50 13 Pasting in Excel Full Model After HH

Aardvark - Financial Statements
($ in Millions, Except Per Share Amounts in Dollars and Share Counts in Thousands)
Assumptions & Valuation Overview
Valuation Date:
Company Name:
Share Price:
Basic Shares Outstanding:
Basic Equity Value:
Diluted Shares Outstanding:
Diluted Equity Value:
Less: Cash & Investments
Plus: Debt
Plus: Minority Interest
Plus: Preferred Stock
Plus: Other Liabilities
Enterprise Value:
1/29/2010
Aardvark
$192.06
Last Historical Year:

Debt Issue Date:
Share Units:
900,678
$172,984
935,023
$179,581
$35,395
$0
$0
$0
$0
$144,186
2009
2010
1000
Days in Year:
Debt Amount:
Tax Rate:
360
$1,000
30%
Options Calculations (in Thousands Except Exercise Price):

Exercise
Name
Number
Price
Tranche A
34,375
$0.17
Tranche B
Tranche C
Tranche D
Tranche E
Total
FY 2007
Historical
FY 2008
FY 2009
Dilution
34,345
34,345
Projections
FY 2010E FY 2011E FY 2012E FY 2013E FY 2014E
EV / Revenue:
EV / EBIT:
EV / EBITDA:
5.9 x
31.0 x
29.0 x
3.8 x
16.3 x
15.4 x
3.4 x
11.6 x
10.9 x
2.7 x
9.3 x
8.7 x
2.3 x
7.9 x
7.5 x
2.1 x
7.1 x
6.7 x
1.9 x
6.5 x
6.2 x
1.8 x
6.1 x
5.8 x
Equity Value / FCF:

P / E:
P / BV:
37.9 x
48.9 x
21.1 x
28.3 x
7.9 x
17.4 x
21.2 x
5.6 x
13.7 x
16.6 x
4.1 x
12.3 x
14.1 x
3.1 x
11.1 x
12.2 x
2.4 x
10.3 x
11.1 x
2.0 x
9.3 x
9.8 x
1.6 x
Operating Assumptions
FY 2007
Historical
FY 2008
FY 2009
Projections
Revenue Growth %:
COGS % Revenue:
R&D % Revenue:
SG&A % Revenue:
27.2%
66.2%
2.4%
11.1%
52.5%
64.1%
2.0%
8.9%
14.4%
59.0%
1.9%
8.3%
25.0%
59.0%
1.9%
8.3%
17.0%
59.0%
1.9%
8.3%
11.0%
59.0%
1.9%
8.3%
9.0%
59.0%
1.9%
8.3%
7.0%
59.0%
1.9%
8.3%
Stock-Based Compensation % Revenue:

Depreciation & Amortization % Revenue:
Effective Cash Interest Rate:
Debt Interest Rate:
Effective Tax Rate:
1.0%
1.3%
5.3%
0.0%
30.2%
1.4%
1.3%
3.4%
0.0%
31.6%
1.7%
1.7%
1.4%
0.0%
31.8%
1.7%
1.7%
1.0%
9.0%
30.0%
1.7%
1.7%
1.0%
9.0%
30.0%
1.7%
1.7%
2.0%
9.0%
30.0%
1.7%
1.7%
2.0%
9.0%
30.0%
1.7%
1.7%
3.0%
9.0%
30.0%
6.5%
23.3
2.1%
7.8%
28.2
1.8%
7.8%
28.2
1.8%
$40
7.8%
28.2
1.8%
$37
7.8%
28.2
1.8%
$28
7.8%
28.2
1.8%
$13
7.8%
28.2
1.8%
$10
23.0%
82.6
102.9%
4.3%
2.0%
22.1%
79.6
87.6%
4.8%
2.0%
22.1%
79.6
87.6%
4.8%
2.0%
22.1%
79.6
87.6%
4.8%
2.0%
22.1%
79.6
87.6%
4.8%
2.0%
22.1%
79.6
87.6%
4.8%
2.0%
22.1%
79.6
87.6%
4.8%
2.0%
2.9%
2.7%
2.7%
2.7%
2.7%
2.7%
2.7%
Accounts Receivable % Revenue:

Accounts Receivable Days:
Inventory % COGS:
Amortization of Intangibles:
Accounts Payable % COGS:
Accounts Payable Days:
Accrued Expenses % Operating Expenses:
Short-Term Deferred Revenue % Revenue:
Long-Term Deferred Revenue % Revenue:
CapEx % Revenue:
3.0%
Income Statement
Revenue:
Cost of Goods Sold:
Gross Profit:
Operating Expenses:
FY 2007
FY 2008
FY 2009
$24,578
$16,282
$8,296
$37,491
$24,049
$13,442
$42,905
$25,324
$17,581

$53,631
$31,655
$21,976
$62,749
$37,037
$25,712
$69,651
$41,111
$28,540
$75,919
$44,811
$31,109
$81,234
$47,948
$33,286
Research & Development:

Selling, General & Administrative:
Total Operating Expenses:
$596
$2,724
$3,320
$759
$3,345
$4,103
$830
$3,566
$4,397
$1,038
$4,458
$5,496
$1,214
$5,216
$6,430
$1,348
$5,789
$7,137
$1,469
$6,311
$7,780
$1,572
$6,752
$8,324
$327
$0
$242
$496
$0
$516
$734
$0
$710
$918
$40
$888
$1,073
$37
$1,038
$1,192
$28
$1,153
$1,299
$13
$1,256
$1,390
$10
$1,344
Operating Income:
Interest Income:
Interest Expense:
Other Income & Expense:
Pre-Tax Income:
Income Tax Provision:
$4,407
$647
$0
($48)
$5,006
$1,511
$8,327
$653
$0
($33)
$8,947
$2,828
$11,740
$407
$0
($81)
$12,066
$3,831
$14,635
$424
($45)
$0
$15,014
$4,504
$17,133
$568
($90)
$0
$17,610
$5,283
$19,030
$1,443
($90)
$0
$20,383
$6,115
$20,761
$1,780
($90)
$0
$22,450
$6,735
$22,218
$3,223
($90)
$0
$25,351
$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
889,292
$6.78
902,139
$9.08
907,005
$4,649
$4,976
$4,735
$8,843
$9,339
$8,505
$24.17
$12,450
$13,184
$10,311
$34.56
FY 2008
FY 2009
$11,875
$10,236
$2,422
$509
$1,044
$6,559
$26,282
$3,361
$455
$4
Depreciation & Amortization of PP&E:

Stock-Based Compensation:
EBIT:
EBITDA:
Levered Free Cash Flow:
Book Value Per Share (BV):
$11.59
907,005
$15,523
$16,480
$13,061
$47.17
$13.59
907,005
$18,171
$19,282
$14,618
$61.94
$15.73
907,005
$20,183
$21,403
$16,158
$78.98
$17.33
907,005
$22,017
$23,329
$17,507
$97.70
$19.56
907,005
$23,562
$24,962
$19,382
$118.76
Balance Sheet
Assets:
Current Assets:
Cash & Cash-Equivalents:
Short-Term Securities:
Accounts Receivable:
Inventory:
Deferred Tax Assets:
$20,620
$26,282
$4,201
$569
$4
$35,238
$26,282
$4,915
$665
$4
$51,396
$26,282
$5,456
$739
$4
$68,903
$26,282
$5,947
$805
$4
$88,285
$26,282
$6,364
$861
$4
Other Current Assets:

Total Current Assets:
$3,920
$30,006
$3,140
$39,801
$3,140
$54,816
$3,140
$70,245
$3,140
$3,140
$3,140
$87,017 $105,082 $124,936
Long-Term Assets:
Long-Term Securities:
Plants, Property & Equipment:
Goodwill:
Other Intangible Assets:
Other Assets:
Total Assets:
$2,379
$2,455
$207
$285
$839
$36,171
$2,554
$2,839
$207
$354
$2,011
$47,766
$2,554
$3,352
$207
$314
$2,011
$63,253
$2,554
$3,951
$207
$277
$2,011
$79,245
$2,554
$2,554
$2,554
$4,617
$5,342
$6,118
$207
$207
$207
$249
$236
$226
$2,011
$2,011
$2,011
$96,654 $115,432 $136,052
Liabilities & Shareholders' Equity:

Current Liabilities:
Accounts Payable:
Accrued Expenses:
Deferred Revenue:
Total Current Liabilities:
$5,520
$4,224
$1,617
$11,361
$5,601
$3,852
$2,053
$11,506
$7,001
$4,815
$2,566
$14,383
$8,191
$5,634
$3,003
$16,828
$9,093
$6,253
$3,333
$18,679
$9,911
$6,816
$3,633
$20,360
$10,605
$7,293
$3,887
$21,785
Long-Term Liabilities:
Deferred Revenue:
Long-Term Debt:
Other Long-Term Liabilities:
Total Liabilities:
$768
$0
$1,745
$13,874
$853
$0
$3,502
$15,861
$1,066
$1,000
$3,502
$19,951
$1,248
$1,000
$3,502
$22,577
$1,385
$1,000
$3,502
$24,565
$1,509
$1,000
$3,502
$26,371
$1,615
$1,000
$3,502
$27,902
Shareholders' Equity:
Common Stock:
Additional Paid-In Capital:
Treasury Stock:
Retained Earnings:
Accumulated Other Comprehensive Income:
Total Shareholders' Equity:
$7,177
$0
$0
$15,129
($9)
$22,297
$7,177
$1,185
$0
$23,364
$179
$31,905
$7,177
$2,073
$0
$33,874
$179
$43,302
$7,177
$3,111
$0
$46,201
$179
$56,668
$7,177
$4,263
$0
$60,470
$179
$72,089
$7,177
$7,177
$5,520
$6,864
$0
$0
$76,185 $93,930
$179
$179
$89,061 $108,151
Total Liabilities & SE:
$36,171
$47,766
$63,253
$79,245
$96,654 $115,432 $136,052
BALANCE CHECK:
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
$0.000
FY 2007
FY 2008
FY 2009
$3,495
$327
$0
$242
$73
$12
$6,119
$496
$0
$516
$398
$22
$8,235
$734
$0
$710
$1,040
$26
$10,510
$918
$40
$888
$0
$0
$12,327
$1,073
$37
$1,038
$0
$0
$14,268
$1,192
$28
$1,153
$0
$0
$15,715
$1,299
$13
$1,256
$0
$0
$17,746
$1,390
$10
$1,344
$0
$0
($385)
($76)
($1,279)
$285
$1,494
$566
$716
$5,470
($785)
($163)
($274)
$289
$596
$718
$1,664
$9,596
($939)
$54
$780
($1,172)
$81
$521
$1,385
$11,455
($840)
($114)
$0
$0
$1,400
$727
$963
$14,491
($714)
($97)
$0
$0
$1,190
$618
$819
$16,292
($541)
($73)
$0
$0
$901
$468
$620
$18,015
($491)
($66)
$0
$0
$818
$425
$563
$19,532
($416)
($56)
$0
$0
$694
$360
$477
$21,548
($11,719) ($22,965) ($46,724)

$9,424 $16,243 $30,678
($17)
($38)
($101)
($735) ($1,091) ($1,144)
($251)
($108)
($69)
$49
($230)
($74)
($3,249) ($8,189) ($17,434)
$0
$0
$0
($1,430)
$0
$0
($1,430)
$0
$0
$0
($1,673)
$0
$0
($1,673)
$0
$0
$0
($1,857)
$0
$0
($1,857)
$0
$0
$0
($2,024)
$0
$0
($2,024)
$0
$0
$0
($2,166)
$0
$0
($2,166)
Cash Flow Statement

