in december 2008 , we announced an initiative to transition certain key functions , including finance , to china in order to eliminate functional duplication and reduce operating expenses . our ability to successfully implement this change in 2009 is a critical part of our plan to achieve profitability and maintain liquidity . we may encounter difficulties in implementing this significant change in a short time period . if we are not successful , we may not achieve the expected benefits despite having expended significant capital and human effort . sale of non-core assets on july 1 , 2008 , we sold utstarcom personal communications llc , a wholly-owned subsidiary of the company ( `` pcd `` ) , to an entity controlled by aig global investment group and certain other investors for a total sale consideration of approximately $ 237.7 million . pursuant to the terms of the divestiture agreement , we may be entitled to receive up to an additional $ 50 million earnout payment in 2011 based on the achievement of certain earnings levels of the divested business , personal communications devices llc ( `` pcd llc `` ) through december 31 , 2010. we recorded a net gain of $ 3.8 million from the divestiture during 2008. additionally , on july 31 , 2008 , we completed the divestiture of our mobile solutions business unit ( `` msbu `` ) to a global private equity firm . during the third quarter of 2008 , we recorded a net gain on divestiture of msbu of $ 3.9 million . restructuring programs on october 2 , 2007 , our board of directors approved a restructuring plan ( the `` 2007 plan `` ) to reduce operating costs , which included a worldwide reduction in force of approximately 12 % of the company 's headcount , or approximately 800 employees . the workforce reduction was primarily in the united states and china . we incurred a restructuring charge in connection with the 2007 plan of approximately $ 14.5 million in the fourth quarter of 2007 , comprised largely of cash payments associated with one-time severance benefits . we completed the workforce reduction during the first quarter of 2008. on december 16 , 2008 , our board of directors approved a restructuring plan ( the `` 2008 plan `` ) designed to reduce operating costs . the plan includes , among other things , winding down our korea based handset operations ( `` korea operations `` ) and implementing an additional worldwide reduction in force of approximately 10 % of our headcount by the end of the second quarter of 2009. in connection with the 2008 plan , during the fourth quarter of 2008 we incurred a restructuring charge of $ 13.1 million comprised largely of cash payments associated with one-time severance benefits . we will continue our efforts to evaluate certain operations and will consider opportunities to divest additional non-core assets and may incur additional costs associated with future actions to further align our business operations and streamline our business processes . 52 revenue effects of non-core asset sales and restructuring programs the sale of pcd in july 2008 and the anticipated winding down of our korea operations are expected to result in a substantial reduction in 2009 net sales . our 2008 net sales included $ 879.6 million of pcd sales recognized in the first and second quarters of 2008 prior to pcd 's sale on july 1 , 2008 ; there will be no net sales from pcd in 2009. net sales in 2008 also include $ 126.0 million of sales to pcd llc in the third and fourth quarters of 2008 , and we presently do not expect the korea operations to record sales after the end of the second quarter of 2009. net sales from pcd and korea operations in 2008 aggregated $ 430.7 million , $ 448.9 million , $ 34.3 million , and $ 91.7 million in the first , second , third , and fourth quarters , respectively . the divestiture of our msbu operations is not expected to have a material effect on our 2009 net sales . asset impairment we performed tests of the recoverability of our long-lived assets as of december 31 , 2008 due to recurring operating losses , the continuing challenging business environment , a sustained decline in our stock price , and because our estimates of future cash flows for each of our business segments indicated an inability to recover the carrying values of each segment 's assets . as a result of this analysis , we recorded an impairment charge of $ 22.3 million to reduce the carrying value of our equipment and furniture , software , automobiles and leasehold improvements to estimated fair values . in addition , we recorded an impairment charge of $ 4.9 million to write-off customer relationships intangible assets related to our previous acquisition in 2003 of the commworks division of 3com corporation ( `` commworks `` ) as a result of our decision in the fourth quarter of fiscal 2008 to disband our custom solutions business unit which provided customized telecommunications solutions . during the quarter ended september 30 , 2007 , we announced a new organization structure to align our business segments with our corporate strategy . as a result , during the fourth quarter of 2007 , we performed impairment tests on goodwill and certain long-lived tangible and intangible assets . based upon the impairment assessments , we recorded a goodwill impairment charge of $ 3.1 million , an intangible