allowance for doubtful accounts  our policy is to maintain allowances for estimated losses resulting from the inability of our customers to make required payments . credit limits for all customers are established based upon several factors , including but not limited to financial condition and stability , payment history , published credit reports and use of credit references . on a monthly basis , management performs various analyses to evaluate accounts receivable balances to ensure recorded amounts reflect estimated net realizable value . this review includes accounts receivable agings , other operating trends and relevant business conditions , including general economic factors , as they relate to the company 's domestic and international customers . when a customer 's account balance becomes past due , we initiate dialogue with the customer to determine the cause . if it is determined that the customer will be unable to meet its financial obligation to us , such as in the case of a bankruptcy filing , we record a specific allowance to reduce the related receivable to the amount we expect to recover given all of the information presently available . inventories  as a designer and manufacturer of high technology systems , we are exposed to a number of economic and industry factors that could result in portions of our inventories becoming either obsolete or in excess of anticipated usage . these factors include , but are not limited to , technological changes in our markets , our ability to meet changing customer requirements , competitive pressures in products and prices , and the availability of key components from our suppliers . our policy is to record inventory write-downs when conditions exist that suggest our inventories may be in excess of anticipated demand for our products and market conditions . we regularly evaluate the ability to realize the value of our inventories based upon a combination of factors including the following : historical usage rates , forecasted sales or usage , product end of life dates , estimated current and future market values and new product introductions . purchasing requirements and alternative usage avenues are explored within these processes to mitigate inventory exposure . when recorded , our write-downs are intended to reduce the carrying value of our inventories to their net realizable value and establish a new cost basis . deferred taxes the company applies the asset and liability method in recording income taxes , under which deferred income tax assets and liabilities are determined , based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using currently enacted tax rates and laws . additionally , deferred tax assets are evaluated and a valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized . management continues to review the level of the valuation allowance on a quarterly basis . there can be no assurance that the company 's future operations will produce sufficient earnings so that the deferred tax assets can be fully utilized . intangible assets  there is a periodic review of intangible and other long-lived assets for impairment . this review consists of the analysis of events or changes in circumstances that would indicate the carrying amount of the assets may not be recoverable . recoverability is determined by comparing the forecasted future undiscounted net cash flows from the operations to which the assets relate , based on management 's best estimates using the appropriate assumptions and projections at the time , to the carrying amount of the assets . if the carrying value is determined to be in excess of future operating cash flows , the asset is considered impaired and a loss is recognized equal to the amount by which the carrying amount exceeds the estimated fair value of the assets . recently issued accounting pronouncements refer to note 1 of the notes to consolidated financial statements for a discussion of recently issued accounting pronouncements . page 18 discussion of operating results replace_table_token_3_th sales  sales in the balancer segment increased $ 1.3 million , or 15.7 % , to $ 9.3 million for fiscal 2012 compared to $ 8.0 million for fiscal 2011. this increase is primarily due to higher unit sales volumes in north america offset by decreases in unit sales volumes in asia and europe during the year . north american sales increased $ 1.5 million , or 45.9 % , in fiscal 2012 compared to fiscal 2011. sales into asia decreased $ 370,000 , or 9.7 % , in fiscal 2012 compared to the prior year . sales into europe decreased $ 14,000 , or 1.6 % , in fiscal 2012 compared to fiscal 2011. sales on other regions of the world increased $ 187,000 , or 162.3 % , during fiscal 2012 as