the reduction in revenue resulted from a decline of $ 36.0 million in our realplayer group segment , a decline of $ 12.7 million in our games segment , and a decline of $ 1.3 million in our mobile entertainment segment , due to the factors described above . gross margin decreased to 58 % from 62 % , primarily as a result of our transition to a new third party distribution arrangement at significantly lower rates compared to our previous partner in our realplayer business , and to declining sales in our storefront business in games . these decreases in gross margin were partially offset by the extinguishment in q1 2014 of certain accrued royalty liabilities of $ 10.6 million associated with our historical music business , which had been originally recorded based on statutory rates . operating expenses decreased by $ 38.3 million primarily due to reductions in personnel and related costs of $ 10.9 million , reductions in marketing costs of $ 10.4 million and lower costs related to our 2013 headquarters relocation of $ 5.7 million , which resulted from our ongoing expense re-alignment efforts , as well as litigation settlement costs of $ 11.5 million in the prior year . 2013 compared with 2012 revenue decreased by $ 52.6 million , or 20 % . the reduction in revenue resulted from a decline of $ 19.1 million in our mobile entertainment segment , a decline of $ 17.2 million in our games segment , and a decline of $ 16.3 million in our realplayer group segment , due to the factors described above . gross margin increased to 62 % from 60 % , primarily as a result of lower personnel and related costs that resulted from our ongoing expense alignment efforts . operating expenses decreased by $ 18.0 million primarily due to reductions in personnel and related costs that resulted from our ongoing expense alignment efforts , partially offset by litigation settlement costs of $ 11.5 million . segment results realplayer group realplayer group segment results of operations were as follows ( dollars in thousands ) : replace_table_token_4_th 2014 compared with 2013 20 total realplayer group revenue decreased by $ 36.0 million , or 48 % . this decrease was primarily a result of our transition to a new third party distribution arrangement at significantly lower rates compared to our previous partner that caused our third party distribution revenue to decrease by $ 16.0 million , and lower subscription revenue of $ 5.5 million due to fewer superpass subscribers . further contributing to the decline was a decrease in realplayer license revenue of $ 7.6 million due to our focus away from our realplayer product and towards increasing realplayer cloud subscriptions , and a decrease of $ 5.9 million in distribution of intellectual property licenses . gross margin decreased by 15 percentage points , due primarily to our transition to a new third party distribution arrangement at significantly lower rates compared to our previous partner . operating expenses decreased by $ 4.7 million primarily due to decreased marketing spend of $ 5.5 million mainly related to our third party distribution arrangements . 2013 compared with 2012 total realplayer group revenue decreased by $ 16.3 million , or 18 % . this decrease was primarily a result of lower subscriptions revenue of $ 11.8 million due to fewer subscribers , primarily attributable to our superpass product . gross margin increased by 2 percentage points , due primarily to a higher proportion of lower margin revenue in the prior year . operating expenses increased by $ 5.3 million . personnel and related costs increased $ 5.2 million , primarily due to investment in our new realplayer cloud service . mobile entertainment mobile entertainment segment results of operations were as follows ( dollars in thousands ) : replace_table_token_5_th 2014 compared with 2013 mobile entertainment revenue decreased by $ 1.3 million , or 2 % . this decrease was primarily due to a decrease of $ 3.4 million due to termination of carrier contracts and a decrease of $ 1.2 million in our helix business . these decreases , along with certain other declines in our saas business , were partially offset by an increase of $ 4.9 million in music on demand revenue , primarily in korea . gross margin declined by 4 percentage points in 2014 , due primarily to a higher proportion of lower margin revenue , such as music on demand , compared to the prior year . 