since then we have refined our business model , developed and expanded our service sales teams , our suite of cloud based applications and our service revenue intelligence platform , and opened additional sales centers in the united states , europe and asia and a global sales operations center in kuala lumpur , malaysia . we broadened our customer focus from technology companies to also include technology-enabled healthcare and life sciences and industrial systems companies . we have experienced rapid growth in our operations in recent periods , as indicated by the following : our revenue has increased from $ 152.9 million in 2010 to $ 205.5 million in 2011 , representing an increase of 34 % . 34 our engagements have grown from approximately 100 as of december 31 , 2010 to over 120 as of december 31 , 2011. we are currently in the midst of a significant investment cycle in which we have taken steps designed to drive our future growth and profitability . we plan to offer additional cloud based applications , hire additional sales , service sales and other personnel and further build out our infrastructure to develop our technology . these steps impacted our expenses in recent periods and are expected to continue to impact our profitability in future periods . on march 24 , 2011 , our registration statement on form s-1 relating to our initial public offering ( ipo ) was declared effective by the securities and exchange commission ( sec ) . the ipo closed on march 30 , 2011 , at which time we sold 9,791,020 shares of our common stock ( inclusive of 1791,020 shares of common stock from the full exercise of the over-allotment option granted to the underwriters ) and the selling stockholders sold 3,940,133 of our common stock . the price of the shares sold in the offering was $ 10.00 per share . after deducting underwriting discounts , commissions and estimated offering expenses payable by us , the aggregate net proceeds received by us totaled approximately $ 87.7 million . we did not receive any proceeds from the sales of shares by the selling stockholders . on march 24 , 2011 , prior to the effective time of the ipo , we converted from a limited liability company into a delaware corporation and changed our name from servicesource international , llc to servicesource international , inc. in conjunction with the conversion , all of our outstanding common shares automatically converted into shares of our common stock . on august 3 , 2011 , we closed a secondary public offering of 10,350,000 shares of our common stock , which included 1,372,061 shares of common stock sold by us ( inclusive of 1,350,000 shares of common stock from the full exercise of the over-allotment option granted to the underwriters ) and 8,977,939 shares of common stock sold by the selling stockholders . the price of the shares sold in the offering was $ 17.50 per share . the total gross proceeds from the follow-on offering to us were $ 24.0 million . after deducting underwriting discounts , commissions and estimated offering expenses payable by us , the aggregate net proceeds received by us totaled approximately $ 23.0 million . we did not receive any proceeds from the sales of shares by the selling stockholders ( other than approximately $ 2.9 million in additional cash received from the exercise of stock options by certain of the selling stockholders ) . key business metrics in assessing the performance of our business , we consider a variety of business metrics in addition to the financial metrics discussed below under basis of presentation. these key metrics include service revenue opportunity under management and number of engagements . service revenue opportunity under management . at december 31 , 2011 , we estimated our opportunity under management to be over $ 7 billion . service revenue opportunity under management ( opportunity under management ) is a forward-looking metric and is our estimate , as of a given date , of the value of all end customer service contracts that we will have the opportunity to sell on behalf of our customers over the subsequent twelve-month period . opportunity under management is not a measure of our expected revenue . in addition , opportunity under management reflects our estimate for a forward twelve-month period and should not be used to estimate our opportunity for any particular quarter within that period . the value of end customer contracts actually delivered during a twelve-month period should not be expected to occur in even quarterly increments due to seasonality and other factors impacting our customers and their end customers . we estimate the value of such end customer contracts based on a combination of factors , including the value of end customer contracts made available to us by customers in past periods , the minimum value of end customer contracts that our customers are required to give us the opportunity to sell pursuant to the terms of their contracts with us , periodic internal business reviews of our expectations as to the value of end customer contracts that will be made available to us by customers , the value of end customer contracts included in the spa and collaborative discussions with our customers assessing their expectations as to the value of service contracts that they will make available to us for sale . while the minimum value of end customer