we recognized our initial revenues from sales of the sq3000 in the second quarter of 2015. during 2016 , we received sq3000 follow-on orders totaling approximately $ 4.7 million from a key customer for a next-generation consumer electronics product . due to these sales and the competitive advantages offered by our mrs technology , we believe the future sales potential of the sq3000 is significant . we have incorporated our mrs technology into a new 3d scanning system , cybergage®360 , which we believe will serve a wide range of inspection applications in the general purpose 3d metrology market . we sold our first two cybergage360 units in the fourth quarter of 2016. most customers are taking longer than originally anticipated to evaluate the functionality and benefits of cybergage360 before adopting it for their engineering and quality assurance programs . after starting slowly in the first half of 2017 , we anticipate steadily increasing sales of cybergage360 by the end of 2017. we believe that the unique performance characteristics of our mrs technology , which inhibit reflections and enable very accurate measurements at fast speeds , combined with ease of use , will give cybergage360 a competitive advantage in the marketplace for 3d scanning systems . 23 we also have committed funds to development of our mx600 system for inspection of memory modules at the end of the production line after singulation . in 2016 , we recognized $ 5.7 million of revenue from sales of this product to one of the world 's top four memory manufacturers . we believe that additional mx600 orders could be received in future periods . we have continued to invest in our wafersense/reticlesense product lines and have recently announced new offerings for advanced particle measurement and a line of multi-purpose sensors that measure leveling , vibration and humidity in an all-in-one wireless real-time device . we ended the fourth quarter of 2016 with a backlog of $ 10.2 million , down from $ 12.4 million at september 30 , 2016 , and down from $ 15.0 million at december 31 , 2015. we are forecasting sales of $ 11.5 to $ 12.5 million for the first quarter of 2017 , based on the anticipated timing of orders for 3d products and customer acceptances . order activity and sales prospects for sq3000 3d aoi systems reflect a strong pipeline of opportunities , including large projects for multiple sq3000 systems . given these factors , we are presently forecasting sales of $ 16 to $ 19 million for the second quarter of 2017 , and solid growth for all of 2017. longer term , the anticipated sales growth of our mrs-enabled 3d products and wafersense/reticlesense products should increase our revenues and net income . we believe that we have the resources required to attain our growth objectives , given our available cash and marketable securities balances totaling $ 25.9 million at december 31 , 2016. our ability to achieve our forecast and to implement our strategy effectively is subject to numerous uncertainties and risks , including the risks identified in item 1a of this annual report on form 10-k. we can not assure you that our efforts will be successful . revenues our revenues increased by 61 % to $ 66.2 million in 2016 from $ 41.1 million in 2015 and decreased by 12 % in 2015 from $ 46.5 million in 2014. the following table sets forth , for the years indicated , revenues by product line ( in thousands ) : replace_table_token_3_th revenue from sales of smt and high precision 3d oem sensors increased by $ 5.8 million or 44 % to $ 18.8 million in 2016 , and decreased by $ 2.5 million or 16 % to $ 13.0 million in 2015 , from $ 15.5 million in 2014. revenue increases in 2016 resulted from a significant rebound in sales of legacy 2d laseralign sensors to oem customers , as well as sales of 3d mrs sensors to kla-tencor and nordson , and from an $ 800,000 order for 3d mrs-enabled sensors from a major new customer for a general purpose metrology application related to the inspection of finished goods . the rebound in sales of 2d laseralign sensors was driven by one oem customer which experienced a significant increase in sales of its products that incorporate our sensors . revenue decreases in 2015 resulted from soft demand for legacy 2d laseralign sensors from oem customers selling into china , when market conditions were challenging . sales to kla-tencor are expected to continue to increase as our sensors are incorporated into a growing portion of kla-tencor 's back-end semiconductor packaging inspection systems . nordson introduced its 3d mrs-equipped aoi system at the ipc apex expo trade show in march 2016 to a very favorable reception . we believe that sales of sensors under our nordson supply agreement should be a positive contributor to our future sales growth . in addition , we believe that our major new customer using our 3d mrs-enabled sensors to inspect finished goods could generate significant sales in the future . revenue from sales of semiconductor sensors , principally our wafersense ® and reticlesense ® product lines , increased by $ 2.4 million or 31 % to $ 10.1 million in 2016 , and increased by $ 82,000 or 1 % to $ 7.7 million in 2015 , from $ 7.6 million in 2014. the sales increases in 2016 were due in part to our new auto-multi sensors that combine leveling , vibration and humidity measurements into an all-in-one wireless , real-time device . sales increases were also due to increased customer awareness and improved account penetration at major semiconductor manufacturers and capital equipment suppliers . sales of semiconductor sensors in 2015 were negatively impacted by a general slowdown in the semiconductor capital equipment market and production delays impacting sales of our new auto-multi sensors . story_separator_special_tag when we determine that the carrying value of intangibles , long-lived assets and related