2013 compared with 2012 in the quarter ended september 30 , 2013 , we acquired muzicall , a ringback tone company based in london , for total cash consideration of $ 6.7 million . this acquisition is intended to accelerate our growth initiatives within the mobile entertainment segment . mobile entertainment revenue decreased by $ 19.1 million , or 19 % . this decrease was primarily due to reduced revenue from our saas offerings of $ 16.0 million , resulting from $ 17.0 million of lost revenue upon the termination of certain saas contracts over the previous six quarters . slightly offsetting this decrease was an increase in ringback tones revenue of $ 2.1 million , resulting from our purchase of muzicall . gross margin declined by 2 percentage points , due primarily to a higher proportion of lower margin revenue , such as music on demand , in the current year . operating expenses declined by $ 16.8 million primarily due to reductions in personnel and related costs of $ 17.2 million that resulted in part from the termination of certain saas contracts mentioned above , as well as from our ongoing expense re- 21 alignment efforts . story_separator_special_tag as of december 31 , 2014 , we have not provided for u.s. federal and state income taxes on approximately $ 13.9 million of undistributed earnings of our foreign subsidiaries , since such earnings are considered permanently reinvested outside the u.s. or may be remitted tax-free to the u.s. if these amounts were distributed to the u.s , in the future in the form of dividends or otherwise , we could be subject to additional u.s. income taxes . it is not practicable to determine the u.s. federal income tax liability or benefit on such earnings due to the timing of such future distributions , the availability of foreign tax credits , and the complexity of the computation if such earnings were not deemed to be permanently reinvested . if future events , including material changes in estimates of cash , working capital , and long-term investment requirements necessitate that these earnings be repatriated , an additional provision for u.s. income and foreign withholding taxes , net of foreign tax credits , may be necessary . contractual obligations please refer to note 16 , commitments and contingencies , for details on our contractual obligations , which consist of operating leases for office facilities . for income tax liabilities for uncertain tax positions we can not make a reasonably reliable estimate of the amount and period of any related future payments . as of december 31 , 2014 we had $ 3.5 million of gross unrecognized tax benefits for uncertain tax positions . off-balance sheet arrangements we have operating lease obligations for office facility leases with future cash commitments that are not required to be recorded on our consolidated balance sheet . accordingly , these operating lease obligations constitute off-balance sheet 27 arrangements . in addition , since we do not maintain accruals associated with certain guarantees , as discussed in note 17 , guarantees , those guarantee obligations also constitute off-balance sheet arrangements . critical accounting policies and estimates the preparation of our financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period . our critical accounting policies and estimates are as follows : revenue recognition ; estimating music publishing rights and music royalty accruals ; estimating recoverability of deferred costs ; estimating allowances for doubtful accounts and sales returns ; valuation of equity method investments ; valuation of definite-lived assets ; valuation of goodwill and indefinite-lived intangible assets ; stock-based compensation ; and accounting for income taxes . revenue recognition . we recognize revenue when persuasive evidence of an arrangement exists , delivery has occurred , the sales price is fixed or determinable , and collection is probable . physical products are considered delivered to the customer once they have been shipped and title and risk of loss have been transferred . for online sales , the products or services are considered delivered at the time the product or services are made available , digitally , to the end user . we recognize revenue on a gross or net basis . in most arrangements , we contract directly with end user customers , and are the primary obligor . in such arrangements , we recognize revenue on a gross basis . in some cases , we utilize third-party distributors who are the primary obligor to sell products or services directly to end user customers . in such instances , we recognize revenue on a net basis . in our direct to consumer operations , we derive revenue primarily through ( 1 ) subscriptions of superpass within our realplayer group segment and subscriptions sold by our games segment , ( 2 ) sales of content downloads , software and licenses offered by our realplayer group , mobile entertainment , and games segments and ( 3 ) the sale of advertising and the distribution of third-party products on our websites and in our games . consumer subscription products are paid in advance , typically for monthly , quarterly or annual duration . subscription revenue is recognized ratably over the related subscription time period . revenue from sales of content downloads , software and licenses is recognized at the time the product is made available , digitally , to the end user . revenue generated from advertising on our websites and from advertising and the distribution of third-party products included in our products is recognized as revenue at the time of delivery . we also generate revenue through business-to-business channels by providing services within our mobile entertainment segment enabling mobile carriers to deliver audio and video content to their customers and by selling software licenses and products and related support and