our increase as a percentage of sales in fiscal year 2012 was primarily attributable to our increased expenses relating to new product introductions , particularly related to the introduction of intel 's sandy bridge processor as well as net sales which were lower than we had anticipated in fiscal year 2012. we use several suppliers and contract manufacturers to design and manufacture components in accordance with our specifications , with most final assembly and testing performed at our manufacturing facility in san jose , california . during fiscal year 2013 , we continued to invest in expanding our operations both in san jose , california and our subsidiaries in taiwan and the netherlands in order to support our growth . we have increased manufacturing and service operations in taiwan and the netherlands to support our asia and european customers and we have increased our utilization of our overseas manufacturing 29 capacity in fiscal year 2013. one of our key suppliers is ablecom , a related party , which supplies us with contract design and manufacturing support . for fiscal years 2013 , 2012 and 2011 , our purchases from ablecom represented 17.9 % , 19.9 % and 19.6 % of our cost of sales , respectively . the decrease as a percentage of cost of sales in fiscal year 2013 was attributable to our increased purchases from other suppliers . ablecom 's sales to us constitute a substantial majority of ablecom 's net sales . we continue to maintain our manufacturing relationship with ablecom in asia in an effort to reduce our product costs . in addition to providing a larger volume of contract manufacturing services for us , ablecom continues to warehouse for us a number of components and subassemblies manufactured by multiple suppliers prior to shipment to our facilities in the united states and europe . we typically negotiate the price of products that we purchase from ablecom on a quarterly basis ; however , either party may re-negotiate the price of products with each order . as a result of our relationship with ablecom , it is possible that ablecom may in the future sell products to us at a price higher or lower than we could obtain from an unrelated third party supplier . this may result in our future reporting of gross profit as a percentage of net sales that is less than or in excess of what we might have obtained absent our relationship with ablecom . in order to continue to increase our net sales and profits , we believe that we must continue to develop flexible and customizable server solutions and be among the first to market with new features and products . we measure our financial success based on various indicators , including growth in net sales , gross profit as a percentage of net sales , operating income as a percentage of net sales , levels of inventory , and days sales outstanding , or dsos . in connection with these efforts , we monitor daily and weekly sales and shipment reports . among the key non-financial indicators of our success is our ability to rapidly introduce new products and deliver the latest application optimized server solutions . in this regard , we work closely with microprocessor and other component vendors to take advantage of new technologies as they are introduced . historically , our ability to introduce new products rapidly has allowed us to benefit from the introduction of new microprocessors and as a result we monitor the introduction cycles of intel , amd and nvidia carefully . this also impacts our research and development expenditures . for example , in fiscal year 2012 and in prior years , our results have been adversely impacted by customer order delays in anticipation of the introduction of the new lines of microprocessors and research and development expenditures necessary for us to prepare for the introduction . other financial highlights the following is a summary of other financial highlights of fiscal year 2013 : net cash provided by operating activities was $ 13.6 million , $ 16.5 million and $ 8.5 million in fiscal year 2013 , 2012 and 2011 , respectively . our cash and cash equivalents , together with our investments , were $ 95.7 million at the end of fiscal year 2013 , compared with $ 83.8 million at the end of fiscal year 2012 . the increase in our cash and cash equivalents , together with our investments at the end of fiscal year 2013 was primarily due to $ 13.6 million of cash generated from our operating activities and $ 2.6 million of borrowings , net of repayments , offset in part by $ 5.0 million of purchases of property and equipments . days sales outstanding in accounts receivable ( “ dso ” ) at the end of fiscal year 2013 was 39 days , compared with 33 days at the end of fiscal year 