50 13 Pasting in Excel Full Model After HH

8/12/2019 50 13 Pasting in Excel Full Model After HH

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Aardvark - Financial Statements

($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands)

Assumptions & Valuation Overview

Valuation Date: 1/29/2010 Last Historical Year: 2009 Days in Year: 360

Company Name: Aardvark Debt Issue Date: 2010 Debt Amount: $1,000

Share Price: $192.06 Share Units: 1000 Tax Rate: 30%

Basic Shares Outstanding: 900,678 Options Calculations (in Thousands Except Exercise Price):

Basic Equity Value: $172,984

Diluted Shares Outstanding: 935,023 Exercise

Diluted Equity Value: $179,581 Name Number Price Dilution

Less: Cash & Investments $35,395 Tranche A 34,375 $0.17 34,345

Plus: Debt $0 Tranche B

Plus: Minority Interest $0 Tranche C

Plus: Preferred Stock $0 Tranche D

Plus: Other Liabilities $0 Tranche E

Enterprise Value: $144,186 Total 34,345

Historical Projections

FY 2007 FY 2008 FY 2009 FY 2010E FY 2011E FY 2012E FY 2013E FY 2014E

EV / Revenue: 5.9 x 3.8 x 3.4 x 2.7 x 2.3 x 2.1 x 1.9 x 1.8 x

EV / EBIT: 31.0 x 16.3 x 11.6 x 9.3 x 7.9 x 7.1 x 6.5 x 6.1 x

EV / EBITDA: 29.0 x 15.4 x 10.9 x 8.7 x 7.5 x 6.7 x 6.2 x 5.8 x

Equity Value / FCF: 37.9 x 21.1 x 17.4 x 13.7 x 12.3 x 11.1 x 10.3 x 9.3 x

P / E: 48.9 x 28.3 x 21.2 x 16.6 x 14.1 x 12.2 x 11.1 x 9.8 x

P / BV: 7.9 x 5.6 x 4.1 x 3.1 x 2.4 x 2.0 x 1.6 x

Operating Assumptions


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Revenue Growth %: 27.2% 52.5% 14.4% 25.0% 17.0% 11.0% 9.0% 7.0%

COGS % Revenue: 66.2% 64.1% 59.0% 59.0% 59.0% 59.0% 59.0% 59.0%

R&D % Revenue: 2.4% 2.0% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9%

SG&A % Revenue: 11.1% 8.9% 8.3% 8.3% 8.3% 8.3% 8.3% 8.3%

Stock-Based Compensation % Revenue: 1.0% 1.4% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7%

Depreciation & Amortization % Revenue: 1.3% 1.3% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7%Effective Cash Interest Rate: 5.3% 3.4% 1.4% 1.0% 1.0% 2.0% 2.0% 3.0%

Debt Interest Rate: 0.0% 0.0% 0.0% 9.0% 9.0% 9.0% 9.0% 9.0%

Effective Tax Rate: 30.2% 31.6% 31.8% 30.0% 30.0% 30.0% 30.0% 30.0%

Accounts Receivable % Revenue: 6.5% 7.8% 7.8% 7.8% 7.8% 7.8% 7.8%

Accounts Receivable Days: 23.3 28.2 28.2 28.2 28.2 28.2 28.2

Inventory % COGS: 2.1% 1.8% 1.8% 1.8% 1.8% 1.8% 1.8%

Amortization of Intangibles: $40 $37 $28 $13 $10

Accounts Payable % COGS: 23.0% 22.1% 22.1% 22.1% 22.1% 22.1% 22.1%

Accounts Payable Days: 82.6 79.6 79.6 79.6 79.6 79.6 79.6

Accrued Expenses % Operating Expenses: 102.9% 87.6% 87.6% 87.6% 87.6% 87.6% 87.6%

Short-Term Deferred Revenue % Revenue: 4.3% 4.8% 4.8% 4.8% 4.8% 4.8% 4.8%

Long-Term Deferred Revenue % Revenue: 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

CapEx % Revenue: 3.0% 2.9% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7%

Income Statement


Revenue: $24,578 $37,491 $42,905 $53,631 $62,749 $69,651 $75,919 $81,234

Cost of Goods Sold: $16,282 $24,049 $25,324 $31,655 $37,037 $41,111 $44,811 $47,948

Gross Profit: $8,296 $13,442 $17,581 $21,976 $25,712 $28,540 $31,109 $33,286

Operating Expenses:


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Research & Development: $596 $759 $830 $1,038 $1,214 $1,348 $1,469 $1,572

Selling, General & Administrative: $2,724 $3,345 $3,566 $4,458 $5,216 $5,789 $6,311 $6,752

Total Operating Expenses: $3,320 $4,103 $4,397 $5,496 $6,430 $7,137 $7,780 $8,324

Depreciation & Amortization of PP&E: $327 $496 $734 $918 $1,073 $1,192 $1,299 $1,390

Amortization of Intangibles: $0 $0 $0 $40 $37 $28 $13 $10

Stock-Based Compensation: $242 $516 $710 $888 $1,038 $1,153 $1,256 $1,344

Operating Income: $4,407 $8,327 $11,740 $14,635 $17,133 $19,030 $20,761 $22,218

Interest Income: $647 $653 $407 $424 $568 $1,443 $1,780 $3,223Interest Expense: $0 $0 $0 ($45) ($90) ($90) ($90) ($90)

Other Income & Expense: ($48) ($33) ($81) $0 $0 $0 $0 $0

Pre-Tax Income: $5,006 $8,947 $12,066 $15,014 $17,610 $20,383 $22,450 $25,351

Income Tax Provision: $1,511 $2,828 $3,831 $4,504 $5,283 $6,115 $6,735 $7,605

Net Income: $3,495 $6,119 $8,235 $10,510 $12,327 $14,268 $15,715 $17,746

Earnings Per Share (EPS): $3.93 $6.78 $9.08 $11.59 $13.59 $15.73 $17.33 $19.56

Diluted Shares Outstanding: 889,292 902,139 907,005 907,005 907,005 907,005 907,005 907,005

EBIT: $4,649 $8,843 $12,450 $15,523 $18,171 $20,183 $22,017 $23,562

EBITDA: $4,976 $9,339 $13,184 $16,480 $19,282 $21,403 $23,329 $24,962

Levered Free Cash Flow: $4,735 $8,505 $10,311 $13,061 $14,618 $16,158 $17,507 $19,382

Book Value Per Share (BV): $24.17 $34.56 $47.17 $61.94 $78.98 $97.70 $118.76

Balance Sheet

FY 2008 FY 2009 FY 2010E FY 2011E FY 2012E FY 2013E FY 2014E

Assets:

Current Assets:

Cash & Cash-Equivalents: $11,875 $6,559 $20,620 $35,238 $51,396 $68,903 $88,285

Short-Term Securities: $10,236 $26,282 $26,282 $26,282 $26,282 $26,282 $26,282

Accounts Receivable: $2,422 $3,361 $4,201 $4,915 $5,456 $5,947 $6,364

Inventory: $509 $455 $569 $665 $739 $805 $861

Deferred Tax Assets: $1,044 $4 $4 $4 $4 $4 $4


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Other Current Assets: $3,920 $3,140 $3,140 $3,140 $3,140 $3,140 $3,140

Total Current Assets: $30,006 $39,801 $54,816 $70,245 $87,017 $105,082 $124,936

Long-Term Assets:

Long-Term Securities: $2,379 $2,554 $2,554 $2,554 $2,554 $2,554 $2,554

Plants, Property & Equipment: $2,455 $2,839 $3,352 $3,951 $4,617 $5,342 $6,118

Goodwill: $207 $207 $207 $207 $207 $207 $207

Other Intangible Assets: $285 $354 $314 $277 $249 $236 $226

Other Assets: $839 $2,011 $2,011 $2,011 $2,011 $2,011 $2,011

Total Assets: $36,171 $47,766 $63,253 $79,245 $96,654 $115,432 $136,052

Liabilities & Shareholders' Equity:

Current Liabilities:

Accounts Payable: $5,520 $5,601 $7,001 $8,191 $9,093 $9,911 $10,605

Accrued Expenses: $4,224 $3,852 $4,815 $5,634 $6,253 $6,816 $7,293

Deferred Revenue: $1,617 $2,053 $2,566 $3,003 $3,333 $3,633 $3,887

Total Current Liabilities: $11,361 $11,506 $14,383 $16,828 $18,679 $20,360 $21,785

Long-Term Liabilities:

Deferred Revenue: $768 $853 $1,066 $1,248 $1,385 $1,509 $1,615

Long-Term Debt: $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000

Other Long-Term Liabilities: $1,745 $3,502 $3,502 $3,502 $3,502 $3,502 $3,502

Total Liabilities: $13,874 $15,861 $19,951 $22,577 $24,565 $26,371 $27,902

Shareholders' Equity:

Common Stock: $7,177 $7,177 $7,177 $7,177 $7,177 $7,177 $7,177

Additional Paid-In Capital: $0 $1,185 $2,073 $3,111 $4,263 $5,520 $6,864

Treasury Stock: $0 $0 $0 $0 $0 $0 $0

Retained Earnings: $15,129 $23,364 $33,874 $46,201 $60,470 $76,185 $93,930

Accumulated Other Comprehensive Income: ($9) $179 $179 $179 $179 $179 $179

Total Shareholders' Equity: $22,297 $31,905 $43,302 $56,668 $72,089 $89,061 $108,151

Total Liabilities & SE: $36,171 $47,766 $63,253 $79,245 $96,654 $115,432 $136,052


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BALANCE CHECK: $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000

Cash Flow Statement


Operating Activities:

Net Income: $3,495 $6,119 $8,235 $10,510 $12,327 $14,268 $15,715 $17,746




Deferred Income Tax Expense: $73 $398 $1,040 $0 $0 $0 $0 $0Loss on PP&E: $12 $22 $26 $0 $0 $0 $0 $0

Changes in Operating Assets & Liabilities:

Accounts Receivable: ($385) ($785) ($939) ($840) ($714) ($541) ($491) ($416)

Inventory: ($76) ($163) $54 ($114) ($97) ($73) ($66) ($56)

Other Current Assets: ($1,279) ($274) $780 $0 $0 $0 $0 $0

Other Assets: $285 $289 ($1,172) $0 $0 $0 $0 $0

Accounts Payable: $1,494 $596 $81 $1,400 $1,190 $901 $818 $694

Deferred Revenue: $566 $718 $521 $727 $618 $468 $425 $360

Other Liabilities: $716 $1,664 $1,385 $963 $819 $620 $563 $477

Cash Flow from Operations: $5,470 $9,596 $11,455 $14,491 $16,292 $18,015 $19,532 $21,548

Investing Activities:

Purchases of Securities: ($11,719) ($22,965) ($46,724) $0 $0 $0 $0 $0

Proceeds from Maturities & Sales: $9,424 $16,243 $30,678 $0 $0 $0 $0 $0Purchases of LT Investments: ($17) ($38) ($101) $0 $0 $0 $0 $0

Capital Expenditures: ($735) ($1,091) ($1,144) ($1,430) ($1,673) ($1,857) ($2,024) ($2,166)

Acquisition of Intangibles: ($251) ($108) ($69) $0 $0 $0 $0 $0

Other: $49 ($230) ($74) $0 $0 $0 $0 $0

Cash Flow from Investing: ($3,249) ($8,189) ($17,434) ($1,430) ($1,673) ($1,857) ($2,024) ($2,166)

Financing Activities:

