our ability to increase net revenues , therefore , is dependent upon our ability to increase unit sales volumes of existing products and to introduce and sell new products with higher average selling prices in quantities sufficient to compensate for the anticipated declines in selling prices of our more mature products . although we expect the average selling prices of individual products to decline over time , we believe that , over the next several quarters , our overall average selling prices will increase due to a continuing shift in product mix to a higher percentage of higher price , higher density products . our ability to increase unit sales volumes is dependent primarily upon increases in customer demand but , particularly in periods of increasing demand , can also be affected by our ability to increase production through the availability of increased wafer fabrication capacity from tsmc and powerchip , our wafer suppliers , and our ability to increase the number of good integrated circuit die produced from each wafer through die size reductions and yield enhancement activities . we may experience fluctuations in quarterly net revenues for a number of reasons . historically , orders on hand at the beginning of each quarter are insufficient to meet our revenue objectives for that quarter and are generally cancelable up to 30 days prior to scheduled delivery . accordingly , we depend on obtaining and shipping orders in the same quarter to achieve our revenue objectives . in addition , the timing of product releases , purchase orders and product availability could result in significant product shipments at the end of a quarter . failure to ship these products by the end of the quarter may adversely affect our operating results . furthermore , our customers may delay scheduled delivery dates and or cancel orders within specified timeframes without significant penalty . we sell our products through our direct sales force , international and domestic sales representatives and distributors . revenues from product sales , except for sales to distributors , are generally recognized upon shipment , net of sales returns and allowances . sales to consignment warehouses , who purchase products from us for use by contract manufacturers , are recorded upon delivery to the contract manufacturer . sales to distributors are recorded as deferred revenues for financial reporting purposes and recognized as revenues when the products are resold by the distributors to the oem . sales to distributors are made under agreements allowing for returns or credits under certain circumstances . we therefore defer recognition of revenue on sales to distributors until products are resold by the distributor . historically , a small number of oem customers have accounted for a substantial portion of our net revenues , and we expect that significant customer concentration will continue for the foreseeable future . many of our oems use contract manufacturers to manufacture their equipment . accordingly , a significant pe rcentage of our net revenues is derived from sales to these contract manufacturers and to consignment warehouses . in addition , a significant portion of our sales are made to foreign and domestic distributors who resell our products to oems , as 39 well as their contract manufacturers . direct sales to contract manufacturers and consignment warehouses accounted for 37.5 % , 42.0 % and 45.1 % of our net revenues for fiscal 201 4 , 201 3 and 201 2 , respectively . sales to foreign and domestic distributors accounted for 50.0 % , 47.6 % and 45.7 % of our net revenues for fiscal 201 4 , 201 3 and 201 2 , respectively . the following direct customers accounted for 10 % or more of our net revenues in one or more of the following periods : replace_table_token_5_th cisco systems , historically our largest oem customer , purchases our products primarily through its consignment warehouses , smart modular technologies , jabil circuit and flextronics technology , and also purchases some products through its contract manufacturers and directly from us . historically , purchases by cisco systems have fluctuated from period to period . based on information provided to us by cisco systems ' consignment warehouses and contract manufacturers , purchases by cisco systems represented approximately 19 % , 29 % and 41 % of our net revenues in fiscal 201 4 , 201 3 and 201 2 , respectively . alcatel lucent was our largest customer in fiscal 2014. alcatel lucent purchases products directly from us and through contract manufacturers and distribut ors . p urchases by alcatel lucent represented approximately 19 % , 12 % and 9 % of our net revenues in fiscal 2014 , 2013 and 2012 , respectively . our revenues have been substantially impacted by significant fluctuations in sales to cisco systems , and we expect that future direct and indirect sales to cisco systems will continue to