service provider technology includes our airmax , edgemax and airfiber platforms , as well as embedded radio products and other 802.11 standard products including base stations , radios , backhaul equipment and customer premise equipment ( “ cpe ” ) . additionally , service provider technology includes antennas and other products in the 0.9 to 6.0ghz spectrum and miscellaneous products such as mounting brackets , cables and power over ethernet adapters . service provider technology also includes solar products ( sales of which have not been material to date ) and revenues that are attributable to pcs . enterprise technology includes our unifi and mfi platforms , including unifi enterprise wi-fi products , unifi video products , and unifi switching and routing solutions . enterprise technology also includes revenues that are attributable to pcs . 33 we sell our products and solutions globally to service providers and enterprises primarily through our extensive network of distributors , and , to a lesser extent , direct customers . sales to distributors accounted for 99 % of our revenues in the year ended june 30 , 2016 . other channel partners , such as resellers , largely accounted for the balance of our revenues . cost of revenues our cost of revenues is comprised primarily of the costs of procuring finished goods from our contract manufacturers and chipsets that we consign to certain of our contract manufacturers . in addition , cost of revenues includes tooling , labor and other costs associated with engineering , testing and quality assurance , warranty costs , stock-based compensation , logistics related fees and excess and obsolete inventory . in addition to utilizing contract manufacturers , we outsource most of our logistics warehousing and order fulfillment functions , which are located primarily in china , and to a lesser extent , taiwan and united states . we also evaluate and utilize other vendors for various portions of our supply chain from time to time . our operations organization consists of employees and consultants engaged in the management of our contract manufacturers , new product introduction activities , logistical support and engineering . gross profit our gross profit has been , and may in the future be , influenced by several factors including changes in product mix , target end markets for our products , pricing due to competitive pressure , production costs and global demand for electronic components . although we procure and sell our products in u.s. dollars , our contract manufacturers incur many costs , including labor costs , in other currencies . to the extent that the exchange rates move unfavorably for our contract manufacturers , they may try to pass these additional costs on to us , which could have a material impact on our future average selling prices and unit costs . operating expenses we classify our operating expenses as research and development , sales , general and administrative expenses and expense related to the business email compromise fraud loss . research and development expenses consist primarily of salary and benefit expenses , including stock-based compensation , for employees and costs for contractors engaged in research , design and development activities , as well as costs for prototypes , licensed or purchased intellectual property , facilities and travel . over time , we expect our research and development costs to increase as we continue making significant investments in developing new products in addition to new versions of our existing products . sales , general and administrative expenses include salary and benefit expenses , including stock-based compensation , for employees and costs for contractors engaged in sales , marketing and general and administrative activities , as well as the costs of legal expenses , trade shows , marketing programs , promotional materials , bad debt expense , professional services , facilities , general liability insurance and travel . as our product portfolio and targeted markets expand , we may need to employ different sales models , such as building a direct sales force . these sales models would likely increase our costs . over time , we expect our sales , general and administrative expenses to increase in absolute dollars due to continued growth in headcount , expansion of our efforts to register and defend trademarks and patents and to support our business and operations . business e-mail compromise fraud ( recovery ) loss - in june 2015 , we determined that we were the victim of criminal fraud known to law enforcement authorities as business e-mail compromise fraud which involved employee impersonation and fraudulent requests targeting our finance department . the fraud resulted in transfers of funds aggregating $ 46.7 million held by a company subsidiary incorporated in hong kong to other overseas accounts held by third parties , of which we recovered $ 8.1 million in fiscal 2015. as a result , we recorded a charge of $ 39.1 million in the fourth quarter of 2015 , including additional expenses consisting of professional service fees associated with the fraud loss . in fiscal 2016 , the company recorded a net recovery of an additional $ 8.3 million , comprised of an $ 8.6 million recovery less $ 0.3 million of professional service fees associated with the recovery . the company is continuing to pursue the recovery of the remaining $ 30.0 million and is cooperating with u.s. federal and numerous overseas law enforcement authorities who are actively pursuing a multi-agency criminal investigation . however , any additional recoveries are likely remote and , therefore , can not be assured . 