we did not report segment information for pctel secure in this section because pctel secure was in the development stage during 2011 and 2012. results of operations years ended december 31 , 2012 , 2011 , and 2010 ( all amounts in tables , other than percentages , are in thousands ) revenues replace_table_token_5_th 16 revenues were approximately $ 88.8 million for the year ended december 31 , 2012 , an increase of 15.6 % from the prior year . in the year ended december 31 , 2012 versus the prior year , approximately 14 % of the increase in revenues was attributable to revenues from the businesses we acquired from envision in october 2011 and telworx in july 2012 and approximately 9 % was attributable to increased antenna product revenues , offsetting approximately 7 % from lower scanning receiver revenues . revenues were approximately $ 76.8 million for the year ended december 31 , 2011 , an increase of 11.0 % from the prior year . in the year ended december 31 , 2011 versus the prior year , approximately 6 % of the increase in revenues was attributable to antenna products and approximately 5 % of the increase in revenues was attributable to scanning products . the increase in antenna product revenues in 2011 compared to 2010 reflects continued success in penetrating our targeted vertical markets and higher gps antenna sales . the increase in revenues of our scanning products in 2011 was primarily due the launch of our new mx scanning receiver and the lte rollout in the u.s. gross profit replace_table_token_6_th gross profit as a percentage of total revenue was 40.3 % in 2012 compared to 46.7 % in 2011 and 44.9 % in 2010. the margin percentage decrease is related to a higher volume of antenna products relative to scanner products and the addition of the lower margin products from telworx . the gross margin degradation is because of unfavorable product mix ( 6.8 % ) , offsetting higher product margin of 0.4 % for the year ended december 31 , 2012 compared to the year ended december 31 , 2011. gross profit as a percentage of total revenue was 46.7 % in 2011 compared to 44.9 % in 2010 and 46.6 % in 2009. the margin percentage increase was related to favorable product mix and increased revenues during 2011 for both antenna products and scanning products . scanning product revenue , with higher gross margins relative to antenna products , increased faster than antenna revenue . higher product margin for both antenna and scanning products contributed 0.9 % of the margin percentage increase and product mix contributed 0.8 % of the margin percentage increase for the year ended december 31 , 2011 compared to the year ended december 31 , 2010. research and development replace_table_token_7_th research and development expenses decreased approximately $ 0.7 million from 2011 to 2012. in 2012 , our expenses decreased by approximately $ 1.0 million for scanning receivers , offsetting an increase of $ 0.3 million for pctel secure . expenses decreased for scanner products because our mx scanning receiver was completed in 2011. for pctel secure , we incurred expenses for the completion of our prototype . research and development expenses increased $ 0.1 million from 2010 to 2011. in 2011 , we incurred $ 1.6 million of expense related to pctel secure , and research and development expenses other than for pctel secure decreased by $ 1.5 million primarily due to the completion of several projects in scanner receiver development . expenses increased even though our headcount declined from december 31 , 2010 to december 31 , 2011 primarily because the headcount reductions occurred at the end of the third quarter 2011. we had 58 , 56 , and 65 full-time equivalent employees in research and development at december 31 , 2012 , 2011 , and 2010 , respectively . 17 sales and marketing replace_table_token_8_th sales and marketing expenses include costs associated with the sales and marketing employees , sales representatives , product line management , and trade show expenses . sales and marketing expenses increased $ 0.9 million from 2011 to 2012. the increase was primarily due to the addition of $ 1.0 million of sales expenses associated with the business acquired from the telworx acquisition . sales and marketing expenses increased $ 0.4 million from 2010 to 2011. the expense increase was due to our investment in antenna vertical markets , sales and marketing expenses for pctel secure , and due to higher commissions and variable compensation related to the increased revenues . we had 70 , 50 , and 48 full-time equivalent employees in sales and marketing at december 31 , 2012 , 2011 , and 2010 , respectively . general and administrative replace_table_token_9_th general and administrative expenses include costs associated with the general management , finance , human resources , information technology , legal , public company costs , and other operating expenses to the extent not otherwise allocated to other functions . general and administrative expenses increased $ 0.2 million from 2011 to 2012. the increase was due to $ 0.6 million additional expenses associated with the implementation of our enterprise resource planning ( erp ) system and $ 0.5 million of expenses for the telworx business , offsetting the reduction of approximately $ 0.9 million related to incentive plans . we incurred $ 0.5 million of general and administrative expense for the business acquired from telworx . general and administrative expenses increased $ 0.6 million from 2010 to 2011. the expense increase is primarily due to certain expenses related to the implementation of our new enterprise resource planning ( erp ) system . story_separator_special_tag to the extent we prevail in matters for which liabilities have been established , or are required to pay amounts in excess of our liabilities , our effective tax rate in a given period may be materially affected . an unfavorable tax settlement would require cash payments and may result in an increase in our effective tax rate in the year of resolution . a favorable tax settlement would be recognized as a reduction in our effective tax rate in the year of resolution . valuation allowances for deferred tax assets - we establish an income tax valuation allowance when available evidence indicates that it is more likely than not that all or a portion of a deferred tax asset will not be realized . in assessing the need for a valuation allowance , we consider the amounts and timing of expected future deductions or carryforwards and sources of taxable income that may enable utilization . we maintain an existing valuation allowance until sufficient positive evidence exists to support its reversal . changes in the amount or 25 timing of expected future deductions or taxable income may have a material impact on the level of income tax valuation allowances . our assessment of the realizability of the deferred tax assets requires judgment about our future results . inherent in this estimation is the requirement for us to estimate future book and taxable income and possible tax planning strategies . these estimates require us to exercise judgment about our future results , the prudence and feasibility of possible tax planning strategies , and the economic environment in which we do business . it is possible that the actual results will differ from the assumptions and require adjustments to the allowance . adjustments to the allowance would affect future net income . impairment reviews of goodwill - we perform an annual impairment test of goodwill as of the end of the first month of the fiscal fourth quarter ( october 31st ) , or at an interim date if an event occurs or if circumstances change that would indicate that an impairment loss may have been incurred . in performing our annual impairment test , we first perform a qualitative assessment to determine whether it is more likely that not that the fair value of a reporting unit is less than its carrying value , including goodwill . if our qualitative assessment is indicative of possible impairment , then a two-step quantitative fair value assessment is performed at the reporting unit level . in the first step , the fair value of each reporting unit is compared with its carrying value . if the fair value exceeds the carrying value , then goodwill is not impaired and no further testing is performed . the second step is performed if the carrying value exceeds the fair value . the implied fair value of goodwill is then compared against the carrying value of goodwill to determine the amount of impairment . the process of evaluating the potential impairment of goodwill is subjective because it requires the use of estimates and assumptions in determining a reporting unit 's fair value . we calculate the fair value of each reporting unit by using a blended analysis of the present value of future discounted cash flows and the market approach of valuation . the discounted cash flow method requires us to use estimates and judgments about the future cash flows of the reporting units . although we base cash flow forecasts on assumptions that are consistent with plans and estimates we use to manage the underlying reporting units , there is significant judgment in determining the cash flows attributable to these reporting units , including markets and market share , sales volumes and mix , research and development expenses , tax rates , capital spending , discount rate and working capital changes . cash flow forecasts are based on reporting unit operating plans for the early years and business projections in later years . the market approach is based on a comparison of the company to comparable publicly traded firms in similar lines of business . this method requires us to use estimates and judgments when determining comparable companies . we assess such factors as size , growth , profitability , risk and return on investment . we believe the accounting estimate related to the valuation of goodwill is a critical accounting estimate because it requires us to make assumptions that are highly uncertain about the future cash flows of our reporting units . changes in these estimates can have a material impact on our financial statements . while the use of historical results and future projections can result in different valuations for a business , it is a generally accepted