fluctuate significantly on a quarterly basis and that such fluctuations may significantly affect our operating results in future periods . to our knowledge , none of our other oem customers accounted for more than 10 % of our net revenues in fiscal 201 4 , 201 3 or 201 2 . cost of revenues . our cost of revenues consists primarily of wafer fabrication costs , wafer sort , assembly , test and burn-in expenses , the amortized cost of production mask sets , stock-based compensation and the cost of materials and overhead from operations . all of our wafer manufacturing and assembly operations , and a significant portion of our wafer sort testing operations , are outsourced . accordingly , most of our cost of revenues consists of payments to tsmc , powerchip and independent assembly and test houses . story_separator_special_tag we consider the need to establish the allowance for excess inventory generally based on inventory levels in excess of 12 months of forecasted demand for each specific product . inventory consists of 46 finished goods at our premises or consignment warehouses , work in progress at our premises or our contract manufacturers and finished goods at distributors and takes into account any uncancellable purchase commitments . historically , it has been difficult to forecast customer demand especially at the part-number level . many of the orders we receive from our customers and distributors request delivery of product on relatively short notice and with lead times less than our manufacturing cycle time . in order to provide competitive delivery times to our customers , we build and stock a certain amount of inventory in anticipation of customer demand that may not materialize . moreover , as is common in the semiconductor industry , we may allow customers to cancel orders with minimal advance notice . thus , even product built to satisfy specific customer orders may not ultimately be required to fulfill customer demand . nevertheless , at any point in time , some portion of our inventory is subject to the risk of being materially in excess of our projected demand . additionally , our average selling prices could decline due to market or other conditions , which creates a risk that costs of manufacturing our inventory may not be recovered . these factors contribute to the risk that we may be required to record additional inventory write-downs in the future , which could be material . in addition , if actual market conditions are more favorable than expected , inventory previously written down may be sold to customers resulting in lower cost of sales and higher income from operations than expected in that period . taxes . we account for income taxes under the liability method , whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income . we make certain estimates and judgments in the calculation of tax liabilities and the determination of deferred tax assets , which arise from temporary differences between tax and financial statement recognition methods . we record a valuation allowance to reduce our deferred tax assets to the amount that management estimates is more likely than not to be realized . as of march 31 , 2014 , our net deferred tax assets of $ 3.7 million are subject to a full valuation allowance . if , in the future we determine that we are likely to realize all or part of our net deferred tax assets , an adjustment to deferred tax assets would be added to earnings in the period such determination is made . in addition , the calculation of tax liabilities involves inherent uncertainty in the application of complex tax laws . we record tax reserves for additional taxes that we estimate we may be required to pay as a result of future potential examinations by federal and state taxing authorities . if the payment ultimately proves to be unnecessary , the reversal of these tax reserves would result in tax benefits being recognized in the period we determine such reserves are no longer necessary . if an ultimate tax assessment exceeds our estimate of tax liabilities , an additional charge to provision for income taxes will result . authoritative guidance prescribes a comprehensive model for how a company should recognize , measure , present , and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return ( including a decision whether to file or not to file a return in a particular jurisdiction ) . under this guidance , the financial statements will reflect expected future tax consequences of such positions presuming the taxing authorities ' full knowledge of the position and all relevant facts , but without considering time values . stock based compensation . under authoritative guidance , stock-based compensation expense recognized in the statement of operations is based on options ultimately expected to vest , reduced by the amount of estimated forfeitures . we chose the straight-line method of allocating compensation cost