in september 2017 , we approved an expansion for our residential offering in australia with higher production of single-phase inverters and launched a line of three-phase inverters . in september 2017 , we released our dc optimized inverter solution in south korea . our revenues were $ 325.1 million , $ 489.8 million , $ 240.0 million , and $ 607.0 million for fiscal 2015 and 2016 , the six months ended december 31 , 2016 , and fiscal 2017 , respectively . gross margins were 25.2 % , 31.0 % , 33.7 % , and 35.4 % , for fiscal 2015 and 2016 , the six months ended december 31 , 2016 , and fiscal 2017 , respectively . net profits were $ 21.1 million , $ 76.6 million , $ 25.4 million , and $ 84.2 million for fiscal 2015 and 2016 , for the six months ended december 31 , 2016 , and fiscal 2017 , respectively . we continue to focus on our long‑term growth and profitability . we believe that our market opportunity is large and that the transition from traditional inverter architecture to dc optimized inverter architecture will continue as the architecture of choice for distributed solar installations globally . we believe that we are well positioned to benefit from this market trend . we intend to continue to invest in sales and marketing to acquire new customers in our existing markets , grow internationally and drive additional revenue . we also plan to expand our product offerings to further penetrate the large commercial and utility segments . we expect to continue to invest in research and development to enhance our product offerings and develop new , cost-effective solutions . we believe that our strategy results in an efficient operating base with relatively low expenses that will enable profitability on lower revenues relative to our competitors . we believe that our sales and marketing , research and development , and general and administrative costs will decrease as a percentage of revenue in the long‑term as we continue to grow due to economies of scale . with this increased operating leverage , we expect our gross and operating margins to increase in the long‑term . we believe that it is too early to estimate the impact , if any , the newly adopted u.s. tariff imposed on all imported solar modules and cells , may have on the price of solar systems in the united states . if the price of solar systems in the u.s. increases , it may reduce the number of solar systems manufactured and sold , which in turn may decrease demand for our products performance measures in managing our business and assessing financial performance , we supplement the information provided by the financial statements with other operating metrics . these operating metrics are utilized by our management to evaluate our business , measure our performance , identify trends affecting our business , and formulate projections . we use metrics relating to yearly shipments ( inverters shipped , power optimizers shipped , and megawatts shipped ) to evaluate our sales performance and to track market acceptance of our products from year to year . we use metrics relating to monitoring ( systems monitored and megawatts monitored ) to evaluate market acceptance of our products and usage of our solution . we provide the “ megawatts shipped ” metric , which is calculated based on nameplate capacity shipped , to show adoption of our system on a nameplate capacity basis . nameplate capacity shipped is the maximum rated power output capacity of an inverter and corresponds to our financial results in that higher total capacities shipped are generally associated with higher total revenues . however , revenues increase with each additional unit , not necessarily each additional mw of capacity , sold . accordingly , we also provide the “ inverters shipped ” and “ power optimizers shipped ” operating metrics . 34 key components of our results of operations the following discussion describes certain line items in our consolidated statements of operations . revenues we generate revenues from the sale of dc optimized inverter systems for solar pv installations which include power optimizers , inverters , and our cloud‑based monitoring platform . our customer base includes distributors , large solar installers , wholesalers , epcs , and pv module manufacturers . our revenues are affected by changes in the volume and average selling prices of our dc optimized inverter systems . the volume and average selling price of our systems is driven by the supply and demand for our products , changes in the product mix between our residential and commercial products , the customer mix between large and small customers , the geographical mix of our sales , sales incentives , end‑user government incentives , seasonality , and competitive product offerings . our revenue growth is dependent on our ability to expand our market share in each of the geographies in which we compete , expand our global footprint to new evolving markets , grow our production capabilities to meet demand , and to continue to develop and introduce new and innovative products that address the changing technology and performance requirements of our customers . cost of revenues and gross profit cost of revenues consists primarily of product costs , including purchases from our contract manufacturers and other suppliers , as well as costs related to shipping , customer support , product warranty , personnel , depreciation of test and manufacturing equipment , hosting services for our cloud‑based monitoring platform , and other logistics services . our product costs are affected by technological innovations , such as advances in semiconductor integration and new product introductions , economies of scale resulting in lower component costs , and improvements in production processes and automation . some of these costs , primarily personnel and depreciation of test and manufacturing equipment , are not directly affected by sales volume . story_separator_special_tag a technological preferred enterprise , as defined in the 2017 amendment , that is located in the central region of israel , will be subject to tax at a rate of 12 % on profits deriving from intellectual property ( in development area a - a tax rate of 7.5 % ) . solaredge technologies ltd. will be entitled to an effective tax at a rate of 14.02 % under the 2017 amendment . our subsidiaries are subject to taxes in each of the countries in which they operate . all of our products are developed and manufactured by our subsidiary , solaredge technologies ltd. , which sells our products to its customers as well as to other entities in the solaredge group , which then sell them to their customers . all intercompany sales of products and services are paid for or reimbursed pursuant to transfer price policies established for