Proceeds from Common Stock: $365 $483 $475 $0 $0 $0 $0 $0

Common Stock Repurchased: $0 $0 $0 $0 $0 $0 $0 $0

Dividends Issued: $0 $0 $0 $0 $0 $0 $0 $0


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Tax Benefits from Stock-Based Comp: $377 $757 $270 $0 $0 $0 $0 $0

Raise / (Pay Off) Long-Term Debt $0 $0 $0 $1,000 $0 $0 $0 $0

Cash Used for Equity Awards: ($3) ($124) ($82) $0 $0 $0 $0 $0

Cash Flow from Financing: $739 $1,116 $663 $1,000 $0 $0 $0 $0

Increase / Decrease in Cash: $2,960 $2,523 ($5,316) $14,061 $14,618 $16,158 $17,507 $19,382

Cash & Cash Equivalents: $9,352 $11,875 $6,559 $20,620 $35,238 $51,396 $68,903 $88,285


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ARM RIMM

29-Jan-09 $90.00 10956700 29-Jan-09 $54.77 16514948

30-Jan-09 $91.75 9277118 30-Jan-09 $55.40 20020819

2-Feb-09 $87.00 8270601 2-Feb-09 $55.90 21422902

3-Feb-09 $94.25 17940373 3-Feb-09 $55.52 183208334-Feb-09 $94.75 8811128 4-Feb-09 $55.96 20704074

5-Feb-09 $95.25 4930347 5-Feb-09 $56.80 20831499

6-Feb-09 $99.75 11514498 6-Feb-09 $59.17 19325865

9-Feb-09 $95.25 12007594 9-Feb-09 $59.00 17918371

11-Feb-09 $96.25 6642716 10-Feb-09 $57.04 20819253

12-Feb-09 $97.75 5991119 11-Feb-09 $48.76 81583455

13-Feb-09 $96.50 5215132 12-Feb-09 $50.42 30487175

16-Feb-09 $96.00 1512353 13-Feb-09 $48.51 23721447

17-Feb-09 $94.00 5541877 17-Feb-09 $44.64 27526043

18-Feb-09 $93.50 6782178 18-Feb-09 $42.10 25678087

19-Feb-09 $90.00 7859890 19-Feb-09 $42.09 23586283

20-Feb-09 $86.50 9811943 20-Feb-09 $39.15 35251801

23-Feb-09 $85.50 6752446 23-Feb-09 $37.42 24621421

24-Feb-09 $86.25 14950797 24-Feb-09 $40.42 22531528

25-Feb-09 $93.50 10569996 25-Feb-09 $41.17 21288619

26-Feb-09 $96.25 10984666 26-Feb-09 $39.54 16883828

27-Feb-09 $95.75 7694174 27-Feb-09 $39.94 19620547

2-Mar-09 $93.50 6407292 2-Mar-09 $36.88 20212932

3-Mar-09 $93.00 7072744 3-Mar-09 $37.95 20307414

4-Mar-09 $91.25 13200655 4-Mar-09 $40.49 19668091

5-Mar-09 $89.75 4007427 5-Mar-09 $37.98 162223266-Mar-09 $90.00 5691572 6-Mar-09 $36.34 21351949

9-Mar-09 $90.50 7556248 9-Mar-09 $35.25 16531771

10-Mar-09 $95.00 10638036 10-Mar-09 $38.96 26873523

11-Mar-09 $96.00 10798288 11-Mar-09 $40.34 21216200

12-Mar-09 $98.75 10197750 12-Mar-09 $41.46 18357200

13-Mar-09 $103.50 11888940 13-Mar-09 $40.18 17364413

16-Mar-09 $104.50 7426163 16-Mar-09 $39.17 15570333

17-Mar-09 $106.00 9919826 17-Mar-09 $41.66 16941770

18-Mar-09 $106.00 6764249 18-Mar-09 $40.98 22055585

19-Mar-09 $102.50 11919791 19-Mar-09 $42.34 21825685

20-Mar-09 $101.75 12089511 20-Mar-09 $41.68 1906112623-Mar-09 $101.00 5516971 23-Mar-09 $44.90 17385986

24-Mar-09 $101.75 8322802 24-Mar-09 $44.23 13798719

25-Mar-09 $103.50 4145827 25-Mar-09 $42.92 20077184

26-Mar-09 $103.00 3495978 26-Mar-09 $45.04 24830837

27-Mar-09 $103.00 4670851 27-Mar-09 $45.01 19194173

30-Mar-09 $101.50 3761988 30-Mar-09 $43.25 15397581

31-Mar-09 $102.50 8326493 31-Mar-09 $43.11 12368473

1-Apr-09 $108.50 11308202 1-Apr-09 $45.62 28143810


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2-Apr-09 $110.00 12371875 2-Apr-09 $49.09 46040291

3-Apr-09 $109.75 13919903 3-Apr-09 $59.29 75753901

6-Apr-09 $113.00 11554743 6-Apr-09 $63.97 49260193

7-Apr-09 $110.75 8222442 7-Apr-09 $59.95 39160300

8-Apr-09 $110.00 5066599 8-Apr-09 $61.91 28999010

9-Apr-09 $112.50 10603176 9-Apr-09 $64.18 21754648

14-Apr-09 $112.25 6762770 13-Apr-09 $64.00 1712783715-Apr-09 $112.50 5468300 14-Apr-09 $64.22 15761390

16-Apr-09 $114.50 6516642 15-Apr-09 $63.90 16393394

17-Apr-09 $115.00 5859841 16-Apr-09 $67.51 24002679

20-Apr-09 $113.25 1015966 17-Apr-09 $68.35 17469039

21-Apr-09 $115.00 4240001 20-Apr-09 $65.10 14208066

22-Apr-09 $116.75 818536 21-Apr-09 $67.03 16044957

23-Apr-09 $116.25 2030833 22-Apr-09 $67.20 18388808

24-Apr-09 $116.25 1535678 23-Apr-09 $68.27 14862863

27-Apr-09 $116.50 2033201 24-Apr-09 $68.76 15817280

28-Apr-09 $116.00 2149112 27-Apr-09 $69.60 14823426

29-Apr-09 $116.00 1630637 28-Apr-09 $68.10 13048815

30-Apr-09 $120.00 1233430 29-Apr-09 $66.79 18862266

1-May-09 $118.25 1445982 30-Apr-09 $69.50 19093501

5-May-09 $121.75 530094 1-May-09 $72.30 18667951

6-May-09 $114.75 6527332 4-May-09 $74.30 18745867

7-May-09 $112.50 1680744 5-May-09 $75.40 13569481

8-May-09 $107.00 1991639 6-May-09 $77.07 19346448

11-May-09 $105.75 1431414 7-May-09 $73.36 22331532

12-May-09 $108.75 998923 8-May-09 $73.77 18990620

13-May-09 $109.00 1430141 11-May-09 $73.18 11512238

14-May-09 $107.50 1135630 12-May-09 $71.71 2779512715-May-09 $109.75 1140196 13-May-09 $69.09 16036927

18-May-09 $114.75 1118053 14-May-09 $71.12 15356518

19-May-09 $117.50 554909 15-May-09 $72.34 13076020

20-May-09 $118.50 3244924 18-May-09 $75.36 17221930

21-May-09 $112.00 726220 19-May-09 $75.20 14122652

22-May-09 $110.50 845084 20-May-09 $75.76 15631200

26-May-09 $106.00 2765680 21-May-09 $72.98 18332861

27-May-09 $109.50 2746585 22-May-09 $72.03 11587072

28-May-09 $106.75 724945 26-May-09 $76.75 18840735

29-May-09 $106.25 846221 27-May-09 $77.29 20951769

1-Jun-09 $107.25 661578 28-May-09 $80.30 213303702-Jun-09 $108.50 8213825 29-May-09 $78.64 19843730

3-Jun-09 $104.00 3294040 1-Jun-09 $82.15 15383006

4-Jun-09 $104.50 860305 2-Jun-09 $82.61 16441985

5-Jun-09 $106.50 4306035 3-Jun-09 $80.48 14154887

8-Jun-09 $107.75 1186264 4-Jun-09 $82.01 12724651

9-Jun-09 $107.50 3828753 5-Jun-09 $82.70 12983292

10-Jun-09 $106.50 2102726 8-Jun-09 $81.95 12829231

11-Jun-09 $105.25 1217862 9-Jun-09 $82.02 11517665


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12-Jun-09 $108.25 7686640 10-Jun-09 $83.45 15626930

15-Jun-09 $108.25 2510850 11-Jun-09 $85.44 15780814

16-Jun-09 $108.00 1335715 12-Jun-09 $83.02 15230400

17-Jun-09 $107.00 2113440 15-Jun-09 $80.38 18158683

18-Jun-09 $107.75 1459925 16-Jun-09 $80.29 24061449

19-Jun-09 $112.75 8872223 17-Jun-09 $77.21 29283752

22-Jun-09 $109.75 966545 18-Jun-09 $76.55 4030166623-Jun-09 $109.25 1378738 19-Jun-09 $72.78 46127288

24-Jun-09 $111.75 728215 22-Jun-09 $68.11 33289127

26-Jun-09 $117.75 732205 23-Jun-09 $69.60 23404452

29-Jun-09 $119.10 2010235 24-Jun-09 $70.98 18629850

30-Jun-09 $119.75 1924777 25-Jun-09 $69.30 18270083

1-Jul-09 $120.00 1342552 26-Jun-09 $70.66 14246817

2-Jul-09 $120.50 484124 29-Jun-09 $69.64 13002219

3-Jul-09 $120.50 435511 30-Jun-09 $71.09 15125556

6-Jul-09 $118.75 1335741 1-Jul-09 $69.96 12441053

7-Jul-09 $117.75 863905 2-Jul-09 $69.71 12766578

8-Jul-09 $117.50 1628542 6-Jul-09 $68.67 14036490

9-Jul-09 $117.50 1361910 7-Jul-09 $66.36 15847065

10-Jul-09 $122.25 4145284 8-Jul-09 $65.62 28899119

13-Jul-09 $123.75 3249967 9-Jul-09 $66.36 14364889

14-Jul-09 $125.00 845669 10-Jul-09 $66.63 10682457

15-Jul-09 $130.50 2259657 13-Jul-09 $66.64 14377122

16-Jul-09 $126.50 1048449 14-Jul-09 $66.18 11199577

17-Jul-09 $126.00 625342 15-Jul-09 $70.15 19178467

20-Jul-09 $127.50 614782 16-Jul-09 $72.23 17221349

21-Jul-09 $128.50 2497704 17-Jul-09 $72.43 10870192

22-Jul-09 $130.00 1211399 20-Jul-09 $74.97 1626832423-Jul-09 $130.00 1843002 21-Jul-09 $74.15 14505200

24-Jul-09 $127.00 1155025 22-Jul-09 $73.50 12279130

27-Jul-09 $132.25 5183000 23-Jul-09 $76.70 18304284

28-Jul-09 $128.75 2899382 24-Jul-09 $76.39 9437297

29-Jul-09 $126.50 646526 27-Jul-09 $77.54 12701780

30-Jul-09 $129.50 1083163 28-Jul-09 $76.90 11114363

31-Jul-09 $126.25 5705413 29-Jul-09 $75.58 9476280

3-Aug-09 $128.00 1711877 30-Jul-09 $76.14 10615417

4-Aug-09 $129.50 3611431 31-Jul-09 $75.99 8530986

5-Aug-09 $125.40 558199 3-Aug-09 $76.60 8974466

6-Aug-09 $124.90 1047948 4-Aug-09 $78.51 168035417-Aug-09 $126.30 3556455 5-Aug-09 $79.80 12367754