other services . revenue generated from services provided to mobile carriers that enable the delivery of audio and video content to their customers is recognized as the services are provided . setup fees to build these services are recognized ratably upon launch of the service over the remaining expected term of the service . non-software revenue arrangements containing multiple elements are divided into separate units of accounting , after being evaluated for specific criteria . if the criteria for separation are met , revenue is allocated to the individual units using the relative price method . if the criteria are not met , the elements are treated as one unit of accounting and revenue recognition is delayed until all elements have been delivered . in the case of revenue arrangements containing software , elements are divided into separate units of accounting only when vendor-specific objective evidence has been established . in cases where vendor-specific objective evidence has not been established , undelivered elements are combined into one unit of accounting and are not recognized in revenue until all elements have been delivered . estimating music publishing rights and music royalty accruals . we have made estimates of

liquidity and capital resources the following summarizes working capital , cash , cash equivalents , short-term investments , and restricted cash and investments ( in thousands ) : replace_table_token_11_th the decrease in 2014 working capital from december 31 , 2013 , which includes cash , cash equivalents short term investments , was primarily due to cash used in our operations of $ 60.2 million . the following summarizes cash flow activity ( in thousands ) : replace_table_token_12_th cash used in operating activities consisted of net income ( loss ) adjusted for certain non-cash items such as depreciation and amortization , as well as the effect of changes in certain operating assets and liabilities . cash used in operating activities was $ 10.4 million more in 2014 than in 2013. this increase in cash used was primarily due to the decline in revenue of $ 50.0 million which was offset , in part , by the decrease in operating expenses of $ 38.3 million . the higher amount of cash used in operating activities for 2013 compared to 2012 was primarily due to the decline in revenues of $ 52.6 million for 2013 compared with the prior year , which was partially offset by a decline in cost of revenue of $ 24.6 million for 2013. we also had a net decrease in cash of $ 3.6 million for the year ended december 31 , 2013 related to changes in certain operating assets and liabilities , compared with a net decrease in cash of $ 11.7 million for the year ended december 31 , 2012 related to changes in certain operating assets and liabilities . for the year ended december 31 , 2014 , cash provided by investing activities of $ 15.6 million was mainly from sales and maturities , net of purchases , of short-term investments totaling $ 16.5 million . in addition , cash proceeds from the sale of available for sale securities of $ 2.8 million in 2014 mainly offset purchases of equipment , software and leasehold improvements of $ 2.5 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 the following summarizes working capital , cash , cash equivalents , short-term investments , and restricted cash and investments ( in thousands ) : replace_table_token_11_th the decrease in 2014 working capital from december 31 , 2013 , which includes cash , cash equivalents short term investments , was primarily due to cash used in our operations of $ 60.2 million . the following summarizes cash flow activity ( in thousands ) : replace_table_token_12_th cash used in operating activities consisted of net income ( loss ) adjusted for certain non-cash items such as depreciation and amortization , as well as the effect of changes in certain operating assets and liabilities . cash used in operating activities was $ 10.4 million more in 2014 than in 2013. this increase in cash used was primarily due to the decline in revenue of $ 50.0 million which was offset , in part , by the decrease in operating expenses of $ 38.3 million . the higher amount of cash used in operating activities for 2013 compared to 2012 was primarily due to the decline in revenues of $ 52.6 million for 2013 compared with the prior year , which was partially offset by a decline in cost of revenue of $ 24.6 million for 2013. we also had a net decrease in cash of $ 3.6 million for the year ended december 31 , 2013 related to changes in certain operating assets and liabilities , compared with a net decrease in cash of $ 11.7 million for the year ended december 31 , 2012 related to changes in certain operating assets and liabilities . for the year ended december 31 , 2014 , cash provided by investing activities of $ 15.6 million was mainly from sales and maturities , net of purchases , of short-term investments totaling $ 16.5 million . in addition , cash proceeds from the sale of available for sale securities of $ 2.8 million in 2014 mainly offset purchases of equipment , software and leasehold improvements of $ 2.5 million .