compared to the prior year . the increases in north america and other regions of the world are primarily due to higher volumes of shipments as the worldwide automotive and industrial markets in these regions continue to recover from the global economic downturn . the decreases in asia and europe are due to a reduction in orders as economic growth in china is slowing and the uncertainty regarding the european economy continues to have a negative impact on manufacturing . the levels of demand for our balancer products in any of these geographic markets can not be forecasted with any certainty given current economic trends and the historical volatility experienced in this market . sales in the measurement segment increased $ 1.7 million , or 48.5 % , to $ 5.2 million in fiscal 2012 compared to $ 3.5 million in fiscal 2011. sales of laser-based distance measurement and dimensional-sizing products increased $ 772,000 , or 28.3 % , primarily due to a large , non-recurring sale during the fourth quarter of fiscal 2012. story_separator_special_tag sales of remote tank monitoring products increased $ 479,000 to $ 581,000 during fiscal 2012 due to the higher volume of shipments . sales of laser-based surface measurement products increased $ 439,000 , or 67.1 % , primarily due to the sale of two casi scatterometers . future sales of laser-based or ultrasonic measurement products can not be forecasted with any certainty given the historical volatility experienced in this market . sales in the balancer segment increased $ 3.3 million , or 71.5 % , to $ 8.0 million for fiscal 2011 compared to $ 4.7 million for fiscal 2010. this increase is primarily due to higher unit sales volumes in asia , north america and europe during the year . asia sales increased $ 1.8 million , or 93.5 % , in fiscal 2011 compared to fiscal 2010. north american sales increased $ 1.4 million , or 77.9 % , in fiscal 2011 compared to the prior year . european sales increased $ 108,000 , or 13.5 % , in fiscal 2011 compared to fiscal 2010. the increases across all geographies are primarily due to higher volumes of shipments as the worldwide automotive and industrial markets in these regions have begun to recover from the previous low levels due to the global economic downturn . page 19 sales in the measurement segment increased $ 1.3 million , or 63.1 % , to $ 3.5 million in fiscal 2011 compared to $ 2.1 million in fiscal 2010. sales of laser-based distance measurement and dimensional sizing products increased $ 1.1 million , or 67.1 % , primarily due to the higher volume of shipments in the current fiscal year resulting from the economic recovery in the commercial and industrial markets . sales of laser-based surface measurement products increased $ 160,000 , or 32.3 % , primarily due to the sale of a casi scatterometer and the september 30 , 2009 acquisition of optical dimensions which resulted in product sales of $ 202,000 during fiscal 2011. during fiscal 2011 , we started to ship our xact ultrasonic measurement product which resulted in $ 102,000 of revenues . gross margin  gross margin in fiscal 2012 decreased to 43.9 % compared to 48.8 % in fiscal 2011. this decrease was primarily due to higher inventory reserves associated with an end-of-life sbs balancer product , higher labor and overhead costs related to the increased sales volumes offset by a reduction in inventory component costs . gross margin in fiscal 2011 increased to 48.8 % compared to 44.7 % in fiscal 2010. this increase is primarily due to a shift in product sales mix with sales increasing in the measurement segment , which typically have higher gross margins than the balancer segment , and sales in the balancer segment rebounding positively in the north american market , which generally have slightly higher margins than asia due to the channel and distributor discounts required in asia . operating expenses  operating expenses increased $ 484,000 , or 8.3 % , to $ 6.3 million for fiscal 2012 compared to $ 5.8 million in fiscal 2011. general , administrative and sales expenses increased $ 670,000 , or 12.7 % , to $ 6.0 million in fiscal 2012 compared to $ 5.3 million in the prior year . this increase is due primarily to higher personnel costs , higher commissions related to the increased sales and higher sales and marketing expenses . research and development expenses decreased $ 186,000 , or 36.9 % , to $ 318,000 in fiscal 2012 compared to $ 504,000 in fiscal 2011. the decrease in research and development expense is primarily due to lower material costs associated with new product development related to existing product lines . operating expenses increased $ 1.0 million , or 21.7 % , to $ 5.8 million for fiscal 2011 compared to $ 4.8 