over the requisite service period of the related award in accordance with the authoritative guidance . we calculated the expected term based on the historical average period of time that options were outstanding as adjusted for expected changes in future exercise patterns , which , for options granted in fiscal 201 4 , 201 3 and 201 2 resulted in an expected term of approximately five years . we used historical volatility to estimate expected volatility in fiscal 2014 and 2013 . we based our estimate of expected volatility in 2012 on the estimated volatility of similar entities whose share prices were publicly available . the risk-free interest rate is based on the u.s. treasury yields in effect at the time of grant for periods corresponding to the expected life of the options . the dividend yield is 0 % , based on the fact that we have never paid dividends and 47 have no present intention to pay dividends . determining some of these assumptions requires significant judgment and changes to these assumptions could result in a significant change to the calculation of stock-based compensation in future periods . c ash flows , if any , resulting from the tax benefits from tax deductions in excess of the compensation cost recognized for those options ( excess tax benefits ) are classified as financing cash flows . as stock-based compensation expense recognized in the consolidated statement of operations is based on awards ultimately expected to vest , it has been reduced for estimated . we estimate forfeitures at the time of grant and revise the original estimates , if necessary

liquidity and capital resources as of march 31 , 201 4 , our principal sources of liquidity were cash , cash equivalents and short-term investments of $ 80.9 million compared to $ 67.3 million as of march 31 , 201 3 . net cash provided by operating activities was $ 8.4 million for fiscal 201 4 compared to $ 14.7 million for fiscal 201 3 and $ 1 7.0 million for fiscal 201 2 . the primary sources of cash in fiscal 2014 were a reduction in inventory of $ 3.5 million , adjustments for non-cash stock-based compensation expense of $ 2.2 million , a provision for excess and obsolete inventory of $ 2.1 million and depreciation expense of $ 2.0 million , partially offset by a net loss of $ 6.2 million and a decrease in accrued expenses and other liabilities . we have allowed inventory levels to decrease in response to the slowdown in our business during fiscal 2013 and fiscal 2014. the primary sources of cash in fiscal 2013 were net income of $ 3.8 million , a reduction in inventory of $ 2.1 million and a reduction in prepaid expenses 44 of $ 2.5 million , offset by a decrease in accounts payable of $ 1 . 6 million . the decrease in accounts payable in fiscal 2013 was primarily due to decreased legal expenses related to the pending patent infringement and antitrust litigation involving cypress semiconductor corporation compared to fiscal 2012 . the primary sources of cash in fiscal 2012 were net income of $ 6.8 million and decreases in accounts receivable of $ 4.5 million and inventory of $ 4.0 million , partially offset by an increase in prepaid expenses and other assets of $ 2.6 million and a decrease in deferred revenue of $ 2.6 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 as of march 31 , 201 4 , our principal sources of liquidity were cash , cash equivalents and short-term investments of $ 80.9 million compared to $ 67.3 million as of march 31 , 201 3 . net cash provided by operating activities was $ 8.4 million for fiscal 201 4 compared to $ 14.7 million for fiscal 201 3 and $ 1 7.0 million for fiscal 201 2 . the primary sources of cash in fiscal 2014 were a reduction in inventory of $ 3.5 million , adjustments for non-cash stock-based compensation expense of $ 2.2 million , a provision for excess and obsolete inventory of $ 2.1 million and depreciation expense of $ 2.0 million , partially offset by a net loss of $ 6.2 million and a decrease in accrued expenses and other liabilities . we have allowed inventory levels to decrease in response to the slowdown in our business during fiscal 2013 and fiscal 2014. the primary sources of cash in fiscal 2013 were net income of $ 3.8 million , a reduction in inventory of $ 2.1 million and a reduction in prepaid expenses 44 of $ 2.5 million , offset by a decrease in accounts payable of $ 1 . 6 million . the decrease in accounts payable in fiscal 2013 was primarily due to decreased legal expenses related to the pending patent infringement and antitrust litigation involving cypress semiconductor corporation compared to fiscal 2012 . the primary sources of cash in fiscal 2012 were net income of $ 6.8 million and decreases in accounts receivable of $ 4.5 million and inventory of $ 4.0 million , partially offset by an increase in prepaid expenses and other assets of $ 2.6 million and a decrease in deferred revenue of $ 2.6 million .