asset impairment charge of $ 15.7 million , and an impairment charge of $ 1.1 million for equipment and furniture , software , automobiles and leasehold improvements ( see note 8 of notes to our consolidated financial statements included under part ii , item 8 of this annual report on form 10-k ) . story_separator_special_tag net sales replace_table_token_9_th 58 replace_table_token_10_th fiscal 2008 vs. 2007 net sales decreased by 34 % , or $ 826.5 million for 2008 compared to 2007. revenue was lower in all segments except handsets and services . the decrease was primarily due to pcd being sold in july 2008. the net sales of the disposed pcd segment decreased by $ 784.6 million . multimedia communications segment net sales decreased by $ 35.1 million , or 11 % , during 2008 compared to 2007 , mainly due to continued weakening demand for our pas infrastructure products . broadband infrastructure segment net sales decreased by $ 46.3 million or 29 % during 2008 compared to 2007. this decrease was mainly due to lower cpe and msan sales . due to the customer concentration in this segment , revenues fluctuate based upon the magnitude and timing of revenue recognition on certain contracts . handsets sales increased by $ 53.1 million , or 23 % , during 2008 primarily due to handsets sold to pcd llc aggregating $ 126.0 million during the second half of 2008 , partially offset by continued price and volume declines of our pas handsets sold in 2008 as compared to 2007. as we have been experiencing in recent quarters , increased competition and a decline in pas subscribers have resulted in lower demand and decreases in average selling prices for our pas handsets . for additional discussion see `` segment reporting `` section of this item 7. the economic uncertainty that we are operating in today could adversely impact our business . however , the majority of our business is based in china and indiatwo countries that are still projected to have economic growth in 2009. in 2009 and beyond , we expect that new orders for pas handsets and infrastructure equipment will continue to decline due to the china telecommunications industry restructuring as well as increased pricing pressures . we expect our cdma and td-scdma handsets will positively contribute to our revenue and partially offset the decline of our pas business . in order to capitalize on the growing data business in china , in mid-2009 we also plan to introduce hsdpa ( `` high speed downlink packet access `` ) data cards supported by td-scdma networks and evdo ( `` evolution data only `` ) data cards supported by cdma 3g networks , which we expect to have relatively higher gross margins and average selling prices . however , we do not anticipate that these sales will fully offset the expected decline in pas handsets and infrastructure sales . we currently offer and have initial market acceptance of our iptv products in china , india , taiwan and other geographic regions . we believe that the iptv market presents a meaningful growth opportunity in these regions as well as other regions where we have targeted to expand our iptv offerings . during 2008 , verizon wireless and sprint spectrum , respectively , accounted for approximately 20 % and 12 % of our total net sales . fiscal 2007 vs. 2006 net sales in 2007 were $ 2.5 billion and did not change significantly on a consolidated basis as compared to net sales in 2006. revenue was lower in all segments except pcd , services and other . revenue from the broadband infrastructure and multimedia communications segments decreased by 59 22 % and 28 % , respectively , in 2007 as compared to 2006 due to a decrease in demand caused by continued maturity of the pas market and as customers in china preparing for 3g launch , as well as a decrease in demand from softbank . as we have experienced in the last two years , our pas/ipas products and our pas/ipas based handsets in the china market continued to experience declining revenues resulting from both lower unit demand and pricing pressures . this led to a decrease in our handsets segment sales of 41 % in 2007 as compared to 2006. in our pcd segment , the increase in the number of units sold and the higher average selling price during 2007 as compared to 2006 led to a 24 % increase in segment revenue . revenue from the services segment increased by 8 % due to increase in sales in our china operations as we signed new contracts for multimedia communications products during the second half of 2007. sales of our other segment increased by 23 % due to increase in sales of our custom solutions and ipcdma products . during 2007 , verizon wireless , t-mobile usa and sprint spectrum , respectively , accounted for approximately 22 % , 15 % and 13 % of our total net sales . gross profit replace_table_token_11_th cost of sales consists primarily of material and labor costs associated with manufacturing , assembly and testing of products , costs associated with installation and customer training , warranty costs , fees to agents , inventory and contract loss provisions and overhead . cost of sales also includes import taxes and tariffs on components and assemblies . some components and materials used in our products are purchased from a single supplier or a limited group of suppliers and , in some cases , are subject to our obtaining chinese import permits and approvals . we also rely on third party manufacturers to manufacture and assemble most of our cdma handsets . our gross profit has been affected by average selling prices , material costs , product mix , the impact of warranty charges and contract loss provisions , as well as inventory reserves and release of deferred revenues and related costs pertaining to prior years . our gross profit , as a percentage of net sales , varies among our product families . we expect that our overall gross profit , as a percentage of net sales , will fluctuate in the future as a result of shifts in product mix , stage of product life cycle , decreases in average