contracts that our customers are 35 required to give us represents a portion of our estimated opportunity under management , a significant portion of the opportunity under management is estimated based on the other factors described above . as our experience with our business , our customers and their contracts has grown , we have continually refined the process , improved the assumptions and expanded the data related to our calculation of opportunity under management . story_separator_special_tag predominantly all of the service contracts sold and managed by our sales centers relate to end customers located in the same geography . cost of revenue and gross profit our cost of revenue expenses include compensation , technology costs , including those related to the delivery of our cloud-based solutions , and allocated overhead costs . compensation includes salary , bonus , benefits and stock-based compensation for our dedicated service sales teams . our allocated overhead includes costs for facilities , information technology and depreciation , including amortization of internal-use software associated with our service revenue technology platform and cloud applications . allocated costs for facilities consist of rent , maintenance and compensation of personnel in our facilities departments . our allocated costs for information technology include costs associated with a third-party data center where we maintain our data servers , compensation of our information technology personnel and the cost of support and maintenance contracts associated with computer hardware and software . our overhead costs are allocated to all departments based on headcount . to the extent our customer base or opportunity under management expands , we may need to hire additional service sales personnel and invest in infrastructure to support such growth . we currently expect that our cost of revenue will fluctuate significantly and may increase on an absolute basis and as a percentage of revenue in the near term , including for the reasons discussed above under factors affecting our performanceimplementation cycle. operating expenses sales and marketing . sales and marketing expenses are the largest component of our operating expenses and consist primarily of compensation and sales commissions for our sales and marketing staff , allocated expenses and marketing programs and events . we sell our solutions through our global sales organization , which is organized across three geographic regions : nala , emea and apj . our commission plans provide that payment of commissions to our sales representatives is contingent on their continued employment , and we recognize expense over a period that is generally between twelve and fourteen months following the execution of the applicable contract . we currently expect sales and marketing expense to increase on an absolute basis and as a percentage of revenue in the near term based on commissions earned on customer contracts entered into in prior periods , as well as continued investments in sales and marketing personnel and programs as we expand our business domestically and internationally . research and development . research and development expenses consist primarily of compensation , allocated costs and the cost of third-party service providers . we focus our research and development efforts on developing new products and adding new features to our existing technology platform . in addition , we capitalize certain expenditures related to the development and enhancement of internal-use software related to our technology platform . we expect research and development spending , and the related expenses and capitalized costs , to increase on an absolute basis as a percentage of revenue in the near term as we continue to invest in our next-generation technology platform and cloud applications . general and administrative . general and administrative expenses consist primarily of compensation for our executive , human resources , finance and legal functions , and related expenses for professional fees for accounting , tax and legal services , as well as allocated expenses . we expect that our general and administrative expenses will increase on an absolute basis and as a percentage of revenue in the near term as our operations continue to expand and as a result of incremental personnel , informational technology and other costs associated with being a publicly-traded company . amortization of intangible assets . our intangible assets consist of goodwill , customer contracts and related relationships , trademarks and trade names and a non-competition agreement . except for goodwill , which is not amortized , all of our intangible assets were fully amortized as of march 31 , 2009 . 