Operating Activities:
Net Income:
Deferred Income Tax Expense:
Loss on PP&E:
Changes in Operating Assets & Liabilities:
Inventory:
Other Assets:
Accounts Payable:
Deferred Revenue:
Other Liabilities:
Cash Flow from Operations:
Investing Activities:
Purchases of Securities:
Proceeds from Maturities & Sales:
Purchases of LT Investments:
Capital Expenditures:
Acquisition of Intangibles:
Other:
Cash Flow from Investing:
Financing Activities:
Proceeds from Common Stock:
Common Stock Repurchased:
Dividends Issued:
$365
$0
$0
$483
$0
$0
$475
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Tax Benefits from Stock-Based Comp:

Raise / (Pay Off) Long-Term Debt
Cash Used for Equity Awards:
Cash Flow from Financing:
Increase / Decrease in Cash:
Cash & Cash Equivalents:
$377
$0
($3)
$739
$2,960
$9,352
$757
$0
($124)
$1,116
$2,523
$11,875
$270
$0
($82)
$663
$0
$1,000
$0
$1,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
($5,316)
$6,559
$14,061
$20,620
$14,618
$35,238
$16,158
$51,396
$17,507
$68,903
$19,382
$88,285
ARM
29-Jan-09
30-Jan-09
2-Feb-09
3-Feb-09
4-Feb-09
5-Feb-09
6-Feb-09
9-Feb-09
11-Feb-09
12-Feb-09
13-Feb-09
16-Feb-09
17-Feb-09
18-Feb-09
19-Feb-09
20-Feb-09
23-Feb-09
24-Feb-09
25-Feb-09
26-Feb-09
27-Feb-09
2-Mar-09
3-Mar-09
4-Mar-09
5-Mar-09
6-Mar-09
9-Mar-09
10-Mar-09
11-Mar-09
12-Mar-09
13-Mar-09
16-Mar-09
17-Mar-09
18-Mar-09
19-Mar-09
20-Mar-09
23-Mar-09
24-Mar-09
25-Mar-09
26-Mar-09
27-Mar-09
30-Mar-09
31-Mar-09
1-Apr-09
2-Apr-09
3-Apr-09
6-Apr-09
7-Apr-09
8-Apr-09
9-Apr-09
14-Apr-09
15-Apr-09
16-Apr-09
17-Apr-09
20-Apr-09
21-Apr-09
22-Apr-09
23-Apr-09
24-Apr-09
27-Apr-09
28-Apr-09
29-Apr-09
30-Apr-09
1-May-09
5-May-09
6-May-09
7-May-09
8-May-09
11-May-09
12-May-09
13-May-09
14-May-09
15-May-09
18-May-09
19-May-09
20-May-09
21-May-09
22-May-09
26-May-09
27-May-09
28-May-09
29-May-09
1-Jun-09
2-Jun-09
3-Jun-09
4-Jun-09
5-Jun-09
8-Jun-09
9-Jun-09
10-Jun-09
11-Jun-09
12-Jun-09
15-Jun-09
16-Jun-09
17-Jun-09
18-Jun-09
19-Jun-09
22-Jun-09
23-Jun-09
24-Jun-09
26-Jun-09
29-Jun-09
30-Jun-09
1-Jul-09
2-Jul-09
3-Jul-09
6-Jul-09
7-Jul-09
8-Jul-09
9-Jul-09
10-Jul-09
13-Jul-09
14-Jul-09
15-Jul-09
16-Jul-09
17-Jul-09
20-Jul-09
21-Jul-09
22-Jul-09
23-Jul-09
24-Jul-09
27-Jul-09
28-Jul-09
29-Jul-09
30-Jul-09
31-Jul-09
3-Aug-09
4-Aug-09
5-Aug-09
6-Aug-09
7-Aug-09
10-Aug-09
12-Aug-09
13-Aug-09
14-Aug-09
17-Aug-09
18-Aug-09
19-Aug-09
20-Aug-09
21-Aug-09
24-Aug-09
25-Aug-09
26-Aug-09
27-Aug-09
28-Aug-09
1-Sep-09
3-Sep-09
4-Sep-09
7-Sep-09
8-Sep-09
9-Sep-09
10-Sep-09
11-Sep-09
14-Sep-09
15-Sep-09
16-Sep-09
17-Sep-09
18-Sep-09
21-Sep-09
22-Sep-09
23-Sep-09
24-Sep-09
25-Sep-09
28-Sep-09
29-Sep-09
30-Sep-09
1-Oct-09
2-Oct-09
5-Oct-09
6-Oct-09
7-Oct-09
8-Oct-09
9-Oct-09
12-Oct-09
13-Oct-09
14-Oct-09
15-Oct-09
16-Oct-09
19-Oct-09
20-Oct-09
21-Oct-09
22-Oct-09
26-Oct-09
27-Oct-09
28-Oct-09
29-Oct-09
30-Oct-09
2-Nov-09
3-Nov-09
4-Nov-09
5-Nov-09
6-Nov-09
9-Nov-09
10-Nov-09
11-Nov-09
12-Nov-09
13-Nov-09
16-Nov-09
17-Nov-09
18-Nov-09
19-Nov-09
20-Nov-09
23-Nov-09
24-Nov-09
25-Nov-09
26-Nov-09
27-Nov-09
30-Nov-09
1-Dec-09
2-Dec-09
3-Dec-09
4-Dec-09
7-Dec-09
8-Dec-09
9-Dec-09
10-Dec-09
11-Dec-09
14-Dec-09
15-Dec-09
16-Dec-09
17-Dec-09
18-Dec-09
21-Dec-09
22-Dec-09
23-Dec-09
24-Dec-09
29-Dec-09
30-Dec-09
31-Dec-09
4-Jan-10
5-Jan-10
6-Jan-10
7-Jan-10
8-Jan-10
11-Jan-10
12-Jan-10
13-Jan-10
14-Jan-10
15-Jan-10
18-Jan-10
19-Jan-10
20-Jan-10
21-Jan-10
22-Jan-10
25-Jan-10
26-Jan-10
27-Jan-10
28-Jan-10
29-Jan-10
ARM
29-Jan-09
30-Jan-09
2-Feb-09
3-Feb-09
4-Feb-09
5-Feb-09
6-Feb-09
9-Feb-09
11-Feb-09
12-Feb-09
13-Feb-09
16-Feb-09
17-Feb-09
18-Feb-09
19-Feb-09
20-Feb-09
23-Feb-09
24-Feb-09
25-Feb-09
26-Feb-09
27-Feb-09
2-Mar-09
3-Mar-09
4-Mar-09
5-Mar-09
6-Mar-09
9-Mar-09
10-Mar-09
11-Mar-09
12-Mar-09
13-Mar-09
16-Mar-09
17-Mar-09
18-Mar-09
19-Mar-09
20-Mar-09
23-Mar-09
24-Mar-09
25-Mar-09
26-Mar-09
27-Mar-09
30-Mar-09
31-Mar-09
1-Apr-09
$90.00
$91.75
$87.00
$94.25
$94.75
$95.25
$99.75
$95.25
$96.25
$97.75
$96.50
$96.00
$94.00
$93.50
$90.00
$86.50
$85.50
$86.25
$93.50
$96.25
$95.75
$93.50
$93.00
$91.25
$89.75
$90.00
$90.50
$95.00
$96.00
$98.75
$103.50
$104.50
$106.00
$106.00
$102.50
$101.75
$101.00
$101.75
$103.50
$103.00
$103.00
$101.50
$102.50
$108.50
RIMM
10956700
9277118
8270601
17940373
8811128
4930347
11514498
12007594
6642716
5991119
5215132
1512353
5541877
6782178
7859890
9811943
6752446
14950797
10569996
10984666
7694174
6407292
7072744
13200655
4007427
5691572
7556248
10638036
10798288
10197750
11888940
7426163
9919826
6764249
11919791
12089511
5516971
8322802
4145827
3495978
4670851
3761988
8326493
11308202
29-Jan-09
30-Jan-09
2-Feb-09
3-Feb-09
4-Feb-09
5-Feb-09
6-Feb-09
9-Feb-09
10-Feb-09
11-Feb-09
12-Feb-09
13-Feb-09
17-Feb-09
18-Feb-09
19-Feb-09
20-Feb-09
23-Feb-09
24-Feb-09
25-Feb-09
26-Feb-09
27-Feb-09
2-Mar-09
3-Mar-09
4-Mar-09
5-Mar-09
6-Mar-09
9-Mar-09
10-Mar-09
11-Mar-09
12-Mar-09
13-Mar-09
16-Mar-09
17-Mar-09
18-Mar-09
19-Mar-09
20-Mar-09
23-Mar-09
24-Mar-09
25-Mar-09
26-Mar-09
27-Mar-09
30-Mar-09
31-Mar-09
1-Apr-09
$54.77
$55.40
$55.90
$55.52
$55.96
$56.80
$59.17
$59.00
$57.04
$48.76
$50.42
$48.51
$44.64
$42.10
$42.09
$39.15
$37.42
$40.42
$41.17
$39.54
$39.94
$36.88
$37.95
$40.49
$37.98
$36.34
$35.25
$38.96
$40.34
$41.46
$40.18
$39.17
$41.66
$40.98
$42.34
$41.68
$44.90
$44.23
$42.92
$45.04
$45.01
$43.25
$43.11
$45.62
16514948
20020819
21422902
18320833
20704074
20831499
19325865
17918371
20819253
81583455
30487175
23721447
27526043
25678087
23586283
35251801
24621421
22531528
21288619
16883828
19620547
20212932
20307414
19668091
16222326
21351949
16531771
26873523
21216200
18357200
17364413
15570333
16941770
22055585
21825685
19061126
17385986
13798719
20077184
24830837
19194173
15397581
12368473
28143810
2-Apr-09
3-Apr-09
6-Apr-09
7-Apr-09
8-Apr-09
9-Apr-09
14-Apr-09
15-Apr-09
16-Apr-09
17-Apr-09
20-Apr-09
21-Apr-09
22-Apr-09
23-Apr-09
24-Apr-09
27-Apr-09
28-Apr-09
29-Apr-09
30-Apr-09
1-May-09
5-May-09
6-May-09
7-May-09
8-May-09
11-May-09
12-May-09
13-May-09
14-May-09
15-May-09
18-May-09
19-May-09
20-May-09
21-May-09
22-May-09
26-May-09
27-May-09
28-May-09
29-May-09
1-Jun-09
2-Jun-09
3-Jun-09
4-Jun-09
5-Jun-09
8-Jun-09
9-Jun-09
10-Jun-09
11-Jun-09
$110.00
$109.75
$113.00
$110.75
$110.00
$112.50
$112.25
$112.50
$114.50
$115.00
$113.25
$115.00
$116.75
$116.25
$116.25
$116.50
$116.00
$116.00
$120.00
$118.25
$121.75
$114.75
$112.50
$107.00
$105.75
$108.75
$109.00
$107.50
$109.75
$114.75
$117.50
$118.50
$112.00
$110.50
$106.00
$109.50
$106.75
$106.25
$107.25
$108.50
$104.00
$104.50
$106.50
$107.75
$107.50
$106.50
$105.25
12371875
13919903
11554743
8222442
5066599
10603176
6762770
5468300
6516642
5859841
1015966
4240001
818536
2030833
1535678
2033201
2149112
1630637
1233430
1445982
530094
6527332
1680744
1991639
1431414
998923
1430141
1135630
1140196
1118053
554909
3244924
726220
845084
2765680
2746585
724945
846221
661578
8213825
3294040
860305
4306035
1186264
3828753
2102726
1217862
2-Apr-09
3-Apr-09
6-Apr-09
7-Apr-09
8-Apr-09
9-Apr-09
13-Apr-09
14-Apr-09
15-Apr-09
16-Apr-09
17-Apr-09
20-Apr-09
21-Apr-09
22-Apr-09
23-Apr-09
24-Apr-09
27-Apr-09
28-Apr-09
29-Apr-09
30-Apr-09
1-May-09
4-May-09
5-May-09
6-May-09
7-May-09
8-May-09
11-May-09
12-May-09
13-May-09
14-May-09
15-May-09
18-May-09
19-May-09
20-May-09
21-May-09
22-May-09
26-May-09
27-May-09
28-May-09
29-May-09
1-Jun-09
2-Jun-09
3-Jun-09
4-Jun-09
5-Jun-09
8-Jun-09
9-Jun-09
$49.09
$59.29
$63.97
$59.95
$61.91
$64.18
$64.00
$64.22
$63.90
$67.51
$68.35
$65.10
$67.03
$67.20
$68.27
$68.76
$69.60
$68.10
$66.79
$69.50
$72.30
$74.30
$75.40
$77.07
$73.36
$73.77
$73.18
$71.71
$69.09
$71.12
$72.34
$75.36
$75.20
$75.76
$72.98
$72.03
$76.75
$77.29
$80.30
$78.64
$82.15
$82.61
$80.48
$82.01
$82.70
$81.95
$82.02
46040291
75753901
49260193
39160300
28999010
21754648
17127837
15761390
16393394
24002679
17469039
14208066
16044957
18388808
14862863
15817280
14823426
13048815
18862266
19093501
18667951
18745867
13569481
19346448
22331532
18990620
11512238
27795127
16036927
15356518
13076020
17221930
14122652
15631200
18332861
11587072
18840735
20951769
21330370
19843730
15383006
16441985
14154887
12724651
12983292
12829231
11517665
12-Jun-09
15-Jun-09
16-Jun-09
17-Jun-09
18-Jun-09
19-Jun-09
