we believe that the principal competitive factors in the consumer and small and medium business markets for networking products include product breadth , price points , size and scope of the sales channel , brand name , timeliness of new product introductions , product availability , performance , features , functionality and reliability , ease-of-installation , maintenance and use , security , and customer service and support . to remain competitive , we believe we must continue to aggressively invest resources in developing new products and subscription services , enhancing our current products , expanding our channels and maintaining customer satisfaction worldwide . our investments reflect our enhanced focus on cybersecurity relating to our products and systems , as the threat of cyber-attacks and exploitation of potential security vulnerabilities in our industry is on the rise and is increasingly a significant consumer concern . 44 we sell our products through multiple sales channels worldwide , including traditional retailers , online retailers , wholesale distributors , direct market resellers ( “ dmrs ” ) , value-added resellers ( “ vars ” ) , broadband service providers and our webstore at www.netgear.com . our retail channel includes traditional retail locations domestically and internationally , such as best buy , costco , wal-mart , staples , office depot , target , fnac ( europe ) , mediamarkt ( europe ) , darty ( france ) , jb hifi ( australia ) , elkjop ( norway ) and sunning and guomei ( china ) . online retailers include amazon.com worldwide , newegg.com ( us ) , jd.com and alibaba ( china ) , as well as coolblue.com ( netherlands ) . our dmrs include cdw corporation , insight corporation and pc connection in domestic markets . our main wholesale distributors include ingram micro , d & h , tech data , exertis ( u.k. ) and synnex . in addition , we also sell our products through broadband service providers , such as multiple system operators ( “ msos ” ) , xdsl , mobile , and other broadband technology operators domestically and internationally . some of these retailers and broadband service providers purchase directly from us , while others are fulfilled through wholesale distributors around the world . a substantial portion of our net revenue is derived from a limited number of wholesale distributors , service providers and retailers . we expect this trend will continue in the foreseeable future . financial overview during fiscal 2019 , our net revenue decreased by $ 60.1 million , or 5.7 % , while income from operations declined $ 12.5 million , or 32.4 % , compared with the prior year . the decrease in net revenue was mainly attributable to the performance of the connected home segment which experienced net revenue decline of 7.7 % while smb segment net revenue remained flat . the decrease in connected home net revenue was primarily driven by a decline in net revenue from our home wireless , mobile and broadband modem and gateway products . gross margin decreased from 32.3 % in the prior year to 29.5 % , primarily due to higher product acquisition costs , mainly as a result of the imposition of section 301 tariffs , and higher channel promotional activities relative to revenue . the decline in gross margin was partially offset by a decrease of $ 34.9 million in operating expenses , primarily due to lower expenditures in general and administrative of $ 15.4 million , sales and marketing of $ 14.4 million , and research and development of $ 4.4 million . the decline in operating expenses was mainly due to lower personnel-related expenditures resulting from reduced headcount , and lower it and facilities expenditures post separation with arlo . on a geographic basis , net revenue decreased in all three regions during fiscal 2019 compared to the prior year . the decline in net revenue in north america was precipitated by a contraction of the north american wifi market on a year over year basis and lower sales to service providers , while international territories were affected by the strengthening of the u.s. dollar in emea and geopolitical challenges in the greater china region . the decrease in the americas net revenue was primarily driven by lower net revenue of our home wireless and mobile products , partially offset by higher net revenue of our broadband modem and gateway products . the decline in emea net revenue was primarily attributable to lower net revenue of our home wireless products , partially offset by increased net revenue of our mobile products . apac net revenue decreased due to lower net revenue of our broadband modem and gateway , home wireless products and network storage products , partially offset by higher net revenue of our mobile products and switches . looking forward , we are targeting low single digit growth in fiscal 2020 for both connected home and smb combined . we expect gross margin to improve as our u.s. bound inventory will primarily not be subject to section 301 tariffs in fiscal 2020. we will look to continue to capitalize on the technological inflection points of wifi 6 , 5g and pro-av switching through new product introductions and to develop and roll out service offerings to build recurring service revenue streams . we expect service provider