goodwill may not be recoverable based upon the existence of one or more of the above indicators of impairment , we measure any potential impairment based on a projected discounted cash flow method using a discount rate that we believe is commensurate with the risk inherent in our current business model . we utilize the income approach to estimate our fair value . the income approach is a valuation technique under which we estimate future cash flows using financial forecasts . future estimated cash flows are discounted to their present value to calculate fair value . when considering fair value , we also give consideration to the control premium in excess of our current market capitalization that might be obtained from a third party acquirer . these assumptions require significant judgment and actual results may differ from assumed or estimated amounts . at december 31 , 2016 we had goodwill of $ 1.4 million . our recent analysis performed in the fourth quarter of 2016 indicates that our goodwill is not impaired . however , our conclusion could change in the future , if our assumptions about future economic conditions , revenue growth or profitability change . any resulting impairment charge could have a material effect on our financial position and results of operations in the future . income taxes . significant judgment is required in determining worldwide income tax expense based upon tax laws in the various jurisdictions in which we operate . we have established reserves for uncertain tax positions by applying the “ more likely than not ” threshold ( i.e . , a likelihood of occurrence greater than fifty percent ) . the recognition threshold is met when an entity concludes that a tax position , based solely on its technical merits , is more likely than not to be sustained upon examination by the relevant taxing authority . those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard , or are resolved through negotiation or litigation with the taxing authority , or upon expiration of the statute of limitations . de-recognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained . all tax positions are analyzed periodically and adjustments are made as events warrant modification , such as the completion of audits or the expiration of statutes of limitations , which may result in future charges or credits to income tax expense . 29 as part of the process of preparing consolidated financial statements , management is required to estimate income taxes in each of the jurisdictions in which we operate . this process involves estimating the current tax liability , as well as assessing temporary differences arising from the different treatment of items for financial statement and tax purposes . these differences result in deferred tax assets and liabilities , which are recorded on our consolidated balance sheet . we have significant deferred tax assets as a result of temporary differences between taxable income on our tax returns and u.s. gaap income , research and development tax credit carry forwards and federal , state and foreign net operating loss carry forwards . a deferred tax asset generally represents future tax benefits to be received when temporary differences previously reported in our consolidated financial statements become deductible for income tax purposes , when net operating loss carry forwards are applied against future taxable income , or when tax credit carry forwards are utilized on our tax returns . we assess the realizability of our deferred tax assets and the need for a valuation allowance based on the guidance provided in current financial accounting standards . significant judgment is required in determining the realizability of our deferred tax assets . the assessment of whether valuation allowances are required considers , among other matters , the nature , frequency and severity of any current and cumulative losses , forecasts of future profitability , the duration of statutory carry forward periods , our experience with loss carry forwards not expiring unused and tax planning alternatives . during the fourth quarter of 2016 , we substantially reduced the valuation allowances recorded against our united states and singapore based deferred tax assets , primarily due to significant improvement in our operating results and financial outlook . in analyzing the need for valuation allowances , we first considered our history of cumulative operating results for income tax purposes over the past three years in each of the tax jurisdictions where we operate , our financial performance in recent quarters , statutory carry forward periods and tax planning alternatives . finally , we considered both our near and long-term financial outlook . after considering all available evidence both positive and negative , we concluded that a substantial reduction in the valuation allowances recorded against our united states and singapore based deferred tax assets was appropriate . a similar analysis was performed at december 31 , 2015 , resulting in $ 10.6 million of valuation allowances for our deferred tax assets , primarily due to our cumulative historical operating losses . the $ 9.6 million reduction in valuation allowances for 2016 caused us to recognize a significant non-cash income tax benefit . the reduction resulted from utilization of available net operating loss carryforwards and our determination that significant valuation allowances were no longer needed due to the improvement in our operating results and financial outlook . derivatives and hedging . we may enter into foreign exchange forward contracts to hedge against the effect of exchange rate fluctuations on cash flows denominated in foreign currencies associated with our subsidiary in singapore . these transactions are designated as cash flow hedges and are recorded in the accompanying consolidated balance sheet at fair value .