million in fiscal 2010. general , administrative and sales expenses increased $ 1.1 million , or 26.6 % , to $ 5.3 million in fiscal 2011 compared to $ 4.2 million in the prior year . this increase is due primarily to higher commissions related to the increase in sales , higher stock-based compensation and higher expenses associated with an international trade show that occurs every two years . research and development expenses decreased $ 80,000 , or 13.7 % , to $ 504,000 in fiscal 2011 as compared to $ 585,000 in fiscal 2010. research and development expenses decreased primarily due to lower material costs associated with new product development . other income  other income consists of interest income , foreign currency exchange gain ( loss ) and other income ( expense ) . interest income was $ 2,000 , $ 4,000 and $ 11,000 in fiscal 2012 , 2011 and 2010 , respectively . interest income has decreased due to lower average cash and investment balances and lower interest rates . foreign currency exchange gain was $ 18,000 and $ 19,000 in fiscal 2012 and 2010 , respectively . foreign currency exchange loss was $ 10,000 in fiscal 2011. the foreign currency exchange gain ( loss ) fluctuated with the strength of foreign currencies against the u.s. dollar during the respective periods . other income consisted of an $ 18,000 gain on the sales of fixed assets for fiscal 2012. income tax provision  the effective tax rate in fiscal 2012 was 18.1 % . the effective tax rate on consolidated net income in fiscal 2012 differs from the federal statutory tax rate primarily due to the amount of income from foreign jurisdictions , changes in the deferred tax valuation allowance and certain expenses not being deductible for income tax reporting offset by tax credits related to research and experimentation expenses . the effective tax rate on consolidated net loss was ( 0.8 ) % for fiscal 2011. the company 's effective tax rate on consolidated net loss differs from the federal statutory rate primarily due to the amount of income

liquidity and capital resources the company 's working capital increased $ 432,000 to $ 7.9 million as of may 31 , 2012 compared to $ 7.5 million as of may 31 , 2011. cash and cash equivalents increased $ 16,000 from may 31 , 2011 to $ 2.8 million as of may 31 , 2012. cash provided by operating activities was $ 163,000 in fiscal 2012 as compared to cash used in operations of $ 559,000 in fiscal 2011. the increase is primarily due to increases in net income , decrease in inventory and an increase in accrued liabilities , offset by increases in accounts receivable and prepaid expenses and decreases in accounts payable . at may 31 , 2012 , accounts receivable increased $ 662,000 to $ 2.5 million compared to $ 1.8 million as of may 31 , 2011. the increase in accounts receivable is due to the increase in sales during fiscal 2012. inventories decreased $ 171,000 to $ 4.0 million as of may 31 , 2012 compared to $ 4.1 million at may 31 , 2011 due to increased inventory reserves related to an end-of-life sbs product . at may 31 , 2012 , total current liabilities increased $ 103,000 to $ 1.5 million as compared to $ 1.4 million at may 31 , 2011. the increase is primarily due to an increase in other accrued liabilities associated with a customer deposit on a future order offsetby lower accounts payables as compared to the prior year .


 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 working capital increased $ 432,000 to $ 7.9 million as of may 31 , 2012 compared to $ 7.5 million as of may 31 , 2011. cash and cash equivalents increased $ 16,000 from may 31 , 2011 to $ 2.8 million as of may 31 , 2012. cash provided by operating activities was $ 163,000 in fiscal 2012 as compared to cash used in operations of $ 559,000 in fiscal 2011. the increase is primarily due to increases in net income , decrease in inventory and an increase in accrued liabilities , offset by increases in accounts receivable and prepaid expenses and decreases in accounts payable . at may 31 , 2012 , accounts receivable increased $ 662,000 to $ 2.5 million compared to $ 1.8 million as of may 31 , 2011. the increase in accounts receivable is due to the increase in sales during fiscal 2012. inventories decreased $ 171,000 to $ 4.0 million as of may 31 , 2012 compared to $ 4.1 million at may 31 , 2011 due to increased inventory reserves related to an end-of-life sbs product . at may 31 , 2012 , total current liabilities increased $ 103,000 to $ 1.5 million as compared to $ 1.4 million at may 31 , 2011. the increase is primarily due to an increase in other accrued liabilities associated with a customer deposit on a future order offsetby lower accounts payables as compared to the prior year .