each of the countries in which we operate , consistent with arm 's length profit levels . due to our history of losses from inception through the end of fiscal 2014 , we have recorded a full valuation allowance on our deferred tax assets . in fiscal 2015 , the first fiscal year in which we were profitable , we used a portion of our carryforward losses from previous years in israel and california . in fiscal 2016 , we continued being profitable , stopped recording valuation allowances , and started recording deferred tax assets in the amount of $ 5.0 million in israel , most of which is related to operating loss carryforward . in the six months ended december 31 , 2016 , we utilized all of our operating loss carryforwards in israel and became profitable for tax purposes . as of june 30 , 2016 , we are entitled to benefit from a 24 months tax exemption until june 30 , 2018 , as part of the beneficiary enterprise tax incentive program extended by the israeli government . results of operations the following tables set forth our consolidated statements of operations for the calendar years ended december 31 , 2016 and 2017 , the six months ended december 31 , 2015 and 2016 , and for the fiscal years ended june 30 , 2015 and 2016. we have derived this data from our consolidated financial statements included elsewhere in this annual report . this information should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this this annual report . the results of historical periods are not necessarily indicative of the results of operations for any future period . 38 comparison of year ended december 31 , 2016 ( unaudited ) and year ended december 31 , 2017 ( audited ) replace_table_token_5_th revenues replace_table_token_6_th revenues increased by $ 117.1 million , or 23.9 % , in 2017 as compared to 2016 , primarily due to an increase in the number of systems sold outside of the u.s. specifically , non-u.s. revenues comprised 42.5 % of our revenues in 2017 as compared to 34.0 % in 2016 , with significant growth in revenues coming from germany and the netherlands as well as from non-u.s. markets outside of europe . the number of power optimizers sold increased by approximately 1.4 million units , or 24.5 % , from approximately 5.9 million units in 2016 to approximately 7.3 million units in 2017. the number of inverters sold increased by approximately 82,000 units , or 35.1 % , from approximately 234,000 units in 2016 to approximately 316,000 units in 2017. while selling price per product remained relatively stable in 2017 , our blended average selling price per watt for units shipped decreased by $ 0.029 , or 10.2 % , in 2017 as compared to 2016 , primarily due to increased sales of our commercial products which are characterized with lower average selling price per watt and a change in our customer mix , which included larger portion of sales to distribution channels and large customers to whom we provide volume discounts . 39 cost of revenues and gross profit replace_table_token_7_th cost of revenues increased by $ 63.1 million , or 19.2 % , in 2017 as compared to 2016 , primarily due to : · an increase in the volume of products sold ; · increased warranty expenses and warranty accruals of $ 5.3 million associated with the rapid increase in our install base ; · increased shipment and logistical costs of $ 11.1 million attributed , in part , to the growth in volumes shipped , and to an increase in air shipments caused by power component shortages ; and · increased personnel-related costs of $ 8.9 million connected to the expansion of our operations and increased support headcount which is growing in parallel with our growing install base worldwide . gross profit as a percentage of revenue increased from 32.8 % in 2016 to 35.4 % in 2017 , primarily due to : · reductions in per-unit production costs that exceeded price erosion of our products ; · increased efficiency in our supply chain ; · lower costs associated with warranty product replacements ; and · general economies of scale in our personnel-related costs and other costs associated with our support and operations departments . operating expenses : research and development , net replace_table_token_8_th research and development , net increased by $ 16.7 million , or 43.8 % , in 2017 as compared to 2016 , primarily due to : · an increase in personnel-related costs of $ 11.7 million as a result of an increased headcount of engineers . the increase in headcount reflects our continuing investment in enhancements of existing products as well as development associated with bringing new products to market ; · expenses related to other directly related overhead costs that increased by $ 2.2 million ; · expenses related to consultants and sub‑contractors that increased by $ 1.1 million ; · depreciation expenses related to lab

liquidity and capital resources the following table shows our cash flows from operating activities , investing activities , and financing activities for the stated periods : replace_table_token_21_th as of december 31 , 2017 , our cash and cash equivalents were $ 163.2 million . this amount does not include $ 180.4 million invested in available for sale marketable securities and $ 1.5 million of restricted cash ( primarily held to secure letters of credit to vendors and bank guarantees securing office lease payments ) . on march 31 , 2015 , we consummated our initial public offering in which we sold 8,050,000 shares of our common stock at a price of $ 18.00 per share , resulting in net proceeds of $ 131.2 million , after deducting underwriting discounts and commissions and $ 3.6 million in offering expenses . as of december 31 , 2017 , we maintain the net proceeds received from our initial public offering as well as cash provided by operating activities in cash and cash equivalents and in available-for-sale marketable securities . our principal uses of cash are funding our operations and other working capital requirements . as of december 31 , 2017 , we have open commitments for capital expenditures in an amount of approximately $ 23.3 million . these commitments reflect purchases of automated assembly lines and other machinery related to our manufacturing . we believe that cash provided by operating activities as well as our cash and cash equivalents will be sufficient to meet our anticipated cash needs for at least the next 12 months . operating activities during 2017 , cash provided by operating activities was $ 136.7 million derived mainly from net income of $ 84.2 million that included $ 26.8 million of non-cash expenses . an increase of $ 63.0 million in trade payables and other accounts payable , $ 20.4 million warranty obligations , $ 14.1 million in deferred revenues and $ 9.4 million accruals for employees .


