25 Cash flows from operating activities  were  US$52.4 million for 2012 (2011: US$69.6 million).  Cash inflows of US$139.7 million (2011:  US$97.2 million) resulted from the Company’s  net profit adjusted by depreciation, amortisation  and other non-cash effective expenses. This cash  inflow was partly offset by investments in the  Company’s working capital of US$77.9 million  (2011: US$24.8 million), mainly relating to investments in inventories in support of Q1 2013 backlog and business demand for the  first half of 2013. In addition, tax payments of  US$9.5 million (2011: US$3.1 million) reduced  net cash generated from operating activities. US$54.3 million for 2012 (2011: US$116.1 million). Cash used for investing  activities in 2012 predominantly consisted of US$35.0 million (2011: US$21.2 million) At 31 December 2012, we had cash and cash  equivalents of US$312.4 million (31 December  2011: US$113.6 million). The working capital  (defined as current assets minus current liabilities)  was US$420.9 million (31 December 2011:  US$150.8 million). for the purchase of advanced test equipment,  tooling (masks), laboratory equipment, probe cards  and load boards. US$7.7 million (2011: nil) were  paid for a new licensing agreement, for further  information please refer to note 12 to the  consolidated financial statements. US$5.7 million  (2011: US$5.4 million) relate to the purchase of other intangible assets. Payments related to capitalised development costs were US$6.0 million (2011: US$5.2 million). 2011 cash used for investing activities included  US$84.2 million relating to the acquisition of SiTel Semiconductor. With an amount of US$164.6 million, long-term  debt as of 31 December 2012 represents mainly  the fair value of the liability from the convertible  bond (31 December 2011: US$0), please refer to  note 18 to the consolidated financial statements. If necessary, we have available for use a multi-  currency three-year (2010–2013) revolving credit  line facility of £10.0 million (US$16.2 million) at a rate of LIBOR +150bp and a three-year  (2011–2014) revolving credit facility of US$35.0 million that bears interest at an average  rate of LIBOR +140bp. At 31 December 2012  and 2011, we had no amounts outstanding  under these facilities. In addition, we have two  factoring agreements which provide the Company  with up to US$60.0 million of readily available  cash (a US$30 million increase over 2011).  Accordingly, we believe the funding available  from these and other sources will be sufficient  to satisfy our working capital requirements in  the near- to medium-term if needed. Liquidity and capital resources Cash flows Liquidity Cash used for investing activities  was  Dialog Semiconductor’s underlying financial performance for 2012 and 2011 is summarised below: 2012 2011 3) US$000 IFRS Adjustments Underlying 1) IFRS Adjustments Underlying 1) Revenues 773,583 – 773,583 527,261 – 527,261 Cost of sales (480,971) (1,142) (479,829) (319,073) (3,051) (316,022) Gross profit 292,612 (1,142) 293,754 208,188 (3,051) 211,239 Selling and marketing expenses  (38,669) (6,286) (32,383) (32,370) (6,543) (25,827) General and administrative expenses  (33,476) (4,296) (29,180) (24,442) (4,502) (19,940) Research and development expenses  (127,886) (4,716) (123,170) (90,046) (4,089) (85,957) Restructuring expenses  (1,549) – (1,549) – – – Other operating income  – – – 303 – 303 Operating profit 91,032 (16,440) 107,472 61,633 (18,185) 79,818 Interest income and other financial income  1,360 – 1,360 376 – 376 Interest expense and other financial expense  (6,466) (4,668) (1,798) (235) – (235) Foreign currency exchange gains and losses net  199 – 199 (352) – (352) Result before income taxes 86,125 (21,108) 107,233 61,422 (18,185) 79,607 Income tax expense  (23,612) 3,659 (27,271) (4,070) 1,489 (5,559) Net profit 62,513 (17,449) 79,962 57,352 (16,696) 74,048 Earnings per share (in US$) Basic 0.97 (0.27) 1.24 0.91 (0.27) 1.18 Diluted 0.93 (0.26) 1.19 0.86 (0.25) 1.10 EBITDA 2) 124,352 (10,162) 134,514 87,570 (9,526) 97,096 1) Underlying results in 2012 net of tax effects are based on IFRS, adjusted to exclude share-based compensation charges and related charges for National Insurance of US$8.3 million, excluding US$4.7 million of amortisation of intangibles associated with the acquisition of Dialog B.V., excluding US$4.0 million non-cash effective interest expense in connection with the convertible bond and excluding US$0.5 million non-cash effective interest expense related to the new licensing agreement (please refer to note 12 to the consolidated financial statements).  Underlying results in 2011 net of tax effects are based on IFRS, adjusted to exclude share-based compensation charges and related charges for National Insurance of US$6.2 million, excluding one-time  transaction costs of US$3.2 million associated with the acquisition of Dialog B.V., excluding US$7.3 million of amortisation of intangibles associated with the acquisition of Dialog B.V.  The term “underlying” is not defined in IFRS and therefore may not be comparable with similarly titled measures reported by other companies. Underlying measures are not intended as a substitute for, or a superior measure to, IFRS measures. 2) EBITDA is defined as operating profit excluding depreciation for property, plant and equipment (2012: US$12.7 million, 2011: US$8.8 million), amortisation for intangible assets (2012: US$19.6 million,  2011: US$16.0 million) and losses on disposals and impairment of fixed assets (2012: US$1.0 million, 2011: US$1.1 million). 3) 2011 numbers adjusted for the purchase price allocation, please refer to note 4 to the 2012 interim consolidated financial statements.