liquidity and capital resources our cash and cash equivalents increased by $ 6.4 million in 2016 , principally resulting from $ 9.1 million of cash provided by operating activities , proceeds of $ 6.2 million from sales and maturities of marketable securities , and proceeds of $ 646,000 from stock option exercises and share purchases under our employee stock purchase plan . cash provided by these activities was offset in part by purchases of marketable securities totaling $ 8.1 million and purchases of fixed assets and capitalized patent costs totaling $ 1.4 million . our cash and cash equivalents fluctuate in part because of sales and maturities of marketable securities and investment of cash balances in marketable securities , and from other sources of cash . accordingly , we believe the combined balances of cash and marketable securities provide a more reliable indication of our available liquidity than cash balances alone . combined balances of cash and marketable securities increased by $ 8.3 million to $ 25.9 million as of december 31 , 2016 from $ 17.6 million as of december 31 , 2015. operating activities provided $ 9.1 million of cash in 2016. cash provided by operations included net income of $ 11.6 million , including a $ 5.3 million deferred income tax benefit and non-cash expenses totaling $ 2.6 million for depreciation and amortization , provision for doubtful accounts , non-cash gains from foreign currency transactions and equity-based compensation costs . changes in operating assets and liabilities providing cash included a decrease in inventories of $ 1.0 million , an increase in accounts payable of $ 550,000 and an increase in accrued expenses of $ 1.9 million . changes in operating assets and liabilities using cash included an increase in accounts receivable of $ 2.8 million , an increase in other assets of $ 346,000 and a decrease in advance customer payments of $ 153,000. inventories decreased due to customer acceptance of our remaining mx600 backlog , offset in part by new purchases of inventory needed to manufacture products for future sales requirements .


 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 our cash and cash equivalents increased by $ 6.4 million in 2016 , principally resulting from $ 9.1 million of cash provided by operating activities , proceeds of $ 6.2 million from sales and maturities of marketable securities , and proceeds of $ 646,000 from stock option exercises and share purchases under our employee stock purchase plan . cash provided by these activities was offset in part by purchases of marketable securities totaling $ 8.1 million and purchases of fixed assets and capitalized patent costs totaling $ 1.4 million . our cash and cash equivalents fluctuate in part because of sales and maturities of marketable securities and investment of cash balances in marketable securities , and from other sources of cash . accordingly , we believe the combined balances of cash and marketable securities provide a more reliable indication of our available liquidity than cash balances alone . combined balances of cash and marketable securities increased by $ 8.3 million to $ 25.9 million as of december 31 , 2016 from $ 17.6 million as of december 31 , 2015. operating activities provided $ 9.1 million of cash in 2016. cash provided by operations included net income of $ 11.6 million , including a $ 5.3 million deferred income tax benefit and non-cash expenses totaling $ 2.6 million for depreciation and amortization , provision for doubtful accounts , non-cash gains from foreign currency transactions and equity-based compensation costs . changes in operating assets and liabilities providing cash included a decrease in inventories of $ 1.0 million , an increase in accounts payable of $ 550,000 and an increase in accrued expenses of $ 1.9 million . changes in operating assets and liabilities using cash included an increase in accounts receivable of $ 2.8 million , an increase in other assets of $ 346,000 and a decrease in advance customer payments of $ 153,000. inventories decreased due to customer acceptance of our remaining mx600 backlog , offset in part by new purchases of inventory needed to manufacture products for future sales requirements .