valuation practice to apply more than one valuation technique to establish a range of values for a business . since each technique relies on different inputs and assumptions , it is unlikely that each technique would yield the same results . however , it is expected that the different techniques would establish a reasonable range . in determining the fair value , we weigh the two methods equally because we believe both methods have an equal probability of providing an appropriate fair value . impairment reviews of intangible assets - we evaluate the carrying value of intangible assets and other long-lived assets for impairment whenever indicators of impairment exist . we test finite-lived intangible assets for recoverability using pretax undiscounted cash flows . although we base cash flow forecasts on assumptions that are consistent with plans and estimates we use to manage the underlying operating segments , there is significant judgment in determining the cash flows attributable to these operating segments , including markets and market share , sales volumes and mix , research and development expenses , capital spending and working capital changes . cash flow forecasts are based on operating plans and business projections . we compare the pretax undiscounted cash flows to the

liquidity and capital resources overview at december 31 , 2012 , our cash , cash equivalents , and investments were approximately $ 51.2 million and we had working capital of approximately $ 74.4 million . our primary source of liquidity is cash provided by operations , with short term swings in liquidity supported by a significant balance of cash and short-term investments . the balance has fluctuated with cash from operations , acquisitions and divestitures , implementation of a new erp system and the repurchase of our common shares . within operating activities , we are historically a net generator of operating funds from our income statement activities and a net user of operating funds for balance sheet expansion . we expect this historical trend to continue in the future . within investing activities , capital spending historically ranges between 3 % and 5 % of our revenue . the primary use of capital is for manufacturing and development engineering requirements . our capital expenditures during 2012 were approximately 4 % of revenues because we spent $ 1.7 million in 2012 related to the implementation of a new erp system . our capital expenditures during 2011 were approximately 6 % of revenues 21 because we spent $ 2.8 million in 2011 related to the implementation of a new erp system . we historically have significant transfers between investments and cash as we rotate our cash and short-term investment balances between money market funds , which are accounted for as cash equivalents , and other investment vehicles . we have a history of supplementing our organic revenue growth with acquisitions of product lines or companies , resulting in significant uses of our cash and investments from time to time . we expect the historical trend for capital spending and the variability caused by moving money between cash and investments and periodic merger and acquisition activity to continue in the future .


 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 overview at december 31 , 2012 , our cash , cash equivalents , and investments were approximately $ 51.2 million and we had working capital of approximately $ 74.4 million . our primary source of liquidity is cash provided by operations , with short term swings in liquidity supported by a significant balance of cash and short-term investments . the balance has fluctuated with cash from operations , acquisitions and divestitures , implementation of a new erp system and the repurchase of our common shares . within operating activities , we are historically a net generator of operating funds from our income statement activities and a net user of operating funds for balance sheet expansion . we expect this historical trend to continue in the future . within investing activities , capital spending historically ranges between 3 % and 5 % of our revenue . the primary use of capital is for manufacturing and development engineering requirements . our capital expenditures during 2012 were approximately 4 % of revenues because we spent $ 1.7 million in 2012 related to the implementation of a new erp system . our capital expenditures during 2011 were approximately 6 % of revenues 21 because we spent $ 2.8 million in 2011 related to the implementation of a new erp system . we historically have significant transfers between investments and cash as we rotate our cash and short-term investment balances between money market funds , which are accounted for as cash equivalents , and other investment vehicles . we have a history of supplementing our organic revenue growth with acquisitions of product lines or companies , resulting in significant uses of our cash and investments from time to time . we expect the historical trend for capital spending and the variability caused by moving money between cash and investments and periodic merger and acquisition activity to continue in the future .