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 Suspicious Activity Report : allowance for doubtful accounts  our policy is to maintain allowances for estimated losses resulting from the inability of our customers to make required payments . credit limits for all customers are established based upon several factors , including but not limited to financial condition and stability , payment history , published credit reports and use of credit references . on a monthly basis , management performs various analyses to evaluate accounts receivable balances to ensure recorded amounts reflect estimated net realizable value . this review includes accounts receivable agings , other operating trends and relevant business conditions , including general economic factors , as they relate to the company 's domestic and international customers . when a customer 's account balance becomes past due , we initiate dialogue with the customer to determine the cause . if it is determined that the customer will be unable to meet its financial obligation to us , such as in the case of a bankruptcy filing , we record a specific allowance to reduce the related receivable to the amount we expect to recover given all of the information presently available . inventories  as a designer and manufacturer of high technology systems , we are exposed to a number of economic and industry factors that could result in portions of our inventories becoming either obsolete or in excess of anticipated usage . these factors include , but are not limited to , technological changes in our markets , our ability to meet changing customer requirements , competitive pressures in products and prices , and the availability of key components from our suppliers . our policy is to record inventory write-downs when conditions exist that suggest our inventories may be in excess of anticipated demand for our products and market conditions . we regularly evaluate the ability to realize the value of our inventories based upon a combination of factors including the following : historical usage rates , forecasted sales or usage , product end of life dates , estimated current and future market values and new product introductions . purchasing requirements and alternative usage avenues are explored within these processes to mitigate inventory exposure . when recorded , our write-downs are intended to reduce the carrying value of our inventories to their net realizable value and establish a new cost basis . deferred taxes the company applies the asset and liability method in recording income taxes , under which deferred income tax assets and liabilities are determined , based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using currently enacted tax rates and laws . additionally , deferred tax assets are evaluated and a valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized . management continues to review the level of the valuation allowance on a quarterly basis . there can be no assurance that the company 's future operations will produce sufficient earnings so that the deferred tax assets can be fully utilized . intangible assets  there is a periodic review of intangible and other long-lived assets for impairment . this review consists of the analysis of events or changes in circumstances that would indicate the carrying amount of the assets may not be recoverable . recoverability is determined by comparing the forecasted future undiscounted net cash flows from the operations to which the assets relate , based on management 's best estimates using the appropriate assumptions and projections at the time , to the carrying amount of the assets . if the carrying value is determined to be in excess of future operating cash flows , the asset is considered impaired and a loss is recognized equal to the amount by which the carrying amount exceeds the estimated fair value of the assets . recently issued accounting pronouncements refer to note 1 of the notes to consolidated financial statements for a discussion of recently issued accounting pronouncements . page 18 discussion of operating results replace_table_token_3_th sales  sales in the balancer segment increased $ 1.3 million , or 15.7 % , to $ 9.3 million for fiscal 2012 compared to $ 8.0 million for fiscal 2011. this increase is primarily due to higher unit sales volumes in north america offset by decreases in unit sales volumes in asia and europe during the year . north american sales increased $ 1.5 million , or 45.9 % , in fiscal 2012 compared to fiscal 2011. sales into asia decreased $ 370,000 , or 9.7 % , in fiscal 2012 compared to the prior year . sales into europe decreased $ 14,000 , or 1.6 % , in fiscal 2012 compared to fiscal 2011. sales on other regions of the world increased $ 187,000 , or 162.3 % , during fiscal 2012 as compared to the prior year . the increases in north america and other regions of the world are primarily due to higher volumes of shipments as the worldwide automotive and industrial markets in these regions continue to recover from the global economic downturn . the decreases in asia and europe are due to a reduction in orders as economic growth in china is slowing and the uncertainty regarding the european economy continues to have a negative impact on manufacturing . the levels of demand for our balancer products in any of these geographic markets can not be forecasted with any certainty given current economic trends and the historical volatility experienced in this market . sales in the measurement segment increased $ 1.7 million , or 48.5 % , to $ 5.2 million in fiscal 2012 compared to $ 3.5 million in fiscal 2011. sales of laser-based distance measurement and dimensional-sizing products increased $ 772,000 , or 28.3 % , primarily due to a large , non-recurring