34 deferred revenues we recognize revenues when persuasive evidence of an arrangement exists , delivery has occurred , the sales price is fixed or determinable and the collectability of the resulting receivable is reasonably assured . in cases where we lack evidence that all of these criteria have been met , we defer recognition of revenue . story_separator_special_tag this increase in absolute dollar expenditures is primarily driven by a $ 2.5 million impairment charge for capitalized software and software in development costs recognized in the second quarter of fiscal 2016 due to the cancellation of the commercial launch of certain software in development . over time , we expect our research and development costs to continue to increase in absolute dollars as we continue making investments in developing new products in addition to new versions of our existing products . sales , general and administrative sales , general and administrative expenses increased $ 11.7 million , or 54 % , from $ 21.6 million in fiscal 2015 to $ 33.3 million in fiscal 2016 . as a percentage of revenues , sales , general and administrative expenses increased to 5 % in fiscal 2016 , compared to 4 % in fiscal 2015 . the increase in sales , general and administrative expenses in absolute dollars and as a percentage of revenues was due to higher consulting fees incurred to support the finance team and to assist with material weakness remediation , higher legal costs , and an increase in headcount in the business development organization . during fiscal 2017 , we expect our sales , general and administrative expenses to stabilize as we anticipate lower consulting related fees . however , as the business grows , additional costs will be necessary to support this business , to register and defend trademarks and patents and to support our business and operations . business e-mail compromise fraud ( recovery ) loss in june 2015 , we determined that we were the victim of criminal fraud known to law enforcement authorities as business e-mail compromise fraud which involved employee impersonation and fraudulent requests targeting our finance department . the fraud resulted in transfers of funds aggregating $ 46.7 million held by a company subsidiary incorporated in hong kong to other overseas accounts held by third parties . the company recovered $ 8.1 million in fiscal 2015 and recorded a charge of $ 39.1 million in the fourth quarter of fiscal 2015 , including additional expenses consisting of professional service fees associated with the fraud loss . in fiscal 2016 , the company recorded a net recovery of an additional $ 8.3 million , comprised of an $ 8.6 million recovery less $ 0.3 million of professional service fees associated with the recovery . the company is continuing to pursue the recovery of the remaining $ 30.0 million and is cooperating with u.s. federal and numerous overseas law enforcement authorities who are actively pursuing a multi-agency criminal investigation . however , any additional recoveries are likely remote and therefore can not be assured . provision for income taxes our provision for income taxes increased $ 10.2 million from $ 16.1 million for fiscal 2015 to $ 26.3 million for fiscal 2016 . our effective tax rate remained flat at 11 % in both fiscal 2016 and fiscal 2015 because the company 's ratio of domestic and foreign income remained relatively constant for fiscal 2015 and fiscal 2016 . overall , the rate benefit is due to income in foreign jurisdictions that have lower tax rates than the u.s. 39 comparison of years ended june 30 , 2015 and 2014 replace_table_token_9_th revenues revenues increased $ 23.5 million , or 4 % , from $ 572.5 million in fiscal 2014 to $ 595.9 million in fiscal 2015 . we believe the overall increase in revenues during fiscal 2015 was driven by increased adoption of our enterprise technologies , partially offset by a decrease in sales of our service provider technologies due to lower demand from our service provider customers outside of north america , including as a result of political and economic instability in some of those regions . in fiscal 2014 , flytec computers inc. represented 13 % of our revenues . no other distributor or customer represented more than 10 % of our revenues in fiscal 2015 or fiscal 2014 . revenues by product type replace_table_token_10_th service provider technology revenues decreased $ 32.6 million , or 7 % , during fiscal 2015. the decline in revenues from service provider technologies was primarily due to lower demand from our service provider customers outside of north america , including as a result of political and economic instability in some of those regions and the strength of the us dollar during the fiscal year compared to some of the currencies in these regions . enterprise technology revenues increased $ 56.1 million , or 46 % , during fiscal 2015 , primarily due to product expansion and further adoption of our unifi technology platform . 