ended

Jul. 1

Apr. 1,

Jul. 3

2016

2016

2015

Q2 2016

Q1 2016

Q2 2015

Non-GAAP net income:

GAAP net income

$        1,389

$      11,751

$      37,724

  Restructuring and related costs

13,508

-

-

  Equity-based compensation

8,122

6,482

6,689

  Amortization of purchased intangibles

2,867

3,528

4,026

  Provision for TAOS litigation

1,255

-

-

  Acquisition-related costs

-

585

-

  Gain on recovery from auction rate securities

(70)

(28)

-

  Tax impact of non-cash and discrete items

(3,469)

(1,117)

(26,351)

Non-GAAP net income

$      23,602

$      21,201

$      22,088

GAAP weighted average shares - diluted

137,332

135,267

132,823

  Non-GAAP adjustment

3,014

3,680

5,090

Non-GAAP weighted average shares - diluted

140,346

138,947

137,913

Non-GAAP earnings per diluted share:

GAAP earnings per diluted share

$          0.01

$          0.09

$          0.28

  Excluded items per share impact

0.16

0.06

(0.12)

Non-GAAP earnings per diluted share

$          0.17

$          0.15

$          0.16

Equity-based compensation expense by classification:

Cost of revenue ("COS")

$           284

$           458

$           436

Research and development 

$        3,834

$        3,103

$        2,658

Selling, general and administrative 

$        4,004

$        2,921

$        3,595