10-Aug-09 $126.70 556734 6-Aug-09 $77.28 11129675

12-Aug-09 $124.60 1194370 7-Aug-09 $77.09 10185283

13-Aug-09 $123.60 2380916 10-Aug-09 $73.28 15835482

14-Aug-09 $122.20 4150757 12-Aug-09 $71.73 12170679

17-Aug-09 $120.60 854771 13-Aug-09 $71.65 12998348

18-Aug-09 $124.50 1300982 14-Aug-09 $72.74 14867081

19-Aug-09 $124.00 858691 17-Aug-09 $70.72 10432088


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20-Aug-09 $125.30 861058 18-Aug-09 $73.99 13651291

21-Aug-09 $127.40 423314 19-Aug-09 $73.44 10942189

24-Aug-09 $127.40 2127698 20-Aug-09 $75.41 10309339

25-Aug-09 $126.10 4780472 21-Aug-09 $77.32 11132258

26-Aug-09 $126.00 4294833 24-Aug-09 $76.26 10533471

27-Aug-09 $128.20 5755358 25-Aug-09 $75.56 9163267

28-Aug-09 $130.90 13938442 26-Aug-09 $74.83 78988591-Sep-09 $127.00 6683127 27-Aug-09 $73.63 14011968

3-Sep-09 $124.40 3835422 28-Aug-09 $73.83 9991396

4-Sep-09 $126.90 3557905 31-Aug-09 $73.06 8105466

7-Sep-09 $130.40 5969243 1-Sep-09 $73.54 16502239

8-Sep-09 $132.30 10154859 2-Sep-09 $73.91 10362803

9-Sep-09 $134.10 4214034 3-Sep-09 $75.98 9793748

10-Sep-09 $134.80 4893448 4-Sep-09 $77.55 10123555

11-Sep-09 $137.60 14247043 8-Sep-09 $79.28 10077999

14-Sep-09 $135.80 3983572 9-Sep-09 $78.22 11854813

15-Sep-09 $135.40 2645313 10-Sep-09 $78.95 9221946

16-Sep-09 $136.60 2783222 11-Sep-09 $79.37 8649785

17-Sep-09 $134.90 6723308 14-Sep-09 $81.41 9607594

18-Sep-09 $135.70 5797127 15-Sep-09 $83.14 11407757

21-Sep-09 $137.30 3296712 16-Sep-09 $84.16 10796495

22-Sep-09 $136.10 2872462 17-Sep-09 $82.70 17284807

23-Sep-09 $138.20 4133728 18-Sep-09 $83.62 10994039

24-Sep-09 $136.70 3729008 21-Sep-09 $84.16 10367239

25-Sep-09 $140.50 6757869 22-Sep-09 $84.86 11699837

28-Sep-09 $141.00 4325546 23-Sep-09 $85.77 20626509

29-Sep-09 $143.80 4463850 24-Sep-09 $83.06 37969838

30-Sep-09 $143.60 4525234 25-Sep-09 $68.91 888309731-Oct-09 $139.60 3923309 28-Sep-09 $66.44 47846737

2-Oct-09 $136.20 6000230 29-Sep-09 $67.64 36516107

5-Oct-09 $137.90 3881727 30-Sep-09 $67.63 27569257

6-Oct-09 $143.10 4761320 1-Oct-09 $67.16 23993489

7-Oct-09 $144.60 4629975 2-Oct-09 $65.42 20470405

8-Oct-09 $146.70 6885163 5-Oct-09 $65.42 25298013

9-Oct-09 $152.20 9581722 6-Oct-09 $66.43 26862816

12-Oct-09 $153.90 7051921 7-Oct-09 $67.32 17230862

13-Oct-09 $152.00 6413399 8-Oct-09 $68.66 19297003

14-Oct-09 $154.80 6748999 9-Oct-09 $68.50 24227666

15-Oct-09 $154.50 7229666 12-Oct-09 $68.00 1102862816-Oct-09 $152.60 4572410 13-Oct-09 $68.42 10720343

19-Oct-09 $157.70 7505070 14-Oct-09 $69.20 13282260

20-Oct-09 $160.60 10224641 15-Oct-09 $68.34 12390100

21-Oct-09 $156.00 8589445 16-Oct-09 $66.91 14473121

22-Oct-09 $150.50 12456920 19-Oct-09 $67.44 11292616

26-Oct-09 $149.20 7448666 20-Oct-09 $66.60 12059131

27-Oct-09 $150.00 14731805 21-Oct-09 $65.75 13402157

28-Oct-09 $146.30 8921517 22-Oct-09 $67.50 13260779


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29-Oct-09 $149.00 8631885 23-Oct-09 $65.77 13461878

30-Oct-09 $149.00 8318210 26-Oct-09 $65.68 11332034

2-Nov-09 $150.30 6228645 27-Oct-09 $63.75 15952096

3-Nov-09 $147.00 17394174 28-Oct-09 $60.78 22206777

4-Nov-09 $150.40 5300936 29-Oct-09 $61.36 15415691

5-Nov-09 $152.20 5295905 30-Oct-09 $58.73 21632353

6-Nov-09 $151.70 4017596 2-Nov-09 $55.74 374475709-Nov-09 $155.20 3628531 3-Nov-09 $59.61 30719423

10-Nov-09 $153.50 5482734 4-Nov-09 $57.61 19947561

11-Nov-09 $158.60 4838608 5-Nov-09 $57.79 20333471

12-Nov-09 $158.10 4664885 6-Nov-09 $58.72 14976852

13-Nov-09 $158.20 5384914 9-Nov-09 $61.56 26702188

16-Nov-09 $161.30 3770695 10-Nov-09 $63.67 28821900

17-Nov-09 $159.70 4974011 11-Nov-09 $64.72 23255701

18-Nov-09 $167.50 9364756 12-Nov-09 $62.99 14617305

19-Nov-09 $156.00 13866245 13-Nov-09 $62.69 11458515

20-Nov-09 $151.80 7306492 16-Nov-09 $61.27 16712110

23-Nov-09 $155.00 4582122 17-Nov-09 $61.40 15920406

24-Nov-09 $157.90 5028479 18-Nov-09 $59.85 17767474

25-Nov-09 $158.50 4660992 19-Nov-09 $58.84 13898431

26-Nov-09 $154.10 3504703 20-Nov-09 $59.72 17547894

27-Nov-09 $158.10 3555887 23-Nov-09 $60.00 14057281

30-Nov-09 $154.70 3187486 24-Nov-09 $59.53 8294247

1-Dec-09 $160.40 4139698 25-Nov-09 $59.76 7953507

2-Dec-09 $160.30 2531645 27-Nov-09 $58.14 7265717

3-Dec-09 $161.30 2344752 30-Nov-09 $57.89 13388042

4-Dec-09 $164.10 3404340 1-Dec-09 $59.73 13336643

7-Dec-09 $163.20 4228142 2-Dec-09 $59.81 127332198-Dec-09 $166.80 6269764 3-Dec-09 $58.42 14077414

9-Dec-09 $171.70 10547563 4-Dec-09 $58.75 13240090

10-Dec-09 $167.20 9572380 7-Dec-09 $60.28 12804183

11-Dec-09 $169.30 5334128 8-Dec-09 $61.16 13585862

14-Dec-09 $169.80 9103945 9-Dec-09 $64.14 25634036

15-Dec-09 $170.50 3889209 10-Dec-09 $65.80 25307552

16-Dec-09 $173.10 7108006 11-Dec-09 $63.84 22631769

17-Dec-09 $170.40 5071077 14-Dec-09 $63.18 16412862

18-Dec-09 $170.30 7407949 15-Dec-09 $64.08 13282571

21-Dec-09 $172.70 3561414 16-Dec-09 $64.67 19880876

22-Dec-09 $173.70 3699821 17-Dec-09 $63.46 2982621323-Dec-09 $173.20 2705215 18-Dec-09 $70.00 67993984

24-Dec-09 $175.20 331407 21-Dec-09 $69.70 20582270

29-Dec-09 $176.00 2120834 22-Dec-09 $67.22 21149342

30-Dec-09 $178.40 1909277 23-Dec-09 $67.61 13939197

31-Dec-09 $177.50 219674 24-Dec-09 $66.92 7310317

4-Jan-10 $183.60 4025336 28-Dec-09 $68.33 10928120

5-Jan-10 $185.70 6057027 29-Dec-09 $67.48 9346947

6-Jan-10 $189.40 7571570 30-Dec-09 $67.25 7147783


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7-Jan-10 $195.70 12154325 31-Dec-09 $67.54 6624985

8-Jan-10 $194.70 17418793 4-Jan-10 $65.93 20035771

11-Jan-10 $195.00 10177570 5-Jan-10 $65.80 22082137

12-Jan-10 $190.80 9818961 6-Jan-10 $65.40 16699610

13-Jan-10 $187.90 9751620 7-Jan-10 $65.30 11304863

14-Jan-10 $189.80 7651653 8-Jan-10 $65.46 10642836

15-Jan-10 $190.00 9284987 11-Jan-10 $64.52 1212873218-Jan-10 $186.90 4817400 12-Jan-10 $63.22 12835842

19-Jan-10 $188.40 6087448 13-Jan-10 $65.54 19986155

20-Jan-10 $188.50 7398992 14-Jan-10 $66.52 19162937

21-Jan-10 $188.80 5956532 15-Jan-10 $66.23 15596079

22-Jan-10 $189.30 6283349 19-Jan-10 $65.30 12002906

25-Jan-10 $189.40 7631097 20-Jan-10 $63.89 11545707

26-Jan-10 $191.60 7005563 21-Jan-10 $63.59 15580630

27-Jan-10 $193.60 9894438 22-Jan-10 $61.68 13500156

28-Jan-10 $190.70 18809731 25-Jan-10 $61.41 10218268

29-Jan-10 $194.30 12616666 26-Jan-10 $61.62 14284490

27-Jan-10 $63.71 14507973

28-Jan-10 $64.60 17822263

29-Jan-10 $62.91 15823869


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Valuation Summary - Aardvark


Valuation Statistics - Aardvark Aardvark - Range of Valuation Multiple

25th 75thMinimum Pecentile Median Pecentile

Methodology Name Multiple Multiple Multiple Multiple

Public Company Comparables:

2009 EV / Revenue: 0.3 x 0.5 x 1.1 x 2.8 x

2010E EV / Revenue: 0.3 x 0.5 x 1.0 x 2.3 x

2009 EV / EBITDA: 4.4 x 7.3 x 7.6 x 10.6 x

2010E EV / EBITDA: 3.7 x 5.1 x 5.5 x 6.8 x

2009 P / E: 15.0 x 16.1 x 19.7 x 29.1 x

2010E P / E: 10.9 x 12.2 x 16.3 x 16.6 x

Precedent Transactions:

Trailing EV / Revenue: 0.4 x 1.9 x 2.7 x 6.0 x

Forward EV / Revenue: 0.4 x 2.1 x 2.7 x 5.0 x

Trailing EV / EBITDA: 8.7 x 11.5 x 14.4 x 17.3 x

Forward EV / EBITDA: 9.6 x 13.4 x 19.1 x 23.9 x

Discounted Cash Flow Analysis:

11-15% Discount Rate, 5-9x Terminal Multiple:


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/ Premiums Aardvark - Implied Per Share Value Range

