see information included in `` non-gaap measures `` below for a reconciliation of net income to ebitda and adjusted ebitda . revenues : revenues were $ 110,941,000 in 2011 compared to $ 80,591,000 in 2010. of this 38 % increase , revenues from existing businesses increased 11 % and incremental revenues achieved by the two companies acquired in 2010 contributed 27 % of the increase . the 38 % increase in sales from last year was the result of an increase in sales in virtually all of our major industry sectors except aerospace and defense which was flat for the year . 54 % of our sales for the year were to us customers with the balance of our sales to customers primarily in europe , canada and asia . sales to our us customers 11 increased 25 % and sales to customers outside of the us were up 57 % for the year . of the 38 % increase in revenues , 36 % was due to an increase in sales volume for the year and 2 % was due to a favorable currency change . backlog : the company 's backlog at december 31 , 2011 consisted of sales orders totaling approximately $ 44,005,000 while backlog at december 31 , 2010 was $ 37,856,000 reflecting a 16 % increase from the end of 2010. backlog may fluctuate up or down throughout the year for various reasons , not limited to the following : customer order patterns , annual versus intermittent orders , and long-term recurring product versus new product orders . gross margin : gross margin as a percentage of revenues was 30 % and 28 % for 2011 and 2010 , respectively . this 2 % improvement in gross margin was primarily due to the company 's continuous efforts in reducing costs and selling more value added systems solutions and custom engineered products that typically have higher margins . selling expenses : selling expenses were $ 5,626,000 and $ 3,872,000 in 2011 and 2010 , respectively . the 45 % increase is primarily due to an increase in the company 's sales force as a result of the acquisition of östergrens , which was completed in the fourth quarter of 2010. general and administrative expenses : general and administrative expenses were $ 12,639,000 in 2011 and $ 9,938,000 for 2010. the 27 % increase is primarily a result of additional general and administrative costs as a result of the acquisitions of am canada and östergrens , which were made in the second and fourth quarters of 2010 , respectively , as well as increased compensation expense , which includes incentive bonuses , partially offset by reduced acquisition related expenses . engineering and development expenses : engineering and development expenses were $ 5,983,000 and $ 4,044,000 for 2011 and 2010 , respectively . the 48 % increase is primarily a result of the increased engineering staff from the acquisitions of am canada and östergrens , which were made in the second and fourth quarters of 2010 , respectively . amortization of intangible assets : amortization of intangible assets expense was $ 732,000 and $ 551,000 in 2011 and 2010 , respectively . the 33 % increase is the result of the additional intangible amortization from the östergrens acquisition , partially offset , by certain intangible assets that became fully amortized in 2010. net insurance recoveries : net insurance recoveries were $ 685,000 for 2010. the recoveries in 2010 represent the final settlement for the business interruption insurance claim which resulted from the fire at the company 's copi facility in the fourth quarter of 2008. income taxes : provision for income taxes was $ 2,552,000 and $ 1,581,000 for 2011 and 2010 , respectively . the effective income tax rate as a percentage of income before income taxes was 27 % and 31 % in 2011 and 2010 , respectively . the effective tax rate for 2011 and 2010 is lower than the statutory rate primarily due to differences in state and foreign tax rates , as well as permanent differences , which were primarily the result of the adjustment to contingent consideration . non-gaap measures ebitda and adjusted ebitda are provided for information purposes only and are not measures of financial performance under generally accepted accounting principles . the company believes ebitda is often a useful measure of a company 's operating performance and is a significant basis used by the company 's management to measure the operating performance of the company 's business because ebitda excludes charges for depreciation , amortization and interest 12 expense that have resulted from our debt financings , as well as our provision for income tax expense . ebitda is frequently used as one of the bases for comparing businesses in the company 's industry . the company also believes that adjusted ebitda provides helpful information about the operating performance of its business . adjusted ebitda excludes stock compensation expense , as well as certain non-recurring items . nonrecurring items are either income or expenses which do not occur regularly as part of the normal activities of the company . the company considers these items to be of significance in nature and or size , and accordingly , has excluded these items from adjusted ebitda . adjusted ebitda in 2011 excludes the earnout adjustment related to the acquisition of östergrens , while adjusted ebitda in 2010 excludes