our largest semiconductor customers , novellus systems and lam research , recently announced that they had entered into a merger agreement pursuant to which they would combine businesses . also , in november 2011 , applied materials , inc. completed the acquisition of varian semiconductor equipment associates , inc. , one of our customers . we will continue to assess the potential impact on our future operating results ; however , at this time we do not believe either of these two mergers will have a significant impact , if any , on our business going forward . in addition , we will be terminating our agreement for manufacturing services to fei company in april 2012 as fei has chosen to insource their production , however , we will continue to provide services for pay to fei for up to six months subsequent to termination of the agreement . we do not believe the loss of fei will have a material effect on our fiscal 2012 operating results . financial results for fiscal 2010 over fiscal 2009 reflected a significant increase in demand for our products in all industries that we serve as our operations began to recover from the global economic downturn of 2008 and 2009. our sales for fiscal 2010 increased $ 283.4 million over fiscal 2009 with net income of $ 20.1 million compared to a net loss of $ 20.0 million in fiscal 2009. our three largest customers in fiscal year 2010 were applied materials , inc. , lam research corporation and novellus systems , inc. , two of which each accounted for 10 % or more of sales in fiscal year 2010 , and as a group , these customers accounted for 72 % of our sales . 25 financial results for fiscal 2009 reflected significantly reduced demand for our products in all industries in which we serve due to the extremely unfavorable global economic and industry conditions which began in fiscal 2008. sales were $ 159.8 million . our three largest customers in fiscal year 2009 were applied materials , inc. , intuitive surgical , inc. , and lam research corporation , each of which accounted for more than 10 % of our total sales in fiscal year 2009 , and as a group , these customers accounted for 79 % of our sales . results of operations the following table sets forth income statement data for the periods indicated as a percentage of revenue : replace_table_token_4_th fiscal year 2011 compared with fiscal year 2010 sales sales for fiscal year 2011 increased $ 9.5 million , or 2.1 % , to $ 452.6 million from $ 443.1 million for fiscal year 2010. substantially all of the revenue increase for the year is attributable to volume increases with existing customers at relatively constant prices . during the final two quarters of fiscal year 2011 , however , we experienced a slowdown in demand , primarily in the semiconductor equipment and energy spaces . gross profit cost of goods sold consists primarily of purchased materials , inventory write-downs , and labor and overhead , including depreciation , associated with the design and manufacture of products sold . gross profit for fiscal year 2011 increased slightly to $ 59.0 million , or 13.0 % of sales , from $ 59.1 million , or 13.3 % of sales , for fiscal year 2010. our gross margin for fiscal year 2011 decreased from fiscal year 2010 primarily as a result of relatively fixed overhead costs that did not decline proportionately to the decline in revenue experienced in the second half of fiscal year 2011. research and development expense research and development expense consists primarily of activities related to new component testing and evaluation , test equipment and fixture development , product design , and other product development activities . research and development expense for fiscal year 2011 was $ 5.6 million , or 1.2 % of sales , compared to 5.5 million , or 1.2 % of sales for fiscal year 2010. the increase in year-over-year expense is due to an increase in payroll and related costs . 26 sales and marketing expense sales and marketing expense consists primarily of salaries and commissions paid to our sales and service employees , salaries paid to our engineers who work with the sales and service employees to help determine the components and configuration requirements for new products and other costs related to the sales of our products . sales and marketing expense for fiscal year 2011 increased $ 0.4 million to $ 7.3 million , or 1.6 % of sales , compared to $ 6.9 million , or 1.6 % of sales , for fiscal year 2010. the increase in year-over year expense is primarily due to slight increases in payroll and related benefit costs as well as increased commissions due to increased revenue . general and administrative expense general and administrative expense consists primarily of salaries and overhead associated with our administrative staff and professional fees . general and administrative expense for fiscal year 2011 increased approximately $ 1.3 million , or 6.3 % to $ 22.6 million , or 5.0 % of sales , compared with $ 21.3 million , or 4.8 % of sales , for fiscal year 2010. the increase in dollars when comparing