Applicable 25th 75thMaximum Aardvark Minimum Pecentile Median Pecentile Maximum

Multiple Figure Multiple Multiple Multiple Multiple Multiple

3.1 x $42,905 51.31$ 58.72$ 87.70$ 167.72$ 178.48$

2.6 x $53,631 53.47 65.59 95.33 171.10 186.49

11.5 x $13,184 99.92 140.81 144.62 187.13 200.26

8.4 x $16,480 102.23 127.06 135.41 158.45 185.04

47.2 x $9.08 136.10 145.77 179.19 264.11 428.24

44.6 x $11.59 126.68 140.94 188.68 192.55 516.50

8.3 x $42,905 56.52$ 127.08$ 163.25$ 314.66$ 417.74$

7.5 x $53,631 62.67 160.78 194.97 323.57 465.52

39.7 x $13,184 159.88 199.85 240.50 281.11 597.00

32.8 x $16,480 207.92 273.40 373.87 458.54 615.92

161.34$ 179.37$ 198.85$ 219.90$ 242.64$


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Balance Sheet Adjustment: $35,395


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Min. 25th Median 75th

11-15% Discount Rate, 5-9x Terminal Multiple: 161.34$ 179.37$ 198.85$ 219.90$

Forward EV / EBITDA: 207.92$ 273.40$ 373.87$ 458.54$Trailing EV / EBITDA: 159.88$ 199.85$ 240.50$ 281.11$

Forward EV / Revenue: 62.67$ 160.78$ 194.97$ 323.57$

Trailing EV / Revenue: 56.52$ 127.08$ 163.25$ 314.66$

2010E P / E: 126.68$ 140.94$ 188.68$ 192.55$

2009 P / E: 136.10$ 145.77$ 179.19$ 264.11$

2010E EV / EBITDA: 102.23$ 127.06$ 135.41$ 158.45$

2009 EV / EBITDA: 99.92$ 140.81$ 144.62$ 187.13$

2010E EV / Revenue: 53.47$ 65.59$ 95.33$ 171.10$

2009 EV / Revenue: 51.31$ 58.72$ 87.70$ 167.72$

$0.00 $100.00 $200.00 $300.00 $400.00 $500

11-15% Discount Rate, 5-9x Terminal Multiple:

Forward EV / EBITDA:

Trailing EV / EBITDA:

Forward EV / Revenue:

Trailing EV / Revenue:

2010E P / E:

2009 P / E:

2010E EV / EBITDA:

2009 EV / EBITDA:

2010E EV / Revenue:

2009 EV / Revenue:

Public Company Comparables

Precedent Transactions

Discounted Cash Flow Analysis


23/64

Max Min Point 25 Point Med Point 75 Point Max Point

242.64$ 161.34$ 18.03$ 19.48$ 21.05$ 22.74$

615.92$ 207.92$ 65.48$ 100.47$ 84.67$ 157.38$597.00$ 159.88$ 39.96$ 40.66$ 40.60$ 315.89$

465.52$ 62.67$ 98.11$ 34.19$ 128.60$ 141.96$

417.74$ 56.52$ 70.56$ 36.17$ 151.42$ 103.08$

516.50$ 126.68$ 14.26$ 47.74$ 3.87$ 323.95$

428.24$ 136.10$ 9.67$ 33.43$ 84.92$ 164.13$

185.04$ 102.23$ 24.84$ 8.34$ 23.04$ 26.59$

200.26$ 99.92$ 40.89$ 3.81$ 42.51$ 13.13$

186.49$ 53.47$ 12.12$ 29.74$ 75.77$ 15.39$

178.48$ 51.31$ 7.41$ 28.98$ 80.03$ 10.76$

.00 $600.00 $700.00

Min to 25th

25th to Median

Median to 75th

75th to Max


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Comparable Companies - US-Based Hardware & Networking Companies with Over $20 Billion Revenue


Operating Statistics Capitalization

Share Equity Enterprise Revenue EBITCompany Name Price

(1)Value Value 2009 2010E 2009

Hewlett-Packard Company 47.07$ 114,779$ 124,430$ 114,552$ 124,179$ 16,433$

Dell Inc. 12.90 25,241 15,080 51,430 55,380 3,426

Cisco Systems, Inc. 22.47 131,739 106,671 34,807 41,163 10,076

Intel Corporation 19.40 107,224 92,786 32,784 39,941 12,708

Motorola, Inc. 6.15 14,239 10,665 23,457 22,056 926

Maximum 47.07$ 131,739$ 124,430$ 114,552$ 124,179$ 16,433$

75th Percentile 22.47 114,779 106,671 51,430 55,380 12,708

Median 19.40$ 107,224$ 92,786$ 34,807$ 41,163$ 10,076$

25th Percentile 12.90 25,241 15,080 32,784 39,941 3,426

Minimum 6.15 14,239 10,665 23,457 22,056 926

Aardvark 192.06$ 179,581$ 144,186$ $42,905 53,631$ $13,184

Valuation Statistics Capitalization Enterprise Value / Enterpris

Share Equity Enterprise Revenue EBIT

Company Name Price(1)

Value Value 2009 2010E 2009

Hewlett-Packard Company 47.07$ 114,779$ 124,430$ 1.1 x 1.0 x 7.6 x

Dell Inc. 12.90 25,241 15,080 0.3 x 0.3 x 4.4 x

Cisco Systems, Inc. 22.47 131,739 106,671 3.1 x 2.6 x 10.6 x

Intel Corporation 19.40 107,224 92,786 2.8 x 2.3 x 7.3 x

Motorola, Inc. 6.15 14,239 10,665 0.5 x 0.5 x 11.5 x

Maximum 47.07$ 131,739$ 124,430$ 3.1 x 2.6 x 11.5 x

75th Percentile 22.47 114,779 106,671 2.8 x 2.3 x 10.6 x

Median 19.40$ 107,224$ 92,786$ 1.1 x 1.0 x 7.6 x

25th Percentile 12.90 25,241 15,080 0.5 x 0.5 x 7.3 x

Minimum 6.15 14,239 10,665 0.3 x 0.3 x 4.4 x

Aardvark 192.06$ 179,581$ 144,186$ 3.4 x 2.7 x 10.9 x


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Projected

A(2)

EPS Revenue EBITDA Margin(2)

2010E 2009 2010E Growth(3)

2009 2010E

18,186$ 3.14$ 3.87$ 8.4% 14.3% 14.6%

4,129 0.79 1.18 7.7% 6.7% 7.5%

12,774 0.97 1.38 18.3% 28.9% 31.0%

18,332 0.41 1.17 21.8% 38.8% 45.9%

1,927 (1.70) 0.14 (6.0%) 3.9% 8.7%

18,332$ 3.14$ 3.87$ 21.8% 38.8% 45.9%

18,186 0.97 1.38 18.3% 28.9% 31.0%

12,774$ 0.79$ 1.18$ 8.4% 14.3% 14.6%

4,129 0.41 1.17 7.7% 6.7% 8.7%

1,927 (1.70) 0.14 (6.0%) 3.9% 7.5%

$16,480 $9.08 11.59$ 25.0% 30.7% 30.7%

Value /

A(2)

P / E Multiple

2010E 2009 2010E

6.8 x 15.0 x 12.2 x

3.7 x 16.4 x 10.9 x

8.4 x 23.1 x 16.3 x

5.1 x 47.2 x 16.6 x

5.5 x NM 44.6 x

8.4 x 47.2 x 44.6 x

6.8 x 29.1 x 16.6 x

5.5 x 19.7 x 16.3 x

5.1 x 16.1 x 12.2 x

3.7 x 15.0 x 10.9 x

8.7 x 21.2 x 16.6 x


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Networking & Hardware M&A Transactions Over $1 Billion with US-Based Sellers Since 1/1/2008


Aardvark - Comparable M&A Transactions

Equity Enterprise

Acquirer Name Target Name Date Value Value

Hewlett-Packard Company 3Com 11/11/2009 3,180$ 2,714$

Cisco Systems, Inc. Starent Networks 10/13/2009 2,777 2,386

Emerson Electric Co. Avocent 10/6/2009 1,114 1,147

EMC Corporation Data Domain 7/8/2009 2,362 2,085

Oracle Corporation Sun Microsystems 4/20/2009 7,075 5,392

Brocade Communication Systems, Inc. Foundry Networks 7/21/2008 2,899 2,063

Maximum 7,075$ 5,392$

75th Percentile 3,110 2,632

Median 2,838$ 2,235$

25th Percentile 2,466 2,068

Minimum 1,114 1,147


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Operating Metrics Valuation Multiples

EV / EV / EV / EV /Trailing Forward Trailing Forward Trailing Forward Trailing Forward

Revenue Revenue EBITDA(1)

EBITDA(1)

Revenue Revenue EBITDA(1)

EBITDA(1)

1,265$ 1,223$ 152$ 110$ 2.1 x 2.2 x 17.8 x 24.6 x

288 320 154 110 8.3 x 7.5 x 15.5 x 21.6 x

611 542 105 93 1.9 x 2.1 x 10.9 x 12.3 x

301 375 53 64 6.9 x 5.6 x 39.7 x 32.8 x

13,256 12,462 623 559 0.4 x 0.4 x 8.7 x 9.6 x

621 633 156 125 3.3 x 3.3 x 13.2 x 16.5 x

13,256$ 12,462$ 623$ 559$ 8.3 x 7.5 x 39.7 x 32.8 x

1,104 1,075 155 121 6.0 x 5.0 x 17.3 x 23.9 x

616$ 587$ 153$ 110$ 2.7 x 2.7 x 14.4 x 19.1 x

378 417 117 97 1.9 x 2.1 x 11.5 x 13.4 x

288 320 53 64 0.4 x 0.4 x 8.7 x 9.6 x


28/64

Discounted Cash Flow Analysis - Aardvark


Aardvark - Cash Flow Projections

FY 2010E FY 2011E FY 2012E FY 2013E FY 2014E

Revenue: $53,631 62,749$ 69,651$ 75,919$ 81,234$

EBITDA: $16,480 19,282$ 21,403$ 23,329$ 24,962$

Operating Income: $14,635 17,133$ 19,030$ 20,761$ 22,218$

Less: Taxes ($4,391) ($5,140) ($5,709) ($6,228) ($6,665)

Plus: Depreciation $918 $1,073 $1,192 $1,299 $1,390

Plus: Amortization $40 $37 $28 $13 $10

Plus: Stock-Based Compensation $888 $1,038 $1,153 $1,256 $1,344

Less: Increase in Working Capital: $2,136 $1,815 $1,374 $1,248 $1,058

Less: Capital Expenditures ($1,430) ($1,673) ($1,857) ($2,024) ($2,166)