40 revenues by geography we have determined the geographical distribution of our product revenues based on our customers ' ship-to destinations . a majority of our sales are to distributors who in turn sell to resellers or directly to end customers , which may be different countries than the initial ship-to destination . the following are our revenues by geography for fiscal 2015 and fiscal 2014 ( in thousands , except percentages ) : replace_table_token_11_th ( 1 ) revenue for the united states was $ 187.3 million and $ 136.6 million in fiscal 2015 and fiscal 2014 , respectively . north america revenues in north america increased $ 55.3 million , or 39 % , from $ 142.4 million in fiscal 2014 to $ 197.7 million in fiscal 2015. the increase in revenues in north america in fiscal 2015 compared to fiscal 2014 was due to increased adoption of our service provider technologies and enterprise technologies . south america revenues in south america decreased $ 12.5 million , or 11 % , from $ 109.6 million in fiscal 2014 to $ 97.1 million in fiscal 2015. we believe the decrease in revenues in south america in fiscal 2015 compared to fiscal 2014 was primarily due to decreased demand for our service provider technologies due in part to economic instability and partially

cash flows from operating activities net cash provided by operating activities in fiscal 2016 consisted primarily of net income of $ 213.6 million partially offset by net changes in operating assets and liabilities that resulted in net cash outflows of $ 27.1 million . this net change was primarily driven by outflows arising from a $ 20.0 million increase in inventory , and a $ 9.3 million increase in vendor deposits due to our strategic efforts to reduce lead times and maximize order fulfillments , a $ 16.7 million increase in accounts receivable due to our overall increase in revenue . these outflows were offset by changes in operating assets and liabilities resulting in cash inflows , including a $ 11.0 million increase in accounts payable and accrued liabilities due to the timing of payments with our vendors , a $ 7.0 million net increase in taxes payable and decrease in prepaid income taxes due the timing of federal tax payments , a $ 0.7 million increase in deferred revenue due to additional pcs revenue deferrals during the year and a $ 0.2 million decrease in prepaid expenses and other current assets due to timing of deposit payments with our suppliers . overall , cash inflows from operating activities were driven by our net income , which included non-cash adjustments due to stock-based compensation , depreciation and amortization , increases to our provision for inventory obsolescence , decreases to our provision for losses on deposits with our vendors , decreases in our allowance for doubtful accounts and taxes .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows from operating activities net cash provided by operating activities in fiscal 2016 consisted primarily of net income of $ 213.6 million partially offset by net changes in operating assets and liabilities that resulted in net cash outflows of $ 27.1 million . this net change was primarily driven by outflows arising from a $ 20.0 million increase in inventory , and a $ 9.3 million increase in vendor deposits due to our strategic efforts to reduce lead times and maximize order fulfillments , a $ 16.7 million increase in accounts receivable due to our overall increase in revenue . these outflows were offset by changes in operating assets and liabilities resulting in cash inflows , including a $ 11.0 million increase in accounts payable and accrued liabilities due to the timing of payments with our vendors , a $ 7.0 million net increase in taxes payable and decrease in prepaid income taxes due the timing of federal tax payments , a $ 0.7 million increase in deferred revenue due to additional pcs revenue deferrals during the year and a $ 0.2 million decrease in prepaid expenses and other current assets due to timing of deposit payments with our suppliers . overall , cash inflows from operating activities were driven by our net income , which included non-cash adjustments due to stock-based compensation , depreciation and amortization , increases to our provision for inventory obsolescence , decreases to our provision for losses on deposits with our vendors , decreases in our allowance for doubtful accounts and taxes .