fiscal year 2011 with fiscal year 2010 is due primarily to an increase in payroll and related benefit costs associated with an increase in headcount for our singapore office . the increase in general and administrative expense as a percent of sales for fiscal year 2011 , compared to fiscal year 2010 is due primarily to our investment in personnel in singapore , which resulted in general and administrative related personnel costs for fiscal year 2011 being a greater proportion of sales than in the prior year . story_separator_special_tag we assess the recoverability of an asset group by determining if the carrying value of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group . if the recoverability test indicates that the carrying value of the asset group is not recoverable , we will estimate the fair value of the asset group using the income approach , which is the present value technique used to measure the fair value of future cash flow produced by each asset group , and compare it to its carrying value . the excess of the carrying value over the fair value is the process of evaluating the potential impairment of goodwill or long-lived assets is subjective and requires significant judgment on matters such as , but not limited to , the reporting unit at which goodwill should be measured for impairment and the asset group to be tested for recoverability . we are also required to make estimates that may significantly impact the outcome of the analyses . such estimates include , but are not limited to , future operating performance and cash flows , cost of capital , terminal values , control premiums and remaining economic lives of assets . equity incentives to employees we have accounted for stock-based compensation under the fasb 's guidance regarding stock-based compensation and the sec 's guidance requiring the use of option pricing models . the black-scholes option-pricing model that we use was developed for use in estimating the fair value of short-lived exchange traded options that have no vesting restrictions and are fully transferable . in addition , option-pricing models require the input of highly subjective assumptions , including the option 's expected life and the price volatility of underlying stock . our expected stock price volatility assumption was determined using the historical volatility of our common stock . we determined that historical volatility reflects market conditions and is a good indicator of future volatility . our expected term represents the period that our stock-based awards are expected to be outstanding and was determined based on our historical experience with similar awards , giving consideration to the contractual terms of the stock-based awards and vesting schedules . see note 7 of notes to consolidated financial statements for a detailed description . unaudited quarterly financial results the following table sets forth statement of operations data , in thousands , for the periods indicated . the information for each of these periods is unaudited and has been prepared on the same basis as our audited consolidated financial statements included herein and includes all adjustments , consisting only of normal 31 recurring adjustments that we consider necessary for a fair presentation of our unaudited operations data for the periods presented . historical results are not necessarily indicative of the results to be expected in the future ( in thousands ) : replace_table_token_5_th our operating results for fiscal 2011 reflect the reversal of a tax valuation allowance of $ 6.7 million in the fourth quarter . story_separator_special_tag style= `` border-collapse : collapse `` width= `` 100 % `` > ( 1 ) operating lease expense reflects ( a ) the lease for our headquarters facility in hayward , california that expires in 2015 ; ( b ) the leases for manufacturing facilities in south san francisco that expire in 2012 thru 2013 ; ( c ) the leases for manufacturing facilities in china and singapore that expire in 2012 thru 2016 and ; ( d ) the leases for manufacturing facilities in austin , texas that expire in 2016. we have options to renew certain of the leases in south san francisco , hayward and austin which we expect to exercise . ( 2 ) as a result of the implementation of fasb 's guidance regarding accounting for uncertainty in income taxes , we have recorded an additional tax liability of $ 132,000 to offset the recognition of previously recorded excess tax benefits . because of the uncertainty surrounding the future payment of these liabilities , the amount has been excluded from the table above . recently issued accounting standards in september 2011 , the fasb issued authoritative guidance to allow entities to use a qualitative approach to test goodwill for impairment . this authoritative guidance permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value . if it is concluded that this is the case , it is necessary to perform the two-step goodwill impairment test . otherwise , the two-step goodwill impairment test is not required . this guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after december 15 , 2011 and earlier adoption is permitted . currently , the implementation of this authoritative guidance would have no impact on our financial position or results of operations . in june 2011 , the fasb issued authoritative guidance on the presentation of comprehensive income to require an entity to present the total of comprehensive income , the components of net income , and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements . this authoritative guidance eliminates the option to present the components of other comprehensive income as part of the statement of equity . in december 2011 , the requirement regarding the presentation of reclassification adjustments out of accumulated other comprehensive income was deferred indefinitely . the new guidance , except for the provision deferred , is effective for us in the first quarter of fiscal year 2012 , with early adoption permitted , and should be applied retrospectively . the implementation of this authoritative guidance will change only the presentation of comprehensive income and will have no

liquidity and capital resources we have required capital principally to fund our working capital needs , satisfy our debt obligations , maintain our equipment and purchase new capital equipment . as of december 30 , 2011 , we had unrestricted cash of $ 52.2 million compared to $ 34.7 million as of december 31 , 2010. for fiscal year 2011 , we generated cash from operating activities of $ 23.7 million compared to using cash of $ 4.9 million for fiscal year 2010. operating cash flows generated for fiscal year 2011 were from : $ 23.7 million of net income ; net non-cash activity , including depreciation and amortization of $ 2.9 million and stock-based compensation of $ 4.4 million ; decreases in accounts receivable of $ 13.5 million and inventory of $ 3.8 million . offsetting cash inflows were decreases in accounts payable of $ 16.5 million and accrued compensation of $ 0.9 million , an increase in deferred income tax of $ 6.3 million and a decrease of $ 3.8 million in inventory . our cash inflows flows from operations in any given period are largely driven by the timing of sales , the collection of accounts receivable and the payment of accounts payable , principally inventory related . net cash used in investing activities for fiscal year 2011 increased to $ 4.0 million from $ 3.8 million for fiscal year 2010. capital expenditures for fiscal year 2011 reflect our continued investment in our asian subsidiaries as well as our domestic operating units . net cash used in financing activities for fiscal year 2011 was $ 2.2 million compared to net cash provided by financing activities of $ 16.6 million for fiscal year 2010. for fiscal year 2011 , our cash used in financing activities was due to payments on our term loans of $ 3.9 million , offset by proceeds from option exercises and our employee stock purchase program of $ 1.0 million and excess tax benefits from stock-based compensation of $ 0.7 million .


 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.
     ```liquidity and capital resources we have required capital principally to fund our working capital needs , satisfy our debt obligations , maintain our equipment and purchase new capital equipment . as of december 30 , 2011 , we had unrestricted cash of $ 52.2 million compared to $ 34.7 million as of december 31 , 2010. for fiscal year 2011 , we generated cash from operating activities of $ 23.7 million compared to using cash of $ 4.9 million for fiscal year 2010. operating cash flows generated for fiscal year 2011 were from : $ 23.7 million of net income ; net non-cash activity , including depreciation and amortization of $ 2.9 million and stock-based compensation of $ 4.4 million ; decreases in accounts receivable of $ 13.5 million and inventory of $ 3.8 million . offsetting cash inflows were decreases in accounts payable of $ 16.5 million and accrued compensation of $ 0.9 million , an increase in deferred income tax of $ 6.3 million and a decrease of $ 3.8 million in inventory . our cash inflows flows from operations in any given period are largely driven by the timing of sales , the collection of accounts receivable and the payment of accounts payable , principally inventory related . net cash used in investing activities for fiscal year 2011 increased to $ 4.0 million from $ 3.8 million for fiscal year 2010. capital expenditures for fiscal year 2011 reflect our continued investment in our asian subsidiaries as well as our domestic operating units . net cash used in financing activities for fiscal year 2011 was $ 2.2 million compared to net cash provided by financing activities of $ 16.6 million for fiscal year 2010. for fiscal year 2011 , our cash used in financing activities was due to payments on our term loans of $ 3.9 million , offset by proceeds from option exercises and our employee stock purchase program of $ 1.0 million and excess tax benefits from stock-based compensation of $ 0.7 million .