2012 . the increase in our dso was primarily due to an increase in sales to customers with net payment terms and a decrease in sales to customers with telegraphic transfer ( `` tt `` ) payment terms . our inventory balance was $ 254.2 million at the end of fiscal year 2013 , compared with $ 276.6 million at the end of fiscal year 2012 . days sales of inventory ( “ dsi ” ) at the end of fiscal year 2013 was 95 days , compared with 100 days at the end of fiscal year 2012 . story_separator_special_tag the expected volatility is based on a combination of the implied and historical volatility of our relevant peer group for the stock options granted prior to september 30 , 2009. for stock options and restricted stock awards granted after september 30 , 2009 , expected volatility is based solely on our historical volatility . in addition , forfeitures of share-based awards are estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differ from those estimates . we use historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest . variable interest entities . we have concluded that ablecom and its subsidiaries ( `` ablecom `` ) is a variable interest entity in accordance with applicable accounting standards and guidance ; however , we are not the primary beneficiary of 33 ablecom and therefore , we do not consolidate ablecom . in performing our analysis , we considered our explicit arrangements with ablecom including the supplier and distributor arrangements . also , as a result of the substantial related party relationship between the two companies , we considered whether any implicit arrangements exist that would cause us to protect those related parties ' interests in ablecom from suffering losses . we determined that no implicit arrangements exist with ablecom or its shareholders . such an arrangement would be inconsistent with the fiduciary duty that we have towards our stockholders who do not own shares in ablecom . in may 2012 , we and ablecom jointly established super micro business park , inc. ( `` management company `` ) in taiwan to manage the common areas shared by us and ablecom for our separately constructed manufacturing facilities . each company contributed $ 168,000 and own 50 % of the management company . although the operations of the management company are independent of us , through governance rights , we have the ability to direct the management company 's business strategies . therefore , we have concluded that the management company is a variable interest entity of us as we are the primary beneficiary of the management company . as of june 30 , 2013 , the accounts of the management company have been consolidated with our accounts , and a noncontrolling interest has been recorded for ablecom 's interests in the net assets and operations of the management company . in fiscal year 2013 , $ 13,000 of net income attributable to ablecom 's interest was included in our general and administrative expenses in the consolidated statements of operations . results of operations the following table sets forth our financial results , as a percentage of net sales for the periods indicated : replace_table_token_6_th comparison of fiscal years ended june 30 , 2013 and 2012 net sales . net sales increased by $ 148.7 million , or 14.7 % , to $ 1,162.6 million from $ 1,013.9 million , for fiscal year 2013 and 2012 , respectively . this increase was due primarily to an increase in unit volumes of our subsystems and accessories and to a lesser extent an increase in the average selling price of our server systems offset by a decrease in unit volumes of server systems as we sold more higher density server systems on a processing node basis in fiscal year 2013 compared to fiscal year 2012. for fiscal year 2013 , the number of server system units sold decreased 2.9 % to 232,000 compared to 239,000 for fiscal year 2012 . the average selling price of server system units increased 15.8 % to $ 2,200 in fiscal year 2013 compared to $ 1,900 in fiscal year 2012 . the average selling prices of our server systems increased primarily due to higher average selling prices of microcloud , fattwin servers , storage and superblades servers with intel 's sandy bridge processors which offered higher density computing and more memory and hard disk drive capacity . sales of server systems increased by $ 54.9 million or 12.3 % from fiscal year 2012 to fiscal year 2013 , primarily due to higher sales of twin , storage , microcloud , gpu/xeon phi and superblade servers solutions and complete integrated-high-end servers solutions to oem and end customers partially offset by lower sales of rack solutions . sales of server systems represented 43.2 % of our net sales for fiscal year 2013 compared to 44.1 % of our net sales for fiscal year 2012 . 