moving into the first quarter of fiscal 2014 , we are currently seeing a reduction in orders from another large customer and a few of our new programs are not ramping up as rapidly as anticipated . net sales for the first quarter of fiscal year 2014 are expected to be within the range o f $ 73 million to $ 78 million . future results will depend on actual levels of customers ' orders , the timing of the start up of production of new product programs and the potential impact of the macroeconomic uncertainty . we believe that we are well positioned in the ems industry to continue expansion of our customer base and continue long-term growth . the concentration of our largest customers decreased during fiscal year 2013 with the top five customers ' sales decreasing to 71 percent of total sales in 2013 from 73 percent in 2012 , and 62 percent in 2011 . our current customer relationships involve a variety of products , including consumer electronics , electronic storage devices , plastics , household products , gaming devices , specialty printers , telecommunications , industrial equipment , military supplies , computer accessories , electronic whiteboards , medical , educational , irrigations , automotive , transportation management , robotics , rfid , power supply and offroad vehicle equipment . the growth during fiscal year 2013 was powered by an increasingly diverse mix of new customer programs . gross profit as a percent of sales was 9.6 percent in fiscal year 2013 compared to 8.6 percent for the prior fiscal year . this 1.0 percentage point increase in gross profit as a percentage of net sales during fiscal year 2013 as compared to fiscal year 2012 is primarily related to a 1.9 percentage point improvement in material costs , as a percent of sales , partially offset by a 0.9 percentage point increase in certain overhead costs as we brought on additional headcount and equipment to support new customer programs . the level of gross margin is impacted by product mix , timing of the start up of new programs , facility utilization , pricing within the electronics industry and material costs , which can fluctuate significantly from quarter to quarter and year to year . operating income as a percentage of sales for fiscal year 2013 was 5.0 percent compared to 4.1 percent for fiscal year 2012 . the increase in operating income as a percentage of sales was due to an increase in gross margin , while keeping operating expenses relatively flat and by improving efficiencies during fiscal year 2013 . net income for fiscal year 2013 was $ 12.6 million or $ 1.15 per diluted share , as compared to net income of $ 11.6 million or $ 1.10 per diluted share for fiscal year 2012 . the increase in net income for fiscal year 2013 as compared to fiscal year 2012 was primarily due to the increase in net sales that led an improvement in our gross margin and operating income , partially offset by an increase in income tax expense . 18 we maintain a strong balance sheet with a current ratio of 2.9 and a long-term debt to equity ratio of 0.01 . total cash provided by operating activities as defined on our cash flow statement was $ 29.3 million during fiscal year 2013 . we maintain sufficient liquidity for our expected future operations . we did not have an outstanding balance on our revolving line of credit with wells fargo bank , n.a . as of june 29 , 2013 . as a result , $ 30.0 million remained available to borrow as of june 29 , 2013 . we believe cash flow from operations , our borrowing capacity , and equipment lease financing should provide adequate capital for planned growth over the long term . results of operations comparison of the fiscal year ended june 29 , 2013 with the fiscal year ended june 30 , 2012 the following table sets forth for the periods indicated certain items of the consolidated statements of income expressed as a percentage of net sales . the financial information and discussion below should be read in conjunction with the consolidated financial statements and notes contained in this annual report . replace_table_token_5_th net sales the increase in net sales from prior year was primarily driven by an approximate $ 11.7 million increase in revenues related to new programs for both new and longstanding customers and to a lesser extent a net $ 5.5 million increase related to increased demand from current customer programs , which was partially offset by the previously disclosed slowdown from the large customer that began to reduce production levels in the second quarter of fiscal year 2013. in addition , the increases were negatively impacted by $ 2.6 million related to customer program losses . the negative impact resulting from the previously discussed slowdown of demand from one of our larger customers is reflected in the analysis above . the following table shows the revenue by industry sectors as a percentage of revenue for fiscal years 2013 and 2012 : replace_table_token_6_th we provide services to customers in a number of industries and produce a variety of products for our customers in each industry . as we continue to diversify our customer base and win new customers we will continue to see a change in the industry concentrations of our revenue . 