sale during the fourth quarter of fiscal 2012. story_separator_special_tag sales of remote tank monitoring products increased $ 479,000 to $ 581,000 during fiscal 2012 due to the higher volume of shipments . sales of laser-based surface measurement products increased $ 439,000 , or 67.1 % , primarily due to the sale of two casi scatterometers . future sales of laser-based or ultrasonic measurement products can not be forecasted with any certainty given the historical volatility experienced in this market . sales in the balancer segment increased $ 3.3 million , or 71.5 % , to $ 8.0 million for fiscal 2011 compared to $ 4.7 million for fiscal 2010. this increase is primarily due to higher unit sales volumes in asia , north america and europe during the year . asia sales increased $ 1.8 million , or 93.5 % , in fiscal 2011 compared to fiscal 2010. north american sales increased $ 1.4 million , or 77.9 % , in fiscal 2011 compared to the prior year . european sales increased $ 108,000 , or 13.5 % , in fiscal 2011 compared to fiscal 2010. the increases across all geographies are primarily due to higher volumes of shipments as the worldwide automotive and industrial markets in these regions have begun to recover from the previous low levels due to the global economic downturn . page 19 sales in the measurement segment increased $ 1.3 million , or 63.1 % , to $ 3.5 million in fiscal 2011 compared to $ 2.1 million in fiscal 2010. sales of laser-based distance measurement and dimensional sizing products increased $ 1.1 million , or 67.1 % , primarily due to the higher volume of shipments in the current fiscal year resulting from the economic recovery in the commercial and industrial markets . sales of laser-based surface measurement products increased $ 160,000 , or 32.3 % , primarily due to the sale of a casi scatterometer and the september 30 , 2009 acquisition of optical dimensions which resulted in product sales of $ 202,000 during fiscal 2011. during fiscal 2011 , we started to ship our xact ultrasonic measurement product which resulted in $ 102,000 of revenues . gross margin  gross margin in fiscal 2012 decreased to 43.9 % compared to 48.8 % in fiscal 2011. this decrease was primarily due to higher inventory reserves associated with an end-of-life sbs balancer product , higher labor and overhead costs related to the increased sales volumes offset by a reduction in inventory component costs . gross margin in fiscal 2011 increased to 48.8 % compared to 44.7 % in fiscal 2010. this increase is primarily due to a shift in product sales mix with sales increasing in the measurement segment , which typically have higher gross margins than the balancer segment , and sales in the balancer segment rebounding positively in the north american market , which generally have slightly higher margins than asia due to the channel and distributor discounts required in asia . operating expenses  operating expenses increased $ 484,000 , or 8.3 % , to $ 6.3 million for fiscal 2012 compared to $ 5.8 million in fiscal 2011. general , administrative and sales expenses increased $ 670,000 , or 12.7 % , to $ 6.0 million in fiscal 2012 compared to $ 5.3 million in the prior year . this increase is due primarily to higher personnel costs , higher commissions related to the increased sales and higher sales and marketing expenses . research and development expenses decreased $ 186,000 , or 36.9 % , to $ 318,000 in fiscal 2012 compared to $ 504,000 in fiscal 2011. the decrease in research and development expense is primarily due to lower material costs associated with new product development related to existing product lines . operating expenses increased $ 1.0 million , or 21.7 % , to $ 5.8 million for fiscal 2011 compared to $ 4.8 million in fiscal 2010. general , administrative and sales expenses increased $ 1.1 million , or 26.6 % , to $ 5.3 million in fiscal 2011 compared to $ 4.2 million in the prior year . this increase is due primarily to higher commissions related to the increase in sales , higher stock-based compensation and higher expenses associated with an international trade show that occurs every two years . research and development expenses decreased $ 80,000 , or 13.7 % , to $ 504,000 in fiscal 2011 as compared to $ 585,000 in fiscal 2010. research and development expenses decreased primarily due to lower material costs associated with new product development . other income  other income consists of interest income , foreign currency exchange gain ( loss ) and other income ( expense ) . interest income was $ 2,000 , $ 4,000 and $ 11,000 in fiscal 2012 , 2011 and 2010 , respectively . interest income has decreased due to lower average cash and investment balances and lower interest rates . foreign currency exchange gain was $ 18,000 and $ 19,000 in fiscal 2012 and 2010 , respectively . foreign currency exchange loss was $ 10,000 in fiscal 2011. the foreign currency exchange gain ( loss ) fluctuated with the strength of foreign currencies against the u.s. dollar during the respective periods . other income consisted of an $ 18,000 gain on the sales of fixed assets for fiscal 2012. income tax provision  the effective tax rate in fiscal 2012 was 18.1 % . the effective tax rate on consolidated net income in fiscal 2012 differs from the federal statutory tax rate primarily due to the amount of income from foreign jurisdictions , changes in the deferred tax valuation allowance and certain expenses not being deductible for income tax reporting offset by tax credits related to research and experimentation expenses . the effective tax rate on consolidated net loss was ( 0.8 ) % for fiscal 2011. the company 's effective tax rate on consolidated net loss differs from the federal statutory rate primarily due to the amount of income