22-Jun-09
23-Jun-09
24-Jun-09
26-Jun-09
29-Jun-09
30-Jun-09
1-Jul-09
2-Jul-09
3-Jul-09
6-Jul-09
7-Jul-09
8-Jul-09
9-Jul-09
10-Jul-09
13-Jul-09
14-Jul-09
15-Jul-09
16-Jul-09
17-Jul-09
20-Jul-09
21-Jul-09
22-Jul-09
23-Jul-09
24-Jul-09
27-Jul-09
28-Jul-09
29-Jul-09
30-Jul-09
31-Jul-09
3-Aug-09
4-Aug-09
5-Aug-09
6-Aug-09
7-Aug-09
10-Aug-09
12-Aug-09
13-Aug-09
14-Aug-09
17-Aug-09
18-Aug-09
19-Aug-09
$108.25
$108.25
$108.00
$107.00
$107.75
$112.75
$109.75
$109.25
$111.75
$117.75
$119.10
$119.75
$120.00
$120.50
$120.50
$118.75
$117.75
$117.50
$117.50
$122.25
$123.75
$125.00
$130.50
$126.50
$126.00
$127.50
$128.50
$130.00
$130.00
$127.00
$132.25
$128.75
$126.50
$129.50
$126.25
$128.00
$129.50
$125.40
$124.90
$126.30
$126.70
$124.60
$123.60
$122.20
$120.60
$124.50
$124.00
7686640
2510850
1335715
2113440
1459925
8872223
966545
1378738
728215
732205
2010235
1924777
1342552
484124
435511
1335741
863905
1628542
1361910
4145284
3249967
845669
2259657
1048449
625342
614782
2497704
1211399
1843002
1155025
5183000
2899382
646526
1083163
5705413
1711877
3611431
558199
1047948
3556455
556734
1194370
2380916
4150757
854771
1300982
858691
10-Jun-09
11-Jun-09
12-Jun-09
15-Jun-09
16-Jun-09
17-Jun-09
18-Jun-09
19-Jun-09
22-Jun-09
23-Jun-09
24-Jun-09
25-Jun-09
26-Jun-09
29-Jun-09
30-Jun-09
1-Jul-09
2-Jul-09
6-Jul-09
7-Jul-09
8-Jul-09
9-Jul-09
10-Jul-09
13-Jul-09
14-Jul-09
15-Jul-09
16-Jul-09
17-Jul-09
20-Jul-09
21-Jul-09
22-Jul-09
23-Jul-09
24-Jul-09
27-Jul-09
28-Jul-09
29-Jul-09
30-Jul-09
31-Jul-09
3-Aug-09
4-Aug-09
5-Aug-09
6-Aug-09
7-Aug-09
10-Aug-09
12-Aug-09
13-Aug-09
14-Aug-09
17-Aug-09
$83.45
$85.44
$83.02
$80.38
$80.29
$77.21
$76.55
$72.78
$68.11
$69.60
$70.98
$69.30
$70.66
$69.64
$71.09
$69.96
$69.71
$68.67
$66.36
$65.62
$66.36
$66.63
$66.64
$66.18
$70.15
$72.23
$72.43
$74.97
$74.15
$73.50
$76.70
$76.39
$77.54
$76.90
$75.58
$76.14
$75.99
$76.60
$78.51
$79.80
$77.28
$77.09
$73.28
$71.73
$71.65
$72.74
$70.72
15626930
15780814
15230400
18158683
24061449
29283752
40301666
46127288
33289127
23404452
18629850
18270083
14246817
13002219
15125556
12441053
12766578
14036490
15847065
28899119
14364889
10682457
14377122
11199577
19178467
17221349
10870192
16268324
14505200
12279130
18304284
9437297
12701780
11114363
9476280
10615417
8530986
8974466
16803541
12367754
11129675
10185283
15835482
12170679
12998348
14867081
10432088
20-Aug-09
21-Aug-09
24-Aug-09
25-Aug-09
26-Aug-09
27-Aug-09
28-Aug-09
1-Sep-09
3-Sep-09
4-Sep-09
7-Sep-09
8-Sep-09
9-Sep-09
10-Sep-09
11-Sep-09
14-Sep-09
15-Sep-09
16-Sep-09
17-Sep-09
18-Sep-09
21-Sep-09
22-Sep-09
23-Sep-09
24-Sep-09
25-Sep-09
28-Sep-09
29-Sep-09
30-Sep-09
1-Oct-09
2-Oct-09
5-Oct-09
6-Oct-09
7-Oct-09
8-Oct-09
9-Oct-09
12-Oct-09
13-Oct-09
14-Oct-09
15-Oct-09
16-Oct-09
19-Oct-09
20-Oct-09
21-Oct-09
22-Oct-09
26-Oct-09
27-Oct-09
28-Oct-09
$125.30
$127.40
$127.40
$126.10
$126.00
$128.20
$130.90
$127.00
$124.40
$126.90
$130.40
$132.30
$134.10
$134.80
$137.60
$135.80
$135.40
$136.60
$134.90
$135.70
$137.30
$136.10
$138.20
$136.70
$140.50
$141.00
$143.80
$143.60
$139.60
$136.20
$137.90
$143.10
$144.60
$146.70
$152.20
$153.90
$152.00
$154.80
$154.50
$152.60
$157.70
$160.60
$156.00
$150.50
$149.20
$150.00
$146.30
861058
423314
2127698
4780472
4294833
5755358
13938442
6683127
3835422
3557905
5969243
10154859
4214034
4893448
14247043
3983572
2645313
2783222
6723308
5797127
3296712
2872462
4133728
3729008
6757869
4325546
4463850
4525234
3923309
6000230
3881727
4761320
4629975
6885163
9581722
7051921
6413399
6748999
7229666
4572410
7505070
10224641
8589445
12456920
7448666
14731805
8921517
18-Aug-09
19-Aug-09
20-Aug-09
21-Aug-09
24-Aug-09
25-Aug-09
26-Aug-09
27-Aug-09
28-Aug-09
31-Aug-09
1-Sep-09
2-Sep-09
3-Sep-09
4-Sep-09
8-Sep-09
9-Sep-09
10-Sep-09
11-Sep-09
14-Sep-09
15-Sep-09
16-Sep-09
17-Sep-09
18-Sep-09
21-Sep-09
22-Sep-09
23-Sep-09
24-Sep-09
25-Sep-09
28-Sep-09
29-Sep-09
30-Sep-09
1-Oct-09
2-Oct-09
5-Oct-09
6-Oct-09
7-Oct-09
8-Oct-09
9-Oct-09
12-Oct-09
13-Oct-09
14-Oct-09
15-Oct-09
16-Oct-09
19-Oct-09
20-Oct-09
21-Oct-09
22-Oct-09
$73.99
$73.44
$75.41
$77.32
$76.26
$75.56
$74.83
$73.63
$73.83
$73.06
$73.54
$73.91
$75.98
$77.55
$79.28
$78.22
$78.95
$79.37
$81.41
$83.14
$84.16
$82.70
$83.62
$84.16
$84.86
$85.77
$83.06
$68.91
$66.44
$67.64
$67.63
$67.16
$65.42
$65.42
$66.43
$67.32
$68.66
$68.50
$68.00
$68.42
$69.20
$68.34
$66.91
$67.44
$66.60
$65.75
$67.50
13651291
10942189
10309339
11132258
10533471
9163267
7898859
14011968
9991396
8105466
16502239
10362803
9793748
10123555
10077999
11854813
9221946
8649785
9607594
11407757
10796495
17284807
10994039
10367239
11699837
20626509
37969838
88830973
47846737
36516107
27569257
23993489
20470405
25298013
26862816
17230862
19297003
24227666
11028628
10720343
13282260
12390100
14473121
11292616
12059131
13402157
13260779
29-Oct-09
30-Oct-09
2-Nov-09
3-Nov-09
4-Nov-09
5-Nov-09
6-Nov-09
9-Nov-09
10-Nov-09
11-Nov-09
12-Nov-09
13-Nov-09
16-Nov-09
17-Nov-09
18-Nov-09
19-Nov-09
20-Nov-09
23-Nov-09
24-Nov-09
25-Nov-09
26-Nov-09
27-Nov-09
30-Nov-09
1-Dec-09
2-Dec-09
3-Dec-09
4-Dec-09
7-Dec-09
8-Dec-09
9-Dec-09
10-Dec-09
11-Dec-09
14-Dec-09
15-Dec-09
16-Dec-09
17-Dec-09
18-Dec-09
21-Dec-09
22-Dec-09
23-Dec-09
24-Dec-09
29-Dec-09
30-Dec-09
31-Dec-09
4-Jan-10
5-Jan-10
6-Jan-10
$149.00
$149.00
$150.30
$147.00
$150.40
$152.20
$151.70
$155.20
$153.50
$158.60
$158.10
$158.20
$161.30
$159.70
$167.50
$156.00
$151.80
$155.00
$157.90
$158.50
$154.10
$158.10
$154.70
$160.40
$160.30
$161.30
$164.10
$163.20
$166.80
$171.70
$167.20
$169.30
$169.80
$170.50
$173.10
$170.40
$170.30
$172.70
$173.70
$173.20
$175.20
$176.00
$178.40
$177.50
$183.60
$185.70
$189.40
8631885
8318210
6228645
17394174
5300936
5295905
4017596
3628531
5482734
4838608
4664885
5384914
3770695
4974011
9364756
13866245
7306492
4582122
5028479
4660992
3504703
3555887
3187486
4139698
2531645
2344752
3404340
4228142
6269764
10547563
9572380
5334128
9103945
3889209
7108006
5071077
7407949
3561414
3699821
2705215
331407
2120834
1909277
219674
4025336
6057027
7571570
23-Oct-09
26-Oct-09
27-Oct-09
28-Oct-09
29-Oct-09
30-Oct-09
2-Nov-09
3-Nov-09
4-Nov-09
5-Nov-09
6-Nov-09
9-Nov-09
10-Nov-09
11-Nov-09
12-Nov-09
13-Nov-09
16-Nov-09
17-Nov-09
18-Nov-09
19-Nov-09
20-Nov-09
23-Nov-09
24-Nov-09
25-Nov-09
27-Nov-09
30-Nov-09
1-Dec-09
2-Dec-09
3-Dec-09
4-Dec-09
7-Dec-09
8-Dec-09
9-Dec-09
10-Dec-09
11-Dec-09
14-Dec-09
15-Dec-09
16-Dec-09
17-Dec-09
18-Dec-09
21-Dec-09
22-Dec-09
23-Dec-09
24-Dec-09
28-Dec-09
29-Dec-09
30-Dec-09
$65.77
$65.68
$63.75
$60.78
$61.36
$58.73
$55.74
$59.61
$57.61
$57.79
$58.72
$61.56
$63.67
$64.72
$62.99
$62.69
$61.27
$61.40
$59.85
$58.84
$59.72
$60.00
$59.53
$59.76
$58.14
$57.89
$59.73
$59.81
$58.42
$58.75
$60.28
$61.16
$64.14
$65.80
$63.84
$63.18
$64.08
$64.67
$63.46
$70.00
$69.70
$67.22
$67.61
$66.92
$68.33
$67.48
$67.25
13461878
11332034
15952096
22206777
15415691
21632353
37447570
30719423
19947561
20333471
14976852
26702188
28821900
23255701
14617305
11458515
16712110
15920406
17767474
13898431
17547894
14057281
8294247
7953507
7265717
13388042
13336643
12733219
14077414
13240090
12804183
13585862
25634036
25307552
22631769
16412862
13282571
19880876
29826213
67993984
20582270
21149342
13939197
7310317
10928120
9346947
7147783
7-Jan-10
8-Jan-10
11-Jan-10
12-Jan-10
13-Jan-10
14-Jan-10
15-Jan-10
18-Jan-10
19-Jan-10
20-Jan-10
21-Jan-10
22-Jan-10
25-Jan-10
26-Jan-10
27-Jan-10
28-Jan-10
29-Jan-10
$195.70
$194.70
$195.00
$190.80
$187.90
$189.80
$190.00
$186.90
$188.40
$188.50
$188.80
$189.30
$189.40
$191.60
$193.60
$190.70
$194.30
12154325
17418793
10177570
9818961
9751620
7651653
9284987
4817400
6087448
7398992
5956532
6283349
7631097
7005563
9894438
18809731
12616666
31-Dec-09
4-Jan-10
5-Jan-10
6-Jan-10
7-Jan-10
8-Jan-10
11-Jan-10
12-Jan-10
13-Jan-10
14-Jan-10
15-Jan-10
19-Jan-10
20-Jan-10
21-Jan-10
22-Jan-10
25-Jan-10
26-Jan-10
27-Jan-10
28-Jan-10
29-Jan-10
$67.54
$65.93
$65.80
$65.40
$65.30
$65.46
$64.52
$63.22
$65.54
$66.52
$66.23
$65.30
$63.89
$63.59
$61.68
$61.41
$61.62
$63.71
$64.60
$62.91
6624985
20035771
22082137
16699610
11304863
10642836
12128732
12835842
19986155
19162937
15596079
12002906
11545707
15580630
13500156
10218268
14284490
14507973
17822263
15823869
Valuation Summary - Aardvark