40 other income ( expense ) other income ( expense ) consists primarily of interest expense associated with borrowings under our credit facility and foreign exchange transaction gains and losses , partially offset by interest income . income tax ( benefit ) provision prior to march 1 , 2011 , we conducted our u.s. operations through servicesource international , llc ( the llc ) , a pass-through entity for tax purposes that filed its income tax return as a partnership for federal and state income tax purposes , and through llc 's wholly-owned u.s. taxable subsidiary . effective march 1 , 2011 , the llc elected to be taxable as a corporation for u.s. federal and state tax purposes . accordingly , servicesource international , inc. , formerly the llc , is subject to normal u.s. corporation income taxes beginning march 1 , 2011. we also have several subsidiaries formed in foreign jurisdictions which are subject to local income taxes . for a description of our accounting practices relating to income taxes , see critical accounting policies and estimatesincome taxes below . results of operations the table below sets forth our consolidated results of operations for the periods presented . the period-to-period comparison of financial results presented below is not necessarily indicative of financial results to be achieved in future periods . replace_table_token_6_th 41 the following table sets forth our operating results as a percentage of net revenue : replace_table_token_7_th years endeddecember 31 , 2011 and 2010 net revenue replace_table_token_8_th the 34 % increase in net revenue in 2011 reflects an increase in the number of engagements and the value of service contracts sold on behalf of our customers . the number of customer engagements increased from approximately 100 as of december 31 , 2010 to over 120 as of december 31 , 2011. international revenue increased 55 % during 2011 as compared to 2010 with this growth supported by strong performance in our foreign service sales centers around the world in closing service revenue renewals

liquidity and capital resources at december 31 , 2011 , we had cash , cash equivalents and short-term investments of $ 108.9 million , which primarily consisted of money market mutual funds , municipal securities , commercial paper , and corporate bonds held by financial institutions . in addition we had a $ 20.0 million revolving credit facility . our primary source of cash is receipts from revenue . the primary uses of cash are payroll-related expenses and general operating expenses including facilities , information technology , travel and marketing . other sources of cash are proceeds from exercises of employee stock options and proceeds from our employee stock purchase plan ( espp ) . historically , we have financed our operations principally from cash provided by our operating activities and to a lesser extent from borrowings under various credit facilities . we believe our existing cash , cash equivalents and short-term investments and our currently available credit facility will be sufficient to meet our working capital and capital expenditure needs for at least the next twelve months . credit facility at december 31 , 2011 , we had a revolving credit facility which expires in february 2013 and provides borrowings of up to $ 20 million including amounts under letters of credit . amounts outstanding on the facility at december 31 , 2011 consisted of a letter of credit of $ 1.1 million as required under an operating lease agreement for office space . in february 2011 we entered into a new facility which has a non-use fee of 0.50 % per annum based on the average monthly available borrowing base . borrowings on the facility , including amounts outstanding under letter of credit , bear interest at either : ( i ) the libor rate plus an additional margin ; or ( ii ) the base rate ( i.e. , prime rate ) plus an additional margin . at december 31 , 2011 the interest rate for borrowings under the facility was 5.0 % .


 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 at december 31 , 2011 , we had cash , cash equivalents and short-term investments of $ 108.9 million , which primarily consisted of money market mutual funds , municipal securities , commercial paper , and corporate bonds held by financial institutions . in addition we had a $ 20.0 million revolving credit facility . our primary source of cash is receipts from revenue . the primary uses of cash are payroll-related expenses and general operating expenses including facilities , information technology , travel and marketing . other sources of cash are proceeds from exercises of employee stock options and proceeds from our employee stock purchase plan ( espp ) . historically , we have financed our operations principally from cash provided by our operating activities and to a lesser extent from borrowings under various credit facilities . we believe our existing cash , cash equivalents and short-term investments and our currently available credit facility will be sufficient to meet our working capital and capital expenditure needs for at least the next twelve months . credit facility at december 31 , 2011 , we had a revolving credit facility which expires in february 2013 and provides borrowings of up to $ 20 million including amounts under letters of credit . amounts outstanding on the facility at december 31 , 2011 consisted of a letter of credit of $ 1.1 million as required under an operating lease agreement for office space . in february 2011 we entered into a new facility which has a non-use fee of 0.50 % per annum based on the average monthly available borrowing base . borrowings on the facility , including amounts outstanding under letter of credit , bear interest at either : ( i ) the libor rate plus an additional margin ; or ( ii ) the base rate ( i.e. , prime rate ) plus an additional margin . at december 31 , 2011 the interest rate for borrowings under the facility was 5.0 % .