34 for fiscal year 2013 , the number of subsystems and accessories units sold increased 3.6 % to 4.5 million compared to 4.3 million for fiscal year 2012 . sales of subsystems and accessories increased by $ 93.8 million or 16.6 % from fiscal year 2012 to fiscal year 2013 , primarily related to higher sales of hard disk drives , chassis , memory and serverboards to our distributors and system integrators who purchased additional accessories from us and completed the final assembly themselves . sales of subsystems and accessories represented 56.8 % of our net sales for fiscal year 2013 as compared to 55.9 % of our net sales for fiscal year 2012 . for fiscal year 2013 and 2012 , we derived 56.3 % and 54.4 % , respectively , of our net sales from products sold to distributors and we derived 43.7 % and 45.6 % , respectively , from sales to oems and to end customers . for fiscal year 2013 , customers in the united states , europe and asia accounted for 54.2 % , 22.7 % and 20.5 % , of our net sales , respectively , as compared to 58.2 % , 21.8 % and 17.4 % of our net sales , respectively , for fiscal year 2012 . cost of sales . cost of sales increased by $ 154.1 million , or 18.2 % , to $ 1,002.5 million from $ 848.5 million , for fiscal year 2013

other factors affecting liquidity and capital resources activities under revolving lines of credit and term loans bank of america in october 2011 , we entered into an amendment to our existing credit agreement with bank of america , n.a . ( `` bank of america '' ) which provided for ( i ) a $ 40.0 million revolving line of credit facility through june 15 , 2013 and ( ii ) a five-year $ 14.0 million term loan facility . the term loan is secured by the three buildings purchased in san jose , california in june 2010 and the principal and interest are payable monthly through september 30 , 2016 with an interest rate at the libor rate plus 1.50 % per annum . in june and august 2013 , we extended the revolving line of credit to mature on august and september 15 , 2013 , respectively , and we are currently negotiating with bank of america to renew the revolving line of credit . the line of credit facility provided for borrowings denominated both in u.s. dollars and in taiwanese dollars . for borrowings denominated in u.s. dollars , the interest rate for the revolving line of credit is at the libor rate plus 1.25 % per annum . the libor rate was 0.19 % at june 30 , 2013 . for borrowings denominated in taiwanese dollars , the interest rate for the revolving line of credit is equal to the lender 's established interest rate which is adjusted monthly . as of june 30 , 2013 and 2012 , the total outstanding borrowings under the bank of america term loan was $ 9.3 million and $ 12.1 million , respectively . the total outstanding borrowings under the bank of america line of credit was $ 10.9 million and $ 10.6 million as of june 30 , 2013 and 2012 , respectively .


 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.
     ```other factors affecting liquidity and capital resources activities under revolving lines of credit and term loans bank of america in october 2011 , we entered into an amendment to our existing credit agreement with bank of america , n.a . ( `` bank of america '' ) which provided for ( i ) a $ 40.0 million revolving line of credit facility through june 15 , 2013 and ( ii ) a five-year $ 14.0 million term loan facility . the term loan is secured by the three buildings purchased in san jose , california in june 2010 and the principal and interest are payable monthly through september 30 , 2016 with an interest rate at the libor rate plus 1.50 % per annum . in june and august 2013 , we extended the revolving line of credit to mature on august and september 15 , 2013 , respectively , and we are currently negotiating with bank of america to renew the revolving line of credit . the line of credit facility provided for borrowings denominated both in u.s. dollars and in taiwanese dollars . for borrowings denominated in u.s. dollars , the interest rate for the revolving line of credit is at the libor rate plus 1.25 % per annum . the libor rate was 0.19 % at june 30 , 2013 . for borrowings denominated in taiwanese dollars , the interest rate for the revolving line of credit is equal to the lender 's established interest rate which is adjusted monthly . as of june 30 , 2013 and 2012 , the total outstanding borrowings under the bank of america term loan was $ 9.3 million and $ 12.1 million , respectively . the total outstanding borrowings under the bank of america line of credit was $ 10.9 million and $ 10.6 million as of june 30 , 2013 and 2012 , respectively .