Valuation Statistics - Aardvark
Methodology Name
Public Company Comparables:
2009 EV / Revenue:
2010E EV / Revenue:
2009 EV / EBITDA:
2010E EV / EBITDA:
2009 P / E:
2010E P / E:
Precedent Transactions:
Trailing EV / Revenue:
Forward EV / Revenue:
Trailing EV / EBITDA:
Forward EV / EBITDA:
Discounted Cash Flow Analysis:
11-15% Discount Rate, 5-9x Terminal Multiple:
Aardvark - Range of Valuation Multiples / Premiums
Minimum
Multiple
25th
Pecentile
Multiple
Median
Multiple
75th
Pecentile
Multiple
0.3 x
0.3 x
4.4 x
3.7 x
15.0 x
10.9 x
0.5 x
0.5 x
7.3 x
5.1 x
16.1 x
12.2 x
1.1 x
1.0 x
7.6 x
5.5 x
19.7 x
16.3 x
2.8 x
2.3 x
10.6 x
6.8 x
29.1 x
16.6 x
0.4 x
0.4 x
8.7 x
9.6 x
1.9 x
2.1 x
11.5 x
13.4 x
2.7 x
2.7 x
14.4 x
19.1 x
6.0 x
5.0 x
17.3 x
23.9 x
on Multiples / Premiums
Maximum
Multiple
Aardvark - Implied Per Share Value Range

Applicable
Aardvark
Figure
Minimum
Multiple
25th
Pecentile
Multiple
Median
Multiple
75th
Pecentile
Multiple
Maximum
Multiple
3.1 x
2.6 x
11.5 x
8.4 x
47.2 x
44.6 x
$42,905 $
$53,631
$13,184
$16,480
$9.08
$11.59
51.31 $
53.47
99.92
102.23
136.10
126.68
58.72 $
65.59
140.81
127.06
145.77
140.94
87.70 $
95.33
144.62
135.41
179.19
188.68
167.72 $
171.10
187.13
158.45
264.11
192.55
178.48
186.49
200.26
185.04
428.24
516.50
8.3 x
7.5 x
39.7 x
32.8 x
$42,905 $
$53,631
$13,184
$16,480
56.52 $
62.67
159.88
207.92
127.08 $
160.78
199.85
273.40
163.25 $
194.97
240.50
373.87
314.66 $
323.57
281.11
458.54
417.74
465.52
597.00
615.92
161.34 $
179.37 $
198.85 $
219.90 $
242.64
Balance Sheet Adjustment:
$35,395
Public Company Comparables

2009 EV / Revenue:
2010E EV / Revenue:
2009 EV / EBITDA:
2010E EV / EBITDA:
2009 P / E:
2010E P / E:
Precedent Transactions
Discounted Cash Flow Analysis

$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
Min.
25th
Median
75th
$ 161.34 $ 179.37 $ 198.85 $ 219.90
$
$
$
$
207.92
159.88
62.67
56.52
$
$
$
$
273.40
199.85
160.78
127.08
$
$
$
$
373.87
240.50
194.97
163.25
$
$
$
$
458.54
281.11
323.57
314.66
2010E P / E:
2009 P / E:
2010E EV / EBITDA:
2009 EV / EBITDA:
2010E EV / Revenue:
2009 EV / Revenue:
$
$
$
$
$
$
126.68
136.10
102.23
99.92
53.47
51.31
$
$
$
$
$
$
140.94
145.77
127.06
140.81
65.59
58.72
$
$
$
$
$
$
188.68
179.19
135.41
144.62
95.33
87.70
$
$
$
$
$
$
192.55
264.11
158.45
187.13
171.10
167.72
Min to 25th
25th to Median
Median to 75th
75th to Max
$500.00
$600.00
$700.00
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
597.00
465.52
417.74
$
$
$
$
207.92
159.88
62.67
56.52
$
$
$
$
65.48
39.96
98.11
70.56
$
$
$
$
100.47
40.66
34.19
36.17
$
$
$
$
84.67
40.60
128.60
151.42
$
$
$
$
157.38
315.89
141.96
103.08
$
$
$
$
$
$
516.50
428.24
185.04
200.26
186.49
178.48
$
$
$
$
$
$
126.68
136.10
102.23
99.92
53.47
51.31
$
$
$
$
$
$
14.26
9.67
24.84
40.89
12.12
7.41
$
$
$
$
$
$
47.74
33.43
8.34
3.81
29.74
28.98
$
$
$
$
$
$
3.87
84.92
23.04
42.51
75.77
80.03
$
$
$
$
$
$
323.95
164.13
26.59
13.13
15.39
10.76
Comparable Companies - US-Based Hardware & Networking Companies with Over $20 Billion Revenue
Operating Statistics
Capitalization
Share
Equity
Enterprise
EBITDA(2)
Revenue
Company Name
Hewlett-Packard Company
Dell Inc.
Cisco Systems, Inc.
Intel Corporation
Motorola, Inc.
Price(1)
Value
Value
2009
2010E
2009
$ 47.07 $ 114,779 $ 124,430 $ 114,552 $ 124,179 $ 16,433
12.90
25,241
15,080
51,430
55,380
3,426
22.47
131,739
106,671
34,807
41,163
10,076
19.40
107,224
92,786
32,784
39,941
12,708
6.15
14,239
10,665
23,457
22,056
926
Maximum
75th Percentile
Median
25th Percentile
Minimum
$ 47.07 $ 131,739 $ 124,430 $ 114,552 $ 124,179 $ 16,433

22.47
114,779
106,671
51,430
55,380
12,708
$ 19.40 $ 107,224 $ 92,786 $ 34,807 $ 41,163 $ 10,076
12.90
25,241
15,080
32,784
39,941
3,426
6.15
14,239
10,665
23,457
22,056
926
Aardvark
$ 192.06 $ 179,581 $ 144,186
Valuation Statistics
Capitalization
Share
Equity
Enterprise
(1)
$42,905 $ 53,631
$13,184
Enterprise Value /
Enterprise Value /
(2)
EBITDA
Revenue
Company Name
Dell Inc.
Cisco Systems, Inc.
Intel Corporation
Motorola, Inc.
Price
Value
Value
$ 47.07 $ 114,779 $ 124,430
12.90
25,241
15,080
22.47
131,739
106,671
19.40
107,224
92,786
6.15
14,239
10,665
2009
1.1 x
0.3 x
3.1 x
2.8 x
0.5 x
2010E
1.0 x
0.3 x
2.6 x
2.3 x
0.5 x
2009
7.6 x
4.4 x
10.6 x
7.3 x
11.5 x
Maximum
75th Percentile
Median
25th Percentile
Minimum
$ 47.07 $ 131,739 $ 124,430