```    
 Suspicious Activity Report : we recognized our initial revenues from sales of the sq3000 in the second quarter of 2015. during 2016 , we received sq3000 follow-on orders totaling approximately $ 4.7 million from a key customer for a next-generation consumer electronics product . due to these sales and the competitive advantages offered by our mrs technology , we believe the future sales potential of the sq3000 is significant . we have incorporated our mrs technology into a new 3d scanning system , cybergage®360 , which we believe will serve a wide range of inspection applications in the general purpose 3d metrology market . we sold our first two cybergage360 units in the fourth quarter of 2016. most customers are taking longer than originally anticipated to evaluate the functionality and benefits of cybergage360 before adopting it for their engineering and quality assurance programs . after starting slowly in the first half of 2017 , we anticipate steadily increasing sales of cybergage360 by the end of 2017. we believe that the unique performance characteristics of our mrs technology , which inhibit reflections and enable very accurate measurements at fast speeds , combined with ease of use , will give cybergage360 a competitive advantage in the marketplace for 3d scanning systems . 23 we also have committed funds to development of our mx600 system for inspection of memory modules at the end of the production line after singulation . in 2016 , we recognized $ 5.7 million of revenue from sales of this product to one of the world 's top four memory manufacturers . we believe that additional mx600 orders could be received in future periods . we have continued to invest in our wafersense/reticlesense product lines and have recently announced new offerings for advanced particle measurement and a line of multi-purpose sensors that measure leveling , vibration and humidity in an all-in-one wireless real-time device . we ended the fourth quarter of 2016 with a backlog of $ 10.2 million , down from $ 12.4 million at september 30 , 2016 , and down from $ 15.0 million at december 31 , 2015. we are forecasting sales of $ 11.5 to $ 12.5 million for the first quarter of 2017 , based on the anticipated timing of orders for 3d products and customer acceptances . order activity and sales prospects for sq3000 3d aoi systems reflect a strong pipeline of opportunities , including large projects for multiple sq3000 systems . given these factors , we are presently forecasting sales of $ 16 to $ 19 million for the second quarter of 2017 , and solid growth for all of 2017. longer term , the anticipated sales growth of our mrs-enabled 3d products and wafersense/reticlesense products should increase our revenues and net income . we believe that we have the resources required to attain our growth objectives , given our available cash and marketable securities balances totaling $ 25.9 million at december 31 , 2016. our ability to achieve our forecast and to implement our strategy effectively is subject to numerous uncertainties and risks , including the risks identified in item 1a of this annual report on form 10-k. we can not assure you that our efforts will be successful . revenues our revenues increased by 61 % to $ 66.2 million in 2016 from $ 41.1 million in 2015 and decreased by 12 % in 2015 from $ 46.5 million in 2014. the following table sets forth , for the years indicated , revenues by product line ( in thousands ) : replace_table_token_3_th revenue from sales of smt and high precision 3d oem sensors increased by $ 5.8 million or 44 % to $ 18.8 million in 2016 , and decreased by $ 2.5 million or 16 % to $ 13.0 million in 2015 , from $ 15.5 million in 2014. revenue increases in 2016 resulted from a significant rebound in sales of legacy 2d laseralign sensors to oem customers , as well as sales of 3d mrs sensors to kla-tencor and nordson , and from an $ 800,000 order for 3d mrs-enabled sensors from a major new customer for a general purpose metrology application related to the inspection of finished goods . the rebound in sales of 2d laseralign sensors was driven by one oem customer which experienced a significant increase in sales of its products that incorporate our sensors . revenue decreases in 2015 resulted from soft demand for legacy 2d laseralign sensors from oem customers selling into china , when market conditions were challenging . sales to kla-tencor are expected to continue to increase as our sensors are incorporated into a growing portion of kla-tencor 's back-end semiconductor packaging inspection systems . nordson introduced its 3d mrs-equipped aoi system at the ipc apex expo trade show in march 2016 to a very favorable reception . we believe that sales of sensors under our nordson supply agreement should be a positive contributor to our future sales growth . in addition , we believe that our major new customer using our 3d mrs-enabled sensors to inspect finished goods could generate significant sales in the future . revenue from sales of semiconductor sensors , principally our wafersense ® and reticlesense ® product lines , increased by $ 2.4 million or 31 % to $ 10.1 million in 2016 , and increased by $ 82,000 or 1 % to $ 7.7 million in 2015 , from $ 7.6 million in 2014. the sales increases in 2016 were due in part to our new auto-multi sensors that combine leveling , vibration and humidity measurements into an all-in-one wireless , real-time device . sales increases were also due to increased customer awareness and improved account penetration at major semiconductor manufacturers and capital equipment suppliers . sales of semiconductor sensors in 2015 were negatively impacted by a general slowdown in the semiconductor capital equipment market and production delays impacting sales of our new auto-multi sensors . story_separator_special_tag when we determine that the carrying value of intangibles , long-lived assets and related goodwill may not be recoverable based upon the existence of one or more of the above indicators of