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 Suspicious Activity Report : our ability to increase net revenues , therefore , is dependent upon our ability to increase unit sales volumes of existing products and to introduce and sell new products with higher average selling prices in quantities sufficient to compensate for the anticipated declines in selling prices of our more mature products . although we expect the average selling prices of individual products to decline over time , we believe that , over the next several quarters , our overall average selling prices will increase due to a continuing shift in product mix to a higher percentage of higher price , higher density products . our ability to increase unit sales volumes is dependent primarily upon increases in customer demand but , particularly in periods of increasing demand , can also be affected by our ability to increase production through the availability of increased wafer fabrication capacity from tsmc and powerchip , our wafer suppliers , and our ability to increase the number of good integrated circuit die produced from each wafer through die size reductions and yield enhancement activities . we may experience fluctuations in quarterly net revenues for a number of reasons . historically , orders on hand at the beginning of each quarter are insufficient to meet our revenue objectives for that quarter and are generally cancelable up to 30 days prior to scheduled delivery . accordingly , we depend on obtaining and shipping orders in the same quarter to achieve our revenue objectives . in addition , the timing of product releases , purchase orders and product availability could result in significant product shipments at the end of a quarter . failure to ship these products by the end of the quarter may adversely affect our operating results . furthermore , our customers may delay scheduled delivery dates and or cancel orders within specified timeframes without significant penalty . we sell our products through our direct sales force , international and domestic sales representatives and distributors . revenues from product sales , except for sales to distributors , are generally recognized upon shipment , net of sales returns and allowances . sales to consignment warehouses , who purchase products from us for use by contract manufacturers , are recorded upon delivery to the contract manufacturer . sales to distributors are recorded as deferred revenues for financial reporting purposes and recognized as revenues when the products are resold by the distributors to the oem . sales to distributors are made under agreements allowing for returns or credits under certain circumstances . we therefore defer recognition of revenue on sales to distributors until products are resold by the distributor . historically , a small number of oem customers have accounted for a substantial portion of our net revenues , and we expect that significant customer concentration will continue for the foreseeable future . many of our oems use contract manufacturers to manufacture their equipment . accordingly , a significant pe rcentage of our net revenues is derived from sales to these contract manufacturers and to consignment warehouses . in addition , a significant portion of our sales are made to foreign and domestic distributors who resell our products to oems , as 39 well as their contract manufacturers . direct sales to contract manufacturers and consignment warehouses accounted for 37.5 % , 42.0 % and 45.1 % of our net revenues for fiscal 201 4 , 201 3 and 201 2 , respectively . sales to foreign and domestic distributors accounted for 50.0 % , 47.6 % and 45.7 % of our net revenues for fiscal 201 4 , 201 3 and 201 2 , respectively . the following direct customers accounted for 10 % or more of our net revenues in one or more of the following periods : replace_table_token_5_th cisco systems , historically our largest oem customer , purchases our products primarily through its consignment warehouses , smart modular technologies , jabil circuit and flextronics technology , and also purchases some products through its contract manufacturers and directly from us . historically , purchases by cisco systems have fluctuated from period to period . based on information provided to us by cisco systems ' consignment warehouses and contract manufacturers , purchases by cisco systems represented approximately 19 % , 29 % and 41 % of our net revenues in fiscal 201 4 , 201 3 and 201 2 , respectively . alcatel lucent was our largest customer in fiscal 2014. alcatel lucent purchases products directly from us and through contract manufacturers and distribut ors . p urchases by alcatel lucent represented approximately 19 % , 12 % and 9 % of our net revenues in fiscal 2014 , 2013 and 2012 , respectively . our revenues have been substantially impacted by significant fluctuations in sales to cisco systems , and we expect that future direct and indirect sales to cisco systems will continue to fluctuate significantly on a quarterly basis and that such fluctuations may significantly affect our operating results in future periods . to our knowledge , none of our other oem customers accounted for more than 10 % of our net revenues in fiscal 201 4 , 201 3 or 201 2 . cost of revenues . our cost of revenues consists primarily of wafer fabrication costs , wafer sort , assembly , test and burn-in expenses , the amortized cost of production mask sets , stock-based compensation and the cost of materials and overhead from operations . all of our wafer manufacturing and assembly operations , and a significant portion of our wafer sort testing operations , are outsourced . accordingly , most of our cost of revenues consists of payments to tsmc , powerchip