Unlevered Free Cash Flow $12,795 14,284$ 15,211$ 16,324$ 17,189$

Present Value of Free Cash Flow $12,064 11,971$ 11,332$ 10,811$ 10,119$

Normal Discount Period: 1.000 2.000 3.000 4.000 5.000

Mid-Year Discount: 0.500 1.500 2.500 3.500 4.500

Free Cash Flow Growth Rate: 11.6% 6.5% 7.3% 5.3%

Aardvark - Net Present Value Sensitivity - Terminal Growth Rates

Discount Rate

201.78$ 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0%

0.0% 217.48$ 210.95$ 204.75$ 198.85$ 193.23$ 187.89$ 182.80$

1.0% 217.48$ 210.95$ 204.75$ 198.85$ 193.23$ 187.89$ 182.80$

2.0% 217.48$ 210.95$ 204.75$ 198.85$ 193.23$ 187.89$ 182.80$

3.0% 217.48$ 210.95$ 204.75$ 198.85$ 193.23$ 187.89$ 182.80$

4.0% 217.48$ 210.95$ 204.75$ 198.85$ 193.23$ 187.89$ 182.80$

5.0% 217.48$ 210.95$ 204.75$ 198.85$ 193.23$ 187.89$ 182.80$

Aardvark - Net Present Value Sensitivity - Terminal EBITDA Multiples

Discount Rate

201.78$ 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0%

4.0 x 167.75$ 163.42$ 159.30$ 155.38$ 151.64$ 148.07$ 144.67$

5.0 x 184.32$ 179.26$ 174.45$ 169.87$ 165.50$ 161.34$ 157.38$

6.0 x 200.90$ 195.11$ 189.60$ 184.36$ 179.37$ 174.62$ 170.09$

TerminalGrowth

Rate

lEBITDA

tiple


29/64

7.0 x 217.48$ 210.95$ 204.75$ 198.85$ 193.23$ 187.89$ 182.80$

8.0 x 234.05$ 226.79$ 219.90$ 213.34$ 207.10$ 201.16$ 195.51$

9.0 x 250.63$ 242.64$ 235.04$ 227.83$ 220.96$ 214.44$ 208.22$Termina

Mu


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Aardvark - DCF Assumptions & Output

Use Multiples Method? Yes

Discount Rate: 12.5%

Terminal EBITDA Multiple: 7.0 x

Terminal Growth Rate: 3.0%

Terminal Value: 174,733$

PV of Terminal Value: $96,980

Sum of PV of Cash Flows: $56,296

Enterprise Value: $153,276

Terminal Value % EV: 63.3%

Enterprise Value: $153,276

Balance Sheet Adjustment: $35,395

Implied Equity Value: $188,671

Implied Price Per Share: 201.78$


31/64

WACC Analysis - Aardvark


Discount Rate Calculation - Assumptions

Risk-Free Rate: 4.38%Equity Risk Premium: 7.00%

Interest Rate on Debt: 9.00%

Comparable Companies - Unlevered Beta Calculation

Levered Equity Unlevered

Name Beta Debt Value Tax Rate Beta

Hewlett-Packard Company 1.04 15,830$ 114,779$ 20.0% 0.94

Dell Inc. 1.31 3,793 25,241 27.0% 1.18

Cisco Systems, Inc. 1.23 10,273 131,739 22.0% 1.16

Intel Corporation 1.17 2,224 107,224 33.0% 1.15

Motorola, Inc. 1.87 3,925 14,239 34.0% 1.58

Median 1.23 1.16

Aardvark 1.57

Aardvark - Levered Beta & WACC Calculation

Unlevered Equity Levered

Beta Debt Value Tax Rate Beta

Aardvark 1.16 $0 179,581$ 30% 1.16

Cost of Equity Based on Comparables: 12.50%

Cost of Equity Based on Historical Beta: 15.37%

WACC 12.50%


32/64


33/64

Merger Model - Aardvark and Research in Motion Limited


Transaction Assumptions

Per Share Purchase Price: $75.00 Equity Purchase Price:% Cash: 33.3% Cash Used:

% Debt: 33.3% Debt Issued:

% Stock: 33.3% New Shares Issued:

Foregone Cash Interest Rate: 1.0% Debt Interest Rate:

Revenue Synergy %: 10.0% Revenue Synergy COGS %:

Cost Synergies % OpEx: 10.0%

Goodwill Creation & Balance Sheet Adjustments

Goodwill Calculation: Fixed Asset Write-Up:

Equity Purchase Price: $43,049 PP&E Write-Up %:

Less: Seller Book Value: ($6,987) PP&E Write-Up Amount:

Plus: Write-Off of Existing Goodwill: $147 Depreciation Period (Years):

Total Allocable Purchase Premium: $36,209

Intangible Asset Write-Up:

Less: Write-Up of PP&E: ($174) Purchase Price to Allocate:

Less: Write-Up of Intangibles: ($7,242) % Allocated to Intangibles:

Less: Write-Down of DTL: ($43) Intangibles Write-Up Amount:

Plus: New Deferred Tax Liability: $2,225 Amortization Period (Years):

Total Goodwill Created: $30,975New Deferred Tax Liability:

Buyer - Financial Profile Seller - Financial Profile

Buyer Name: Aardvark Seller Name: Rese

Share Price: $192.06 Share Price:

Diluted Shares Outstanding: 935,023 Diluted Shares Outstanding:

Diluted Equity Value: $179,581 Diluted Equity Value:

Enterprise Value: $144,186 Enterprise Value:

Tax Rate: 30% Tax Rate:

Buyer - Income Statement Seller - Income Statement

FY 2010E FY 2011E

Revenue: $53,631 $62,749 Revenue:

Cost of Goods Sold: $31,655 $37,037 Cost of Goods Sold:

Gross Profit: $21,976 $25,712 Gross Profit:

Operating Expenses: $5,496 $6,430 Operating Expenses:


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Depreciation of PP&E: $918 $1,073 Depreciation of PP&E:

Amortization of Intangibles: $40 $37 Amortization of Intangibles:

Stock-Based Compensation: $888 $1,038 Stock-Based Compensation:

Operating Income: $14,635 $17,133 Operating Income:

Interest Income / (Expense): $379 $478 Interest Income / (Expense):Pre-Tax Income: $15,014 $17,610 Pre-Tax Income:

Income Tax Provision: $4,504 $5,283 Income Tax Provision:

Net Income: $10,510 $12,327 Net Income:

Earnings Per Share (EPS): $11.59 $13.59 Earnings Per Share (EPS):

Diluted Shares Outstanding: 907,005 907,005 Diluted Shares Outstanding:

Combined Income Statement

FY 2010E FY 2011E

Combined Revenue: $70,862 $83,617

Revenue Synergies: $1,723 $2,087

Cost of Goods Sold: $41,410 $48,905

Revenue Synergy COGS: $862 $1,043

Gross Profit: $30,313 $35,755

Operating Expenses: $8,193 $9,689

OpEx Synergies: $270 $326

Depreciation of PP&E: $1,348 $1,637Depr. of PP&E Write-Up: $22 $22

Amortization of Intangibles: $399 $470

Amort. of New Intangibles: $1,448 $1,448

Stock-Based Compensation: $939 $1,101

Operating Income: $18,233 $21,713

Interest Income / (Expense): $404 $510

Foregone Interest on Cash: ($143) ($143)

Interest Paid on New Debt: ($1,291) ($1,291)

Pre-Tax Income: $17,203 $20,789

Income Tax Provision: $5,161 $6,237

Net Income: $12,042 $14,552

Earnings Per Share (EPS): $12.27 $14.82

Diluted Shares Outstanding: 981,719 981,719

Accretion / Dilution: $0.68 $1.23

Accretion / Dilution %: 5.9% 9.1%


35/64

Sensitivity Analysis - Year 1 EPS Accretion/Dilution and Purchase Price vs. Operating Expense Synergi

Expense Synergies % Seller OpEx:

5.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

110.00$ (8.2%) (7.9%) (7.6%) (7.3%) (7.0%) (6.6%) (6.3%)

105.00$ (6.5%) (6.2%) (5.9%) (5.6%) (5.2%) (4.9%) (4.6%)100.00$ (4.8%) (4.5%) (4.1%) (3.8%) (3.5%) (3.2%) (2.8%)

95.00$ (3.0%) (2.7%) (2.4%) (2.0%) (1.7%) (1.4%) (1.1%)

90.00$ (1.2%) (0.9%) (0.6%) (0.3%) 0.1% 0.4% 0.7%

85.00$ 0.6% 0.9% 1.2% 1.5% 1.9% 2.2% 2.5%

80.00$ 2.4% 2.7% 3.0% 3.4% 3.7% 4.0% 4.3%

75.00$ 4.2% 4.5% 4.9% 5.2% 5.5% 5.9% 6.2%

70.00$ 6.0% 6.4% 6.7% 7.0% 7.4% 7.7% 8.0%

65.00$ 7.9% 8.3% 8.6% 8.9% 9.3% 9.6% 9.9%

Sensitivity Analysis - Year 1 EPS Accretion/Dilution and Purchase Price vs. Revenue Synergies:

Revenue Synergies % Seller Revenue:

5.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

110.00$ (11.8%) (10.7%) (9.7%) (8.7%) (7.7%) (6.6%) (5.6%)

105.00$ (10.1%) (9.0%) (8.0%) (7.0%) (5.9%) (4.9%) (3.9%)

100.00$ (8.3%) (7.3%) (6.3%) (5.2%) (4.2%) (3.2%) (2.1%)

95.00$ (6.6%) (5.6%) (4.5%) (3.5%) (2.4%) (1.4%) (0.4%)

90.00$ (4.8%) (3.8%) (2.7%) (1.7%) (0.7%) 0.4% 1.4%

85.00$ (3.1%) (2.0%) (1.0%) 0.1% 1.1% 2.2% 3.2%

80.00$ (1.3%) (0.2%) 0.9% 1.9% 3.0% 4.0% 5.1%

75.00$ 0.6% 1.6% 2.7% 3.7% 4.8% 5.9% 6.9%70.00$ 2.4% 3.5% 4.5% 5.6% 6.6% 7.7% 8.8%

65.00$ 4.2% 5.3% 6.4% 7.4% 8.5% 9.6% 10.7%

PerSharePurchasePric

e

PerSharePurchasePrice


36/64

$43,049$14,350

$14,350

74,714

9.0%

50.0%

10.0%

$174

8

$36,209

20.0%

$7,242

5

$2,225

rch in Motion Limited

$62.91

572,951

$36,044

$33,547

28%

FY 2010E FY 2011E

$17,231 $20,868

$9,755 $11,869

$7,476 $9,000

$2,698 $3,259


37/64

$431 $563

$359 $433

$52 $63

$3,937 $4,682

$25 $33$3,962 $4,714

$1,148 $1,343

$2,814 $3,371

$5.03 $6.02

560,000 560,000


38/64

s:

14.0% 16.0%

(6.0%) (5.7%)

(4.3%) (3.9%)(2.5%) (2.2%)

(0.7%) (0.4%)

1.0% 1.4%

2.9% 3.2%

4.7% 5.0%

6.5% 6.9%

8.4% 8.7%

10.3% 10.6%

14.0% 16.0%

(4.6%) (3.6%)

(2.9%) (1.8%)

(1.1%) (0.1%)

0.7% 1.7%

2.5% 3.5%

4.3% 5.3%

6.1% 7.2%

8.0% 9.0%9.8% 10.9%

11.7% 12.8%


39/64

Merger Model - Seller Diluted Share Count & Combined Balance Sheets


Diluted Share & Enterprise Value Calculations - Seller

Company Name: Research in Motion Limited Options Calculations - Current Pri

Share Price: $62.91

Offer Price Per Share: $75.00 Tax Rate: 28% Exercise

Name Number PriceCurrent Share Price: Purchase Price: Tranche A 10,470 $38.57

Basic Shares Outstanding: 568,900 Basic Shares Outstanding: 568,900 Tranche B

Basic Equity Value: $35,789 Basic Equity Value: $42,668 Total

Diluted Shares Outstanding: 572,951 Diluted Shares Outstanding: 573,986

Diluted Equity Value: $36,044 Diluted Equity Value: $43,049 Options Calculations - Purchase P