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 Suspicious Activity Report : since then we have refined our business model , developed and expanded our service sales teams , our suite of cloud based applications and our service revenue intelligence platform , and opened additional sales centers in the united states , europe and asia and a global sales operations center in kuala lumpur , malaysia . we broadened our customer focus from technology companies to also include technology-enabled healthcare and life sciences and industrial systems companies . we have experienced rapid growth in our operations in recent periods , as indicated by the following : our revenue has increased from $ 152.9 million in 2010 to $ 205.5 million in 2011 , representing an increase of 34 % . 34 our engagements have grown from approximately 100 as of december 31 , 2010 to over 120 as of december 31 , 2011. we are currently in the midst of a significant investment cycle in which we have taken steps designed to drive our future growth and profitability . we plan to offer additional cloud based applications , hire additional sales , service sales and other personnel and further build out our infrastructure to develop our technology . these steps impacted our expenses in recent periods and are expected to continue to impact our profitability in future periods . on march 24 , 2011 , our registration statement on form s-1 relating to our initial public offering ( ipo ) was declared effective by the securities and exchange commission ( sec ) . the ipo closed on march 30 , 2011 , at which time we sold 9,791,020 shares of our common stock ( inclusive of 1791,020 shares of common stock from the full exercise of the over-allotment option granted to the underwriters ) and the selling stockholders sold 3,940,133 of our common stock . the price of the shares sold in the offering was $ 10.00 per share . after deducting underwriting discounts , commissions and estimated offering expenses payable by us , the aggregate net proceeds received by us totaled approximately $ 87.7 million . we did not receive any proceeds from the sales of shares by the selling stockholders . on march 24 , 2011 , prior to the effective time of the ipo , we converted from a limited liability company into a delaware corporation and changed our name from servicesource international , llc to servicesource international , inc. in conjunction with the conversion , all of our outstanding common shares automatically converted into shares of our common stock . on august 3 , 2011 , we closed a secondary public offering of 10,350,000 shares of our common stock , which included 1,372,061 shares of common stock sold by us ( inclusive of 1,350,000 shares of common stock from the full exercise of the over-allotment option granted to the underwriters ) and 8,977,939 shares of common stock sold by the selling stockholders . the price of the shares sold in the offering was $ 17.50 per share . the total gross proceeds from the follow-on offering to us were $ 24.0 million . after deducting underwriting discounts , commissions and estimated offering expenses payable by us , the aggregate net proceeds received by us totaled approximately $ 23.0 million . we did not receive any proceeds from the sales of shares by the selling stockholders ( other than approximately $ 2.9 million in additional cash received from the exercise of stock options by certain of the selling stockholders ) . key business metrics in assessing the performance of our business , we consider a variety of business metrics in addition to the financial metrics discussed below under basis of presentation. these key metrics include service revenue opportunity under management and number of engagements . service revenue opportunity under management . at december 31 , 2011 , we estimated our opportunity under management to be over $ 7 billion . service revenue opportunity under management ( opportunity under management ) is a forward-looking metric and is our estimate , as of a given date , of the value of all end customer service contracts that we will have the opportunity to sell on behalf of our customers over the subsequent twelve-month period . opportunity under management is not a measure of our expected revenue . in addition , opportunity under management reflects our estimate for a forward twelve-month period and should not be used to estimate our opportunity for any particular quarter within that period . the value of end customer contracts actually delivered during a twelve-month period should not be expected to occur in even quarterly increments due to seasonality and other factors impacting our customers and their end customers . we estimate the value of such end customer contracts based on a combination of factors , including the value of end customer contracts made available to us by customers in past periods , the minimum value of end customer contracts that our customers are required to give us the opportunity to sell pursuant to the terms of their contracts with us , periodic internal business reviews of our expectations as to the value of end customer contracts that will be made available to us by customers , the value of end customer contracts included in the spa and collaborative discussions with our customers assessing their expectations as to the value of service contracts that they will make available to us for sale . while the minimum value of end customer contracts that our customers are 35 required to give us represents a portion of our estimated opportunity under management , a significant portion of the opportunity under management is estimated based on the other factors described above . as our experience with our business , our customers and their contracts has grown , we have continually refined the process , improved the assumptions and expanded the data related to our calculation of opportunity under management . story_separator_special_tag predominantly all of the service contracts sold and managed by our sales centers relate to end customers located in the same geography . cost of revenue and gross profit our cost of revenue