liquidity and capital resources the following sections discuss the effects of changes in our balance sheet and cash flows , contractual obligations and other commitments on our liquidity and capital resources . balance sheet and cash flows cash and cash equivalents and short-term investments replace_table_token_21_th 75 replace_table_token_22_th cash and cash equivalents , consisting primarily of bank deposits and money market funds , are recorded at cost which approximates fair value because of the short-term nature of these instruments . at december 31 , 2008 , cash and cash equivalents approximating $ 200.8 million was held by our subsidiaries in china . the chinese government imposes currency exchange controls on all cash transfers out of china . regulations in china permit foreign owned entities to freely convert the renminbi into foreign currency for transactions that fall under the `` current account , '' which includes trade related receipts and payments , interest and dividends . accordingly , our chinese subsidiaries may use renminbi to purchase foreign exchange for settlement of such `` current account '' transactions without pre-approval . however , pursuant to applicable regulations , foreign-invested enterprises in china may pay dividends only out of their accumulated profits , if any , determined in accordance with chinese accounting standards and regulations . in calculating accumulated profits , foreign investment enterprises in china are required to allocate at least 10 % of their accumulated profits each year , if any , to fund certain reserve funds , including mandated employee benefits funds , unless these reserves have reached 50 % of the registered capital of the enterprises . other transactions that involve conversion of renminbi into foreign currency are classified as `` capital account '' transactions ; examples of `` capital account '' transactions include repatriations of investments by or loans to foreign owners , or direct equity investments in a foreign entity by a china domiciled entity . `` capital account '' transactions require prior approval from china 's state administration of foreign exchange ( safe ) or its provincial branch to convert a remittance into a foreign currency , such as u.s. dollars , and transmit the foreign currency outside of china .


 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 the following sections discuss the effects of changes in our balance sheet and cash flows , contractual obligations and other commitments on our liquidity and capital resources . balance sheet and cash flows cash and cash equivalents and short-term investments replace_table_token_21_th 75 replace_table_token_22_th cash and cash equivalents , consisting primarily of bank deposits and money market funds , are recorded at cost which approximates fair value because of the short-term nature of these instruments . at december 31 , 2008 , cash and cash equivalents approximating $ 200.8 million was held by our subsidiaries in china . the chinese government imposes currency exchange controls on all cash transfers out of china . regulations in china permit foreign owned entities to freely convert the renminbi into foreign currency for transactions that fall under the `` current account , '' which includes trade related receipts and payments , interest and dividends . accordingly , our chinese subsidiaries may use renminbi to purchase foreign exchange for settlement of such `` current account '' transactions without pre-approval . however , pursuant to applicable regulations , foreign-invested enterprises in china may pay dividends only out of their accumulated profits , if any , determined in accordance with chinese accounting standards and regulations . in calculating accumulated profits , foreign investment enterprises in china are required to allocate at least 10 % of their accumulated profits each year , if any , to fund certain reserve funds , including mandated employee benefits funds , unless these reserves have reached 50 % of the registered capital of the enterprises . other transactions that involve conversion of renminbi into foreign currency are classified as `` capital account '' transactions ; examples of `` capital account '' transactions include repatriations of investments by or loans to foreign owners , or direct equity investments in a foreign entity by a china domiciled entity . `` capital account '' transactions require prior approval from china 's state administration of foreign exchange ( safe ) or its provincial branch to convert a remittance into a foreign currency , such as u.s. dollars , and transmit the foreign currency outside of china .