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 Suspicious Activity Report : our increase as a percentage of sales in fiscal year 2012 was primarily attributable to our increased expenses relating to new product introductions , particularly related to the introduction of intel 's sandy bridge processor as well as net sales which were lower than we had anticipated in fiscal year 2012. we use several suppliers and contract manufacturers to design and manufacture components in accordance with our specifications , with most final assembly and testing performed at our manufacturing facility in san jose , california . during fiscal year 2013 , we continued to invest in expanding our operations both in san jose , california and our subsidiaries in taiwan and the netherlands in order to support our growth . we have increased manufacturing and service operations in taiwan and the netherlands to support our asia and european customers and we have increased our utilization of our overseas manufacturing 29 capacity in fiscal year 2013. one of our key suppliers is ablecom , a related party , which supplies us with contract design and manufacturing support . for fiscal years 2013 , 2012 and 2011 , our purchases from ablecom represented 17.9 % , 19.9 % and 19.6 % of our cost of sales , respectively . the decrease as a percentage of cost of sales in fiscal year 2013 was attributable to our increased purchases from other suppliers . ablecom 's sales to us constitute a substantial majority of ablecom 's net sales . we continue to maintain our manufacturing relationship with ablecom in asia in an effort to reduce our product costs . in addition to providing a larger volume of contract manufacturing services for us , ablecom continues to warehouse for us a number of components and subassemblies manufactured by multiple suppliers prior to shipment to our facilities in the united states and europe . we typically negotiate the price of products that we purchase from ablecom on a quarterly basis ; however , either party may re-negotiate the price of products with each order . as a result of our relationship with ablecom , it is possible that ablecom may in the future sell products to us at a price higher or lower than we could obtain from an unrelated third party supplier . this may result in our future reporting of gross profit as a percentage of net sales that is less than or in excess of what we might have obtained absent our relationship with ablecom . in order to continue to increase our net sales and profits , we believe that we must continue to develop flexible and customizable server solutions and be among the first to market with new features and products . we measure our financial success based on various indicators , including growth in net sales , gross profit as a percentage of net sales , operating income as a percentage of net sales , levels of inventory , and days sales outstanding , or dsos . in connection with these efforts , we monitor daily and weekly sales and shipment reports . among the key non-financial indicators of our success is our ability to rapidly introduce new products and deliver the latest application optimized server solutions . in this regard , we work closely with microprocessor and other component vendors to take advantage of new technologies as they are introduced . historically , our ability to introduce new products rapidly has allowed us to benefit from the introduction of new microprocessors and as a result we monitor the introduction cycles of intel , amd and nvidia carefully . this also impacts our research and development expenditures . for example , in fiscal year 2012 and in prior years , our results have been adversely impacted by customer order delays in anticipation of the introduction of the new lines of microprocessors and research and development expenditures necessary for us to prepare for the introduction . other financial highlights the following is a summary of other financial highlights of fiscal year 2013 : net cash provided by operating activities was $ 13.6 million , $ 16.5 million and $ 8.5 million in fiscal year 2013 , 2012 and 2011 , respectively . our cash and cash equivalents , together with our investments , were $ 95.7 million at the end of fiscal year 2013 , compared with $ 83.8 million at the end of fiscal year 2012 . the increase in our cash and cash equivalents , together with our investments at the end of fiscal year 2013 was primarily due to $ 13.6 million of cash generated from our operating activities and $ 2.6 million of borrowings , net of repayments , offset in part by $ 5.0 million of purchases of property and equipments . days sales outstanding in accounts receivable ( “ dso ” ) at the end of fiscal year 2013 was 39 days , compared with 33 days at the end of fiscal year 2012 . the increase in our dso was primarily due to an increase in sales to customers with net payment terms and a decrease in sales to customers with telegraphic transfer ( `` tt `` ) payment terms . our inventory balance was $ 254.2 million at the end of fiscal year 2013 , compared with $ 276.6 million at the end of fiscal year 2012 . days sales of inventory ( “ dsi ” ) at the end of fiscal year 2013 was 95 days , compared with 100 days at the end of fiscal year 2012 . story_separator_special_tag the expected volatility is based on a combination of the implied and historical volatility of our relevant peer group