Less: Cash & Investments $2,498 Less: Cash & Investments $2,498

Plus: Debt $0 Plus: Debt $0 Exercise

Plus: Minority Interest $0 Plus: Minority Interest $0 Name Number Price

Plus: Preferred Stock $0 Plus: Preferred Stock $0 Tranche A 10,470 $38.57

Plus: Other Liabilities $0 Plus: Other Liabilities $0 Tranche B

Enterprise Value: $33,547 Enterprise Value: $40,551 Total

Balance Sheets - Buyer, Seller & Combined

Assets: Buyer Seller Adjustments Combined

Current Assets:

Cash & Short-Term Securities: $32,841 $1,664 ($14,350) $20,156

Accounts Receivable: $3,361 $2,613 $0 $5,974

Inventory: $455 $573 $0 $1,028

Deferred Tax Assets: $4 $176 $0 $180

Other Current Assets: $3,140 $190 $0 $3,330

Total Current Assets: $39,801 $5,215 ($14,350) $30,667

Long-Term Assets:


40/64

Long-Term Securities: $2,554 $834 $0 $3,388

Plants, Property & Equipment: $2,839 $1,737 $174 $4,750

Goodwill: $207 $147 $30,828 $31,182

Other Intangible Assets: $354 $1,291 $7,242 $8,887

Other Assets: $2,011 $0 $0 $2,011

Total Assets: $47,766 $9,224 $23,894 $80,884

Liabilities & Shareholders' Equity:

Current Liabilities:

Accounts Payable: $5,601 $496 $0 $6,097Accrued Expenses: $3,852 $1,604 $0 $5,456

Deferred Revenue: $2,053 $67 $0 $2,120

Total Current Liabilities: $11,506 $2,167 $0 $13,673


Deferred Revenue: $853 $0 $0 $853

Long-Term Debt: $0 $0 $14,350 $14,350

Deferred Income Tax Liability: $0 $43 $2,181 $2,225

Other Long-Term Liabilities: $3,502 $28 $0 $3,530

Total Liabilities: $15,861 $2,238 $16,531 $34,630


Common Stock: $7,177 $2,236 ($2,236) $7,177

Additional Paid-In Capital: $1,185 $139 $14,211 $15,535Treasury Stock: $0 ($45) $45 $0

Retained Earnings: $23,364 $4,664 ($4,664) $23,364

Accumulated Other Comprehensive Income: $179 ($8) $8 $179

Total Shareholders' Equity: $31,905 $6,987 $7,363 $46,255

Total Liabilities & SE: $47,766 $9,224 $23,894 $80,884


41/64

e:

Dilution4,051

4,051

ice:

Dilution

5,086

5,086


42/64


43/64

Aardvark - Basic LBO Model



Current Share Price: $192.06 Equity Purchase Price: $215,498

Offer Premium: 20.0% Enterprise Value: $180,103

Offer Price Per Share: $230.47 EBITDA Purchase Multiple: 13.7 x

% Debt: 50.0% Debt Required: $107,749% Equity: 50.0% Equity Used: $107,749

EBITDA Exit Multiple: 10.0 x

Purchase Price Calculations:

Basic Shares Outstanding: 900,678 Advisory Fee %: 0.02%

Basic Equity Value: $207,581 Financing Fee %: 0.06%

Diluted Shares Outstanding: 935,028

Diluted Equity Value: $215,498 Options Calculations - Purchase Price:

Less: Cash & Investments $35,395

Plus: Debt $0 Exercise

Plus: Minority Interest $0 Name Number Price Dilution

Plus: Preferred Stock $0 Tranche A 34,375 $0.17 34,350

Plus: Other Liabilities $0 Tranche B

Enterprise Value: $180,103 Total 34,350

Debt Assumptions

Debt %: 50.0% Debt Required: $107,749

Bank Debt %: 75.0% Bank Debt: $80,812

High-Yield Debt %: 25.0% High-Yield Debt: $26,937

Bank Debt Interest Rate: 8.0% Bank Debt Principal Repayment %: 10.0%

High-Yield Debt Interest Rate: 11.0% High-Yield Debt Principal Repayment %: 0.0%

Sources & Uses


44/64

Sources: Uses:

Bank Debt: $80,812 Equity Value of Company: $215,498

High-Yield Debt: $26,937 Advisory Fees: $43

Investor Equity: $107,857 Financing Fees: $65

Total Sources: $215,606 Total Uses: $215,606


Initial Cash Balance: $6,559Minimum Cash Balance: $5,000



Revenue Growth %: 27.2% 52.5% 14.4% 25.0% 17.0% 11.0% 9.0% 7.0%

COGS % Revenue: 66.2% 64.1% 59.0% 59.0% 59.0% 59.0% 59.0% 59.0%

R&D % Revenue: 2.4% 2.0% 1.9% 1.9% 1.9% 1.9% 1.9% 1.9%

SG&A % Revenue: 11.1% 8.9% 8.3% 8.3% 8.3% 8.3% 8.3% 8.3%

Stock-Based Compensation % Revenue: 1.0% 1.4% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7%

Depreciation & Amortization % Revenue: 1.3% 1.3% 1.7% 1.7% 1.7% 1.7% 1.7% 1.7%

Effective Cash Interest Rate: 5.3% 3.4% 1.4% 1.0% 1.0% 2.0% 2.0% 3.0%

Effective Tax Rate: 30.2% 31.6% 31.8% 30.0% 30.0% 30.0% 30.0% 30.0%

Amortization of Intangibles: $40 $37 $28 $13 $10

Change in Working Capital % Revenue: 5.4% 5.5% 1.7% 4.0% 2.9% 2.0% 1.6% 1.3%

CapEx % Revenue: 3.0% 2.9% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7%

Income Statement


Revenue: $24,578 $37,491 $42,905 $53,631 $62,749 $69,651 $75,919 $81,234

Cost of Goods Sold: $16,282 $24,049 $25,324 $31,655 $37,037 $41,111 $44,811 $47,948


45/64

Gross Profit: $8,296 $13,442 $17,581 $21,976 $25,712 $28,540 $31,109 $33,286

Operating Expenses:

Research & Development: $596 $759 $830 $1,038 $1,214 $1,348 $1,469 $1,572

Selling, General & Administrative: $2,724 $3,345 $3,566 $4,458 $5,216 $5,789 $6,311 $6,752

Total Operating Expenses: $3,320 $4,103 $4,397 $5,496 $6,430 $7,137 $7,780 $8,324




Operating Income: $4,407 $8,327 $11,740 $14,635 $17,133 $19,030 $20,761 $22,218

Interest Income / (Expense): $599 $620 $326 ($8,753) ($8,087) ($6,991) ($6,096) ($4,719)

Pre-Tax Income: $5,006 $8,947 $12,066 $5,882 $9,046 $12,040 $14,665 $17,498

Income Tax Provision: $1,511 $2,828 $3,831 $1,765 $2,714 $3,612 $4,400 $5,250

Net Income: $3,495 $6,119 $8,235 $4,118 $6,332 $8,428 $10,266 $12,249

EBITDA: $4,976 $9,339 $13,184 $16,480 $19,282 $21,403 $23,329 $24,962

Cash Flow Statement


Operating Activities:

Net Income: $4,118 $6,332 $8,428 $10,266 $12,249

Depreciation & Amortization of PP&E: $918 $1,073 $1,192 $1,299 $1,390

Amortization of Intangibles: $40 $37 $28 $13 $10Stock-Based Compensation: $888 $1,038 $1,153 $1,256 $1,344

Decrease (Increase) in Working Capital: $2,136 $1,815 $1,374 $1,248 $1,058

Cash Flow from Operations: $8,098 $10,297 $12,174 $14,082 $16,051

Capital Expenditures: ($1,430) ($1,673) ($1,857) ($2,024) ($2,166)

Free Cash Flow: $6,668 $8,623 $10,317 $12,058 $13,885

Beginning Cash Balance: $6,559 $5,000 $5,000 $5,000 $5,000

Plus: Free Cash Flow: $6,668 $8,623 $10,317 $12,058 $13,885


46/64

Less: Minimum Cash Balance: ($5,000) ($5,000) ($5,000) ($5,000) ($5,000)

Cash Available for Debt Repayment: $8,227 $8,623 $10,317 $12,058 $13,885

Cash Used for Debt Repayment: ($8,227) ($8,623) ($10,317) ($12,058) ($13,885)

Beginning Cash Balance: $6,559 $5,000 $5,000 $5,000 $5,000

Net Change in Cash: ($1,559) $0 $0 $0 $0

Ending Cash Balance: $5,000 $5,000 $5,000 $5,000 $5,000

Debt & Interest SchedulesFY 2007 FY 2008 FY 2009 FY 2010E FY 2011E FY 2012E FY 2013E FY 2014E

Beginning Bank Debt: $80,812 $72,584 $63,961 $53,644 $41,586

Mandatory Repayment: ($8,081) ($8,081) ($8,081) ($8,081) ($8,081)

Optional Repayment: ($146) ($542) ($2,236) ($3,976) ($5,804)

Ending Bank Debt: $72,584 $63,961 $53,644 $41,586 $27,701

Beginning High-Yield Debt: $26,937 $26,937 $26,937 $26,937 $26,937

Mandatory Repayment: $0 $0 $0 $0 $0

Optional Repayment: $0 $0 $0 $0 $0

Ending High-Yield Debt: $26,937 $26,937 $26,937 $26,937 $26,937

Interest Paid on Debt: ($9,099) ($8,425) ($7,667) ($6,772) ($5,735)

Interest Earned on Cash: $346 $338 $677 $677 $1,015

Net Interest Income / (Expense): ($8,753) ($8,087) ($6,991) ($6,096) ($4,719)

Investor Returns


EBITDA: $13,184 $24,962

EBITDA Multiple: 13.7 x 10.0 x

Enterprise Value: $180,103 $249,618

Investor Equity: ($107,857) $0 $0 $0 $0 $228,816


47/64

IRR: 16.2%

Sensitivity Analysis - 5-Year IRR and Purchase Premium vs. Exit Multiple

Exit Multiple:

16.2% 6.0 x 7.0 x 8.0 x 9.0 x 10.0 x 11.0 x 12.0 x 13.0 x 14.0 x

278.49$ 45.0% (5.4%) (1.1%) 2.6% 5.9% 8.8% 11.4% 13.8% 16.0% 18.0%

268.88$ 40.0% (3.6%) 0.6% 4.2% 7.4% 10.2% 12.8% 15.1% 17.3% 19.3%

259.28$ 35.0% (1.8%) 2.3% 5.8% 8.9% 11.7% 14.2% 16.5% 18.7% 20.7%249.68$ 30.0% (0.0%) 3.9% 7.4% 10.4% 13.1% 15.6% 17.9% 20.1% 22.1%

240.08$ 25.0% 1.8% 5.6% 9.0% 12.0% 14.7% 17.1% 19.4% 21.5% 23.5%

230.47$ 20.0% 3.6% 7.4% 10.6% 13.6% 16.2% 18.7% 20.9% 23.0% 25.0%

220.87$ 15.0% 5.5% 9.1% 12.3% 15.2% 17.8% 20.2% 22.5% 24.5% 26.5%

211.27$ 10.0% 7.4% 10.9% 14.1% 16.9% 19.5% 21.9% 24.1% 26.1% 28.1%

201.66$ 5.0% 9.3% 12.8% 15.9% 18.7% 21.2% 23.6% 25.8% 27.8% 29.7%

192.06$ 0.0% 11.3% 14.7% 17.7% 20.5% 23.0% 25.3% 27.5% 29.6% 31.5%

Sensitivity Analysis - 5-Year IRR and Purchase Premium vs. % Debt:

% Debt:

16.2% 30.0% 35.0% 40.0% 45.0% 50.0% 55.0% 60.0% 65.0% 70.0%

278.49$ 45.0% 8.1% 8.2% 8.4% 8.6% 8.8% 9.0% 9.4% 9.8% 10.3%

268.88$ 40.0% 9.1% 9.3% 9.6% 9.9% 10.2% 10.6% 11.1% 11.7% 12.5%259.28$ 35.0% 10.2% 10.5% 10.8% 11.2% 11.7% 12.2% 12.9% 13.7% 14.7%

249.68$ 30.0% 11.3% 11.7% 12.1% 12.6% 13.1% 13.8% 14.6% 15.6% 16.9%

240.08$ 25.0% 12.5% 12.9% 13.4% 14.0% 14.7% 15.5% 16.4% 17.6% 19.1%

230.47$ 20.0% 13.7% 14.2% 14.8% 15.5% 16.2% 17.2% 18.3% 19.6% 21.4%

220.87$ 15.0% 14.9% 15.5% 16.2% 17.0% 17.8% 18.9% 20.1% 21.7% 23.6%

211.27$ 10.0% 16.2% 16.9% 17.7% 18.5% 19.5% 20.7% 22.0% 23.7% 25.9%

201.66$ 5.0% 17.6% 18.4% 19.2% 20.1% 21.2% 22.5% 24.0% 25.9% 28.2%

192.06$ 0.0% 19.0% 19.9% 20.8% 21.8% 23.0% 24.4% 26.0% 28.0% 30.5%

PurchasePremium/

Pe

r-Share

Price

PurchasePremium/

Per-Sh

are

Price


48/64


49/64


50/64


51/64

Aardvark - More Advanced LBO Model



Current Share Price: $192.06 Equity Purchase Price:Offer Premium: 20.0% Enterprise Value:

Offer Price Per Share: $230.47 EBITDA Purchase Multiple:

Leverage Ratio: 6.0 x Debt Required:

Equity Used:

EBITDA Exit Multiple:

Purchase Price Calculations:

Basic Shares Outstanding: 900,678 Advisory Fee %:

Basic Equity Value: $207,581 Financing Fee %:

Diluted Shares Outstanding: 935,028 Legal & Misc. Fees:

Diluted Equity Value: $215,498

Less: Cash & Investments $35,395 Options Calculations - Purchase P

Plus: Debt $0 Exercise

Plus: Minority Interest $0 Name Number Price

Plus: Preferred Stock $0 Tranche A 34,375 $0.17

Plus: Other Liabilities $0 Tranche B

Enterprise Value: $180,103 Total

Debt Assumptions

Leverage Ratio: 6.0 x Debt Required:

Units for LIBOR: 10,000 Revolver:Term Loan A %: 40.0% Term Loan A:

Term Loan B %: 30.0% Term Loan B:

Subordinated Note %: 20.0% Subordinated Note:

PIK Loan %: 10.0% PIK Loan:

Interest Rates: Principal Repaym

Revolver: L + 250 Revolver:

Term Loan A: L + 350 Term Loan A:

Term Loan B: L + 500 Term Loan B:

Subordinated Note: 11.00% Subordinated Note:

PIK Loan: 13.00% PIK Loan:

Sources & Uses

Sources: Uses:

Excess Cash: $1,559

Term Loan A: $31,642

Term Loan B: $23,731 Equity Value of Company:

Subordinated Note: $15,821 Advisory Fees:


52/64

PIK Loan: $7,910 Capitalized Financing Fees:

Investor Equity: $134,937 Legal & Misc. Fees:

Total Sources: $215,600 Total Uses:

Goodwill Creation & Balance Sheet Adjustments

Goodwill Calculation: Fixed Asset Write-Up:Equity Purchase Price: $215,498 PP&E Write-Up %:

Less: Seller Book Value: ($31,905) PP&E Write-Up Amount:

Plus: Write-Off of Existing Goodwill: $207 Depreciation Period (Years):

Total Allocable Purchase Premium: $183,800

Intangible Asset Write-Up:

Less: Write-Up of PP&E: ($284) Purchase Price to Allocate:

Less: Write-Up of Intangibles: ($36,760) % Allocated to Intangibles:

Less: Write-Down of DTL: $0 Intangibles Write-Up Amount:

Plus: New Deferred Tax Liability: $11,113 Amortization Period (Years):

Total Goodwill Created: $157,869

Financing Fees Amortization Period: 5 New Deferred Tax Liability:


Initial Cash Balance: $6,559

Minimum Cash Balance: $5,000

Historical Transaction Adjus

FY 2007 FY 2008 FY 2009 Debit Credit

Revenue Growth %: 27.2% 52.5% 14.4%

COGS % Revenue: 66.2% 64.1% 59.0%

R&D % Revenue: 2.4% 2.0% 1.9%

SG&A % Revenue: 11.1% 8.9% 8.3%

Stock-Based Compensation % Revenue: 1.0% 1.4% 1.7%

Depreciation & Amortization % Revenue: 1.3% 1.3% 1.7%

Effective Cash Interest Rate: 5.3% 3.4% 1.4%

Effective Tax Rate: 30.2% 31.6% 31.8%

Accounts Receivable % Revenue: 6.5% 7.8%

Accounts Receivable Days: 23.3 28.2

Inventory % COGS: 2.1% 1.8%

Amortization of Intangibles:

Accounts Payable % COGS: 23.0% 22.1%

Accounts Payable Days: 82.6 79.6

Accrued Expenses % Operating Expenses: 102.9% 87.6%

Short-Term Deferred Revenue % Revenue: 4.3% 4.8%


53/64

Long-Term Deferred Revenue % Revenue: 2.0% 2.0%

CapEx % Revenue: 3.0% 2.9% 2.7%

Income Statement



Revenue: $24,578 $37,491 $42,905

Cost of Goods Sold: $16,282 $24,049 $25,324

Gross Profit: $8,296 $13,442 $17,581

Operating Expenses:

Research & Development: $596 $759 $830

Selling, General & Administrative: $2,724 $3,345 $3,566

Total Operating Expenses: $3,320 $4,103 $4,397

Depreciation & Amortization of PP&E: $327 $496 $734

Depreciation of PP&E Write-Up:

New Intangibles Amortization:

Amortization of Financing Fees:

Amortization of Intangibles: $0 $0 $0

Stock-Based Compensation: $242 $516 $710

Operating Income: $4,407 $8,327 $11,740

Interest Income / (Expense): $599 $620 $326

Pre-Tax Income: $5,006 $8,947 $12,066

Income Tax Provision: $1,511 $2,828 $3,831

Net Income: $3,495 $6,119 $8,235

EBITDA: $4,976 $9,339 $13,184

Balance Sheet


FY 2008 FY 2009 Debit Credit

Assets:

Current Assets:

Cash & Cash-Equivalents: $11,875 $6,559 $0 $1,559

Short-Term Securities: $10,236 $26,282 $0 $0

Accounts Receivable: $2,422 $3,361 $0 $0Inventory: $509 $455 $0 $0

Deferred Tax Assets: $1,044 $4 $0 $0

Other Current Assets: $3,920 $3,140 $0 $0

Total Current Assets: $30,006 $39,801

Long-Term Assets:

Long-Term Securities: $2,379 $2,554 $0 $0

Plants, Property & Equipment: $2,455 $2,839 $284 $0


54/64

Goodwill: $207 $207 $157,869 $207

Other Intangible Assets: $285 $354 $36,760 $0

Capitalized Financing Fees: $0 $0 $49 $0

Other Assets: $839 $2,011 $0 $0

Total Assets: $36,171 $47,766

Liabilities & Shareholders' Equity:Current Liabilities:

Revolver: $0 $0 $0 $0

Accounts Payable: $5,520 $5,601 $0 $0

Accrued Expenses: $4,224 $3,852 $0 $0

Deferred Revenue: $1,617 $2,053 $0 $0

Total Current Liabilities: $11,361 $11,506


Deferred Revenue: $768 $853 $0 $0

Existing Long-Term Debt: $0 $0 $0 $0

Term Loan A: $0 $0 $0 $31,642

Term Loan B: $0 $0 $0 $23,731

Subordinated Note: $0 $0 $0 $15,821

PIK Loan: $0 $0 $0 $7,910

Deferred Tax Liability: $0 $0 $0 $11,113

Other Long-Term Liabilities: $1,745 $3,502 $0 $0

Total Liabilities: $13,874 $15,861


Common Stock: $7,177 $7,177 $7,177 $0

Additional Paid-In Capital: $0 $1,185 $1,185 $0Treasury Stock: $0 $0 $0 $0

Sponsor Common Equity: $0 $0 $0 $134,937

Retained Earnings: $15,129 $23,364 $23,417 $0

Accumulated Other Comprehensive Income: ($9) $179 $179 $0

Total Shareholders' Equity: $22,297 $31,905

Total Liabilities & SE: $36,171 $47,766

BALANCE CHECK: $0 $0

Cash Flow StatementHistorical Transaction Adjus


Net Income:

Depreciation & Amortization of PP&E:

Depreciation of PP&E Write-Up:

New Intangibles Amortization:

Amortization of Financing Fees:


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Accrual of PIK Note:

Amortization of Intangibles:

Stock-Based Compensation:

Changes in Operating Assets & Liabilities:

Accounts Receivable:

Inventory:

Other Current Assets:Other Assets:

Accounts Payable:

Deferred Revenue:

Other Liabilities:

Cash Flow from Operations:

Capital Expenditures:

Cash Flow Available for Debt Repayment:

Revolver:

Term Loan A:

Term Loan B:

Subordinated Note:

PIK Loan:

Total Cash Flow Used to Repay Debt:

Net Change in Cash & Cash Equivalents:

Beginning Cash Balance:

Ending Cash Balance:

Debt & Interest Schedules

LIBOR Curve:

Fixed

Interest Rate Assumptions: LIBOR + Interest

Revolver: 2.50%

Term Loan A: 3.50%

Term Loan B: 5.00%Subordinated Note: 11.00%

PIK Loan: 13.00%

Interest Income / (Expense) Calculations:

Revolver:

Term Loan A:

Term Loan B:

Subordinated Note:


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PIK Loan:

Cash:

Net Interest Income / (Expense):

Sources of Funds:

Beginning Cash Balance:

Less: Minimum Cash Balance:Plus: Cash Flow Available for Debt Repayment:

Subtotal Before Revolver:

Revolver Borrowing Required:

Total Sources of Funds:

Uses of Funds:

Mandatory Debt Repayment:

Term Loan A:

Term Loan B:

Subordinated Note:

PIK Loan:

Mandatory Repayment Total:

Optional Debt Repayment:

Revolver:

Term Loan A:

Term Loan B:

Subordinated Note:

PIK Loan:

Optional Repayment Total:

Cash Generated on Balance Sheet:

Total Uses of Funds:

Investor Returns

EBITDA:

EBITDA Multiple:

Enterprise Value:

Investor Equity:

IRR:

Sensitivity Analysis - 5-Year IRR and Purchase Premium vs. Exit Multiple

Exit Multiple:

15.3% 6.0 x 7.0 x 8.0 x 9.0 x 10.0 x 11.0 x

278.49$ 45.0% (0.2%) 2.5% 4.9% 7.1% 9.1% 11.0%

268.88$ 40.0% 0.8% 3.5% 5.9% 8.1% 10.2% 12.1%

-Share


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259.28$ 35.0% 1.8% 4.5% 7.0% 9.2% 11.3% 13.3%

