Year 1998 1999 2000 2001Revenue 2% $8,500 $15,000 $35,500 $46,000COGS 41% $3,200 $5,600 $14,000 $18,100Gross  Profit $5,300 $9,400 $21,500 $27,900SG&A 12% $3,406 $5,204 $6,100 $4,900EBITDA $1,894 $4,196 $15,400 $23,000Depreciation 1% $94 $206 $300 $400R&D Expense 12% $1,100 $2,800 $4,100 $5,400EBIT   $700 $1,190 $11,000 $17,200Tax 35% $245 $417 $3,850 $6,020NOPAT $455 $774 $7,150 $11,180Plus Depreciation $94 $206 $300 $400Minus Δ in inventory $400 $300 $1,050 $513Minus Δ in AR $1,417 $1,083 $3,417 $1,750Plus Δ in AP $533 $400 $1,400 $684Minus CAPEX $1,000 1,600$ 1,200$ 3,200$ uFCFF ($1,735) ($1,604) $3,183 $6,801TV 4.0x $0 $0 $0 $0uFCFF+TV ($1,735) ($1,604) $3,183 $6,801IFV 25% $34,046Plus  PV  Interest  Tax  Shield10% $0Minus  Debt $0IEV $34,046

uFCFF ($1,735) ($1,604) $3,183 $6,801Minus  Principal  Payments $0 $0 $0 $850Minus  interests $0 $0 $0 $200Plus  Interest  Tax  Shield $0 $0 $0 $602Plus  Loans $0 $0 $0 $2,000FCFE ($1,735) ($1,604) $3,183 $8,353

Initial  Cash  Balance $1,000 ($735) ($2,339) $845Ending  Cash  Balance ($735) ($2,339) $845 $7,646

Inventories 400$ 700$ 1,750$ 2,263$ 300$ 1,050$ 513$

Accounts Receivable 1,417$ 2,500$ 5,917$ 7,667$ 1,083$ 3,417$ 1,750$

Accounts Payable 533$ 933$ 2,333$ 3,017$ 400$ 1,400$ 684$

Capex 1,000$ 2,600$ 3,800$ 5,000$ 1,600$ 1,200$ 1,200$

2,000$ Initial Debt Balance $17,000 $0 $0 $0 $2,000Principal Payments 20 $0 $0 $0 $850Ending Debt Balance $0 $0 $0 $1,150Interest Paid 10% $0 $0 $0 $200Interest Tax Shield $0 $0 $0.00 $602.00

2002 2003 2004 2005 2006 2007 2008$52,000 $60,000 $61,200 $62,424 $63,672 $64,946 $66,245$20,100 $24,500 $24,990 $25,490 $26,000 $26,520 $27,050$31,900 $35,500 $36,210 $36,934 $37,673 $38,426 $39,195$6,800 $7,200 $7,344 $7,491 $7,641 $7,794 $7,949$25,100 $28,300 $28,866 $29,443 $30,032 $30,633 $31,245$500 $600 $612 $624 $637 $649 $662$6,500 $7,000 $7,344 $7,491 $7,641 $7,794 $7,949$18,100 $20,700 $20,910 $21,328 $21,755 $22,190 $22,634$6,335 $7,245 $7,319 $7,465 $7,614 $7,766 $7,922$11,765 $13,455 $13,592 $13,863 $14,141 $14,423 $14,712$500 $600 $612 $624 $637 $649 $662$250 $550 $61 $62 $64 $65 $66$1,000 $1,333 $200 $204 $208 $212 $216$333 $733 $82 $83 $85 $87 $88

5,800$ 10,800$ 132$ 135$ 137$ 140$ 143$ $5,548 $2,105 $13,892 $14,170 $14,453 $14,742 $15,037$0 $113,200 $0 $0 $0 $0 $124,982$5,548 $115,305 $13,892 $14,170 $14,453 $14,742 $140,019

$79,502$3,776$17,000$66,279

$5,548 $2,105 $13,892 $14,170 $14,453 $14,742 $15,037$1,700 $1,700 $2,550 $2,550 $2,550 $2,550 $2,550$615 $1,445 $1,275 $1,020 $765 $510 $255$634 $725 $732 $746 $761 $777 $792$5,000 $10,000 $0 $0 $0 $0 $0$8,867 $9,685 $10,799 $11,346 $11,900 $12,459 $13,024

$7,646 $13,194 $15,299 $29,191 $43,360 $57,814 $72,556$13,194 $15,299 $29,191 $43,360 $57,814 $72,556 $87,593

2,513$ 3,063$ 3,124$ 3,187$ 3,250$ 3,315$ 3,382$ 45 days250$ 550$ 61$ 62$ 64$ 65$ 66$

8,667$ 10,000$ 10,200$ 10,404$ 10,612$ 10,824$ 11,041$ 60 days1,000$ 1,333$ 200$ 204$ 208$ 212$ 216$

3,350$ 4,083$ 4,165$ 4,248$ 4,333$ 4,420$ 4,508$ 60 days333$ 733$ 82$ 83$ 85$ 87$ 88$

5,800$ 6,600$ 6,732$ 6,867$ 7,004$ 7,144$ 7,287$ 800$ 800$ 132$ 135$ 137$ 140$ 143$

5,000$ 10,000$ $6,150 $14,450 $12,750 $10,200 $7,650 $5,100 $2,550$1,700 $1,700 $2,550 $2,550 $2,550 $2,550 $2,550$4,450 $12,750 $10,200 $7,650 $5,100 $2,550 $0

$615 $1,445 $1,275 $1,020 $765 $510 $255$634 $725 $732 $746 $761 $777 $792

Balance SheetAssets:Cash 1,000$ 1,000$ 4,793$ 13,907$ Accounts Receivable 1,417$ 2,500$ 5,917$ 7,667$ Inventories 400$ 700$ 1,750$ 2,263$ Other 354$ 625$ 1,479$ 1,917$ Current Assets 3,171$ 4,825$ 13,939$ 25,754$

Fixed Assets 1,000$ 2,600$ 3,800$ 5,000$ Accumulated Dep. 94$ 300$ 600$ 1,000$ Net Fixed Assets 906$ 2,300$ 3,200$ 4,000$

TOTAL ASSETS 4,077$ 7,125$ 17,139$ 29,754$

Liabilities and Shareholder's equity:Accounts Payable 533$ 933$ 2,333$ 3,017$ Accrued Expenses 607$ 1,071$ 2,536$ 3,287$ Current Liabilities 1,140$ 2,004$ 4,869$ 6,304$

Equity 2,936$ 5,120$ 12,270$ 23,450$

TOTAL LIABILITIES AND EQUITY 4,077$ 7,125$ 17,139$ 29,754$

5%2004 2005 2006

24,699$ 37,042$ 8,667$ 10,000$ 2,513$ 3,063$ 2,167$ 2,500$

38,046$ 52,605$

5,800$ 6,600$ 1,500$ 2,100$ 4,300$ 4,500$

42,346$ 57,105$

3,350$ 4,083$ 3,716$ 4,287$ 7,066$ 8,370$

35,280$ 48,735$

42,346$ 57,105$