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 Suspicious Activity Report : service provider technology includes our airmax , edgemax and airfiber platforms , as well as embedded radio products and other 802.11 standard products including base stations , radios , backhaul equipment and customer premise equipment ( “ cpe ” ) . additionally , service provider technology includes antennas and other products in the 0.9 to 6.0ghz spectrum and miscellaneous products such as mounting brackets , cables and power over ethernet adapters . service provider technology also includes solar products ( sales of which have not been material to date ) and revenues that are attributable to pcs . enterprise technology includes our unifi and mfi platforms , including unifi enterprise wi-fi products , unifi video products , and unifi switching and routing solutions . enterprise technology also includes revenues that are attributable to pcs . 33 we sell our products and solutions globally to service providers and enterprises primarily through our extensive network of distributors , and , to a lesser extent , direct customers . sales to distributors accounted for 99 % of our revenues in the year ended june 30 , 2016 . other channel partners , such as resellers , largely accounted for the balance of our revenues . cost of revenues our cost of revenues is comprised primarily of the costs of procuring finished goods from our contract manufacturers and chipsets that we consign to certain of our contract manufacturers . in addition , cost of revenues includes tooling , labor and other costs associated with engineering , testing and quality assurance , warranty costs , stock-based compensation , logistics related fees and excess and obsolete inventory . in addition to utilizing contract manufacturers , we outsource most of our logistics warehousing and order fulfillment functions , which are located primarily in china , and to a lesser extent , taiwan and united states . we also evaluate and utilize other vendors for various portions of our supply chain from time to time . our operations organization consists of employees and consultants engaged in the management of our contract manufacturers , new product introduction activities , logistical support and engineering . gross profit our gross profit has been , and may in the future be , influenced by several factors including changes in product mix , target end markets for our products , pricing due to competitive pressure , production costs and global demand for electronic components . although we procure and sell our products in u.s. dollars , our contract manufacturers incur many costs , including labor costs , in other currencies . to the extent that the exchange rates move unfavorably for our contract manufacturers , they may try to pass these additional costs on to us , which could have a material impact on our future average selling prices and unit costs . operating expenses we classify our operating expenses as research and development , sales , general and administrative expenses and expense related to the business email compromise fraud loss . research and development expenses consist primarily of salary and benefit expenses , including stock-based compensation , for employees and costs for contractors engaged in research , design and development activities , as well as costs for prototypes , licensed or purchased intellectual property , facilities and travel . over time , we expect our research and development costs to increase as we continue making significant investments in developing new products in addition to new versions of our existing products . sales , general and administrative expenses include salary and benefit expenses , including stock-based compensation , for employees and costs for contractors engaged in sales , marketing and general and administrative activities , as well as the costs of legal expenses , trade shows , marketing programs , promotional materials , bad debt expense , professional services , facilities , general liability insurance and travel . as our product portfolio and targeted markets expand , we may need to employ different sales models , such as building a direct sales force . these sales models would likely increase our costs . over time , we expect our sales , general and administrative expenses to increase in absolute dollars due to continued growth in headcount , expansion of our efforts to register and defend trademarks and patents and to support our business and operations . business e-mail compromise fraud ( recovery ) loss - in june 2015 , we determined that we were the victim of criminal fraud known to law enforcement authorities as business e-mail compromise fraud which involved employee impersonation and fraudulent requests targeting our finance department . the fraud resulted in transfers of funds aggregating $ 46.7 million held by a company subsidiary incorporated in hong kong to other overseas accounts held by third parties , of which we recovered $ 8.1 million in fiscal 2015. as a result , we recorded a charge of $ 39.1 million in the fourth quarter of 2015 , including additional expenses consisting of professional service fees associated with the fraud loss . in fiscal 2016 , the company recorded a net recovery of an additional $ 8.3 million , comprised of an $ 8.6 million recovery less $ 0.3 million of professional service fees associated with the recovery . the company is continuing to pursue the recovery of the remaining $ 30.0 million and is cooperating with u.s. federal and numerous overseas law enforcement authorities who are actively pursuing a multi-agency criminal investigation . however , any additional recoveries are likely remote and , therefore , can not be assured . 