and independent assembly and test houses . story_separator_special_tag we consider the need to establish the allowance for excess inventory generally based on inventory levels in excess of 12 months of forecasted demand for each specific product . inventory consists of 46 finished goods at our premises or consignment warehouses , work in progress at our premises or our contract manufacturers and finished goods at distributors and takes into account any uncancellable purchase commitments . historically , it has been difficult to forecast customer demand especially at the part-number level . many of the orders we receive from our customers and distributors request delivery of product on relatively short notice and with lead times less than our manufacturing cycle time . in order to provide competitive delivery times to our customers , we build and stock a certain amount of inventory in anticipation of customer demand that may not materialize . moreover , as is common in the semiconductor industry , we may allow customers to cancel orders with minimal advance notice . thus , even product built to satisfy specific customer orders may not ultimately be required to fulfill customer demand . nevertheless , at any point in time , some portion of our inventory is subject to the risk of being materially in excess of our projected demand . additionally , our average selling prices could decline due to market or other conditions , which creates a risk that costs of manufacturing our inventory may not be recovered . these factors contribute to the risk that we may be required to record additional inventory write-downs in the future , which could be material . in addition , if actual market conditions are more favorable than expected , inventory previously written down may be sold to customers resulting in lower cost of sales and higher income from operations than expected in that period . taxes . we account for income taxes under the liability method , whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income . we make certain estimates and judgments in the calculation of tax liabilities and the determination of deferred tax assets , which arise from temporary differences between tax and financial statement recognition methods . we record a valuation allowance to reduce our deferred tax assets to the amount that management estimates is more likely than not to be realized . as of march 31 , 2014 , our net deferred tax assets of $ 3.7 million are subject to a full valuation allowance . if , in the future we determine that we are likely to realize all or part of our net deferred tax assets , an adjustment to deferred tax assets would be added to earnings in the period such determination is made . in addition , the calculation of tax liabilities involves inherent uncertainty in the application of complex tax laws . we record tax reserves for additional taxes that we estimate we may be required to pay as a result of future potential examinations by federal and state taxing authorities . if the payment ultimately proves to be unnecessary , the reversal of these tax reserves would result in tax benefits being recognized in the period we determine such reserves are no longer necessary . if an ultimate tax assessment exceeds our estimate of tax liabilities , an additional charge to provision for income taxes will result . authoritative guidance prescribes a comprehensive model for how a company should recognize , measure , present , and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return ( including a decision whether to file or not to file a return in a particular jurisdiction ) . under this guidance , the financial statements will reflect expected future tax consequences of such positions presuming the taxing authorities ' full knowledge of the position and all relevant facts , but without considering time values . stock based compensation . under authoritative guidance , stock-based compensation expense recognized in the statement of operations is based on options ultimately expected to vest , reduced by the amount of estimated forfeitures . we chose the straight-line method of allocating compensation cost over the requisite service period of the related award in accordance with the authoritative guidance . we calculated the expected term based on the historical average period of time that options were outstanding as adjusted for expected changes in future exercise patterns , which , for options granted in fiscal 201 4 , 201 3 and 201 2 resulted in an expected term of approximately five years . we used historical volatility to estimate expected volatility in fiscal 2014 and 2013 . we based our estimate of expected volatility in 2012 on the estimated volatility of similar entities whose share prices were publicly available . the risk-free interest rate is based on the u.s. treasury yields in effect at the time of grant for periods corresponding to the expected life of the options . the dividend yield is 0 % , based on the fact that we have never paid dividends and 47 have no present intention to pay dividends . determining some of these assumptions requires significant judgment and changes to these assumptions could result in a significant change to the calculation of stock-based compensation in future periods . c ash flows , if any , resulting from the tax benefits from tax deductions in excess of the compensation cost recognized for those options ( excess tax benefits ) are classified as financing cash flows . as stock-based compensation expense recognized in the consolidated statement of operations is based on awards ultimately expected to vest , it has been reduced for estimated . we estimate forfeitures at the time of grant and revise the original estimates , if necessary