transaction costs of $ 447,000 that were incurred in conjunction with the acquisitions of östergrens and agile systems ( now known as allied motion canada ) , insurance recoveries of $ 685,000 , and $ 232,000 of expenses due to inefficiencies from the relocation of the company 's encoder operation . ebitda and adjusted ebitda do not represent and should not be considered as an alternative to net income , operating income , net cash provided by operating activities or any other measure for determining operating performance or liquidity that is calculated in accordance story_separator_special_tag see information included in `` non-gaap measures `` below for a reconciliation of net income to ebitda and adjusted ebitda . revenues : revenues were $ 110,941,000 in 2011 compared to $ 80,591,000 in 2010. of this 38 % increase , revenues from existing businesses increased 11 % and incremental revenues achieved by the two companies acquired in 2010 contributed 27 % of the increase . the 38 % increase in sales from last year was the result of an increase in sales in virtually all of our major industry sectors except aerospace and defense which was flat for the year . 54 % of our sales for the year were to us customers with the balance of our sales to customers primarily in europe , canada and asia . sales to our us customers 11 increased 25 % and sales to customers outside of the us were up 57 % for the year . of the 38 % increase in revenues , 36 % was due to an increase in sales volume for the year and 2 % was due to a favorable currency change . backlog : the company 's backlog at december 31 , 2011 consisted of sales orders totaling approximately $ 44,005,000 while backlog at december 31 , 2010 was $ 37,856,000 reflecting a 16 % increase from the end of 2010. backlog may fluctuate up or down throughout the year for various reasons , not limited to the following : customer order patterns , annual versus intermittent orders , and long-term recurring product versus new product orders . gross margin : gross margin as a percentage of revenues was 30 % and 28 % for 2011 and 2010 , respectively . this 2 % improvement in gross margin was primarily due to the company 's continuous efforts in reducing costs and selling more value added systems solutions and custom engineered products that typically have higher margins . selling expenses : selling expenses were $ 5,626,000 and $ 3,872,000 in 2011 and 2010 , respectively . the 45 % increase is primarily due to an increase in the company 's sales force as a result of the acquisition of östergrens , which was completed in the fourth quarter of 2010. general and administrative expenses : general and administrative expenses were $ 12,639,000 in 2011 and $ 9,938,000 for 2010. the 27 % increase is primarily a result of additional general and administrative costs as a result of the acquisitions of am canada and östergrens , which were made in the second and fourth quarters of 2010 , respectively , as well as increased compensation expense , which includes incentive bonuses , partially offset by reduced acquisition related expenses . engineering and development expenses : engineering and development expenses were $ 5,983,000 and $ 4,044,000 for 2011 and 2010 , respectively . the 48 % increase is primarily a result of the increased engineering staff from the acquisitions of am canada and östergrens , which were made in the second and fourth quarters of 2010 , respectively . amortization of intangible assets : amortization of intangible assets expense was $ 732,000 and $ 551,000 in 2011 and 2010 , respectively . the 33 % increase is the result of the additional intangible amortization from the östergrens acquisition , partially offset , by certain intangible assets that became fully amortized in 2010. net insurance recoveries : net insurance recoveries were $ 685,000 for 2010. the recoveries in 2010 represent the final settlement for the business interruption insurance claim which resulted from the fire at the company 's copi facility in the fourth quarter of 2008. income taxes : provision for income taxes was $ 2,552,000 and $ 1,581,000 for 2011 and 2010 , respectively . the effective income tax rate as a percentage of income before income taxes was 27 % and 31 % in 2011 and 2010 , respectively . the effective tax rate for 2011 and 2010 is lower than the statutory rate primarily due to differences in state and foreign tax rates , as well as permanent differences , which were primarily the result of the adjustment to contingent consideration . non-gaap measures ebitda and adjusted ebitda are provided for information purposes only and are not measures of financial performance under generally accepted accounting principles . the company believes ebitda is often a useful measure of a company 's operating performance and is a significant basis used by the company 's management to measure the operating performance of the company 's business because ebitda excludes charges for depreciation , amortization and interest 12 expense that have resulted from our debt financings , as well as our provision for income tax expense . ebitda is frequently used as one of the bases for comparing businesses in the company 's industry . the company also believes that adjusted