34 deferred revenues we recognize revenues when persuasive evidence of an arrangement exists , delivery has occurred , the sales price is fixed or determinable and the collectability of the resulting receivable is reasonably assured . in cases where we lack evidence that all of these criteria have been met , we defer recognition of revenue . story_separator_special_tag this increase in absolute dollar expenditures is primarily driven by a $ 2.5 million impairment charge for capitalized software and software in development costs recognized in the second quarter of fiscal 2016 due to the cancellation of the commercial launch of certain software in development . over time , we expect our research and development costs to continue to increase in absolute dollars as we continue making investments in developing new products in addition to new versions of our existing products . sales , general and administrative sales , general and administrative expenses increased $ 11.7 million , or 54 % , from $ 21.6 million in fiscal 2015 to $ 33.3 million in fiscal 2016 . as a percentage of revenues , sales , general and administrative expenses increased to 5 % in fiscal 2016 , compared to 4 % in fiscal 2015 . the increase in sales , general and administrative expenses in absolute dollars and as a percentage of revenues was due to higher consulting fees incurred to support the finance team and to assist with material weakness remediation , higher legal costs , and an increase in headcount in the business development organization . during fiscal 2017 , we expect our sales , general and administrative expenses to stabilize as we anticipate lower consulting related fees . however , as the business grows , additional costs will be necessary to support this business , to register and defend trademarks and patents and to support our business and operations . business e-mail compromise fraud ( recovery ) loss in june 2015 , we determined that we were the victim of criminal fraud known to law enforcement authorities as business e-mail compromise fraud which involved employee impersonation and fraudulent requests targeting our finance department . the fraud resulted in transfers of funds aggregating $ 46.7 million held by a company subsidiary incorporated in hong kong to other overseas accounts held by third parties . the company recovered $ 8.1 million in fiscal 2015 and recorded a charge of $ 39.1 million in the fourth quarter of fiscal 2015 , including additional expenses consisting of professional service fees associated with the fraud loss . in fiscal 2016 , the company recorded a net recovery of an additional $ 8.3 million , comprised of an $ 8.6 million recovery less $ 0.3 million of professional service fees associated with the recovery . the company is continuing to pursue the recovery of the remaining $ 30.0 million and is cooperating with u.s. federal and numerous overseas law enforcement authorities who are actively pursuing a multi-agency criminal investigation . however , any additional recoveries are likely remote and therefore can not be assured . provision for income taxes our provision for income taxes increased $ 10.2 million from $ 16.1 million for fiscal 2015 to $ 26.3 million for fiscal 2016 . our effective tax rate remained flat at 11 % in both fiscal 2016 and fiscal 2015 because the company 's ratio of domestic and foreign income remained relatively constant for fiscal 2015 and fiscal 2016 . overall , the rate benefit is due to income in foreign jurisdictions that have lower tax rates than the u.s. 39 comparison of years ended june 30 , 2015 and 2014 replace_table_token_9_th revenues revenues increased $ 23.5 million , or 4 % , from $ 572.5 million in fiscal 2014 to $ 595.9 million in fiscal 2015 . we believe the overall increase in revenues during fiscal 2015 was driven by increased adoption of our enterprise technologies , partially offset by a decrease in sales of our service provider technologies due to lower demand from our service provider customers outside of north america , including as a result of political and economic instability in some of those regions . in fiscal 2014 , flytec computers inc. represented 13 % of our revenues . no other distributor or customer represented more than 10 % of our revenues in fiscal 2015 or fiscal 2014 . revenues by product type replace_table_token_10_th service provider technology revenues decreased $ 32.6 million , or 7 % , during fiscal 2015. the decline in revenues from service provider technologies was primarily due to lower demand from our service provider customers outside of north america , including as a result of political and economic instability in some of those regions and the strength of the us dollar during the fiscal year compared to some of the currencies in these regions . enterprise technology revenues increased $ 56.1 million , or 46 % , during fiscal 2015 , primarily due to product expansion and further adoption of our unifi technology platform . 40 revenues by geography we have determined the geographical distribution of our product revenues based on our customers ' ship-to destinations . a majority of our sales are to distributors who in turn sell to resellers or directly to end customers , which may be different countries than the initial ship-to destination . the following are our revenues by geography for fiscal 2015 and fiscal 2014 ( in thousands , except percentages ) : replace_table_token_11_th ( 1 ) revenue for the united states was $ 187.3 million and $ 136.6 million in fiscal 2015 and fiscal 2014 , respectively . north america revenues in north america increased $ 55.3 million , or 39 % , from $ 142.4 million in fiscal 2014 to $ 197.7 million in fiscal 2015. the increase in revenues in north america in fiscal 2015 compared to fiscal 2014 was due to increased adoption of our service provider technologies and enterprise technologies . south america revenues in south america decreased $ 12.5 million , or 11 % , from $ 109.6 million in fiscal 2014 to $ 97.1 million in fiscal 2015. we believe the decrease in revenues in south america in fiscal 2015 compared to fiscal 2014 was primarily due to decreased demand for our service provider technologies due in part to economic instability and partially