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 Suspicious Activity Report : our largest semiconductor customers , novellus systems and lam research , recently announced that they had entered into a merger agreement pursuant to which they would combine businesses . also , in november 2011 , applied materials , inc. completed the acquisition of varian semiconductor equipment associates , inc. , one of our customers . we will continue to assess the potential impact on our future operating results ; however , at this time we do not believe either of these two mergers will have a significant impact , if any , on our business going forward . in addition , we will be terminating our agreement for manufacturing services to fei company in april 2012 as fei has chosen to insource their production , however , we will continue to provide services for pay to fei for up to six months subsequent to termination of the agreement . we do not believe the loss of fei will have a material effect on our fiscal 2012 operating results . financial results for fiscal 2010 over fiscal 2009 reflected a significant increase in demand for our products in all industries that we serve as our operations began to recover from the global economic downturn of 2008 and 2009. our sales for fiscal 2010 increased $ 283.4 million over fiscal 2009 with net income of $ 20.1 million compared to a net loss of $ 20.0 million in fiscal 2009. our three largest customers in fiscal year 2010 were applied materials , inc. , lam research corporation and novellus systems , inc. , two of which each accounted for 10 % or more of sales in fiscal year 2010 , and as a group , these customers accounted for 72 % of our sales . 25 financial results for fiscal 2009 reflected significantly reduced demand for our products in all industries in which we serve due to the extremely unfavorable global economic and industry conditions which began in fiscal 2008. sales were $ 159.8 million . our three largest customers in fiscal year 2009 were applied materials , inc. , intuitive surgical , inc. , and lam research corporation , each of which accounted for more than 10 % of our total sales in fiscal year 2009 , and as a group , these customers accounted for 79 % of our sales . results of operations the following table sets forth income statement data for the periods indicated as a percentage of revenue : replace_table_token_4_th fiscal year 2011 compared with fiscal year 2010 sales sales for fiscal year 2011 increased $ 9.5 million , or 2.1 % , to $ 452.6 million from $ 443.1 million for fiscal year 2010. substantially all of the revenue increase for the year is attributable to volume increases with existing customers at relatively constant prices . during the final two quarters of fiscal year 2011 , however , we experienced a slowdown in demand , primarily in the semiconductor equipment and energy spaces . gross profit cost of goods sold consists primarily of purchased materials , inventory write-downs , and labor and overhead , including depreciation , associated with the design and manufacture of products sold . gross profit for fiscal year 2011 increased slightly to $ 59.0 million , or 13.0 % of sales , from $ 59.1 million , or 13.3 % of sales , for fiscal year 2010. our gross margin for fiscal year 2011 decreased from fiscal year 2010 primarily as a result of relatively fixed overhead costs that did not decline proportionately to the decline in revenue experienced in the second half of fiscal year 2011. research and development expense research and development expense consists primarily of activities related to new component testing and evaluation , test equipment and fixture development , product design , and other product development activities . research and development expense for fiscal year 2011 was $ 5.6 million , or 1.2 % of sales , compared to 5.5 million , or 1.2 % of sales for fiscal year 2010. the increase in year-over-year expense is due to an increase in payroll and related costs . 26 sales and marketing expense sales and marketing expense consists primarily of salaries and commissions paid to our sales and service employees , salaries paid to our engineers who work with the sales and service employees to help determine the components and configuration requirements for new products and other costs related to the sales of our products . sales and marketing expense for fiscal year 2011 increased $ 0.4 million to $ 7.3 million , or 1.6 % of sales , compared to $ 6.9 million , or 1.6 % of sales , for fiscal year 2010. the increase in year-over year expense is primarily due to slight increases in payroll and related benefit costs as well as increased commissions due to increased revenue . general and administrative expense general and administrative expense consists primarily of salaries and overhead associated with our administrative staff and professional fees . general and administrative expense for fiscal year 2011 increased approximately $ 1.3 million , or 6.3 % to $ 22.6 million , or 5.0 % of sales , compared with $ 21.3 million , or 4.8 % of sales , for fiscal year 2010. the increase in dollars when comparing fiscal year 2011 with fiscal year 2010 is due primarily to an increase in payroll and related benefit costs associated with an increase in headcount for our singapore office . the increase in general and administrative expense as a percent of sales for fiscal year 2011 , compared to fiscal year 2010 is due primarily to our investment in personnel in singapore , which resulted in general and administrative related personnel costs for fiscal year 2011 being a greater proportion of sales than in the prior year . story_separator_special_tag we assess the recoverability of an asset group by determining if the