net revenue to average approximately $ 25 million for connected home and smb combined per quarter in the first half of 2020. critical accounting policies and estimates our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the united states of america and pursuant to the rules and regulations of the u.s. securities and exchange commission ( `` sec `` ) . the preparation of these financial statements requires management to make assumptions , judgments and estimates that can have a significant impact on the reported amounts of assets , liabilities , revenues and expenses . story_separator_special_tag the lower net revenue was primarily attributable to lower net revenue of our home wireless and mobile products , partially offset by higher net revenue of our broadband modem and gateway products . the contraction in the north american wifi market in fiscal 2019 impacted demand for home wireless products to non-service provider customers . the mobile product decrease was mainly attributable to service provider customers . net revenue from service providers declined by $ 28.8 million across all products in fiscal 2019 , primarily driven by the culmination of a supply agreement with one of our north american partners . additionally , net revenue was negatively impacted by increased channel promotional activities and sales returns deemed to be a reduction of revenue compared to the prior year . on a segment basis , net revenue from connected home and smb fell by 8.1 % and 1.0 % compared to the prior year , respectively . net revenue in emea decreased for the year ended december 31 , 2019 compared to the prior year . net revenue in emea was negatively impacted by $ 8.3 million due to the strengthening of the u.s. dollar compared to the prior year . the decrease in emea was primarily attributable to lower net revenue of our home wireless products , partially offset by increased net revenue of our mobile products . on a segment basis , net revenue from connected home and smb fell by 6.5 % and 1.0 % compared to the prior year , respectively . apac net revenue decreased for the year ended december 31 , 2019 compared to the prior year . net revenue in the greater china region declined in the second half of 2019 impacted by geopolitical challenges . the fall in apac was primarily attributable to lower net revenue of our broadband modem and gateway and home wireless products , partially offset by higher net revenue of mobile and switches . on a segment basis , net revenue from connected home and smb fell by 7.0 % and increased by 3.6 % compared to the prior year , respectively . 2018 vs 2017 the increase in americas net revenue for the year ended december 31 , 2018 compared to the prior year was due to higher net revenue of home wireless , broadband modem and gateway products , and switches . the increase in net revenue was driven by sales to non-service provider customers , with sales to service provider customers falling by $ 6.4 million compared to the prior year . net revenue to non-service provider customers increased mainly due to home wireless products which experienced strong performance in wi-fi systems . net revenue was negatively impacted by channel promotion activities deemed to be a reduction of revenue increasing disproportionately compared to the prior year . emea net revenue increased for the year ended december 31 , 2018 , compared to the prior year , driven by increased net revenue of home wireless products and switches , partially offset by slight declines in net revenue of our broadband modem and gateway products . connected home and smb net revenue increased by 6.9 % and 8.4 % , respectively , mainly due to growth in the aforementioned product categories . the growth in net revenue was driven by non-service provider customers with net revenue from service providers falling slightly compared to the prior year . apac net revenue decreased for the year ended december 31 , 2018 , compared to the prior year . the decrease was primarily attributable to lower net revenue of our mobile , broadband modem and gateway , and home wireless products , partially offset by higher net revenue of switches . the fall in net revenue from mobile , broadband modem and gateway products was due to lower net revenue from service provider customers which fell approximately $ 23.4 million compared to the prior year . cost of revenue and gross margin cost of revenue consists primarily of the following : the cost of finished products from our third party manufacturers ; overhead costs , including purchasing , product planning , inventory control , warehousing and distribution logistics ; third-party software licensing fees ; inbound freight ; import duties/tariffs ; warranty costs associated with returned goods ; write-downs for excess and obsolete inventory ; amortization of certain acquired intangibles and capitalized software development cost ; and costs attributable to the provision of service offerings . 