19 sales to foreign locations outside the united states represented 31.8 percent , and 40.6 percent of our total net sales in fiscal years 2013 , and 2012 , respectively . story_separator_special_tag if expected sales do not materialize , then we would have inventory in excess of our reserves and would have to charge the excess against future earnings . in the case where we have purchased material based upon a customer 's forecast or purchase orders , we are usually covered by lead-time assurance agreements or purchase orders with each customer . these contracts state that the financial liability for material purchased within agreed upon lead-time and based upon the customer 's forecasts , lies with the customer . if we purchase material outside the lead-time assurance agreement and the customer 's forecasts do not materialize or if we have no lead-time assurance agreement for a specific program , we would have the financial liability and may have to charge inactive , obsolete or surplus inventory against earnings . allowance for doubtful accounts we value our accounts receivable net of an allowance for doubtful accounts . the allowance for doubtful accounts was $ 40,000 as of june 29 , 2013. as of june 30 , 2012 , we deemed that no allowance was necessary . this allowance is based on estimates of the portion of accounts receivable that may not be collected in the future . the estimates used are based primarily on specific identification of potentially uncollectible accounts . such accounts are identified using publicly available information in conjunction with evaluations of current payment activity . however , if any of our customers were to develop unexpected and immediate financial problems that would prevent payment of open invoices , we could incur additional and possibly material expenses that would negatively impact earnings . accrued warranty an accrual is made for expected warranty costs , with the related expense recognized in cost of goods sold . we review the adequacy of this accrual quarterly based on historical analysis and anticipated product returns and rework costs . as we have made the transition from manufacturing primarily keyboards to primarily ems products , our exposure to warranty claims has declined significantly . our warranty period for keyboards is generally longer than that for ems products . we only warrant materials and workmanship on ems products , and we do not warrant design defects for ems customers . income taxes income tax expense includes u.s. and international income taxes and the provision for u.s. taxes on undistributed earnings of foreign subsidiaries not deemed to be permanently invested . we do not record u.s. tax liabilities on undistributed earnings of international subsidiaries that are deemed to be permanently reinvested . certain income and expenses are not reported in tax returns and financial statements in the same year . the tax effect of such temporary differences is reported as deferred income taxes . the deferred income taxes are classified as current or long-term based on the classification of the related asset or liability . the most significant areas involving management judgments include deferred income tax assets and liabilities , uncertain tax positions , and research and development tax credits . our estimates of the realization of the deferred tax assets related to our tax credits are based upon our estimates of future taxable income which may change . stock-based compensation stock-based compensation is accounted for according to financial accounting standards board ( fasb ) accounting standards codification ( asc ) 718 , compensation—stock compensation . asc 718 requires us to expense the fair value of employee stock options , stock appreciation rights and other forms of stock-based compensation . under the fair value recognition provisions of asc 718 , share-based compensation cost is estimated at the grant date based upon the fair value of the award and is recognized as expense ratably over the requisite service period of the award ( generally the vesting period ) . determining the appropriate fair value model and calculating the fair value of share-based awards requires judgment , including estimating the expected life of the share-based award , the expected stock price volatility over the expected life of the share-based award and forfeitures . 26 to determine the fair value of stock based awards on the date of grant we use the black-scholes option-pricing model . inherent in this model are assumptions related to expected stock price volatility , option life , risk-free interest rate and dividend yield . the risk-free interest rate is a less-subjective assumption as it is based on factual data derived from public sources . we use a dividend yield of zero as we have never paid cash dividends and have no intention to pay cash dividends in the foreseeable future . the expected stock price volatility and option life assumptions require a greater level of judgment . our expected stock-price volatility assumption is based upon the historical volatility of our stock which is obtained from public data sources . the expected life represents the weighted average period of time that share-based awards are expected to be outstanding , giving consideration to vesting schedules and historical exercise patterns . we determine the expected life assumption based upon the exercise and post-vesting behavior