CONFIDENTIAL DO NOT DISTRIBUTE AliphCom Financial Statements Year Ended December 31, 2011 Preliminary and Unaudited EFTA00292114

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CONFIDENTIAL DO NOT DISTRIBUTE AliphCom Balance Sheet ($s in 000s) Preliminary and Unaudited 12/31/11 $ 77,066 Accounts receivab) d other receivables 18,689 Inventory 14,175 Prepaids and other helps 2,341 Total current assets 112,271 Property and equipment, ney 5,538 Other assets 7,399 TOTAL ASSETS Y, $ 125,208 LIABILITIES AND crocxnoum Current liabilities: Accounts payable 29,865 Accrued expenses Le 25,329 Deferred revenues 3,109 Other current liabilities is, 127 Total current liabilities 7 TOTAL LIABILITIES Stockholders' equity GO; Common stock, preferred stock, & add'l paid in capital 165,321 ® Retained earnings (retained loss) (113, at So Accumulated other comprehensive income (loss) TOTAL EQUITY ___51,778_ 7 TOTAL LIABILITIES AND EQUITY $_ 125,208 Ny UNAUDITED EFTA00292115

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CONFIDENTIAL DO NOT DISTRIBUTE AliphCom Income Statement Preliminary and unaudited ($s in 000s) A O FY 2011 Net revenue “”> $ 128,876 so. Cost of goods 122,081 COGS Spin ngs 1,602 Total cost of goods sol ‘AD 123,683 Gross profit 5,193 Gross margin (%) ny 4.0% Selling and marketing O 24,989 General and administrative O 18,639 Research and development Ay 30,353 Depreciation and amortization Total operating expenses Operating loss Operating margin (%) Stock based compensation Interest income (expense) ® Other income (expense) (141) Income before provision for income taxes (71,916) Provision for income taxes 66 Net loss $ (71,982) Net margin (%) -55.8% UNAUDITED EFTA00292116

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CONFIDENTIAL DO NOT DISTRIBUTE AliphCom Statement of Cash Flows ($s in 000s) Preliminary and Unaudited AS Fiscal Year 12/31/2011 Cash Flow F: ating Activities Net income/loss $ (71,982) Depreciation & amortizatt 3,434 Share-based compensatio; 1,160 Effects of exchange rate c Sedoies assets and liabilities 9 Changes in operating ost Accounts receivable (11,736) Inventory 1,062 Other current assets and non-current a$ a (6,176) Accounts payable 8,495 Deferred revenue (269) Other current and non-current liabilities Net cash used in operating activities Cash flow from i investing activities 4), Capital ex: Net cash used in investing activities Cash Flow From Financing Activities S> Proceeds from option and warrant exercises Proceeds from issuance of common stock Proceeds from issuance of preferred stock Net cash provided by financing activities Net increase in cash and cash equivalents wo / Cash and cash equivalents at beginning of period 28,99 AY h iv: at f peri UNAUDITED EFTA00292117