50 we outsource our manufacturing , warehousing and distribution logistics . we believe this outsourcing strategy allows us to better manage our product costs and gross margin . our gross margin can be affected by a number of factors , including fluctuation in foreign exchange rates , sales returns , changes in average selling prices , end-user customer rebates and othe r channel sales incentives , changes in our cost of goods sold due to fluctuations in prices paid for components , net of vendor rebates , warranty and overhead costs , inbound freight and duty/tariffs , conversion costs , charges for excess or obsolete inventory and amortization of acquired intangibles . the following table presents costs of revenue and gross margin , for the periods indicated : replace_table_token_7_th 2019 vs 2018 cost of revenue decreased for the year ended december 31 , 2019 , compared to the prior year , primarily due to net revenue declining . gross margin decreased for the year ended december 31 , 2019 compared to the prior year . gross margin was negatively impacted by the imposition of section 301 tariffs originally announced in late 2018 and cost inefficiencies experienced in our new manufacturing locations outside of china , an increase in channel promotional activities relative to revenue as well as foreign exchange headwinds due to the strengthening of the u.s. dollar . 2018 vs 2017 cost of revenue decreased for the year ended december 31 , 2018 primarily due to improved product margin performance , lower proportionate provisions for

liquidity and capital resources our principal sources of liquidity are cash , cash equivalents , short-term investments , and cash generated from operations . as of december 31 , 2019 , we had cash , cash equivalents and short-term investments totaling $ 195.7 million . our cash and cash equivalents balance decreased from $ 201.0 million as of december 31 , 2018 to $ 190.2 million as of december 31 , 2019. our short-term investments decreased from $ 73.3 million as of december 31 , 2018 to $ 5.5 million as of december 31 , 2019. the decrease of $ 78.7 million in cash , cash equivalents , short-term investments as of december 31 , 2019 from december 31 , 2018 was mainly attributable to repurchases of common stock of $ 75.9 million in 2019. cash from net income of $ 25.8 million was largely offset by uses in working capital mainly relating to higher payments to trade suppliers . as of december 31 , 2019 , approximately 63 % of our cash and cash equivalents and short-term investments were outside of the u.s. the cash and cash equivalents and short-term investments balances outside of the u.s. are subject to fluctuation based on the settlement of intercompany balances . as we repatriate these funds in accordance with our designation of funds not permanently reinvested outside of the us , we will be required to pay income taxes in certain u.s. states and applicable foreign withholding taxes during the period when such repatriation occurs . we have recorded deferred taxes for the tax effect of repatriating the funds to the u.s. the following table presents our cash flows for the periods presented : replace_table_token_16_th continuing operating activities net cash provided by continuing operating activities was $ 13.5 million for fiscal 2019 as compared to net cash used in continuing operating activities of $ 15.1 million in fiscal 2018. the increase in cash inflows from continuing operating activities was primarily due to favorable working capital movements and higher net income .


 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 our principal sources of liquidity are cash , cash equivalents , short-term investments , and cash generated from operations . as of december 31 , 2019 , we had cash , cash equivalents and short-term investments totaling $ 195.7 million . our cash and cash equivalents balance decreased from $ 201.0 million as of december 31 , 2018 to $ 190.2 million as of december 31 , 2019. our short-term investments decreased from $ 73.3 million as of december 31 , 2018 to $ 5.5 million as of december 31 , 2019. the decrease of $ 78.7 million in cash , cash equivalents , short-term investments as of december 31 , 2019 from december 31 , 2018 was mainly attributable to repurchases of common stock of $ 75.9 million in 2019. cash from net income of $ 25.8 million was largely offset by uses in working capital mainly relating to higher payments to trade suppliers . as of december 31 , 2019 , approximately 63 % of our cash and cash equivalents and short-term investments were outside of the u.s. the cash and cash equivalents and short-term investments balances outside of the u.s. are subject to fluctuation based on the settlement of intercompany balances . as we repatriate these funds in accordance with our designation of funds not permanently reinvested outside of the us , we will be required to pay income taxes in certain u.s. states and applicable foreign withholding taxes during the period when such repatriation occurs . we have recorded deferred taxes for the tax effect of repatriating the funds to the u.s. the following table presents our cash flows for the periods presented : replace_table_token_16_th continuing operating activities net cash provided by continuing operating activities was $ 13.5 million for fiscal 2019 as compared to net cash used in continuing operating activities of $ 15.1 million in fiscal 2018. the increase in cash inflows from continuing operating activities was primarily due to favorable working capital movements and higher net income .