22.47
114,779
106,671
$ 19.40 $ 107,224 $ 92,786
12.90
25,241
15,080
6.15
14,239
10,665
3.1 x
2.8 x
1.1 x
0.5 x
0.3 x
2.6 x
2.3 x
1.0 x
0.5 x
0.3 x
11.5 x
10.6 x
7.6 x
7.3 x
4.4 x
Aardvark
$ 192.06 $ 179,581 $ 144,186
3.4 x
2.7 x
10.9 x
Projected
EBITDA
(2)
EPS
2010E
2009
2010E
$ 18,186 $
3.14 $
3.87
4,129
0.79
1.18
12,774
0.97
1.38
18,332
0.41
1.17
1,927
(1.70)
0.14
$ 18,332 $
18,186
$ 12,774 $
4,129
1,927
$16,480
Enterprise Value /
(2)
EBITDA
Revenue
EBITDA Margin(2)
Growth(3)
8.4%
7.7%
18.3%
21.8%
(6.0%)
2009
14.3%
6.7%
28.9%
38.8%
3.9%
2010E
14.6%
7.5%
31.0%
45.9%
8.7%
3.14 $
0.97
0.79 $
0.41
(1.70)
3.87
1.38
1.18
1.17
0.14
21.8%
18.3%
8.4%
7.7%
(6.0%)
38.8%
28.9%
14.3%
6.7%
3.9%
45.9%
31.0%
14.6%
8.7%
7.5%
$9.08 $
11.59
25.0%
30.7%
30.7%
P / E Multiple
2010E
6.8 x
3.7 x
8.4 x
5.1 x
5.5 x
2009
15.0 x
16.4 x
23.1 x
47.2 x
NM
2010E
12.2 x
10.9 x
16.3 x
16.6 x
44.6 x
8.4 x
6.8 x
5.5 x
5.1 x
3.7 x
47.2 x
29.1 x
19.7 x
16.1 x
15.0 x
44.6 x
16.6 x
16.3 x
12.2 x
10.9 x
8.7 x
21.2 x
16.6 x
Networking & Hardware M&A Transactions Over $1 Billion with US-Based Sellers Since 1/1/2008
Aardvark - Comparable M&A Transactions
Equity
Acquirer Name
Cisco Systems, Inc.
Emerson Electric Co.
EMC Corporation
Oracle Corporation
Brocade Communication Systems, Inc.
Target Name
3Com
Starent Networks
Avocent
Data Domain
Sun Microsystems
Foundry Networks
Maximum
75th Percentile
Median
25th Percentile
Minimum
Date
Value
11/11/2009 $ 3,180
10/13/2009
2,777
10/6/2009
1,114
7/8/2009
2,362
4/20/2009
7,075
7/21/2008
2,899
$
$
Enterprise
Value
$ 2,714
2,386
1,147
2,085
5,392
2,063
7,075 $
3,110
2,838 $
2,466
1,114
5,392
2,632
2,235
2,068
1,147
Operating Metrics
Trailing
Forward
Revenue
Revenue
$ 1,265 $ 1,223
288
320
611
542
301
375
13,256
12,462
621
633
Trailing
EBITDA(1)
$
152
154
105
53
623
156
$ 13,256 $ 12,462 $
1,104
1,075
$
616 $
587 $
378
417
288
320
Forward
EBITDA(1)
$
110
110
93
64
559
125
623 $
155
153 $
117
53
559
121
110
97
64
EV /
Trailing
Revenue
2.1 x
8.3 x
1.9 x
6.9 x
0.4 x
3.3 x
8.3 x
6.0 x
2.7 x
1.9 x
0.4 x
Valuation Multiples
EV /
EV /
EV /
Forward
Trailing
Forward
(1)
EBITDA(1)
Revenue EBITDA
2.2 x
17.8 x
24.6 x
7.5 x
15.5 x
21.6 x
2.1 x
10.9 x
12.3 x
5.6 x
39.7 x
32.8 x
0.4 x
8.7 x
9.6 x
3.3 x
13.2 x
16.5 x
7.5 x
5.0 x
2.7 x
2.1 x
0.4 x
39.7 x
17.3 x
14.4 x
11.5 x
8.7 x
32.8 x
23.9 x
19.1 x
13.4 x
9.6 x
Discounted Cash Flow Analysis - Aardvark

Aardvark - Cash Flow Projections
Revenue:
EBITDA:
Operating Income:
$53,631 $ 62,749 $ 69,651 $ 75,919 $ 81,234

$16,480 $ 19,282 $ 21,403 $ 23,329 $ 24,962
$14,635 $ 17,133 $ 19,030 $ 20,761 $ 22,218
Less: Taxes
($4,391)
Plus: Depreciation
Plus: Amortization
Plus: Stock-Based Compensation
$918
$40
$888
($5,140)
($5,709)
($6,228)
($6,665)
$1,073
$37
$1,038
$1,192
$28
$1,153
$1,299
$13
$1,256
$1,390
$10
$1,344
$1,815
($1,673)
$1,374
($1,857)
$1,248
($2,024)
$1,058
($2,166)
Less: Increase in Working Capital:

Less: Capital Expenditures
$2,136
($1,430)
Unlevered Free Cash Flow

Present Value of Free Cash Flow
$12,795 $ 14,284 $ 15,211 $ 16,324 $ 17,189

$12,064 $ 11,971 $ 11,332 $ 10,811 $ 10,119
Normal Discount Period:

Mid-Year Discount:
Free Cash Flow Growth Rate:
1.000
0.500
2.000
1.500
3.000
2.500
4.000
3.500
5.000
4.500
11.6%
6.5%
7.3%
5.3%
Terminal Growth
Rate
Aardvark - Net Present Value Sensitivity - Terminal Growth Rates

Discount Rate
$ 201.78
10.0%
11.0%
12.0%
13.0%
14.0%
0.0% $ 217.48 $ 210.95 $ 204.75 $ 198.85 $ 193.23
1.0% $ 217.48 $ 210.95 $ 204.75 $ 198.85 $ 193.23
2.0% $ 217.48 $ 210.95 $ 204.75 $ 198.85 $ 193.23
3.0% $ 217.48 $ 210.95 $ 204.75 $ 198.85 $ 193.23
4.0% $ 217.48 $ 210.95 $ 204.75 $ 198.85 $ 193.23
5.0% $ 217.48 $ 210.95 $ 204.75 $ 198.85 $ 193.23
$
$
$
$
$
$
15.0%
187.89
187.89
187.89
187.89
187.89
187.89
$
$
$
$
$
$
16.0%
182.80
182.80
182.80
182.80
182.80
182.80
Terminal EBITDA
Multiple
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
Terminal EBITDA
Multiple
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
Aardvark - DCF Assumptions & Output
Use Multiples Method?

Discount Rate:
Yes
12.5%
Terminal EBITDA Multiple:

Terminal Growth Rate:
Terminal Value:
7.0 x
3.0%
$ 174,733
PV of Terminal Value:
Sum of PV of Cash Flows:
Enterprise Value:
$96,980
$56,296
$153,276
Terminal Value % EV:
63.3%
Enterprise Value:
Balance Sheet Adjustment:
Implied Equity Value:
$153,276
$35,395
$188,671
Implied Price Per Share:
$ 201.78
WACC Analysis - Aardvark

Discount Rate Calculation - Assumptions
Risk-Free Rate:
Equity Risk Premium:
Interest Rate on Debt:
4.38%
7.00%
9.00%
Comparable Companies - Unlevered Beta Calculation

Levered
Equity
Name
Beta
Debt
Value
1.04 $ 15,830 $ 114,779
Dell Inc.
1.31
3,793
25,241
Cisco Systems, Inc.
1.23
10,273
131,739
Intel Corporation
1.17
2,224
107,224
Motorola, Inc.
1.87
3,925
14,239
Median
1.23
Aardvark
1.57
Aardvark - Levered Beta & WACC Calculation

Unlevered
Beta
Aardvark
1.16
Tax Rate
20.0%
27.0%
22.0%
33.0%
34.0%
Unlevered
Beta
0.94
1.18
1.16
1.15
1.58
1.16
Debt
Equity
Value
$0 $ 179,581
Tax Rate
30%
Levered
Beta
1.16
Cost of Equity Based on Comparables:

Cost of Equity Based on Historical Beta:
12.50%
15.37%
WACC
12.50%
Merger Model - Aardvark and Research in Motion Limited

Transaction Assumptions
Per Share Purchase Price:
% Cash:
% Debt:
% Stock:
Foregone Cash Interest Rate:
$75.00
33.3%
33.3%
33.3%
1.0%
Revenue Synergy %:
Cost Synergies % OpEx:
10.0%
10.0%
Equity Purchase Price:

Cash Used:
Debt Issued:
New Shares Issued:
Debt Interest Rate:
Revenue Synergy COGS %:
Goodwill Creation & Balance Sheet Adjustments

Goodwill Calculation:
Less: Seller Book Value:
Plus: Write-Off of Existing Goodwill:
Total Allocable Purchase Premium:
$43,049
($6,987)
$147
$36,209
Less: Write-Up of PP&E:

Less: Write-Up of Intangibles:
Less: Write-Down of DTL:
Plus: New Deferred Tax Liability:
Total Goodwill Created:
($174)
($7,242)
($43)
$2,225
$30,975
Fixed Asset Write-Up:

PP&E Write-Up %:
PP&E Write-Up Amount:
Depreciation Period (Years):
Intangible Asset Write-Up:
Purchase Price to Allocate:
% Allocated to Intangibles:
Intangibles Write-Up Amount:
Amortization Period (Years):
New Deferred Tax Liability:
Buyer - Financial Profile
Seller - Financial Profile
Buyer Name:
Share Price:
Enterprise Value:
Tax Rate:
Aardvark
$192.06
935,023
$179,581
$144,186
30%
Buyer - Income Statement
Revenue:
Cost of Goods Sold:
Gross Profit:
Operating Expenses:
Seller Name:
Research in Motion Lim
Share Price:
Enterprise Value:
Tax Rate:
Seller - Income Statement
FY 2010E FY 2011E
$53,631 $62,749
$31,655 $37,037
$21,976 $25,712
$5,496
$6,430
Revenue:
Cost of Goods Sold:
Gross Profit:
Operating Expenses:
Depreciation of PP&E:
$918
$40
$888
$1,073
$37
$1,038
Operating Income:
Interest Income / (Expense):
Pre-Tax Income:
$14,635
$379
$15,014
$4,504
$17,133
$478
$17,610
$5,283
Operating Income:
Pre-Tax Income:
Net Income:
$10,510
$12,327
Net Income:

$11.59
907,005
$13.59
907,005
Combined Income Statement
Combined Revenue:
Revenue Synergies:
Cost of Goods Sold:
Revenue Synergy COGS:
Gross Profit:
Operating Expenses:
OpEx Synergies:
FY 2010E FY 2011E
$70,862 $83,617
$1,723
$2,087
$41,410 $48,905
$862
$1,043
$30,313 $35,755
$8,193
$270
$9,689
$326
Depr. of PP&E Write-Up:
Amort. of New Intangibles:
$1,348
$22
$399
$1,448
$939
$1,637
$22
$470
$1,448
$1,101
Operating Income:
Foregone Interest on Cash:
Interest Paid on New Debt:
Pre-Tax Income:
$18,233
$404
($143)
($1,291)
$17,203
$5,161
$21,713
$510
($143)
($1,291)
$20,789
$6,237
Net Income:
$12,042
$14,552

Accretion / Dilution:
Accretion / Dilution %:
$12.27
981,719
$14.82
981,719
$0.68
5.9%
$1.23
9.1%

Per Share Purchase Price
Sensitivity Analysis - Year 1 EPS Accretion/Dilution and Purchase Price vs. Operating Expense Synergies:
$
$
$
$
$
$
$
$
$
$
5.9%
110.00
105.00
100.00
95.00
90.00
85.00
80.00
75.00
70.00
65.00
0.0%
(8.2%)
(6.5%)
(4.8%)
(3.0%)
(1.2%)
0.6%
2.4%
4.2%
6.0%
7.9%
2.0%
(7.9%)
(6.2%)
(4.5%)
(2.7%)
(0.9%)
0.9%
2.7%
4.5%
6.4%
8.3%
4.0%
(7.6%)
(5.9%)
(4.1%)
(2.4%)
(0.6%)
1.2%
3.0%
4.9%
6.7%
8.6%
Expense Synergies % Seller OpEx:

6.0%
8.0%
10.0%
(7.3%)
(7.0%)
(6.6%)
(5.6%)
(5.2%)
(4.9%)
(3.8%)
(3.5%)
(3.2%)
(2.0%)
(1.7%)
(1.4%)
(0.3%)
0.1%
0.4%
1.5%
1.9%
2.2%
3.4%
3.7%
4.0%
5.2%
5.5%
5.9%
7.0%
7.4%
7.7%
8.9%
9.3%
9.6%
12.0%
(6.3%)
(4.6%)
(2.8%)
(1.1%)
0.7%
2.5%
4.3%
6.2%
8.0%
9.9%
Per Share Purchase Price
Sensitivity Analysis - Year 1 EPS Accretion/Dilution and Purchase Price vs. Revenue Synergies:
$
$
$
$
$
$
$
$
$
$
5.9%
110.00
105.00
100.00
95.00
90.00
85.00
80.00
75.00
70.00
65.00
0.0%
(11.8%)
(10.1%)
(8.3%)
(6.6%)
(4.8%)
(3.1%)
(1.3%)
0.6%
2.4%
4.2%
2.0%
(10.7%)
(9.0%)
(7.3%)
(5.6%)
(3.8%)
(2.0%)
(0.2%)
1.6%
3.5%
5.3%
Revenue Synergies % Seller Revenue:

4.0%
6.0%
8.0%
10.0%
12.0%
(9.7%)
(8.7%)
(7.7%)
(6.6%)
(5.6%)
(8.0%)
(7.0%)
(5.9%)
(4.9%)
(3.9%)
(6.3%)
(5.2%)
(4.2%)
(3.2%)
(2.1%)
(4.5%)
(3.5%)
(2.4%)
(1.4%)
(0.4%)
(2.7%)
(1.7%)
(0.7%)
0.4%
1.4%
(1.0%)
0.1%
1.1%
2.2%
3.2%
0.9%
1.9%
3.0%
4.0%
5.1%
2.7%
3.7%
4.8%
5.9%
6.9%
4.5%
5.6%
6.6%
7.7%
8.8%
6.4%
7.4%
8.5%
9.6%
10.7%
$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
Research 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
$431
$359
$52
$563
$433
$63
$3,937
$25
$3,962
$1,148
$4,682
$33
$4,714
$1,343
$2,814
$3,371
$5.03
560,000
$6.02
560,000
nse Synergies:
14.0%
(6.0%)
(4.3%)
(2.5%)
(0.7%)
1.0%
2.9%
4.7%
6.5%
8.4%
10.3%
16.0%
(5.7%)
(3.9%)
(2.2%)
(0.4%)
1.4%
3.2%
5.0%
6.9%
8.7%
10.6%
14.0%
(4.6%)
(2.9%)
(1.1%)
0.7%
2.5%
4.3%
6.1%
8.0%
9.8%
11.7%
16.0%
(3.6%)
(1.8%)
(0.1%)
1.7%
3.5%
5.3%
7.2%
9.0%
10.9%
12.8%
e:
Merger Model - Seller Diluted Share Count & Combined Balance Sheets
Diluted Share & Enterprise Value Calculations - Seller
Company Name:
Share Price:
Offer Price Per Share:
Current Share Price:
Basic Equity Value:
Plus: Debt
Enterprise Value:
Research in Motion Limited

$62.91
$75.00
Tax Rate:
568,900
$35,789
572,951
$36,044
$2,498
$0
$0
$0
$0
$33,547
Options Calculations - Current Price:

28%
Purchase Price:
Basic Equity Value:
Plus: Debt
Enterprise Value:
568,900
$42,668
573,986
$43,049
$2,498
$0
$0
$0
$0
$40,551
Exercise
Name
Number
Price
Tranche A
10,470
$38.57
Tranche B
Total
Options Calculations - Purchase Price:
Exercise
Name
Number
Price
Tranche A
10,470
$38.57
Tranche B
Total
Balance Sheets - Buyer, Seller & Combined

Assets:
Current Assets:
Cash & Short-Term Securities:
Inventory:
Long-Term Assets:
Buyer
$32,841
$3,361
$455
$4
$3,140
$39,801
Seller
$1,664
$2,613
$573
$176
$190
$5,215
Adjustments
Combined
($14,350)
$0
$0
$0
$0
($14,350)
$20,156
$5,974
$1,028
$180
$3,330
$30,667
Goodwill:
Other Assets:
Total Assets:
$2,554
$2,839
$207
$354
$2,011
$47,766
$834
$1,737
$147
$1,291
$0
$9,224
$0
$174
$30,828
$7,242
$0
$23,894
$3,388
$4,750
$31,182
$8,887
$2,011
$80,884

Accounts Payable:
Accrued Expenses:
Deferred Revenue:
$5,601
$3,852
$2,053
$11,506
$496
$1,604
$67
$2,167
$0
$0
$0
$0
$6,097
$5,456
$2,120
$13,673
Deferred Revenue:
Long-Term Debt:
Deferred Income Tax Liability:
Total Liabilities:
$853
$0
$0
$3,502
$15,861
$0
$0
$43
$28
$2,238
$0
$14,350
$2,181
$0
$16,531
$853
$14,350
$2,225
$3,530
$34,630
Common Stock:
Treasury Stock:
Retained Earnings:
$7,177
$1,185
$0
$23,364
$179
$31,905
$2,236
$139
($45)
$4,664
($8)
$6,987
($2,236)
$14,211
$45
($4,664)
$8
$7,363
$7,177
$15,535
$0
$23,364
$179
$46,255
$47,766
$9,224
$23,894
$80,884
Current Price:
Dilution
4,051
4,051
Purchase Price:
Dilution
5,086
5,086
Aardvark - Basic LBO Model

Offer Premium:
% Debt:
% Equity:
Purchase Price Calculations:
Basic Equity Value:
Plus: Debt
Enterprise Value:
$192.06
20.0%
$230.47
50.0%
50.0%

Enterprise Value:
EBITDA Purchase Multiple:
Debt Required:
Equity Used:
EBITDA Exit Multiple:
$215,498
$180,103
13.7 x
$107,749
$107,749
10.0 x
900,678
$207,581
935,028
$215,498
$35,395
$0
$0
$0
$0
$180,103
Advisory Fee %:
Financing Fee %:
0.02%
0.06%
Debt %:
Bank Debt %:
High-Yield Debt %:
50.0%
75.0%
25.0%
Debt Required:
Bank Debt:
High-Yield Debt:
Bank Debt Interest Rate:

High-Yield Debt Interest Rate:
8.0%
11.0%
Bank Debt Principal Repayment %:

High-Yield Debt Principal Repayment %:
Name
Tranche A
Tranche B
Total
Exercise
Number
Price
34,375
$0.17
Dilution
34,350
34,350
Debt Assumptions
Sources & Uses
$107,749
$80,812
$26,937
10.0%
0.0%
Sources:
Bank Debt:
High-Yield Debt:
Investor Equity:
Total Sources:
Uses:
$80,812
$26,937
$107,857
$215,606
Equity Value of Company:

Advisory Fees:
Financing Fees:
Total Uses:
$215,498
$43
$65
$215,606
Initial Cash Balance:
Minimum Cash Balance:
$6,559
$5,000
FY 2007
Historical
FY 2008
FY 2009
Projections
FY 2010E FY 2011E FY 2012E FY 2013E
FY 2014E
Revenue Growth %:
COGS % Revenue:
R&D % Revenue:
SG&A % Revenue:
27.2%
66.2%
2.4%
11.1%
52.5%
64.1%
2.0%
8.9%
14.4%
59.0%
1.9%
8.3%
25.0%
59.0%
1.9%
8.3%
17.0%
59.0%
1.9%
8.3%
11.0%
59.0%
1.9%
8.3%
9.0%
59.0%
1.9%
8.3%
7.0%
59.0%
1.9%
8.3%

Effective Tax Rate:
1.0%
1.3%
5.3%
30.2%
1.4%
1.3%
3.4%
31.6%
1.7%
1.7%
1.4%
31.8%
1.7%
1.7%
1.0%
30.0%
1.7%
1.7%
1.0%
30.0%
1.7%
1.7%
2.0%
30.0%
1.7%
1.7%
2.0%
30.0%
1.7%
1.7%
3.0%
30.0%
5.4%
3.0%
5.5%
2.9%
1.7%
2.7%
$40
4.0%
2.7%
$37
2.9%
2.7%
$28
2.0%
2.7%
$13
1.6%
2.7%
$10
1.3%
2.7%
FY 2010E FY 2011E FY 2012E FY 2013E
FY 2014E
Change in Working Capital % Revenue:
CapEx % Revenue:
Income Statement
Revenue:
Cost of Goods Sold:
FY 2007
FY 2008
$24,578
$16,282
$37,491
$24,049
FY 2009
$42,905
$25,324
$53,631
$31,655
$62,749
$37,037
$69,651
$41,111
$75,919
$44,811
$81,234
$47,948
Gross Profit:
Operating Expenses:
$8,296
$13,442
$17,581
$21,976
$25,712
$28,540
$31,109
$33,286
$596
$2,724
$3,320
$759
$3,345
$4,103
$830
$3,566
$4,397
$1,038
$4,458
$5,496
$1,214
$5,216
$6,430
$1,348
$5,789
$7,137
$1,469
$6,311
$7,780
$1,572
$6,752
$8,324
$327
$0
$242
$496
$0
$516
$734
$0
$710
$918
$40
$888
$1,073
$37
$1,038
$1,192
$28
$1,153
$1,299
$13
$1,256
$1,390
$10
$1,344
Operating Income:
Pre-Tax Income:
$4,407
$599
$5,006
$1,511
$8,327
$620
$8,947
$2,828
$11,740
$326
$12,066
$3,831
$14,635
($8,753)
$5,882
$1,765
$17,133
($8,087)
$9,046
$2,714
$19,030
($6,991)
$12,040
$3,612
$20,761
($6,096)
$14,665
$4,400
$22,218
($4,719)
$17,498
$5,250
Net Income:
EBITDA:
$3,495
$4,976
$6,119
$9,339
$8,235
$13,184
$4,118
$16,480
$6,332
$19,282
$8,428
$21,403
$10,266
$23,329
$12,249
$24,962
FY 2007
FY 2008
FY 2010E FY 2011E FY 2012E FY 2013E
FY 2014E

Cash Flow Statement

FY 2009
Operating Activities:
Net Income:
Decrease (Increase) in Working Capital:
Free Cash Flow:
Beginning Cash Balance:
Plus: Free Cash Flow:
$4,118
$918
$40
$888
$2,136
$8,098
$6,332
$1,073
$37
$1,038
$1,815
$10,297
$8,428
$1,192
$28
$1,153
$1,374
$12,174
$10,266
$1,299
$13
$1,256
$1,248
$14,082
$12,249
$1,390
$10
$1,344
$1,058
$16,051
($1,430)
($1,673)
($1,857)
($2,024)
($2,166)
$6,668
$8,623
$10,317
$12,058
$13,885
$6,559
$6,668
$5,000
$8,623
$5,000
$10,317
$5,000
$12,058
$5,000
$13,885
Less: Minimum Cash Balance:
($5,000)
($5,000)
($5,000)
Cash Available for Debt Repayment:

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

($8,623) ($10,317) ($12,058) ($13,885)

Net Change in Cash:
Ending Cash Balance:
$6,559
($1,559)
$5,000
$5,000
$0
$5,000
$5,000
$0
$5,000
($5,000)
($5,000)
$5,000
$0
$5,000
$5,000
$0
$5,000
FY 2010E FY 2011E FY 2012E FY 2013E
FY 2014E
Debt & Interest Schedules

FY 2007
FY 2008
FY 2009
Beginning Bank Debt:

Mandatory Repayment:
Optional Repayment:
Ending Bank Debt:
$80,812
($8,081)
($146)
$72,584
$72,584
($8,081)
($542)
$63,961
$63,961
($8,081)
($2,236)
$53,644
$53,644
($8,081)
($3,976)
$41,586
$41,586
($8,081)
($5,804)
$27,701
Beginning High-Yield Debt:

Mandatory Repayment:
Optional Repayment:
Ending High-Yield Debt:
$26,937
$0
$0
$26,937
$26,937
$0
$0
$26,937
$26,937
$0
$0
$26,937
$26,937
$0
$0
$26,937
$26,937
$0
$0
$26,937
Interest Paid on Debt:

Interest Earned on Cash:
($9,099)
$346
($8,425)
$338
($7,667)
$677
($6,772)
$677
($5,735)
$1,015
Net Interest Income / (Expense):
($8,753)
($8,087)
($6,991)
($6,096)
($4,719)
FY 2010E FY 2011E FY 2012E FY 2013E
FY 2014E
Investor Returns
FY 2007
EBITDA:
EBITDA Multiple:
Enterprise Value:
Investor Equity:
FY 2008
FY 2009
$13,184
13.7 x
$180,103
($107,857)
$0
$0
$0
$24,962
10.0 x
$249,618
$0 $228,816
IRR:
16.2%
Purchase Premium / Per-Share