ebitda provides helpful information about the operating performance of its business . adjusted ebitda excludes stock compensation expense , as well as certain non-recurring items . nonrecurring items are either income or expenses which do not occur regularly as part of the normal activities of the company . the company considers these items to be of significance in nature and or size , and accordingly , has excluded these items from adjusted ebitda . adjusted ebitda in 2011 excludes the earnout adjustment related to the acquisition of östergrens , while adjusted ebitda in 2010 excludes transaction costs of $ 447,000 that were incurred in conjunction with the acquisitions of östergrens and agile systems ( now known as allied motion canada ) , insurance recoveries of $ 685,000 , and $ 232,000 of expenses due to inefficiencies from the relocation of the company 's encoder operation . ebitda and adjusted ebitda do not represent and should not be considered as an alternative to net income , operating income , net cash provided by operating activities or any other measure for determining operating performance or liquidity that is calculated in accordance

liquidity and capital resources the company 's liquidity position as measured by cash and cash equivalents increased $ 5,602,000 during 2011 to a balance of $ 9,155,000 at december 31 , 2011. the increase in cash in 2011 compares to a decrease of $ 917,000 in 2010. the 2010 decrease is primarily a result of the two acquisitions completed by the company in 2010 , which were accomplished primarily with cash on hand . during 2011 , operations provided $ 8,881,000 in cash compared to $ 7,168,000 provided for 2010. the increase in cash provided from operations of $ 1,713,000 is primarily due to higher net income . in addition , net working capital has increased as a result of the company 's growth and higher order intake in 2011 compared to 2010. also , the increase in the accrual for employee incentive bonus programs were higher in 2011 compared to 2010 as a result of the increased growth and profitability of the company . net cash used in investing activities was $ 2,181,000 and $ 8,317,000 for 2011 and 2010 , respectively . purchases of property and equipment were $ 1,849,000 and $ 1,213,000 in 2011 and 2010 , respectively . 13 cash paid in 2010 for the acquisitions of agile systems inc. , now known as allied motion canada , and östergrens , net of cash acquired , was $ 7,104,000. net cash used in financing activities of $ 838,000 , as opposed to cash provided in financing activities of $ 513,000 for 2010. cash used in 2011 was the result of $ 667,000 in payments against existing lines of credit , dividends paid to shareholders of $ 333,000 , and $ 162,000 of cash proceeds primarily due to the exercise of stock options . at december 31 , 2011 , the company had $ 157,000 in debt obligations . the average outstanding borrowings for 2011 were $ 465,000. as of december 31 , 2011 , the amount available to borrow under the company 's various lines-of-credit was approximately $ 8.4 million . the company 's credit agreement , as amended , is used for borrowing needs that may occur in the united states and europe .


 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 company 's liquidity position as measured by cash and cash equivalents increased $ 5,602,000 during 2011 to a balance of $ 9,155,000 at december 31 , 2011. the increase in cash in 2011 compares to a decrease of $ 917,000 in 2010. the 2010 decrease is primarily a result of the two acquisitions completed by the company in 2010 , which were accomplished primarily with cash on hand . during 2011 , operations provided $ 8,881,000 in cash compared to $ 7,168,000 provided for 2010. the increase in cash provided from operations of $ 1,713,000 is primarily due to higher net income . in addition , net working capital has increased as a result of the company 's growth and higher order intake in 2011 compared to 2010. also , the increase in the accrual for employee incentive bonus programs were higher in 2011 compared to 2010 as a result of the increased growth and profitability of the company . net cash used in investing activities was $ 2,181,000 and $ 8,317,000 for 2011 and 2010 , respectively . purchases of property and equipment were $ 1,849,000 and $ 1,213,000 in 2011 and 2010 , respectively . 13 cash paid in 2010 for the acquisitions of agile systems inc. , now known as allied motion canada , and östergrens , net of cash acquired , was $ 7,104,000. net cash used in financing activities of $ 838,000 , as opposed to cash provided in financing activities of $ 513,000 for 2010. cash used in 2011 was the result of $ 667,000 in payments against existing lines of credit , dividends paid to shareholders of $ 333,000 , and $ 162,000 of cash proceeds primarily due to the exercise of stock options . at december 31 , 2011 , the company had $ 157,000 in debt obligations . the average outstanding borrowings for 2011 were $ 465,000. as of december 31 , 2011 , the amount available to borrow under the company 's various lines-of-credit was approximately $ 8.4 million . the company 's credit agreement , as amended , is used for borrowing needs that may occur in the united states and europe .