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 Suspicious Activity Report : we believe that the principal competitive factors in the consumer and small and medium business markets for networking products include product breadth , price points , size and scope of the sales channel , brand name , timeliness of new product introductions , product availability , performance , features , functionality and reliability , ease-of-installation , maintenance and use , security , and customer service and support . to remain competitive , we believe we must continue to aggressively invest resources in developing new products and subscription services , enhancing our current products , expanding our channels and maintaining customer satisfaction worldwide . our investments reflect our enhanced focus on cybersecurity relating to our products and systems , as the threat of cyber-attacks and exploitation of potential security vulnerabilities in our industry is on the rise and is increasingly a significant consumer concern . 44 we sell our products through multiple sales channels worldwide , including traditional retailers , online retailers , wholesale distributors , direct market resellers ( “ dmrs ” ) , value-added resellers ( “ vars ” ) , broadband service providers and our webstore at www.netgear.com . our retail channel includes traditional retail locations domestically and internationally , such as best buy , costco , wal-mart , staples , office depot , target , fnac ( europe ) , mediamarkt ( europe ) , darty ( france ) , jb hifi ( australia ) , elkjop ( norway ) and sunning and guomei ( china ) . online retailers include amazon.com worldwide , newegg.com ( us ) , jd.com and alibaba ( china ) , as well as coolblue.com ( netherlands ) . our dmrs include cdw corporation , insight corporation and pc connection in domestic markets . our main wholesale distributors include ingram micro , d & h , tech data , exertis ( u.k. ) and synnex . in addition , we also sell our products through broadband service providers , such as multiple system operators ( “ msos ” ) , xdsl , mobile , and other broadband technology operators domestically and internationally . some of these retailers and broadband service providers purchase directly from us , while others are fulfilled through wholesale distributors around the world . a substantial portion of our net revenue is derived from a limited number of wholesale distributors , service providers and retailers . we expect this trend will continue in the foreseeable future . financial overview during fiscal 2019 , our net revenue decreased by $ 60.1 million , or 5.7 % , while income from operations declined $ 12.5 million , or 32.4 % , compared with the prior year . the decrease in net revenue was mainly attributable to the performance of the connected home segment which experienced net revenue decline of 7.7 % while smb segment net revenue remained flat . the decrease in connected home net revenue was primarily driven by a decline in net revenue from our home wireless , mobile and broadband modem and gateway products . gross margin decreased from 32.3 % in the prior year to 29.5 % , primarily due to higher product acquisition costs , mainly as a result of the imposition of section 301 tariffs , and higher channel promotional activities relative to revenue . the decline in gross margin was partially offset by a decrease of $ 34.9 million in operating expenses , primarily due to lower expenditures in general and administrative of $ 15.4 million , sales and marketing of $ 14.4 million , and research and development of $ 4.4 million . the decline in operating expenses was mainly due to lower personnel-related expenditures resulting from reduced headcount , and lower it and facilities expenditures post separation with arlo . on a geographic basis , net revenue decreased in all three regions during fiscal 2019 compared to the prior year . the decline in net revenue in north america was precipitated by a contraction of the north american wifi market on a year over year basis and lower sales to service providers , while international territories were affected by the strengthening of the u.s. dollar in emea and geopolitical challenges in the greater china region . the decrease in the americas net revenue was primarily driven by lower net revenue of our home wireless and mobile products , partially offset by higher net revenue of our broadband modem and gateway products . the decline in emea net revenue was primarily attributable to lower net revenue of our home wireless products , partially offset by increased net revenue of our mobile products . apac net revenue decreased due to lower net revenue of our broadband modem and gateway , home wireless products and network storage products , partially offset by higher net revenue of our mobile products and switches . looking forward , we are targeting low single digit growth in fiscal 2020 for both connected home and smb combined . we expect gross margin to improve as our u.s. bound inventory will primarily not be subject to section 301 tariffs in fiscal 2020. we will look to continue to capitalize on the technological inflection points of wifi 6 , 5g and pro-av switching through new product introductions and to develop and roll out service offerings to build recurring service revenue streams . we expect service provider net revenue to average approximately $ 25 million for connected home and smb combined per quarter in the first half of 2020. critical accounting policies and estimates our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the united states of america and pursuant to the rules and regulations of the u.s. securities and exchange commission ( `` sec `` ) . the preparation of these financial statements requires management to make assumptions , judgments and estimates that can have a significant impact on the reported amounts of assets , liabilities , revenues and expenses . story_separator_special_tag the lower net revenue was primarily attributable to lower net revenue of our home wireless and mobile products , partially offset by higher net revenue of our broadband modem and gateway products . the contraction in the north american wifi market in fiscal 2019 impacted demand for home wireless products to non-service provider customers . the mobile product decrease was mainly attributable to service provider customers . net revenue from service providers declined by $ 28.8 million across all products in fiscal 2019 , primarily driven by the culmination of a supply agreement with one of our north american partners . additionally , net revenue was negatively impacted by increased channel promotional activities and sales returns deemed to be a reduction of revenue compared to the prior year . on a segment basis , net revenue from connected home and smb fell by 8.1 % and 1.0 % compared to the prior year , respectively . net revenue in emea decreased for the year ended december 31 , 2019 compared to the prior year . net revenue in emea was negatively impacted by $ 8.3 million due to the strengthening of the u.s. dollar compared to the prior year . the decrease in emea was primarily attributable to lower net revenue of our home wireless products , partially offset by increased net revenue of our mobile products . on a segment basis , net revenue from connected home and smb fell by 6.5 % and 1.0 % compared to the prior year , respectively . apac net revenue decreased for the year ended december 31 , 2019 compared to the prior year . net revenue in the greater china region declined in the second half of 2019 impacted by geopolitical challenges . the fall in apac was primarily attributable to lower net revenue of our broadband modem and gateway and home wireless products , partially offset by higher net revenue of mobile and switches . on a segment basis , net revenue from connected home and smb fell by 7.0 % and increased by 3.6 % compared to the prior year , respectively . 2018 vs 2017 the increase in americas net revenue for the year ended december 31 , 2018 compared to the prior year was due to higher net revenue of home wireless , broadband modem and gateway products , and switches . the increase in net revenue was driven by sales to non-service provider customers , with sales to service provider customers falling by $ 6.4 million compared to the prior year . net revenue to non-service provider customers increased mainly due to home wireless products which experienced strong performance in wi-fi systems . net revenue was negatively impacted by channel promotion activities deemed to be a reduction of revenue increasing disproportionately compared to the prior year . emea net revenue increased for the year ended december 31 , 2018 , compared to the prior year , driven by increased net revenue of home wireless products and switches , partially offset by slight declines in net revenue of our broadband modem and gateway products . connected home and smb net revenue increased by 6.9 % and 8.4 % , respectively , mainly due to growth in the aforementioned product categories . the growth in net revenue was driven by non-service provider customers with net revenue from service providers falling slightly compared to the prior year . apac net revenue decreased for the year ended december 31 , 2018 , compared to the prior year . the decrease was primarily attributable to lower net revenue of our mobile , broadband modem and gateway , and home wireless products , partially offset by higher net revenue of switches . the fall in net revenue from mobile , broadband modem and gateway products was due to lower net revenue from service provider customers which fell approximately $ 23.4 million compared to the prior year . cost of revenue and gross margin cost of revenue consists primarily of the following : the cost of finished products from our third party manufacturers ; overhead costs , including purchasing , product planning , inventory control , warehousing and distribution logistics ; third-party software licensing fees ; inbound freight ; import duties/tariffs ; warranty costs associated with returned goods ; write-downs for excess and obsolete inventory ; amortization of certain acquired intangibles and capitalized software development cost ; and costs attributable to the provision of service offerings . 50 we outsource our manufacturing , warehousing and distribution logistics . we believe this outsourcing strategy allows us to better manage our product costs and gross margin . our gross margin can be affected by a number of factors , including fluctuation in foreign exchange rates , sales returns , changes in average selling prices , end-user customer rebates and othe r channel sales incentives , changes in our cost of goods sold due to fluctuations in prices paid for components , net of vendor rebates , warranty and overhead costs , inbound freight and duty/tariffs , conversion costs , charges for excess or obsolete inventory and amortization of acquired intangibles . the following table presents costs of revenue and gross margin , for the periods indicated : replace_table_token_7_th 2019 vs 2018 cost of revenue decreased for the year ended december 31 , 2019 , compared to the prior year , primarily due to net revenue declining . gross margin decreased for the year ended december 31 , 2019 compared to the prior year . gross margin was negatively impacted by the imposition of section 301 tariffs originally announced in late 2018 and cost inefficiencies experienced in our new manufacturing locations outside of china , an increase in channel promotional activities relative to revenue as well as foreign exchange headwinds due to the strengthening of the u.s. dollar . 2018 vs 2017 cost of revenue decreased for the year ended december 31 , 2018 primarily due to improved product margin performance , lower proportionate provisions for