```    
 Suspicious Activity Report : in december 2008 , we announced an initiative to transition certain key functions , including finance , to china in order to eliminate functional duplication and reduce operating expenses . our ability to successfully implement this change in 2009 is a critical part of our plan to achieve profitability and maintain liquidity . we may encounter difficulties in implementing this significant change in a short time period . if we are not successful , we may not achieve the expected benefits despite having expended significant capital and human effort . sale of non-core assets on july 1 , 2008 , we sold utstarcom personal communications llc , a wholly-owned subsidiary of the company ( `` pcd `` ) , to an entity controlled by aig global investment group and certain other investors for a total sale consideration of approximately $ 237.7 million . pursuant to the terms of the divestiture agreement , we may be entitled to receive up to an additional $ 50 million earnout payment in 2011 based on the achievement of certain earnings levels of the divested business , personal communications devices llc ( `` pcd llc `` ) through december 31 , 2010. we recorded a net gain of $ 3.8 million from the divestiture during 2008. additionally , on july 31 , 2008 , we completed the divestiture of our mobile solutions business unit ( `` msbu `` ) to a global private equity firm . during the third quarter of 2008 , we recorded a net gain on divestiture of msbu of $ 3.9 million . restructuring programs on october 2 , 2007 , our board of directors approved a restructuring plan ( the `` 2007 plan `` ) to reduce operating costs , which included a worldwide reduction in force of approximately 12 % of the company 's headcount , or approximately 800 employees . the workforce reduction was primarily in the united states and china . we incurred a restructuring charge in connection with the 2007 plan of approximately $ 14.5 million in the fourth quarter of 2007 , comprised largely of cash payments associated with one-time severance benefits . we completed the workforce reduction during the first quarter of 2008. on december 16 , 2008 , our board of directors approved a restructuring plan ( the `` 2008 plan `` ) designed to reduce operating costs . the plan includes , among other things , winding down our korea based handset operations ( `` korea operations `` ) and implementing an additional worldwide reduction in force of approximately 10 % of our headcount by the end of the second quarter of 2009. in connection with the 2008 plan , during the fourth quarter of 2008 we incurred a restructuring charge of $ 13.1 million comprised largely of cash payments associated with one-time severance benefits . we will continue our efforts to evaluate certain operations and will consider opportunities to divest additional non-core assets and may incur additional costs associated with future actions to further align our business operations and streamline our business processes . 52 revenue effects of non-core asset sales and restructuring programs the sale of pcd in july 2008 and the anticipated winding down of our korea operations are expected to result in a substantial reduction in 2009 net sales . our 2008 net sales included $ 879.6 million of pcd sales recognized in the first and second quarters of 2008 prior to pcd 's sale on july 1 , 2008 ; there will be no net sales from pcd in 2009. net sales in 2008 also include $ 126.0 million of sales to pcd llc in the third and fourth quarters of 2008 , and we presently do not expect the korea operations to record sales after the end of the second quarter of 2009. net sales from pcd and korea operations in 2008 aggregated $ 430.7 million , $ 448.9 million , $ 34.3 million , and $ 91.7 million in the first , second , third , and fourth quarters , respectively . the divestiture of our msbu operations is not expected to have a material effect on our 2009 net sales . asset impairment we performed tests of the recoverability of our long-lived assets as of december 31 , 2008 due to recurring operating losses , the continuing challenging business environment , a sustained decline in our stock price , and because our estimates of future cash flows for each of our business segments indicated an inability to recover the carrying values of each segment 's assets . as a result of this analysis , we recorded an impairment charge of $ 22.3 million to reduce the carrying value of our equipment and furniture , software , automobiles and leasehold improvements to estimated fair values . in addition , we recorded an impairment charge of $ 4.9 million to write-off customer relationships intangible assets related to our previous acquisition in 2003 of the commworks division of 3com corporation ( `` commworks `` ) as a result of our decision in the fourth quarter of fiscal 2008 to disband our custom solutions business unit which provided customized telecommunications solutions . during the quarter ended september 30 , 2007 , we announced a new organization structure to align our business segments with our corporate strategy . as a result , during the fourth quarter of 2007 , we performed impairment tests on goodwill and certain long-lived tangible and intangible assets . based upon the impairment assessments , we recorded a goodwill impairment charge of $ 3.1 million , an intangible asset impairment charge of $ 15.7 million , and an impairment charge of $ 1.1 million for equipment and furniture , software , automobiles and leasehold improvements ( see note 8 of notes to our consolidated financial statements included under part ii , item 8 of this annual report on form 10-k ) . story_separator_special_tag