Twelve Months Ended December 31, 2015

(In thousands, except per share data)

As Reported

Sale of Low Speed Product Lines (a)

Adjustments (b)

Pro Forma

Revenue

$

$

$

 —

$

Cost of goods sold

 —

Gross profit

 —

Operating expenses:

Research and development

 —

Sales and marketing

 —

General and administrative

 —

Amortization of purchased intangible assets

 —

 —

Acquisition-related costs

 —

Restructuring charges

 —

Asset impairment charges

 —

 —

Total operating expenses

Income from operations

Interest income

 —

 —

Interest expense

 —

 —

Other income, net

 —

 —

Total interest and other income, net

 —

 —

Income before income taxes

Provision for income taxes

 —

Net income

$

$

$

$

Basic net income per share

$

$

Diluted net income per share

$

$

Weighted average shares used to compute basic net income per share

Weighted average shares used to compute diluted net income per share

Nine Months Ended September 30, 2016

(In thousands, except per share data)

As Reported

Sale of Low Speed Product Lines (a)

Adjustments (b)

Pro Forma

Revenue

$

$

$

 —

$

Cost of goods sold

 —

Gross profit

 —

Operating expenses:

Research and development

 —

Sales and marketing

 —

General and administrative

 —

Amortization of purchased intangible assets

 —

 —

Acquisition-related costs

 —

 —

Total operating expenses

 —

Income (loss) from operations

 —

Interest income

 —

 —

Interest expense

 —

 —

Other expense, net

 —

 —

Total interest and other expense, net

 —

 —

Income (loss) before income taxes

 —

Provision for income taxes

 —

Net loss

$

$

$

$

Basic net loss per share

$

$

Diluted net loss per share

$

$

Weighted average shares used to compute basic net loss per share

Weighted average shares used to compute diluted net loss per share

As of September 30, 2016

(In thousands, except par data)

As Reported

Sale of Low Speed Product Lines (c)

Adjustments

Pro Forma

ASSETS

Current assets:

Cash and cash equivalents

$

$

 —

$

(d)

$

Short-term investments

 —

 —

Restricted cash

 —

 —

Accounts receivable, net of allowance for doubtful accounts

 —

 —

Inventories

 —

Prepaid expenses and other current assets

 —

(e)

Total current assets

Property, plant and equipment, net

 —

Purchased intangible assets, net

 —

 —

Goodwill

 —

 —

Other long-term assets

 —

(f)

Total assets

$

$

$

$

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

$

 —

$

 —

$

Notes payable and short-term borrowing

 —

 —

Current portion of long-term debt

 —

 —

Accrued and other current liabilities

 —

 —

Total current liabilities

 —

 —

Long-term debt, net of current portion

 —

 —

Other noncurrent liabilities

 —

 —

Total liabilities

 —

 —

Commitments and contingencies

Stockholders’ equity:

Preferred stock, $0.0025 par value, 10,000 shares authorized, no shares issued or outstanding

 —

 —

 —

 —

Common stock, $0.0025 par value, 100,000 shares authorized:

At September 30, 2016, 42,315 shares issued and outstanding

 —

 —

Additional paid-in capital

 —

 —

Accumulated other comprehensive loss

 —

 —

Accumulated deficit

(g)

Total stockholders’ equity

Total liabilities and stockholders’ equity

$

$

$

$

1.

ASSET SALE TO APAT OPTOELECTRONICS COMPONENTS CO., LTD. (“APAT OE”).

2.

UNAUDITED PRO FORMA ADJUSTMENTS

(a)

The amounts being eliminated represent the revenues, cost of goods sold and operating expenses that are attributable to the Asset Sale. Research and development expense is calculated based on a combination of direct spend and allocated amount relative to the direct project spend. Sales and

marketing expense is allocated based on a combination of direct spend and revenue. General and administrative expense is primarily allocated based on revenue.

(b)

Represent estimated transaction costs of approximately $1.1 million, estimated restructuring charges of up to approximately $0.3 million (in RMB equivalent) and the estimated tax effect of the Asset Sale. The tax effect of the Asset Sale is calculated using the historical statutory rates in effect for the periods presented.

(c)

Represent the net book value of the Low Speed Product Lines as of the balance sheet date.

(d)

Recording of a $23.0 million sale proceed received by the Company upon closing, net of estimated transaction costs for the Asset Sale, and a $2.0 million receivable due to the Company by February 28, 2017. The purchase price is subject to adjustment related to any Working Capital Adjustments and Warranties for potential refunds to APAT OE as discussed in Note 1 above.

(In thousands)

Purchase price - cash received

$

Purchase price - other receivable

Total purchase price

$

Purchase price - cash received

$

Estimated transaction costs included

Net cash proceeds at closing

$

(e)

Represents a $2.0 million receivable due from APAT OE to the Company. If the receivable is not paid by February 28, 2017, the Company has the right to either (i) offset an amount equal to any payments that may become due from the Company to APAT OE or (ii) exercise the rights under the Asset Purchase Agreement.  

(f)

Represents the estimated tax effect of the Asset Sale.

(g)

Includes a $350,000 decrease in deferred tax assets and a $21.9 million net cash proceeds at closing.  The estimated gain on the Asset Sale to be recorded as adjustments to shareholders’ equity:

(In thousands)

Total purchase price, net of estimated transaction costs and potential adjustments

$

Net book value of the Low Speed Product Lines

Estimated gain on the Asset Sale

$