Price
Sensitivity Analysis - 5-Year IRR and Purchase Premium vs. Exit Multiple
$
$
$
$
$
$
$
$
$
$
278.49
268.88
259.28
249.68
240.08
230.47
220.87
211.27
201.66
192.06
16.2%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
6.0 x
(5.4%)
(3.6%)
(1.8%)
(0.0%)
1.8%
3.6%
5.5%
7.4%
9.3%
11.3%
7.0 x
(1.1%)
0.6%
2.3%
3.9%
5.6%
7.4%
9.1%
10.9%
12.8%
14.7%
8.0 x
2.6%
4.2%
5.8%
7.4%
9.0%
10.6%
12.3%
14.1%
15.9%
17.7%
Exit Multiple:
9.0 x
10.0 x
11.0 x
5.9%
8.8%
11.4%
7.4%
10.2%
12.8%
8.9%
11.7%
14.2%
10.4%
13.1%
15.6%
12.0%
14.7%
17.1%
13.6%
16.2%
18.7%
15.2%
17.8%
20.2%
16.9%
19.5%
21.9%
18.7%
21.2%
23.6%
20.5%
23.0%
25.3%
12.0 x
13.8%
15.1%
16.5%
17.9%
19.4%
20.9%
22.5%
24.1%
25.8%
27.5%
13.0 x
16.0%
17.3%
18.7%
20.1%
21.5%
23.0%
24.5%
26.1%
27.8%
29.6%
14.0 x
18.0%
19.3%
20.7%
22.1%
23.5%
25.0%
26.5%
28.1%
29.7%
31.5%
60.0%
9.4%
11.1%
12.9%
14.6%
16.4%
18.3%
20.1%
22.0%
24.0%
26.0%
65.0%
9.8%
11.7%
13.7%
15.6%
17.6%
19.6%
21.7%
23.7%
25.9%
28.0%
70.0%
10.3%
12.5%
14.7%
16.9%
19.1%
21.4%
23.6%
25.9%
28.2%
30.5%

Price
Sensitivity Analysis - 5-Year IRR and Purchase Premium vs. % Debt:
$
$
$
$
$
$
$
$
$
$
278.49
268.88
259.28
249.68
240.08
230.47
220.87
211.27
201.66
192.06
16.2%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
30.0%
8.1%
9.1%
10.2%
11.3%
12.5%
13.7%
14.9%
16.2%
17.6%
19.0%
35.0%
8.2%
9.3%
10.5%
11.7%
12.9%
14.2%
15.5%
16.9%
18.4%
19.9%
40.0%
8.4%
9.6%
10.8%
12.1%
13.4%
14.8%
16.2%
17.7%
19.2%
20.8%
45.0%
8.6%
9.9%
11.2%
12.6%
14.0%
15.5%
17.0%
18.5%
20.1%
21.8%
% Debt:
50.0%
8.8%
10.2%
11.7%
13.1%
14.7%
16.2%
17.8%
19.5%
21.2%
23.0%
55.0%
9.0%
10.6%
12.2%
13.8%
15.5%
17.2%
18.9%
20.7%
22.5%
24.4%
Aardvark - More Advanced LBO Model

Offer Premium:
Leverage Ratio:
$192.06
20.0%
$230.47
6.0 x
Purchase Price Calculations:

Basic Equity Value:
Plus: Debt
Enterprise Value:

Enterprise Value:
EBITDA Purchase Multiple:
Debt Required:
Equity Used:
EBITDA Exit Multiple:
900,678
$207,581
935,028
$215,498
$35,395
$0
$0
$0
$0
$180,103
Advisory Fee %:
Financing Fee %:
Legal & Misc. Fees:
6.0 x
10,000
40.0%
30.0%
20.0%
10.0%
Debt Required:
Revolver:
Term Loan A:
Term Loan B:
Subordinated Note:
PIK Loan:

Exercise
Name
Number
Price
Tranche A
34,375
$0.17
Tranche B
Total
Debt Assumptions
Leverage Ratio:
Units for LIBOR:
Term Loan A %:
Term Loan B %:
Subordinated Note %:
PIK Loan %:
Interest Rates:
Revolver:
Term Loan A:
Term Loan B:
Subordinated Note:
PIK Loan:
L + 250
L + 350
L + 500
11.00%
13.00%
Principal Repayment %:
Revolver:
Term Loan A:
Term Loan B:
Subordinated Note:
PIK Loan:
Sources & Uses

Sources:
Excess Cash:
Term Loan A:
Term Loan B:
Subordinated Note:
Uses:
$1,559
$31,642
$23,731
$15,821
Equity Value of Company:

Advisory Fees:
PIK Loan:
Investor Equity:
Total Sources:
$7,910
$134,937
$215,600
Capitalized Financing Fees:

Legal & Misc. Fees:
Total Uses:
Goodwill Creation & Balance Sheet Adjustments

Goodwill Calculation:
Less: Seller Book Value:
Plus: Write-Off of Existing Goodwill:
Total Allocable Purchase Premium:
$215,498
($31,905)
$207
$183,800
Less: Write-Up of PP&E:

Less: Write-Up of Intangibles:
Less: Write-Down of DTL:
Plus: New Deferred Tax Liability:
Total Goodwill Created:
($284)
($36,760)
$0
$11,113
$157,869
Financing Fees Amortization Period:
Fixed Asset Write-Up:

PP&E Write-Up %:
PP&E Write-Up Amount:
Depreciation Period (Years):
Intangible Asset Write-Up:
Purchase Price to Allocate:
% Allocated to Intangibles:
Intangibles Write-Up Amount:
Amortization Period (Years):
New Deferred Tax Liability:
Initial Cash Balance:
Minimum Cash Balance:
$6,559
$5,000
FY 2007
Historical
FY 2008
FY 2009
Revenue Growth %:
COGS % Revenue:
R&D % Revenue:
SG&A % Revenue:
27.2%
66.2%
2.4%
11.1%
52.5%
64.1%
2.0%
8.9%
14.4%
59.0%
1.9%
8.3%

Effective Tax Rate:
1.0%
1.3%
5.3%
30.2%
1.4%
1.3%
3.4%
31.6%
1.7%
1.7%
1.4%
31.8%
6.5%
23.3
2.1%
7.8%
28.2
1.8%
23.0%
82.6
102.9%
4.3%
22.1%
79.6
87.6%
4.8%
Accounts Receivable % Revenue:

Accounts Receivable Days:
Inventory % COGS:
Accounts Payable % COGS:
Accounts Payable Days:
Accrued Expenses % Operating Expenses:
Short-Term Deferred Revenue % Revenue:
Transaction Adjustments
Debit
Credit
Long-Term Deferred Revenue % Revenue:

CapEx % Revenue:
3.0%
2.0%
2.0%
2.9%
2.7%
Income Statement
Historical
FY 2008
FY 2009
$24,578
$16,282
$8,296
$37,491
$24,049
$13,442
$42,905
$25,324
$17,581
$596
$2,724
$3,320
$759
$3,345
$4,103
$830
$3,566
$4,397
$327
$496
$734
$0
$242
$0
$516
$0
$710
Operating Income:
Pre-Tax Income:
$4,407
$599
$5,006
$1,511
$8,327
$620
$8,947
$2,828
$11,740
$326
$12,066
$3,831
Net Income:
EBITDA:
$3,495
$4,976
$6,119
$9,339
$8,235
$13,184
FY 2007
Revenue:
Cost of Goods Sold:
Gross Profit:
Operating Expenses:
Depreciation of PP&E Write-Up:
New Intangibles Amortization:
Amortization of Financing Fees:
Debit
Credit
Balance Sheet
Historical
FY 2008 FY 2009
Assets:
Current Assets:
Cash & Cash-Equivalents:
Short-Term Securities:
Inventory:
Long-Term Assets:
Debit
Credit
$11,875
$10,236
$2,422
$509
$1,044
$3,920
$30,006
$6,559
$26,282
$3,361
$455
$4
$3,140
$39,801
$0
$0
$0
$0
$0
$0
$1,559
$0
$0
$0
$0
$0
$2,379
$2,455
$2,554
$2,839
$0
$284
$0
$0
Goodwill:
Capitalized Financing Fees:
Other Assets:
Total Assets:
$207
$285
$0
$839
$36,171
$207 $157,869
$354 $36,760
$0
$49
$2,011
$0
$47,766

Revolver:
Accounts Payable:
Accrued Expenses:
Deferred Revenue:
$0
$5,520
$4,224
$1,617
$11,361
$0
$5,601
$3,852
$2,053
$11,506
$0
$0
$0
$0
$0
$0
$0
$0
Deferred Revenue:
Existing Long-Term Debt:
Term Loan A:
Term Loan B:
Subordinated Note:
PIK Loan:
Deferred Tax Liability:
Total Liabilities:
$768
$0
$0
$0
$0
$0
$0
$1,745
$13,874
$853
$0
$0
$0
$0
$0
$0
$3,502
$15,861
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$31,642
$23,731
$15,821
$7,910
$11,113
$0
Common Stock:
Treasury Stock:
Sponsor Common Equity:
Retained Earnings:
$7,177
$0
$0
$0
$15,129
($9)
$22,297
$7,177
$1,185
$0
$0
$23,364
$179
$31,905
$36,171
$47,766
$0
$0
BALANCE CHECK:
$207
$0
$0
$0
$7,177
$0
$1,185
$0
$0
$0
$0 $134,937
$23,417
$0
$179
$0
Cash Flow Statement

FY 2007
Net Income:
Depreciation of PP&E Write-Up:
New Intangibles Amortization:
Amortization of Financing Fees:
Historical
FY 2008
FY 2009
Debit
Credit
Accrual of PIK Note:

Changes in Operating Assets & Liabilities:
Inventory:
Other Assets:
Accounts Payable:
Deferred Revenue:
Other Liabilities:
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:
Ending Cash Balance:
Debt & Interest Schedules
LIBOR Curve:
Interest Rate Assumptions:
Revolver:
Term Loan A:
Term Loan B:
Subordinated Note:
PIK Loan:
Interest Income / (Expense) Calculations:
Revolver:
Term Loan A:
Term Loan B:
Subordinated Note:
LIBOR +
2.50%
3.50%
5.00%
Fixed
Interest
11.00%
13.00%
PIK Loan:
Cash:
Net Interest Income / (Expense):
Sources of Funds:
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:
mium / Per-Share
Price
Sensitivity Analysis - 5-Year IRR and Purchase Premium vs. Exit Multiple
$ 278.49
$ 268.88
15.3%
45.0%
40.0%
6.0 x
(0.2%)
0.8%
7.0 x
2.5%
3.5%
8.0 x
4.9%
5.9%
Exit Multiple:
9.0 x
10.0 x
11.0 x
7.1%
9.1%
11.0%
8.1%
10.2%
12.1%

Price
$
$
$
$
$
$
$
$
259.28
249.68
240.08
230.47
220.87
211.27
201.66
192.06
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
1.8%
2.9%
4.1%
5.4%
6.7%
8.3%
9.9%
11.8%
4.5%
5.7%
6.9%
8.2%
9.6%
11.2%
12.9%
14.8%
7.0%
8.2%
9.4%
10.8%
12.3%
13.9%
15.6%
17.6%
9.2%
10.4%
11.7%
13.1%
14.6%
16.3%
18.1%
20.1%
11.3%
12.6%
13.9%
15.3%
16.9%
18.5%
20.4%
22.5%
13.3%
14.5%
15.9%
17.3%
18.9%
20.6%
22.5%
24.6%