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 Suspicious Activity Report : we did not report segment information for pctel secure in this section because pctel secure was in the development stage during 2011 and 2012. results of operations years ended december 31 , 2012 , 2011 , and 2010 ( all amounts in tables , other than percentages , are in thousands ) revenues replace_table_token_5_th 16 revenues were approximately $ 88.8 million for the year ended december 31 , 2012 , an increase of 15.6 % from the prior year . in the year ended december 31 , 2012 versus the prior year , approximately 14 % of the increase in revenues was attributable to revenues from the businesses we acquired from envision in october 2011 and telworx in july 2012 and approximately 9 % was attributable to increased antenna product revenues , offsetting approximately 7 % from lower scanning receiver revenues . revenues were approximately $ 76.8 million for the year ended december 31 , 2011 , an increase of 11.0 % from the prior year . in the year ended december 31 , 2011 versus the prior year , approximately 6 % of the increase in revenues was attributable to antenna products and approximately 5 % of the increase in revenues was attributable to scanning products . the increase in antenna product revenues in 2011 compared to 2010 reflects continued success in penetrating our targeted vertical markets and higher gps antenna sales . the increase in revenues of our scanning products in 2011 was primarily due the launch of our new mx scanning receiver and the lte rollout in the u.s. gross profit replace_table_token_6_th gross profit as a percentage of total revenue was 40.3 % in 2012 compared to 46.7 % in 2011 and 44.9 % in 2010. the margin percentage decrease is related to a higher volume of antenna products relative to scanner products and the addition of the lower margin products from telworx . the gross margin degradation is because of unfavorable product mix ( 6.8 % ) , offsetting higher product margin of 0.4 % for the year ended december 31 , 2012 compared to the year ended december 31 , 2011. gross profit as a percentage of total revenue was 46.7 % in 2011 compared to 44.9 % in 2010 and 46.6 % in 2009. the margin percentage increase was related to favorable product mix and increased revenues during 2011 for both antenna products and scanning products . scanning product revenue , with higher gross margins relative to antenna products , increased faster than antenna revenue . higher product margin for both antenna and scanning products contributed 0.9 % of the margin percentage increase and product mix contributed 0.8 % of the margin percentage increase for the year ended december 31 , 2011 compared to the year ended december 31 , 2010. research and development replace_table_token_7_th research and development expenses decreased approximately $ 0.7 million from 2011 to 2012. in 2012 , our expenses decreased by approximately $ 1.0 million for scanning receivers , offsetting an increase of $ 0.3 million for pctel secure . expenses decreased for scanner products because our mx scanning receiver was completed in 2011. for pctel secure , we incurred expenses for the completion of our prototype . research and development expenses increased $ 0.1 million from 2010 to 2011. in 2011 , we incurred $ 1.6 million of expense related to pctel secure , and research and development expenses other than for pctel secure decreased by $ 1.5 million primarily due to the completion of several projects in scanner receiver development . expenses increased even though our headcount declined from december 31 , 2010 to december 31 , 2011 primarily because the headcount reductions occurred at the end of the third quarter 2011. we had 58 , 56 , and 65 full-time equivalent employees in research and development at december 31 , 2012 , 2011 , and 2010 , respectively . 17 sales and marketing replace_table_token_8_th sales and marketing expenses include costs associated with the sales and marketing employees , sales representatives , product line management , and trade show expenses . sales and marketing expenses increased $ 0.9 million from 2011 to 2012. the increase was primarily due to the addition of $ 1.0 million of sales expenses associated with the business acquired from the telworx acquisition . sales and marketing expenses increased $ 0.4 million from 2010 to 2011. the expense increase was due to our investment in antenna vertical markets , sales and marketing expenses for pctel secure , and due to higher commissions and variable compensation related to the increased revenues . we had 70 , 50 , and 48 full-time equivalent employees in sales and marketing at december 31 , 2012 , 2011 , and 2010 , respectively . general and administrative replace_table_token_9_th general and administrative expenses include costs associated with the general management , finance , human resources , information technology , legal , public company costs , and other operating expenses to the extent not otherwise allocated to other functions . general and administrative expenses increased $ 0.2 million from 2011 to 2012. the increase was due to $ 0.6 million additional expenses associated with the implementation of our enterprise resource planning ( erp ) system and $ 0.5 million of expenses for the telworx business , offsetting the reduction of approximately $ 0.9 million related to incentive plans . we incurred $ 0.5 million of general and administrative expense for the business acquired from telworx . general and administrative expenses increased $ 0.6 million from 2010 to 2011. the expense increase is primarily due to certain expenses related to the implementation of our new enterprise resource planning ( erp ) system . story_separator_special_tag to the extent we prevail in matters for which liabilities have been established , or are required