249.68$ 30.0% 2.9% 5.7% 8.2% 10.4% 12.6% 14.5%

240.08$ 25.0% 4.1% 6.9% 9.4% 11.7% 13.9% 15.9%

230.47$ 20.0% 5.4% 8.2% 10.8% 13.1% 15.3% 17.3%

220.87$ 15.0% 6.7% 9.6% 12.3% 14.6% 16.9% 18.9%

211.27$ 10.0% 8.3% 11.2% 13.9% 16.3% 18.5% 20.6%

201.66$ 5.0% 9.9% 12.9% 15.6% 18.1% 20.4% 22.5%192.06$ 0.0% 11.8% 14.8% 17.6% 20.1% 22.5% 24.6%

Sensitivity Analysis - 5-Year IRR and Purchase Premium vs. Leverage Ratio:

Leverage Ratio:

15.3% 2.0 x 3.0 x 4.0 x 5.0 x 6.0 x 7.0 x

278.49$ 45.0% 8.3% 8.5% 8.7% 8.9% 9.1% 9.3%

268.88$ 40.0% 9.1% 9.4% 9.6% 9.9% 10.2% 10.5%

259.28$ 35.0% 10.0% 10.3% 10.6% 11.0% 11.3% 11.7%

249.68$ 30.0% 10.9% 11.3% 11.7% 12.1% 12.6% 13.1%

240.08$ 25.0% 11.9% 12.3% 12.8% 13.3% 13.9% 14.5%

230.47$ 20.0% 12.9% 13.4% 14.0% 14.6% 15.3% 16.1%

220.87$ 15.0% 13.9% 14.6% 15.2% 16.0% 16.9% 17.8%

211.27$ 10.0% 15.1% 15.8% 16.6% 17.5% 18.5% 19.7%

201.66$ 5.0% 16.3% 17.1% 18.1% 19.1% 20.4% 21.9%

192.06$ 0.0% 17.6% 18.6% 19.7% 20.9% 22.5% 24.3%

PurchasePremium/

Per

Price

PurchasePremium

/Per-Share

Price


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$215,498$180,103

13.7 x

$79,104

$136,394

10.0 x

0.02%

0.06%

$10

ice:

Dilution

34,350

34,350

$79,104

$2,000$31,642

$23,731

$15,821

$7,910

ent %:

N/A

10.0%

5.0%

0.0%

0.0%

$215,498

$43


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$49

$10

$215,600

10.0%

$284

8

$183,800

20.0%

$36,760

5

$11,113

tments Projections

FY 2009 FY 2010E FY 2011E FY 2012E FY 2013E FY 2014E

25.0% 17.0% 11.0% 9.0% 7.0%

59.0% 59.0% 59.0% 59.0% 59.0%

1.9% 1.9% 1.9% 1.9% 1.9%

8.3% 8.3% 8.3% 8.3% 8.3%

1.7% 1.7% 1.7% 1.7% 1.7%

1.7% 1.7% 1.7% 1.7% 1.7%

1.0% 1.0% 2.0% 2.0% 3.0%

30.0% 30.0% 30.0% 30.0% 30.0%

7.8% 7.8% 7.8% 7.8% 7.8%

28.2 28.2 28.2 28.2 28.2

1.8% 1.8% 1.8% 1.8% 1.8%

$40 $37 $28 $13 $10

22.1% 22.1% 22.1% 22.1% 22.1%

79.6 79.6 79.6 79.6 79.6

87.6% 87.6% 87.6% 87.6% 87.6%

4.8% 4.8% 4.8% 4.8% 4.8%


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2.0% 2.0% 2.0% 2.0% 2.0%

2.7% 2.7% 2.7% 2.7% 2.7%

tments Projections


$53,631 $62,749 $69,651 $75,919 $81,234

$31,655 $37,037 $41,111 $44,811 $47,948

$21,976 $25,712 $28,540 $31,109 $33,286

$1,038 $1,214 $1,348 $1,469 $1,572

$4,458 $5,216 $5,789 $6,311 $6,752

$5,496 $6,430 $7,137 $7,780 $8,324

$918 $1,073 $1,192 $1,299 $1,390

$35 $35 $35 $35 $35

$7,352 $7,352 $7,352 $7,352 $7,352

$10 $10 $10 $10 $10

$40 $37 $28 $13 $10

$888 $1,038 $1,153 $1,256 $1,344

$7,238 $9,736 $11,633 $13,363 $14,821

($6,851) ($6,073) ($4,684) ($3,390) ($2,196)

$387 $3,663 $6,949 $9,973 $12,625

$116 $1,099 $2,085 $2,992 $3,787

$271 $2,564 $4,865 $6,981 $8,837

$16,480 $19,282 $21,403 $23,329 $24,962

tments Projections


$5,000 $5,000 $5,000 $5,000 $7,825 $27,547

$26,282 $26,282 $26,282 $26,282 $26,282 $26,282

$3,361 $4,201 $4,915 $5,456 $5,947 $6,364$455 $569 $665 $739 $805 $861

$4 $4 $4 $4 $4 $4

$3,140 $3,140 $3,140 $3,140 $3,140 $3,140

$38,242 $39,196 $40,007 $40,621 $44,003 $64,198

$2,554 $2,554 $2,554 $2,554 $2,554 $2,554

$3,123 $3,600 $4,164 $4,794 $5,484 $6,225


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$157,869 $157,869 $157,869 $157,869 $157,869 $157,869

$37,114 $29,722 $22,333 $14,953 $7,588 $226

$49 $39 $29 $19 $10 $0

$2,011 $2,011 $2,011 $2,011 $2,011 $2,011

$240,962 $234,991 $228,967 $222,821 $219,519 $233,083

$0 $0 $0 $0 $0 $0

$5,601 $7,001 $8,191 $9,093 $9,911 $10,605

$3,852 $4,815 $5,634 $6,253 $6,816 $7,293

$2,053 $2,566 $3,003 $3,333 $3,633 $3,887

$11,506 $14,383 $16,828 $18,679 $20,360 $21,785

$853 $1,066 $1,248 $1,385 $1,509 $1,615

$0 $0 $0 $0 $0 $0

$31,642 $21,509 $9,191 ($0) ($0) $0

$23,731 $22,545 $21,358 $14,971 ($0) $0

$15,821 $15,821 $15,821 $15,821 $15,821 $15,821

$7,910 $9,010 $10,263 $11,690 $13,315 $15,167

$11,113 $11,113 $11,113 $11,113 $11,113 $11,113

$3,502 $3,502 $3,502 $3,502 $3,502 $3,502

$106,078 $98,949 $89,323 $77,160 $65,620 $69,002

$0 $0 $0 $0 $0 $0

$0 $888 $1,926 $3,078 $4,335 $5,679$0 $0 $0 $0 $0 $0

$134,937 $134,937 $134,937 $134,937 $134,937 $134,937

($53) $218 $2,782 $7,646 $14,628 $23,465

$0 $0 $0 $0 $0 $0

$134,883 $136,042 $139,644 $145,661 $153,899 $164,080

$240,962 $234,991 $228,967 $222,821 $219,519 $233,083

$0 $0 ($0) ($0) $0 $0

tments Projections


$271 $2,564 $4,865 $6,981 $8,837

$918 $1,073 $1,192 $1,299 $1,390

$35 $35 $35 $35 $35

$7,352 $7,352 $7,352 $7,352 $7,352

$10 $10 $10 $10 $10


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$1,100 $1,253 $1,427 $1,625 $1,851

$40 $37 $28 $13 $10

$888 $1,038 $1,153 $1,256 $1,344

($840) ($714) ($541) ($491) ($416)

($114) ($97) ($73) ($66) ($56)

$0 $0 $0 $0 $0$0 $0 $0 $0 $0

$1,400 $1,190 $901 $818 $694

$727 $618 $468 $425 $360

$963 $819 $620 $563 $477

$12,749 $15,178 $17,435 $19,820 $21,888

($1,430) ($1,673) ($1,857) ($2,024) ($2,166)

$11,319 $13,505 $15,578 $17,796 $19,722

$0 $0 $0 $0 $0

($10,132) ($12,319) ($9,191) ($0) ($0)

($1,187) ($1,187) ($6,387) ($14,971) ($0)

$0 $0 $0 $0 $0

$0 $0 $0 $0 $0

($11,319) ($13,505) ($15,578) ($14,971) ($0)

$0 $0 $0 $2,825 $19,722

$5,000 $5,000 $5,000 $5,000 $7,825

$5,000 $5,000 $5,000 $7,825 $27,547

Projections

FY 2010E FY 2011E FY 2012E FY 2013E FY 2014E

4.55% 4.78% 4.94% 4.75% 4.40%

7.05% 7.28% 7.44% 7.25% 6.90%

8.05% 8.28% 8.44% 8.25% 7.90%

9.55% 9.78% 9.94% 9.75% 9.40%11.00% 11.00% 11.00% 11.00% 11.00%

13.00% 13.00% 13.00% 13.00% 13.00%

$0 $0 $0 $0 $0

($2,139) ($1,271) ($388) $0 ($0)

($2,210) ($2,147) ($1,806) ($730) ($0)

($1,740) ($1,740) ($1,740) ($1,740) ($1,740)


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($1,100) ($1,253) ($1,427) ($1,625) ($1,851)

$338 $338 $677 $705 $1,396

($6,851) ($6,073) ($4,684) ($3,390) ($2,196)

$5,000 $5,000 $5,000 $5,000 $7,825

($5,000) ($5,000) ($5,000) ($5,000) ($5,000)$11,319 $13,505 $15,578 $17,796 $19,722

$11,319 $13,505 $15,578 $17,796 $22,547

$0 $0 $0 $0 $0

$11,319 $13,505 $15,578 $17,796 $22,547

$3,164 $3,164 $3,164 ($0) ($0)

$1,187 $1,187 $1,187 $1,187 ($0)

$0 $0 $0 $0 $0

$0 $0 $0 $0 $0

$4,351 $4,351 $4,351 $1,187 ($0)

$0 $0 $0 $0 $0

$6,968 $9,155 $6,027 $0 $0

$0 $0 $5,201 $13,784 $0

$0 $0 $0 $0 $0

$0 $0 $0 $0 $0

$6,968 $9,155 $11,227 $13,784 $0

$0 $0 $0 $2,825 $22,547

$11,319 $13,505 $15,578 $17,796 $22,547


$13,184 $24,962

13.7 x 10.0 x

$180,103 $249,618

($134,937) $0 $0 $0 $0 $275,014

15.3%

12.0 x 13.0 x 14.0 x

12.8% 14.4% 16.0%

13.9% 15.6% 17.2%


64/64

15.1% 16.8% 18.4%

16.4% 18.1% 19.7%

17.7% 19.5% 21.1%

19.2% 21.0% 22.7%

20.8% 22.6% 24.3%

22.6% 24.4% 26.1%

24.5% 26.4% 28.1%26.6% 28.5% 30.3%

8.0 x 9.0 x 10.0 x

9.5% 9.7% 10.0%

10.8% 11.1% 11.5%

12.1% 12.6% 13.2%

13.6% 14.3% 15.1%

15.3% 16.1% 17.2%

17.0% 18.2% 19.6%

19.0% 20.5% 22.4%

21.2% 23.1% 25.5%

23.7% 26.1% 29.3%

26.6% 29.6% 33.9%

50 13 Pasting in Excel Full Model After HH

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