```    
 Suspicious Activity Report : see information included in `` non-gaap measures `` below for a reconciliation of net income to ebitda and adjusted ebitda . revenues : revenues were $ 110,941,000 in 2011 compared to $ 80,591,000 in 2010. of this 38 % increase , revenues from existing businesses increased 11 % and incremental revenues achieved by the two companies acquired in 2010 contributed 27 % of the increase . the 38 % increase in sales from last year was the result of an increase in sales in virtually all of our major industry sectors except aerospace and defense which was flat for the year . 54 % of our sales for the year were to us customers with the balance of our sales to customers primarily in europe , canada and asia . sales to our us customers 11 increased 25 % and sales to customers outside of the us were up 57 % for the year . of the 38 % increase in revenues , 36 % was due to an increase in sales volume for the year and 2 % was due to a favorable currency change . backlog : the company 's backlog at december 31 , 2011 consisted of sales orders totaling approximately $ 44,005,000 while backlog at december 31 , 2010 was $ 37,856,000 reflecting a 16 % increase from the end of 2010. backlog may fluctuate up or down throughout the year for various reasons , not limited to the following : customer order patterns , annual versus intermittent orders , and long-term recurring product versus new product orders . gross margin : gross margin as a percentage of revenues was 30 % and 28 % for 2011 and 2010 , respectively . this 2 % improvement in gross margin was primarily due to the company 's continuous efforts in reducing costs and selling more value added systems solutions and custom engineered products that typically have higher margins . selling expenses : selling expenses were $ 5,626,000 and $ 3,872,000 in 2011 and 2010 , respectively . the 45 % increase is primarily due to an increase in the company 's sales force as a result of the acquisition of östergrens , which was completed in the fourth quarter of 2010. general and administrative expenses : general and administrative expenses were $ 12,639,000 in 2011 and $ 9,938,000 for 2010. the 27 % increase is primarily a result of additional general and administrative costs as a result of the acquisitions of am canada and östergrens , which were made in the second and fourth quarters of 2010 , respectively , as well as increased compensation expense , which includes incentive bonuses , partially offset by reduced acquisition related expenses . engineering and development expenses : engineering and development expenses were $ 5,983,000 and $ 4,044,000 for 2011 and 2010 , respectively . the 48 % increase is primarily a result of the increased engineering staff from the acquisitions of am canada and östergrens , which were made in the second and fourth quarters of 2010 , respectively . amortization of intangible assets : amortization of intangible assets expense was $ 732,000 and $ 551,000 in 2011 and 2010 , respectively . the 33 % increase is the result of the additional intangible amortization from the östergrens acquisition , partially offset , by certain intangible assets that became fully amortized in 2010. net insurance recoveries : net insurance recoveries were $ 685,000 for 2010. the recoveries in 2010 represent the final settlement for the business interruption insurance claim which resulted from the fire at the company 's copi facility in the fourth quarter of 2008. income taxes : provision for income taxes was $ 2,552,000 and $ 1,581,000 for 2011 and 2010 , respectively . the effective income tax rate as a percentage of income before income taxes was 27 % and 31 % in 2011 and 2010 , respectively . the effective tax rate for 2011 and 2010 is lower than the statutory rate primarily due to differences in state and foreign tax rates , as well as permanent differences , which were primarily the result of the adjustment to contingent consideration . non-gaap measures ebitda and adjusted ebitda are provided for information purposes only and are not measures of financial performance under generally accepted accounting principles . the company believes ebitda is often a useful measure of a company 's operating performance and is a significant basis used by the company 's management to measure the operating performance of the company 's business because ebitda excludes charges for depreciation , amortization and interest 12 expense that have resulted from our debt financings , as well as our provision for income tax expense . ebitda is frequently used as one of the bases for comparing businesses in the company 's industry . the company also believes that adjusted ebitda provides helpful information about the operating performance of its business . adjusted ebitda excludes stock compensation expense , as well as certain non-recurring items . nonrecurring items are either income or expenses which do not occur regularly as part of the normal activities of the company . the company considers these items to be of significance in nature and or size , and accordingly , has excluded these items from adjusted ebitda . adjusted ebitda in 2011 excludes the earnout adjustment related to the acquisition of östergrens , while adjusted ebitda in 2010 excludes transaction costs of $ 447,000 that were incurred in conjunction with the acquisitions of östergrens and agile systems ( now known as allied motion canada ) , insurance recoveries of $ 685,000 , and $ 232,000 of expenses due to inefficiencies from the relocation of the company 's encoder operation . ebitda and adjusted ebitda do not represent and should not be considered as an alternative to net income , operating income , net cash provided by operating activities or any other measure for determining operating performance or liquidity that is calculated in accordance story_separator_special_tag see information included in `` non-gaap measures `` below for a reconciliation of net income to ebitda and adjusted ebitda . revenues : revenues were $ 110,941,000 in 2011 compared to $ 80,591,000 in 2010. of this 38 % increase , revenues from existing businesses increased 11 % and incremental revenues achieved by the two companies acquired in 2010 contributed 27 % of the increase . the 38 % increase in sales from last year was the result of an increase in sales in virtually all of our major industry sectors except aerospace and defense which was flat for the year . 