```    
 Suspicious Activity Report : the reduction in revenue resulted from a decline of $ 36.0 million in our realplayer group segment , a decline of $ 12.7 million in our games segment , and a decline of $ 1.3 million in our mobile entertainment segment , due to the factors described above . gross margin decreased to 58 % from 62 % , primarily as a result of our transition to a new third party distribution arrangement at significantly lower rates compared to our previous partner in our realplayer business , and to declining sales in our storefront business in games . these decreases in gross margin were partially offset by the extinguishment in q1 2014 of certain accrued royalty liabilities of $ 10.6 million associated with our historical music business , which had been originally recorded based on statutory rates . operating expenses decreased by $ 38.3 million primarily due to reductions in personnel and related costs of $ 10.9 million , reductions in marketing costs of $ 10.4 million and lower costs related to our 2013 headquarters relocation of $ 5.7 million , which resulted from our ongoing expense re-alignment efforts , as well as litigation settlement costs of $ 11.5 million in the prior year . 2013 compared with 2012 revenue decreased by $ 52.6 million , or 20 % . the reduction in revenue resulted from a decline of $ 19.1 million in our mobile entertainment segment , a decline of $ 17.2 million in our games segment , and a decline of $ 16.3 million in our realplayer group segment , due to the factors described above . gross margin increased to 62 % from 60 % , primarily as a result of lower personnel and related costs that resulted from our ongoing expense alignment efforts . operating expenses decreased by $ 18.0 million primarily due to reductions in personnel and related costs that resulted from our ongoing expense alignment efforts , partially offset by litigation settlement costs of $ 11.5 million . segment results realplayer group realplayer group segment results of operations were as follows ( dollars in thousands ) : replace_table_token_4_th 2014 compared with 2013 20 total realplayer group revenue decreased by $ 36.0 million , or 48 % . this decrease was primarily a result of our transition to a new third party distribution arrangement at significantly lower rates compared to our previous partner that caused our third party distribution revenue to decrease by $ 16.0 million , and lower subscription revenue of $ 5.5 million due to fewer superpass subscribers . further contributing to the decline was a decrease in realplayer license revenue of $ 7.6 million due to our focus away from our realplayer product and towards increasing realplayer cloud subscriptions , and a decrease of $ 5.9 million in distribution of intellectual property licenses . gross margin decreased by 15 percentage points , due primarily to our transition to a new third party distribution arrangement at significantly lower rates compared to our previous partner . operating expenses decreased by $ 4.7 million primarily due to decreased marketing spend of $ 5.5 million mainly related to our third party distribution arrangements . 2013 compared with 2012 total realplayer group revenue decreased by $ 16.3 million , or 18 % . this decrease was primarily a result of lower subscriptions revenue of $ 11.8 million due to fewer subscribers , primarily attributable to our superpass product . gross margin increased by 2 percentage points , due primarily to a higher proportion of lower margin revenue in the prior year . operating expenses increased by $ 5.3 million . personnel and related costs increased $ 5.2 million , primarily due to investment in our new realplayer cloud service . mobile entertainment mobile entertainment segment results of operations were as follows ( dollars in thousands ) : replace_table_token_5_th 2014 compared with 2013 mobile entertainment revenue decreased by $ 1.3 million , or 2 % . this decrease was primarily due to a decrease of $ 3.4 million due to termination of carrier contracts and a decrease of $ 1.2 million in our helix business . these decreases , along with certain other declines in our saas business , were partially offset by an increase of $ 4.9 million in music on demand revenue , primarily in korea . gross margin declined by 4 percentage points in 2014 , due primarily to a higher proportion of lower margin revenue , such as music on demand , compared to the prior year . 2013 compared with 2012 in the quarter ended september 30 , 2013 , we acquired muzicall , a ringback tone company based in london , for total cash consideration of $ 6.7 million . this acquisition is intended to accelerate our growth initiatives within the mobile entertainment segment . mobile entertainment revenue decreased by $ 19.1 million , or 19 % . this decrease was primarily due to reduced revenue from our saas offerings of $ 16.0 million , resulting from $ 17.0 million of lost revenue upon the termination of certain saas contracts over the previous six quarters . slightly offsetting this decrease was an increase in ringback tones revenue of $ 2.1 million , resulting from our purchase of muzicall . gross margin declined by 2 percentage points , due primarily to a higher proportion of lower margin revenue , such as music on demand , in the current year . operating expenses declined by $ 16.8 million primarily due to reductions in personnel and related costs of $ 17.2 million that resulted in part from the termination of certain saas contracts mentioned above , as well as from our ongoing expense re- 21 alignment efforts . story_separator_special_tag as of december 31 , 2014 , we have not provided for u.s. federal and state income taxes on approximately $ 13.9 million of undistributed earnings of our foreign