net sales replace_table_token_9_th 58 replace_table_token_10_th fiscal 2008 vs. 2007 net sales decreased by 34 % , or $ 826.5 million for 2008 compared to 2007. revenue was lower in all segments except handsets and services . the decrease was primarily due to pcd being sold in july 2008. the net sales of the disposed pcd segment decreased by $ 784.6 million . multimedia communications segment net sales decreased by $ 35.1 million , or 11 % , during 2008 compared to 2007 , mainly due to continued weakening demand for our pas infrastructure products . broadband infrastructure segment net sales decreased by $ 46.3 million or 29 % during 2008 compared to 2007. this decrease was mainly due to lower cpe and msan sales . due to the customer concentration in this segment , revenues fluctuate based upon the magnitude and timing of revenue recognition on certain contracts . handsets sales increased by $ 53.1 million , or 23 % , during 2008 primarily due to handsets sold to pcd llc aggregating $ 126.0 million during the second half of 2008 , partially offset by continued price and volume declines of our pas handsets sold in 2008 as compared to 2007. as we have been experiencing in recent quarters , increased competition and a decline in pas subscribers have resulted in lower demand and decreases in average selling prices for our pas handsets . for additional discussion see `` segment reporting `` section of this item 7. the economic uncertainty that we are operating in today could adversely impact our business . however , the majority of our business is based in china and indiatwo countries that are still projected to have economic growth in 2009. in 2009 and beyond , we expect that new orders for pas handsets and infrastructure equipment will continue to decline due to the china telecommunications industry restructuring as well as increased pricing pressures . we expect our cdma and td-scdma handsets will positively contribute to our revenue and partially offset the decline of our pas business . in order to capitalize on the growing data business in china , in mid-2009 we also plan to introduce hsdpa ( `` high speed downlink packet access `` ) data cards supported by td-scdma networks and evdo ( `` evolution data only `` ) data cards supported by cdma 3g networks , which we expect to have relatively higher gross margins and average selling prices . however , we do not anticipate that these sales will fully offset the expected decline in pas handsets and infrastructure sales . we currently offer and have initial market acceptance of our iptv products in china , india , taiwan and other geographic regions . we believe that the iptv market presents a meaningful growth opportunity in these regions as well as other regions where we have targeted to expand our iptv offerings . during 2008 , verizon wireless and sprint spectrum , respectively , accounted for approximately 20 % and 12 % of our total net sales . fiscal 2007 vs. 2006 net sales in 2007 were $ 2.5 billion and did not change significantly on a consolidated basis as compared to net sales in 2006. revenue was lower in all segments except pcd , services and other . revenue from the broadband infrastructure and multimedia communications segments decreased by 59 22 % and 28 % , respectively , in 2007 as compared to 2006 due to a decrease in demand caused by continued maturity of the pas market and as customers in china preparing for 3g launch , as well as a decrease in demand from softbank . as we have experienced in the last two years , our pas/ipas products and our pas/ipas based handsets in the china market continued to experience declining revenues resulting from both lower unit demand and pricing pressures . this led to a decrease in our handsets segment sales of 41 % in 2007 as compared to 2006. in our pcd segment , the increase in the number of units sold and the higher average selling price during 2007 as compared to 2006 led to a 24 % increase in segment revenue . revenue from the services segment increased by 8 % due to increase in sales in our china operations as we signed new contracts for multimedia communications products during the second half of 2007. sales of our other segment increased by 23 % due to increase in sales of our custom solutions and ipcdma products . during 2007 , verizon wireless , t-mobile usa and sprint spectrum , respectively , accounted for approximately 22 % , 15 % and 13 % of our total net sales . gross profit replace_table_token_11_th cost of sales consists primarily of material and labor costs associated with manufacturing , assembly and testing of products , costs associated with installation and customer training , warranty costs , fees to agents , inventory and contract loss provisions and overhead . cost of sales also includes import taxes and tariffs on components and assemblies . some components and materials used in our products are purchased from a single supplier or a limited group of suppliers and , in some cases , are subject to our obtaining chinese import permits and approvals . we also rely on third party manufacturers to manufacture and assemble most of our cdma handsets . our gross profit has been affected by average selling prices , material costs , product mix , the impact of warranty charges and contract loss provisions , as well as inventory reserves and release of deferred revenues and related costs pertaining to prior years . our gross profit , as a percentage of net sales , varies among our product families . we expect that our overall gross profit , as a percentage of net sales , will fluctuate in the future as a result of shifts in product mix , stage of product life cycle , decreases in average