for the stock options granted prior to september 30 , 2009. for stock options and restricted stock awards granted after september 30 , 2009 , expected volatility is based solely on our historical volatility . in addition , forfeitures of share-based awards are estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differ from those estimates . we use historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest . variable interest entities . we have concluded that ablecom and its subsidiaries ( `` ablecom `` ) is a variable interest entity in accordance with applicable accounting standards and guidance ; however , we are not the primary beneficiary of 33 ablecom and therefore , we do not consolidate ablecom . in performing our analysis , we considered our explicit arrangements with ablecom including the supplier and distributor arrangements . also , as a result of the substantial related party relationship between the two companies , we considered whether any implicit arrangements exist that would cause us to protect those related parties ' interests in ablecom from suffering losses . we determined that no implicit arrangements exist with ablecom or its shareholders . such an arrangement would be inconsistent with the fiduciary duty that we have towards our stockholders who do not own shares in ablecom . in may 2012 , we and ablecom jointly established super micro business park , inc. ( `` management company `` ) in taiwan to manage the common areas shared by us and ablecom for our separately constructed manufacturing facilities . each company contributed $ 168,000 and own 50 % of the management company . although the operations of the management company are independent of us , through governance rights , we have the ability to direct the management company 's business strategies . therefore , we have concluded that the management company is a variable interest entity of us as we are the primary beneficiary of the management company . as of june 30 , 2013 , the accounts of the management company have been consolidated with our accounts , and a noncontrolling interest has been recorded for ablecom 's interests in the net assets and operations of the management company . in fiscal year 2013 , $ 13,000 of net income attributable to ablecom 's interest was included in our general and administrative expenses in the consolidated statements of operations . results of operations the following table sets forth our financial results , as a percentage of net sales for the periods indicated : replace_table_token_6_th comparison of fiscal years ended june 30 , 2013 and 2012 net sales . net sales increased by $ 148.7 million , or 14.7 % , to $ 1,162.6 million from $ 1,013.9 million , for fiscal year 2013 and 2012 , respectively . this increase was due primarily to an increase in unit volumes of our subsystems and accessories and to a lesser extent an increase in the average selling price of our server systems offset by a decrease in unit volumes of server systems as we sold more higher density server systems on a processing node basis in fiscal year 2013 compared to fiscal year 2012. for fiscal year 2013 , the number of server system units sold decreased 2.9 % to 232,000 compared to 239,000 for fiscal year 2012 . the average selling price of server system units increased 15.8 % to $ 2,200 in fiscal year 2013 compared to $ 1,900 in fiscal year 2012 . the average selling prices of our server systems increased primarily due to higher average selling prices of microcloud , fattwin servers , storage and superblades servers with intel 's sandy bridge processors which offered higher density computing and more memory and hard disk drive capacity . sales of server systems increased by $ 54.9 million or 12.3 % from fiscal year 2012 to fiscal year 2013 , primarily due to higher sales of twin , storage , microcloud , gpu/xeon phi and superblade servers solutions and complete integrated-high-end servers solutions to oem and end customers partially offset by lower sales of rack solutions . sales of server systems represented 43.2 % of our net sales for fiscal year 2013 compared to 44.1 % of our net sales for fiscal year 2012 . 34 for fiscal year 2013 , the number of subsystems and accessories units sold increased 3.6 % to 4.5 million compared to 4.3 million for fiscal year 2012 . sales of subsystems and accessories increased by $ 93.8 million or 16.6 % from fiscal year 2012 to fiscal year 2013 , primarily related to higher sales of hard disk drives , chassis , memory and serverboards to our distributors and system integrators who purchased additional accessories from us and completed the final assembly themselves . sales of subsystems and accessories represented 56.8 % of our net sales for fiscal year 2013 as compared to 55.9 % of our net sales for fiscal year 2012 . for fiscal year 2013 and 2012 , we derived 56.3 % and 54.4 % , respectively , of our net sales from products sold to distributors and we derived 43.7 % and 45.6 % , respectively , from sales to oems and to end customers . for fiscal year 2013 , customers in the united states , europe and asia accounted for 54.2 % , 22.7 % and 20.5 % , of our net sales , respectively , as compared to 58.2 % , 21.8 % and 17.4 % of our net sales , respectively , for fiscal year 2012 . cost of sales . cost of sales increased by $ 154.1 million , or 18.2 % , to $ 1,002.5 million from $ 848.5 million , for fiscal year 2013