subsidiaries , since such earnings are considered permanently reinvested outside the u.s. or may be remitted tax-free to the u.s. if these amounts were distributed to the u.s , in the future in the form of dividends or otherwise , we could be subject to additional u.s. income taxes . it is not practicable to determine the u.s. federal income tax liability or benefit on such earnings due to the timing of such future distributions , the availability of foreign tax credits , and the complexity of the computation if such earnings were not deemed to be permanently reinvested . if future events , including material changes in estimates of cash , working capital , and long-term investment requirements necessitate that these earnings be repatriated , an additional provision for u.s. income and foreign withholding taxes , net of foreign tax credits , may be necessary . contractual obligations please refer to note 16 , commitments and contingencies , for details on our contractual obligations , which consist of operating leases for office facilities . for income tax liabilities for uncertain tax positions we can not make a reasonably reliable estimate of the amount and period of any related future payments . as of december 31 , 2014 we had $ 3.5 million of gross unrecognized tax benefits for uncertain tax positions . off-balance sheet arrangements we have operating lease obligations for office facility leases with future cash commitments that are not required to be recorded on our consolidated balance sheet . accordingly , these operating lease obligations constitute off-balance sheet 27 arrangements . in addition , since we do not maintain accruals associated with certain guarantees , as discussed in note 17 , guarantees , those guarantee obligations also constitute off-balance sheet arrangements . critical accounting policies and estimates the preparation of our financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period . our critical accounting policies and estimates are as follows : revenue recognition ; estimating music publishing rights and music royalty accruals ; estimating recoverability of deferred costs ; estimating allowances for doubtful accounts and sales returns ; valuation of equity method investments ; valuation of definite-lived assets ; valuation of goodwill and indefinite-lived intangible assets ; stock-based compensation ; and accounting for income taxes . revenue recognition . we recognize revenue when persuasive evidence of an arrangement exists , delivery has occurred , the sales price is fixed or determinable , and collection is probable . physical products are considered delivered to the customer once they have been shipped and title and risk of loss have been transferred . for online sales , the products or services are considered delivered at the time the product or services are made available , digitally , to the end user . we recognize revenue on a gross or net basis . in most arrangements , we contract directly with end user customers , and are the primary obligor . in such arrangements , we recognize revenue on a gross basis . in some cases , we utilize third-party distributors who are the primary obligor to sell products or services directly to end user customers . in such instances , we recognize revenue on a net basis . in our direct to consumer operations , we derive revenue primarily through ( 1 ) subscriptions of superpass within our realplayer group segment and subscriptions sold by our games segment , ( 2 ) sales of content downloads , software and licenses offered by our realplayer group , mobile entertainment , and games segments and ( 3 ) the sale of advertising and the distribution of third-party products on our websites and in our games . consumer subscription products are paid in advance , typically for monthly , quarterly or annual duration . subscription revenue is recognized ratably over the related subscription time period . revenue from sales of content downloads , software and licenses is recognized at the time the product is made available , digitally , to the end user . revenue generated from advertising on our websites and from advertising and the distribution of third-party products included in our products is recognized as revenue at the time of delivery . we also generate revenue through business-to-business channels by providing services within our mobile entertainment segment enabling mobile carriers to deliver audio and video content to their customers and by selling software licenses and products and related support and other services . revenue generated from services provided to mobile carriers that enable the delivery of audio and video content to their customers is recognized as the services are provided . setup fees to build these services are recognized ratably upon launch of the service over the remaining expected term of the service . non-software revenue arrangements containing multiple elements are divided into separate units of accounting , after being evaluated for specific criteria . if the criteria for separation are met , revenue is allocated to the individual units using the relative price method . if the criteria are not met , the elements are treated as one unit of accounting and revenue recognition is delayed until all elements have been delivered . in the case of revenue arrangements containing software , elements are divided into separate units of accounting only when vendor-specific objective evidence has been established . in cases where vendor-specific objective evidence has not been established , undelivered elements are combined into one unit of accounting and are not recognized in revenue until all elements have been delivered . estimating music publishing rights and music royalty accruals . we have made estimates of