carrying value of the asset group exceeds the sum of the projected undiscounted cash flows expected to result from the use and eventual disposition of the assets over the remaining economic life of the primary asset in the asset group . if the recoverability test indicates that the carrying value of the asset group is not recoverable , we will estimate the fair value of the asset group using the income approach , which is the present value technique used to measure the fair value of future cash flow produced by each asset group , and compare it to its carrying value . the excess of the carrying value over the fair value is the process of evaluating the potential impairment of goodwill or long-lived assets is subjective and requires significant judgment on matters such as , but not limited to , the reporting unit at which goodwill should be measured for impairment and the asset group to be tested for recoverability . we are also required to make estimates that may significantly impact the outcome of the analyses . such estimates include , but are not limited to , future operating performance and cash flows , cost of capital , terminal values , control premiums and remaining economic lives of assets . equity incentives to employees we have accounted for stock-based compensation under the fasb 's guidance regarding stock-based compensation and the sec 's guidance requiring the use of option pricing models . the black-scholes option-pricing model that we use was developed for use in estimating the fair value of short-lived exchange traded options that have no vesting restrictions and are fully transferable . in addition , option-pricing models require the input of highly subjective assumptions , including the option 's expected life and the price volatility of underlying stock . our expected stock price volatility assumption was determined using the historical volatility of our common stock . we determined that historical volatility reflects market conditions and is a good indicator of future volatility . our expected term represents the period that our stock-based awards are expected to be outstanding and was determined based on our historical experience with similar awards , giving consideration to the contractual terms of the stock-based awards and vesting schedules . see note 7 of notes to consolidated financial statements for a detailed description . unaudited quarterly financial results the following table sets forth statement of operations data , in thousands , for the periods indicated . the information for each of these periods is unaudited and has been prepared on the same basis as our audited consolidated financial statements included herein and includes all adjustments , consisting only of normal 31 recurring adjustments that we consider necessary for a fair presentation of our unaudited operations data for the periods presented . historical results are not necessarily indicative of the results to be expected in the future ( in thousands ) : replace_table_token_5_th our operating results for fiscal 2011 reflect the reversal of a tax valuation allowance of $ 6.7 million in the fourth quarter . story_separator_special_tag style= `` border-collapse : collapse `` width= `` 100 % `` > ( 1 ) operating lease expense reflects ( a ) the lease for our headquarters facility in hayward , california that expires in 2015 ; ( b ) the leases for manufacturing facilities in south san francisco that expire in 2012 thru 2013 ; ( c ) the leases for manufacturing facilities in china and singapore that expire in 2012 thru 2016 and ; ( d ) the leases for manufacturing facilities in austin , texas that expire in 2016. we have options to renew certain of the leases in south san francisco , hayward and austin which we expect to exercise . ( 2 ) as a result of the implementation of fasb 's guidance regarding accounting for uncertainty in income taxes , we have recorded an additional tax liability of $ 132,000 to offset the recognition of previously recorded excess tax benefits . because of the uncertainty surrounding the future payment of these liabilities , the amount has been excluded from the table above . recently issued accounting standards in september 2011 , the fasb issued authoritative guidance to allow entities to use a qualitative approach to test goodwill for impairment . this authoritative guidance permits an entity to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value . if it is concluded that this is the case , it is necessary to perform the two-step goodwill impairment test . otherwise , the two-step goodwill impairment test is not required . this guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after december 15 , 2011 and earlier adoption is permitted . currently , the implementation of this authoritative guidance would have no impact on our financial position or results of operations . in june 2011 , the fasb issued authoritative guidance on the presentation of comprehensive income to require an entity to present the total of comprehensive income , the components of net income , and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements . this authoritative guidance eliminates the option to present the components of other comprehensive income as part of the statement of equity . in december 2011 , the requirement regarding the presentation of reclassification adjustments out of accumulated other comprehensive income was deferred indefinitely . the new guidance , except for the provision deferred , is effective for us in the first quarter of fiscal year 2012 , with early adoption permitted , and should be applied retrospectively . the implementation of this authoritative guidance will change only the presentation of comprehensive income and will have no