that has been exhibited historically , adjusted for specific factors that may influence future exercise patterns . if expected volatility or expected life were to increase , that would result in an increase in the fair value of our stock options which would result in higher compensation charges , while a decrease in volatility or the expected life would result in a lower fair value of our stock option awards resulting in lower compensation charges . we estimate forfeitures for all of our awards based upon historical experience of stock-based pre-vesting forfeitures . we believe that our estimates are based upon outcomes that are reasonably likely to occur . if actual forfeitures are higher than our estimates it would result in lower compensation expense and to the extent the actual forfeitures are lower than our estimate we would record higher compensation expense . impairment of long-lived assets long-lived assets , such as property ,

capital resources and liquidity operating cash flow net cash provided by operating activities for fiscal year 2013 was $ 29.3 million compared to net cash used in operating activities of $ 5.1 million and $ 2.6 million in fiscal years 2012 and 2011 , respectively . cash flows provided by operating activities increased primarily due to a drop in working capital caused by decreased revenue in the fourth quarter of fiscal 2013 when compared to fiscal 2012. the decreased revenue allowed the company to decrease its accounts receivable and inventories . additionally , the company improved its inventory turns through better management of order quantities and requiring certain customer payments on aged inventory purchased to forecast but subsequently not consumed . the working capital increase year-over-year is primarily related to a $ 13.3 million decrease in inventory , and a $ 13.6 million decrease in accounts receivable partially offset by a $ 16.6 million decrease in accounts payable . the working capital changes during fiscal year 2012 , are primarily due to a $ 17.6 million increase in inventory and a $ 20.3 million increase in accounts receivable , which were partially offset by a $ 16.9 million increase in accounts payable . the increase in working capital during fiscal 2012 was related to a significant increase in revenue occurring during the year . we purchase inventory based on customer forecasts and orders , and when those forecasts and orders change , the amount of inventory may also fluctuate . accounts receivable fluctuates based on the timing of shipments , terms offered and collections . accounts payable fluctuates with changes in inventory levels , volume of inventory purchases , negotiated supplier terms , and taking advantage of early pay discounts . investing cash flow cash flows used in investing activities were $ 3.3 million , $ 4.6 million , and $ 3.7 million in fiscal years 2013 , 2012 and 2011 , respectively . our investing cash flows primarily consist of capital expenditures to purchase manufacturing equipment to support production and to a lesser extent leasehold improvements at our corporate headquarters .


 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.
     ```capital resources and liquidity operating cash flow net cash provided by operating activities for fiscal year 2013 was $ 29.3 million compared to net cash used in operating activities of $ 5.1 million and $ 2.6 million in fiscal years 2012 and 2011 , respectively . cash flows provided by operating activities increased primarily due to a drop in working capital caused by decreased revenue in the fourth quarter of fiscal 2013 when compared to fiscal 2012. the decreased revenue allowed the company to decrease its accounts receivable and inventories . additionally , the company improved its inventory turns through better management of order quantities and requiring certain customer payments on aged inventory purchased to forecast but subsequently not consumed . the working capital increase year-over-year is primarily related to a $ 13.3 million decrease in inventory , and a $ 13.6 million decrease in accounts receivable partially offset by a $ 16.6 million decrease in accounts payable . the working capital changes during fiscal year 2012 , are primarily due to a $ 17.6 million increase in inventory and a $ 20.3 million increase in accounts receivable , which were partially offset by a $ 16.9 million increase in accounts payable . the increase in working capital during fiscal 2012 was related to a significant increase in revenue occurring during the year . we purchase inventory based on customer forecasts and orders , and when those forecasts and orders change , the amount of inventory may also fluctuate . accounts receivable fluctuates based on the timing of shipments , terms offered and collections . accounts payable fluctuates with changes in inventory levels , volume of inventory purchases , negotiated supplier terms , and taking advantage of early pay discounts . investing cash flow cash flows used in investing activities were $ 3.3 million , $ 4.6 million , and $ 3.7 million in fiscal years 2013 , 2012 and 2011 , respectively . our investing cash flows primarily consist of capital expenditures to purchase manufacturing equipment to support production and to a lesser extent leasehold improvements at our corporate headquarters .