to pay amounts in excess of our liabilities , our effective tax rate in a given period may be materially affected . an unfavorable tax settlement would require cash payments and may result in an increase in our effective tax rate in the year of resolution . a favorable tax settlement would be recognized as a reduction in our effective tax rate in the year of resolution . valuation allowances for deferred tax assets - we establish an income tax valuation allowance when available evidence indicates that it is more likely than not that all or a portion of a deferred tax asset will not be realized . in assessing the need for a valuation allowance , we consider the amounts and timing of expected future deductions or carryforwards and sources of taxable income that may enable utilization . we maintain an existing valuation allowance until sufficient positive evidence exists to support its reversal . changes in the amount or 25 timing of expected future deductions or taxable income may have a material impact on the level of income tax valuation allowances . our assessment of the realizability of the deferred tax assets requires judgment about our future results . inherent in this estimation is the requirement for us to estimate future book and taxable income and possible tax planning strategies . these estimates require us to exercise judgment about our future results , the prudence and feasibility of possible tax planning strategies , and the economic environment in which we do business . it is possible that the actual results will differ from the assumptions and require adjustments to the allowance . adjustments to the allowance would affect future net income . impairment reviews of goodwill - we perform an annual impairment test of goodwill as of the end of the first month of the fiscal fourth quarter ( october 31st ) , or at an interim date if an event occurs or if circumstances change that would indicate that an impairment loss may have been incurred . in performing our annual impairment test , we first perform a qualitative assessment to determine whether it is more likely that not that the fair value of a reporting unit is less than its carrying value , including goodwill . if our qualitative assessment is indicative of possible impairment , then a two-step quantitative fair value assessment is performed at the reporting unit level . in the first step , the fair value of each reporting unit is compared with its carrying value . if the fair value exceeds the carrying value , then goodwill is not impaired and no further testing is performed . the second step is performed if the carrying value exceeds the fair value . the implied fair value of goodwill is then compared against the carrying value of goodwill to determine the amount of impairment . the process of evaluating the potential impairment of goodwill is subjective because it requires the use of estimates and assumptions in determining a reporting unit 's fair value . we calculate the fair value of each reporting unit by using a blended analysis of the present value of future discounted cash flows and the market approach of valuation . the discounted cash flow method requires us to use estimates and judgments about the future cash flows of the reporting units . although we base cash flow forecasts on assumptions that are consistent with plans and estimates we use to manage the underlying reporting units , there is significant judgment in determining the cash flows attributable to these reporting units , including markets and market share , sales volumes and mix , research and development expenses , tax rates , capital spending , discount rate and working capital changes . cash flow forecasts are based on reporting unit operating plans for the early years and business projections in later years . the market approach is based on a comparison of the company to comparable publicly traded firms in similar lines of business . this method requires us to use estimates and judgments when determining comparable companies . we assess such factors as size , growth , profitability , risk and return on investment . we believe the accounting estimate related to the valuation of goodwill is a critical accounting estimate because it requires us to make assumptions that are highly uncertain about the future cash flows of our reporting units . changes in these estimates can have a material impact on our financial statements . while the use of historical results and future projections can result in different valuations for a business , it is a generally accepted valuation practice to apply more than one valuation technique to establish a range of values for a business . since each technique relies on different inputs and assumptions , it is unlikely that each technique would yield the same results . however , it is expected that the different techniques would establish a reasonable range . in determining the fair value , we weigh the two methods equally because we believe both methods have an equal probability of providing an appropriate fair value . impairment reviews of intangible assets - we evaluate the carrying value of intangible assets and other long-lived assets for impairment whenever indicators of impairment exist . we test finite-lived intangible assets for recoverability using pretax undiscounted cash flows . although we base cash flow forecasts on assumptions that are consistent with plans and estimates we use to manage the underlying operating segments , there is significant judgment in determining the cash flows attributable to these operating segments , including markets and market share , sales volumes and mix , research and development expenses , capital spending and working capital changes . cash flow forecasts are based on operating plans and business projections . we compare the pretax undiscounted cash flows to the

