Originally I thought that had to be a misprint, I mean, Mushkin has to be worth more right? But I did some quick perusing of Ramtron's 10-K and they are one small crappy company.
2004, they did a measly 55 million in revenue, 18.3million was Mushkin's. Mushkin's operating costs were 18.1 million (!!!!), leaving them an operating income of $200,000. Depreciation/Amortization was about 10,000 which gives a rough EBITDA estimate for Mushkin at around $210,000, which is rather pathetic. Jesus, no wonder Ramtron spun out Mushkin, they were dragging them down like
If whoever it was bought this company for $1.8 million, they paid around 9x EBITDA for. I did a quick search for some Comparable companies, the only one I came up with that's publicly traded is Micron. To put them in perspective, these guys have 1.5 billion in EBITDA, 4.8 billion in revenue. And they currently trade at about a 5x EBITDA multiple. Of course this is super rough, and I haven't done any real research combing Ramtron's 10-K for more information, but from here, it looks like actually whoever bought Mushkin probably overpaid quite a bit. There's probably some reason for them paying extra, the press release did mention they get Mushkin's cash reserves and A/R, which could figure into Mushkin's total enterprise value. Ramtron's 10-K doesn't look like it has the cash and A/R broken up though... But anyways, Mushkin as a profit making company sure was one stinker. Who knew, lol.