impairment , we measure any potential impairment based on a projected discounted cash flow method using a discount rate that we believe is commensurate with the risk inherent in our current business model . we utilize the income approach to estimate our fair value . the income approach is a valuation technique under which we estimate future cash flows using financial forecasts . future estimated cash flows are discounted to their present value to calculate fair value . when considering fair value , we also give consideration to the control premium in excess of our current market capitalization that might be obtained from a third party acquirer . these assumptions require significant judgment and actual results may differ from assumed or estimated amounts . at december 31 , 2016 we had goodwill of $ 1.4 million . our recent analysis performed in the fourth quarter of 2016 indicates that our goodwill is not impaired . however , our conclusion could change in the future , if our assumptions about future economic conditions , revenue growth or profitability change . any resulting impairment charge could have a material effect on our financial position and results of operations in the future . income taxes . significant judgment is required in determining worldwide income tax expense based upon tax laws in the various jurisdictions in which we operate . we have established reserves for uncertain tax positions by applying the “ more likely than not ” threshold ( i.e . , a likelihood of occurrence greater than fifty percent ) . the recognition threshold is met when an entity concludes that a tax position , based solely on its technical merits , is more likely than not to be sustained upon examination by the relevant taxing authority . those tax positions failing to qualify for initial recognition are recognized in the first interim period in which they meet the more likely than not standard , or are resolved through negotiation or litigation with the taxing authority , or upon expiration of the statute of limitations . de-recognition of a tax position that was previously recognized occurs when an entity subsequently determines that a tax position no longer meets the more likely than not threshold of being sustained . all tax positions are analyzed periodically and adjustments are made as events warrant modification , such as the completion of audits or the expiration of statutes of limitations , which may result in future charges or credits to income tax expense . 29 as part of the process of preparing consolidated financial statements , management is required to estimate income taxes in each of the jurisdictions in which we operate . this process involves estimating the current tax liability , as well as assessing temporary differences arising from the different treatment of items for financial statement and tax purposes . these differences result in deferred tax assets and liabilities , which are recorded on our consolidated balance sheet . we have significant deferred tax assets as a result of temporary differences between taxable income on our tax returns and u.s. gaap income , research and development tax credit carry forwards and federal , state and foreign net operating loss carry forwards . a deferred tax asset generally represents future tax benefits to be received when temporary differences previously reported in our consolidated financial statements become deductible for income tax purposes , when net operating loss carry forwards are applied against future taxable income , or when tax credit carry forwards are utilized on our tax returns . we assess the realizability of our deferred tax assets and the need for a valuation allowance based on the guidance provided in current financial accounting standards . significant judgment is required in determining the realizability of our deferred tax assets . the assessment of whether valuation allowances are required considers , among other matters , the nature , frequency and severity of any current and cumulative losses , forecasts of future profitability , the duration of statutory carry forward periods , our experience with loss carry forwards not expiring unused and tax planning alternatives . during the fourth quarter of 2016 , we substantially reduced the valuation allowances recorded against our united states and singapore based deferred tax assets , primarily due to significant improvement in our operating results and financial outlook . in analyzing the need for valuation allowances , we first considered our history of cumulative operating results for income tax purposes over the past three years in each of the tax jurisdictions where we operate , our financial performance in recent quarters , statutory carry forward periods and tax planning alternatives . finally , we considered both our near and long-term financial outlook . after considering all available evidence both positive and negative , we concluded that a substantial reduction in the valuation allowances recorded against our united states and singapore based deferred tax assets was appropriate . a similar analysis was performed at december 31 , 2015 , resulting in $ 10.6 million of valuation allowances for our deferred tax assets , primarily due to our cumulative historical operating losses . the $ 9.6 million reduction in valuation allowances for 2016 caused us to recognize a significant non-cash income tax benefit . the reduction resulted from utilization of available net operating loss carryforwards and our determination that significant valuation allowances were no longer needed due to the improvement in our operating results and financial outlook . derivatives and hedging . we may enter into foreign exchange forward contracts to hedge against the effect of exchange rate fluctuations on cash flows denominated in foreign currencies associated with our subsidiary in singapore . these transactions are designated as cash flow hedges and are recorded in the accompanying consolidated balance sheet at fair value .