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 Suspicious Activity Report : moving into the first quarter of fiscal 2014 , we are currently seeing a reduction in orders from another large customer and a few of our new programs are not ramping up as rapidly as anticipated . net sales for the first quarter of fiscal year 2014 are expected to be within the range o f $ 73 million to $ 78 million . future results will depend on actual levels of customers ' orders , the timing of the start up of production of new product programs and the potential impact of the macroeconomic uncertainty . we believe that we are well positioned in the ems industry to continue expansion of our customer base and continue long-term growth . the concentration of our largest customers decreased during fiscal year 2013 with the top five customers ' sales decreasing to 71 percent of total sales in 2013 from 73 percent in 2012 , and 62 percent in 2011 . our current customer relationships involve a variety of products , including consumer electronics , electronic storage devices , plastics , household products , gaming devices , specialty printers , telecommunications , industrial equipment , military supplies , computer accessories , electronic whiteboards , medical , educational , irrigations , automotive , transportation management , robotics , rfid , power supply and offroad vehicle equipment . the growth during fiscal year 2013 was powered by an increasingly diverse mix of new customer programs . gross profit as a percent of sales was 9.6 percent in fiscal year 2013 compared to 8.6 percent for the prior fiscal year . this 1.0 percentage point increase in gross profit as a percentage of net sales during fiscal year 2013 as compared to fiscal year 2012 is primarily related to a 1.9 percentage point improvement in material costs , as a percent of sales , partially offset by a 0.9 percentage point increase in certain overhead costs as we brought on additional headcount and equipment to support new customer programs . the level of gross margin is impacted by product mix , timing of the start up of new programs , facility utilization , pricing within the electronics industry and material costs , which can fluctuate significantly from quarter to quarter and year to year . operating income as a percentage of sales for fiscal year 2013 was 5.0 percent compared to 4.1 percent for fiscal year 2012 . the increase in operating income as a percentage of sales was due to an increase in gross margin , while keeping operating expenses relatively flat and by improving efficiencies during fiscal year 2013 . net income for fiscal year 2013 was $ 12.6 million or $ 1.15 per diluted share , as compared to net income of $ 11.6 million or $ 1.10 per diluted share for fiscal year 2012 . the increase in net income for fiscal year 2013 as compared to fiscal year 2012 was primarily due to the increase in net sales that led an improvement in our gross margin and operating income , partially offset by an increase in income tax expense . 18 we maintain a strong balance sheet with a current ratio of 2.9 and a long-term debt to equity ratio of 0.01 . total cash provided by operating activities as defined on our cash flow statement was $ 29.3 million during fiscal year 2013 . we maintain sufficient liquidity for our expected future operations . we did not have an outstanding balance on our revolving line of credit with wells fargo bank , n.a . as of june 29 , 2013 . as a result , $ 30.0 million remained available to borrow as of june 29 , 2013 . we believe cash flow from operations , our borrowing capacity , and equipment lease financing should provide adequate capital for planned growth over the long term . results of operations comparison of the fiscal year ended june 29 , 2013 with the fiscal year ended june 30 , 2012 the following table sets forth for the periods indicated certain items of the consolidated statements of income expressed as a percentage of net sales . the financial information and discussion below should be read in conjunction with the consolidated financial statements and notes contained in this annual report . replace_table_token_5_th net sales the increase in net sales from prior year was primarily driven by an approximate $ 11.7 million increase in revenues related to new programs for both new and longstanding customers and to a lesser extent a net $ 5.5 million increase related to increased demand from current customer programs , which was partially offset by the previously disclosed slowdown from the large customer that began to reduce production levels in the second quarter of fiscal year 2013. in addition , the increases were negatively impacted by $ 2.6 million related to customer program losses . the negative impact resulting from the previously discussed slowdown of demand from one of our larger customers is reflected in the analysis above . the following table shows the revenue by industry sectors as a percentage of revenue for fiscal years 2013 and 2012 : replace_table_token_6_th we provide services to customers in a number of industries and produce a variety of products for our customers in each industry . as we continue to diversify our customer base and win new customers we will continue to see a change in the industry concentrations of our revenue . 