54 % of our sales for the year were to us customers with the balance of our sales to customers primarily in europe , canada and asia . sales to our us customers 11 increased 25 % and sales to customers outside of the us were up 57 % for the year . of the 38 % increase in revenues , 36 % was due to an increase in sales volume for the year and 2 % was due to a favorable currency change . backlog : the company 's backlog at december 31 , 2011 consisted of sales orders totaling approximately $ 44,005,000 while backlog at december 31 , 2010 was $ 37,856,000 reflecting a 16 % increase from the end of 2010. backlog may fluctuate up or down throughout the year for various reasons , not limited to the following : customer order patterns , annual versus intermittent orders , and long-term recurring product versus new product orders . gross margin : gross margin as a percentage of revenues was 30 % and 28 % for 2011 and 2010 , respectively . this 2 % improvement in gross margin was primarily due to the company 's continuous efforts in reducing costs and selling more value added systems solutions and custom engineered products that typically have higher margins . selling expenses : selling expenses were $ 5,626,000 and $ 3,872,000 in 2011 and 2010 , respectively . the 45 % increase is primarily due to an increase in the company 's sales force as a result of the acquisition of östergrens , which was completed in the fourth quarter of 2010. general and administrative expenses : general and administrative expenses were $ 12,639,000 in 2011 and $ 9,938,000 for 2010. the 27 % increase is primarily a result of additional general and administrative costs as a result of the acquisitions of am canada and östergrens , which were made in the second and fourth quarters of 2010 , respectively , as well as increased compensation expense , which includes incentive bonuses , partially offset by reduced acquisition related expenses . engineering and development expenses : engineering and development expenses were $ 5,983,000 and $ 4,044,000 for 2011 and 2010 , respectively . the 48 % increase is primarily a result of the increased engineering staff from the acquisitions of am canada and östergrens , which were made in the second and fourth quarters of 2010 , respectively . amortization of intangible assets : amortization of intangible assets expense was $ 732,000 and $ 551,000 in 2011 and 2010 , respectively . the 33 % increase is the result of the additional intangible amortization from the östergrens acquisition , partially offset , by certain intangible assets that became fully amortized in 2010. net insurance recoveries : net insurance recoveries were $ 685,000 for 2010. the recoveries in 2010 represent the final settlement for the business interruption insurance claim which resulted from the fire at the company 's copi facility in the fourth quarter of 2008. income taxes : provision for income taxes was $ 2,552,000 and $ 1,581,000 for 2011 and 2010 , respectively . the effective income tax rate as a percentage of income before income taxes was 27 % and 31 % in 2011 and 2010 , respectively . the effective tax rate for 2011 and 2010 is lower than the statutory rate primarily due to differences in state and foreign tax rates , as well as permanent differences , which were primarily the result of the adjustment to contingent consideration . non-gaap measures ebitda and adjusted ebitda are provided for information purposes only and are not measures of financial performance under generally accepted accounting principles . the company believes ebitda is often a useful measure of a company 's operating performance and is a significant basis used by the company 's management to measure the operating performance of the company 's business because ebitda excludes charges for depreciation , amortization and interest 12 expense that have resulted from our debt financings , as well as our provision for income tax expense . ebitda is frequently used as one of the bases for comparing businesses in the company 's industry . the company also believes that adjusted ebitda provides helpful information about the operating performance of its business . adjusted ebitda excludes stock compensation expense , as well as certain non-recurring items . nonrecurring items are either income or expenses which do not occur regularly as part of the normal activities of the company . the company considers these items to be of significance in nature and or size , and accordingly , has excluded these items from adjusted ebitda . adjusted ebitda in 2011 excludes the earnout adjustment related to the acquisition of östergrens , while adjusted ebitda in 2010 excludes transaction costs of $ 447,000 that were incurred in conjunction with the acquisitions of östergrens and agile systems ( now known as allied motion canada ) , insurance recoveries of $ 685,000 , and $ 232,000 of expenses due to inefficiencies from the relocation of the company 's encoder operation . ebitda and adjusted ebitda do not represent and should not be considered as an alternative to net income , operating income , net cash provided by operating activities or any other measure for determining operating performance or liquidity that is calculated in accordance