Price
Sensitivity Analysis - 5-Year IRR and Purchase Premium vs. Leverage Ratio:
$
$
$
$
$
$
$
$
$
$
278.49
268.88
259.28
249.68
240.08
230.47
220.87
211.27
201.66
192.06
15.3%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2.0 x
8.3%
9.1%
10.0%
10.9%
11.9%
12.9%
13.9%
15.1%
16.3%
17.6%
3.0 x
8.5%
9.4%
10.3%
11.3%
12.3%
13.4%
14.6%
15.8%
17.1%
18.6%
4.0 x
8.7%
9.6%
10.6%
11.7%
12.8%
14.0%
15.2%
16.6%
18.1%
19.7%
Leverage Ratio:
5.0 x
6.0 x
7.0 x
8.9%
9.1%
9.3%
9.9%
10.2%
10.5%
11.0%
11.3%
11.7%
12.1%
12.6%
13.1%
13.3%
13.9%
14.5%
14.6%
15.3%
16.1%
16.0%
16.9%
17.8%
17.5%
18.5%
19.7%
19.1%
20.4%
21.9%
20.9%
22.5%
24.3%
$215,498
$180,103
13.7 x
$79,104
$136,394
10.0 x
0.02%
0.06%
$10
Purchase Price:
Dilution
34,350
34,350
$79,104
$2,000
$31,642
$23,731
$15,821
$7,910
pal Repayment %:
N/A
10.0%
5.0%
0.0%
0.0%
Uses:
$215,498
$43
action Adjustments
FY 2009
$49
$10
$215,600
10.0%
$284
8
$183,800
20.0%
$36,760
5
$11,113
Projections
25.0%
59.0%
1.9%
8.3%
17.0%
59.0%
1.9%
8.3%
11.0%
59.0%
1.9%
8.3%
9.0%
59.0%
1.9%
8.3%
7.0%
59.0%
1.9%
8.3%
1.7%
1.7%
1.0%
30.0%
1.7%
1.7%
1.0%
30.0%
1.7%
1.7%
2.0%
30.0%
1.7%
1.7%
2.0%
30.0%
1.7%
1.7%
3.0%
30.0%
7.8%
28.2
1.8%
$40
7.8%
28.2
1.8%
$37
7.8%
28.2
1.8%
$28
7.8%
28.2
1.8%
$13
7.8%
28.2
1.8%
$10
22.1%
79.6
87.6%
4.8%
22.1%
79.6
87.6%
4.8%
22.1%
79.6
87.6%
4.8%
22.1%
79.6
87.6%
4.8%
22.1%
79.6
87.6%
4.8%
action Adjustments
FY 2009
action Adjustments
FY 2009
2.0%
2.0%
2.0%
2.0%
2.0%
2.7%
2.7%
2.7%
2.7%
2.7%
Projections
$53,631
$31,655
$21,976
$62,749
$37,037
$25,712
$69,651
$41,111
$28,540
$75,919
$44,811
$31,109
$81,234
$47,948
$33,286
$1,038
$4,458
$5,496
$1,214
$5,216
$6,430
$1,348
$5,789
$7,137
$1,469
$6,311
$7,780
$1,572
$6,752
$8,324
$918
$35
$7,352
$10
$40
$888
$1,073
$35
$7,352
$10
$37
$1,038
$1,192
$35
$7,352
$10
$28
$1,153
$1,299
$35
$7,352
$10
$13
$1,256
$1,390
$35
$7,352
$10
$10
$1,344
$7,238
($6,851)
$387
$116
$9,736
($6,073)
$3,663
$1,099
$11,633
($4,684)
$6,949
$2,085
$13,363
($3,390)
$9,973
$2,992
$14,821
($2,196)
$12,625
$3,787
$271
$16,480
$2,564
$19,282
$4,865
$21,403
$6,981
$23,329
$8,837
$24,962
Projections
$5,000
$26,282
$3,361
$455
$4
$3,140
$38,242
$5,000
$26,282
$4,201
$569
$4
$3,140
$39,196
$5,000
$26,282
$4,915
$665
$4
$3,140
$40,007
$5,000
$26,282
$5,456
$739
$4
$3,140
$40,621
$7,825
$26,282
$5,947
$805
$4
$3,140
$44,003
$27,547
$26,282
$6,364
$861
$4
$3,140
$64,198
$2,554
$3,123
$2,554
$3,600
$2,554
$4,164
$2,554
$4,794
$2,554
$5,484
$2,554
$6,225
$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
$5,601
$3,852
$2,053
$11,506
$0
$7,001
$4,815
$2,566
$14,383
$0
$8,191
$5,634
$3,003
$16,828
$0
$9,093
$6,253
$3,333
$18,679
$0
$9,911
$6,816
$3,633
$20,360
$0
$10,605
$7,293
$3,887
$21,785
$853
$0
$31,642
$23,731
$15,821
$7,910
$11,113
$3,502
$106,078
$1,066
$0
$21,509
$22,545
$15,821
$9,010
$11,113
$3,502
$98,949
$1,248
$0
$9,191
$21,358
$15,821
$10,263
$11,113
$3,502
$89,323
$1,385
$0
($0)
$14,971
$15,821
$11,690
$11,113
$3,502
$77,160
$1,509
$0
($0)
($0)
$15,821
$13,315
$11,113
$3,502
$65,620
$1,615
$0
$0
$0
$15,821
$15,167
$11,113
$3,502
$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
action Adjustments
FY 2009
$0
($0)
($0)
$0
$0
Projections
$271
$918
$35
$7,352
$10
$2,564
$1,073
$35
$7,352
$10
$4,865
$1,192
$35
$7,352
$10
$6,981
$1,299
$35
$7,352
$10
$8,837
$1,390
$35
$7,352
$10
$1,100
$40
$888
$1,253
$37
$1,038
$1,427
$28
$1,153
$1,625
$13
$1,256
$1,851
$10
$1,344
($840)
($114)
$0
$0
$1,400
$727
$963
$12,749
($714)
($97)
$0
$0
$1,190
$618
$819
$15,178
($541)
($73)
$0
$0
$901
$468
$620
$17,435
($491)
($66)
$0
$0
$818
$425
$563
$19,820
($416)
($56)
$0
$0
$694
$360
$477
$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
($10,132) ($12,319) ($9,191)
($0)
($1,187) ($1,187) ($6,387) ($14,971)
$0
$0
$0
$0
$0
$0
$0
$0
($11,319) ($13,505) ($15,578) ($14,971)
$0
($0)
($0)
$0
$0
($0)
$0
$0
$0
$2,825
$19,722
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$7,825
$7,825
$27,547
Projections
4.55%
4.78%
4.94%
4.75%
4.40%
7.05%
8.05%
9.55%
11.00%
13.00%
7.28%
8.28%
9.78%
11.00%
13.00%
7.44%
8.44%
9.94%
11.00%
13.00%
7.25%
8.25%
9.75%
11.00%
13.00%
6.90%
7.90%
9.40%
11.00%
13.00%
$0
($2,139)
($2,210)
($1,740)
$0
($1,271)
($2,147)
($1,740)
$0
($388)
($1,806)
($1,740)
$0
$0
($730)
($1,740)
$0
($0)
($0)
($1,740)
FY 2009
$13,184
13.7 x
$180,103
($134,937)
($1,100)
$338
($6,851)
($1,253)
$338
($6,073)
($1,427)
$677
($4,684)
($1,625)
$705
($3,390)
($1,851)
$1,396
($2,196)
$5,000
($5,000)
$11,319
$11,319
$0
$11,319
$5,000
($5,000)
$13,505
$13,505
$0
$13,505
$5,000
($5,000)
$15,578
$15,578
$0
$15,578
$5,000
($5,000)
$17,796
$17,796
$0
$17,796
$7,825
($5,000)
$19,722
$22,547
$0
$22,547
$3,164
$1,187
$0
$0
$4,351
$3,164
$1,187
$0
$0
$4,351
$3,164
$1,187
$0
$0
$4,351
($0)
$1,187
$0
$0
$1,187
($0)
($0)
$0
$0
($0)
$0
$6,968
$0
$0
$0
$6,968
$0
$9,155
$0
$0
$0
$9,155
$0
$6,027
$5,201
$0
$0
$11,227
$0
$0
$13,784
$0
$0
$13,784
$0
$0
$0
$0
$0
$0
$0
$11,319
$0
$13,505
$0
$15,578
$2,825
$17,796
$22,547
$22,547
$0
$0
15.3%
e:
12.0 x
12.8%
13.9%
13.0 x
14.4%
15.6%
14.0 x
16.0%
17.2%
$0
$24,962
10.0 x
$249,618
$0 $275,014
15.1%
16.4%
17.7%
19.2%
20.8%
22.6%
24.5%
26.6%
16.8%
18.1%
19.5%
21.0%
22.6%
24.4%
26.4%
28.5%
18.4%
19.7%
21.1%
22.7%
24.3%
26.1%
28.1%
30.3%
8.0 x
9.5%
10.8%
12.1%
13.6%
15.3%
17.0%
19.0%
21.2%
23.7%
26.6%
9.0 x
9.7%
11.1%
12.6%
14.3%
16.1%
18.2%
20.5%
23.1%
26.1%
29.6%
10.0 x
10.0%
11.5%
13.2%
15.1%
17.2%
19.6%
22.4%
25.5%
29.3%
33.9%
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50 13 Pasting in Excel Full Model After HH

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Aardvark - Financial Statements

Last Historical Year:

Options Calculations (in Thousands Except Exercise Price):

Equity Value / FCF:

Stock-Based Compensation % Revenue:

Accounts Receivable % Revenue:

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

Research & Development:

Earnings Per Share (EPS):

Depreciation & Amortization of PP&E:

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

Other Current Assets:

Liabilities & Shareholders' Equity:

Total Liabilities & SE:

$96,654 $115,432 $136,052

($11,719) ($22,965) ($46,724)

Cash Flow Statement

Tax Benefits from Stock-Based Comp:

Valuation Summary - Aardvark

Aardvark - Range of Valuation Multiples / Premiums

Aardvark - Implied Per Share Value Range

Balance Sheet Adjustment:

Public Company Comparables

Discounted Cash Flow Analysis

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

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

$ 192.06 $ 179,581 $ 144,186

$ 47.07 $ 131,739 $ 124,430

$ 192.06 $ 179,581 $ 144,186

Discounted Cash Flow Analysis - Aardvark

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

Less: Increase in Working Capital:

Unlevered Free Cash Flow

$12,795 $ 14,284 $ 15,211 $ 16,324 $ 17,189

Normal Discount Period:

Aardvark - Net Present Value Sensitivity - Terminal Growth Rates

Aardvark - Net Present Value Sensitivity - Terminal EBITDA Multiples

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

Aardvark - DCF Assumptions & Output

Use Multiples Method?

Terminal EBITDA Multiple:

Terminal Value % EV:

Implied Price Per Share:

WACC Analysis - Aardvark

Comparable Companies - Unlevered Beta Calculation

Aardvark - Levered Beta & WACC Calculation

Cost of Equity Based on Comparables:

Merger Model - Aardvark and Research in Motion Limited

Equity Purchase Price:

Goodwill Creation & Balance Sheet Adjustments

Less: Write-Up of PP&E:

Fixed Asset Write-Up:

Buyer - Financial Profile

Seller - Financial Profile

Buyer - Income Statement

Earnings Per Share (EPS):

Combined Income Statement

Earnings Per Share (EPS):

Earnings Per Share (EPS):

Per Share Purchase Price

Expense Synergies % Seller OpEx:

Per Share Purchase Price

Revenue Synergies % Seller Revenue:

Research in Motion Limited