expenses include compensation , technology costs , including those related to the delivery of our cloud-based solutions , and allocated overhead costs . compensation includes salary , bonus , benefits and stock-based compensation for our dedicated service sales teams . our allocated overhead includes costs for facilities , information technology and depreciation , including amortization of internal-use software associated with our service revenue technology platform and cloud applications . allocated costs for facilities consist of rent , maintenance and compensation of personnel in our facilities departments . our allocated costs for information technology include costs associated with a third-party data center where we maintain our data servers , compensation of our information technology personnel and the cost of support and maintenance contracts associated with computer hardware and software . our overhead costs are allocated to all departments based on headcount . to the extent our customer base or opportunity under management expands , we may need to hire additional service sales personnel and invest in infrastructure to support such growth . we currently expect that our cost of revenue will fluctuate significantly and may increase on an absolute basis and as a percentage of revenue in the near term , including for the reasons discussed above under factors affecting our performanceimplementation cycle. operating expenses sales and marketing . sales and marketing expenses are the largest component of our operating expenses and consist primarily of compensation and sales commissions for our sales and marketing staff , allocated expenses and marketing programs and events . we sell our solutions through our global sales organization , which is organized across three geographic regions : nala , emea and apj . our commission plans provide that payment of commissions to our sales representatives is contingent on their continued employment , and we recognize expense over a period that is generally between twelve and fourteen months following the execution of the applicable contract . we currently expect sales and marketing expense to increase on an absolute basis and as a percentage of revenue in the near term based on commissions earned on customer contracts entered into in prior periods , as well as continued investments in sales and marketing personnel and programs as we expand our business domestically and internationally . research and development . research and development expenses consist primarily of compensation , allocated costs and the cost of third-party service providers . we focus our research and development efforts on developing new products and adding new features to our existing technology platform . in addition , we capitalize certain expenditures related to the development and enhancement of internal-use software related to our technology platform . we expect research and development spending , and the related expenses and capitalized costs , to increase on an absolute basis as a percentage of revenue in the near term as we continue to invest in our next-generation technology platform and cloud applications . general and administrative . general and administrative expenses consist primarily of compensation for our executive , human resources , finance and legal functions , and related expenses for professional fees for accounting , tax and legal services , as well as allocated expenses . we expect that our general and administrative expenses will increase on an absolute basis and as a percentage of revenue in the near term as our operations continue to expand and as a result of incremental personnel , informational technology and other costs associated with being a publicly-traded company . amortization of intangible assets . our intangible assets consist of goodwill , customer contracts and related relationships , trademarks and trade names and a non-competition agreement . except for goodwill , which is not amortized , all of our intangible assets were fully amortized as of march 31 , 2009 . 40 other income ( expense ) other income ( expense ) consists primarily of interest expense associated with borrowings under our credit facility and foreign exchange transaction gains and losses , partially offset by interest income . income tax ( benefit ) provision prior to march 1 , 2011 , we conducted our u.s. operations through servicesource international , llc ( the llc ) , a pass-through entity for tax purposes that filed its income tax return as a partnership for federal and state income tax purposes , and through llc 's wholly-owned u.s. taxable subsidiary . effective march 1 , 2011 , the llc elected to be taxable as a corporation for u.s. federal and state tax purposes . accordingly , servicesource international , inc. , formerly the llc , is subject to normal u.s. corporation income taxes beginning march 1 , 2011. we also have several subsidiaries formed in foreign jurisdictions which are subject to local income taxes . for a description of our accounting practices relating to income taxes , see critical accounting policies and estimatesincome taxes below . results of operations the table below sets forth our consolidated results of operations for the periods presented . the period-to-period comparison of financial results presented below is not necessarily indicative of financial results to be achieved in future periods . replace_table_token_6_th 41 the following table sets forth our operating results as a percentage of net revenue : replace_table_token_7_th years endeddecember 31 , 2011 and 2010 net revenue replace_table_token_8_th the 34 % increase in net revenue in 2011 reflects an increase in the number of engagements and the value of service contracts sold on behalf of our customers . the number of customer engagements increased from approximately 100 as of december 31 , 2010 to over 120 as of december 31 , 2011. international revenue increased 55 % during 2011 as compared to 2010 with this growth supported by strong performance in our foreign service sales centers around the world in closing service revenue renewals

