Q3 FY2011 Company Update

NASDAQ:
Headquarters:

MSPD
Newport Beach, CA USA
Mindspeed Technologies, Inc. designs, develops and sells semiconductor solutions for communications applications in the wireline and wireless network infrastructure, which includes enterprise networks, broadband access networks (fixed and mobile) and metropolitan and wide area networks. We have organized our solutions for these interrelated and rapidly converging networks into three product families: communications convergence processing (formerly known as multiservice access), high-performance analog and wide area networking communications. Our communications convergence processing products include ultra-low-power, multi-core digital signal processor system-on-chip (SoC) solutions for the fixed and mobile (3G/4G) carrier infrastructure and residential and enterprise platforms. Our high-performance analog products include highdensity crosspoint switches, optical drivers, equalization and signal-conditioning solutions that solve difficult switching, timing and synchronization challenges in next-generation optical networking, enterprise storage and broadcast video transmission applications. Our wide area networking communications portfolio helps optimize todays circuit-switched networks that furnish much of the Internets underlying long-distance infrastructure.

Select Stock Data as of 7/25/11 Recent Closing Price: $7.42 52-week Range: $5.25 - 9.40 Market Capitalization: $248.5M Average Volume (3-month): 492K Diluted Shares Outstanding: 33.4M
(as of 7/1/2011)

Select Fiscal Q3 FY2011 Data as of 7/1/11 Revenue: $42.2M Non-GAAP Net Income: $2.5M GAAP Net Income: $0.5M Non-GAAP EPS: $0.08 GAAP EPS: $0.01 Total Cash: $43.2M Net Cash/Share: $1.29 Debt to Capital Ratio: 0.17 Fiscal Year-End: September 30 Institutional Ownership: 74% Analyst Coverage: B. Riley & Co., LLC Craig-Hallum Capital Group LLC Merriman Capital Inc. Needham & Company, LLC Stifel Nicolaus ThinkEquity LLC

Q3 FY2011 Financial Highlights

Product Revenue: $42.2 million, a sequential increase of 10 percent from the prior fiscal quarter; driven by strength in optical infrastructure. Non-GAAP Gross Margin: 62.3 percent, compared to 63.1 percent in the prior fiscal quarter; GAAP Gross Margin: 62.2 percent, compared to 63.0 percent in the prior quarter. Non-GAAP Operating Margin: 5 percent, compared to 2 percent in the prior fiscal quarter; GAAP Operating Margin was breakeven, compared to (1) percent in the prior fiscal quarter. Non-GAAP Diluted Earnings per Share: $0.08, compared to $0.01 in the prior fiscal quarter; GAAP Diluted Earnings per Share /Loss per Share: $0.01, compared to $(0.02) in the prior fiscal quarter. Cash and cash equivalents of $43.2 million at the end of the fiscal third quarter of 2011.

$50 $40 $30 $20 $10 $0

$44.8 $38.0 $38.6

$42.2

15% 12% 9%

15%

$0.20

$0.19

$0.15

$0.10 6% 3% 0%

5% 2%
Q4 FY10 Q1 FY11

$0.08

2%
Q2 FY11 Q3 FY11

$0.05

$0.01
$0.00 Q4 FY10 Q1 FY11

$0.01
Q2 FY11 Q3 FY11

Q4 FY10

Q1 FY11

Q2 FY11

Q3 FY11

Quarterly Revenue ($M U.S.)

Non-GAAP Operating Margin

Non-GAAP EPS

NON-GAAP MEASURES: This document references non-GAAP financial measures. Non-GAAP financial measures exclude stock-based compensation expense and related payroll taxes, amortization of intangible assets, asset impairments, employee separation costs, legal settlement costs, reverse stock split costs, gain on debt extinguishment, employee option exchange costs, patent sales, special charges, and noncash interest expense on convertible senior notes. Please refer to:(i) our July 25, 2011 earnings press release on the Quarterly Results page in the Investors section of our website at www.mindspeed.com; (ii) our Form 8-K, furnished to the SEC; and (iii) the attached for a complete reconciliation of non-GAAP to GAAP financial measures.