19 sales to foreign locations outside the united states represented 31.8 percent , and 40.6 percent of our total net sales in fiscal years 2013 , and 2012 , respectively . story_separator_special_tag if expected sales do not materialize , then we would have inventory in excess of our reserves and would have to charge the excess against future earnings . in the case where we have purchased material based upon a customer 's forecast or purchase orders , we are usually covered by lead-time assurance agreements or purchase orders with each customer . these contracts state that the financial liability for material purchased within agreed upon lead-time and based upon the customer 's forecasts , lies with the customer . if we purchase material outside the lead-time assurance agreement and the customer 's forecasts do not materialize or if we have no lead-time assurance agreement for a specific program , we would have the financial liability and may have to charge inactive , obsolete or surplus inventory against earnings . allowance for doubtful accounts we value our accounts receivable net of an allowance for doubtful accounts . the allowance for doubtful accounts was $ 40,000 as of june 29 , 2013. as of june 30 , 2012 , we deemed that no allowance was necessary . this allowance is based on estimates of the portion of accounts receivable that may not be collected in the future . the estimates used are based primarily on specific identification of potentially uncollectible accounts . such accounts are identified using publicly available information in conjunction with evaluations of current payment activity . however , if any of our customers were to develop unexpected and immediate financial problems that would prevent payment of open invoices , we could incur additional and possibly material expenses that would negatively impact earnings . accrued warranty an accrual is made for expected warranty costs , with the related expense recognized in cost of goods sold . we review the adequacy of this accrual quarterly based on historical analysis and anticipated product returns and rework costs . as we have made the transition from manufacturing primarily keyboards to primarily ems products , our exposure to warranty claims has declined significantly . our warranty period for keyboards is generally longer than that for ems products . we only warrant materials and workmanship on ems products , and we do not warrant design defects for ems customers . income taxes income tax expense includes u.s. and international income taxes and the provision for u.s. taxes on undistributed earnings of foreign subsidiaries not deemed to be permanently invested . we do not record u.s. tax liabilities on undistributed earnings of international subsidiaries that are deemed to be permanently reinvested . certain income and expenses are not reported in tax returns and financial statements in the same year . the tax effect of such temporary differences is reported as deferred income taxes . the deferred income taxes are classified as current or long-term based on the classification of the related asset or liability . the most significant areas involving management judgments include deferred income tax assets and liabilities , uncertain tax positions , and research and development tax credits . our estimates of the realization of the deferred tax assets related to our tax credits are based upon our estimates of future taxable income which may change . stock-based compensation stock-based compensation is accounted for according to financial accounting standards board ( fasb ) accounting standards codification ( asc ) 718 , compensation—stock compensation . asc 718 requires us to expense the fair value of employee stock options , stock appreciation rights and other forms of stock-based compensation . under the fair value recognition provisions of asc 718 , share-based compensation cost is estimated at the grant date based upon the fair value of the award and is recognized as expense ratably over the requisite service period of the award ( generally the vesting period ) . determining the appropriate fair value model and calculating the fair value of share-based awards requires judgment , including estimating the expected life of the share-based award , the expected stock price volatility over the expected life of the share-based award and forfeitures . 26 to determine the fair value of stock based awards on the date of grant we use the black-scholes option-pricing model . inherent in this model are assumptions related to expected stock price volatility , option life , risk-free interest rate and dividend yield . the risk-free interest rate is a less-subjective assumption as it is based on factual data derived from public sources . we use a dividend yield of zero as we have never paid cash dividends and have no intention to pay cash dividends in the foreseeable future . the expected stock price volatility and option life assumptions require a greater level of judgment . our expected stock-price volatility assumption is based upon the historical volatility of our stock which is obtained from public data sources . the expected life represents the weighted average period of time that share-based awards are expected to be outstanding , giving consideration to vesting schedules and historical exercise patterns . we determine the expected life assumption based upon the exercise and post-vesting behavior that has been exhibited historically , adjusted for specific factors that may influence future exercise patterns . if expected volatility or expected life were to increase , that would result in an increase in the fair value of our stock options which would result in higher compensation charges , while a decrease in volatility or the expected life would result in a lower fair value of our stock option awards resulting in lower compensation charges . we estimate forfeitures for all of our awards based upon historical experience of stock-based pre-vesting forfeitures . we believe that our estimates are based upon outcomes that are reasonably likely to occur . if actual forfeitures are higher than our estimates it would result in lower compensation expense and to the extent the actual forfeitures are lower than our estimate we would record higher compensation expense . impairment of long-lived assets long-lived assets , such as property ,