 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 following table shows our cash flows from operating activities , investing activities , and financing activities for the stated periods : replace_table_token_21_th as of december 31 , 2017 , our cash and cash equivalents were $ 163.2 million . this amount does not include $ 180.4 million invested in available for sale marketable securities and $ 1.5 million of restricted cash ( primarily held to secure letters of credit to vendors and bank guarantees securing office lease payments ) . on march 31 , 2015 , we consummated our initial public offering in which we sold 8,050,000 shares of our common stock at a price of $ 18.00 per share , resulting in net proceeds of $ 131.2 million , after deducting underwriting discounts and commissions and $ 3.6 million in offering expenses . as of december 31 , 2017 , we maintain the net proceeds received from our initial public offering as well as cash provided by operating activities in cash and cash equivalents and in available-for-sale marketable securities . our principal uses of cash are funding our operations and other working capital requirements . as of december 31 , 2017 , we have open commitments for capital expenditures in an amount of approximately $ 23.3 million . these commitments reflect purchases of automated assembly lines and other machinery related to our manufacturing . we believe that cash provided by operating activities as well as our cash and cash equivalents will be sufficient to meet our anticipated cash needs for at least the next 12 months . operating activities during 2017 , cash provided by operating activities was $ 136.7 million derived mainly from net income of $ 84.2 million that included $ 26.8 million of non-cash expenses . an increase of $ 63.0 million in trade payables and other accounts payable , $ 20.4 million warranty obligations , $ 14.1 million in deferred revenues and $ 9.4 million accruals for employees .
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 Suspicious Activity Report : in september 2017 , we approved an expansion for our residential offering in australia with higher production of single-phase inverters and launched a line of three-phase inverters . in september 2017 , we released our dc optimized inverter solution in south korea . our revenues were $ 325.1 million , $ 489.8 million , $ 240.0 million , and $ 607.0 million for fiscal 2015 and 2016 , the six months ended december 31 , 2016 , and fiscal 2017 , respectively . gross margins were 25.2 % , 31.0 % , 33.7 % , and 35.4 % , for fiscal 2015 and 2016 , the six months ended december 31 , 2016 , and fiscal 2017 , respectively . net profits were $ 21.1 million , $ 76.6 million , $ 25.4 million , and $ 84.2 million for fiscal 2015 and 2016 , for the six months ended december 31 , 2016 , and fiscal 2017 , respectively . we continue to focus on our long‑term growth and profitability . we believe that our market opportunity is large and that the transition from traditional inverter architecture to dc optimized inverter architecture will continue as the architecture of choice for distributed solar installations globally . we believe that we are well positioned to benefit from this market trend . we intend to continue to invest in sales and marketing to acquire new customers in our existing markets , grow internationally and drive additional revenue . we also plan to expand our product offerings to further penetrate the large commercial and utility segments . we expect to continue to invest in research and development to enhance our product offerings and develop new , cost-effective solutions . we believe that our strategy results in an efficient operating base with relatively low expenses that will enable profitability on lower revenues relative to our competitors . we believe that our sales and marketing , research and development , and general and administrative costs will decrease as a percentage of revenue in the long‑term as we continue to grow due to economies of scale . with this increased operating leverage , we expect our gross and operating margins to increase in the long‑term . we believe that it is too early to estimate the impact , if any , the newly adopted u.s. tariff imposed on all imported solar modules and cells , may have on the price of solar systems in the united states . if the price of solar systems in the u.s. increases , it may reduce the number of solar systems manufactured and sold , which in turn may decrease demand for our products performance measures in managing our business and assessing financial performance , we supplement the information provided by the financial statements with other operating metrics . these operating metrics are utilized by our management to evaluate our business , measure our performance , identify trends affecting our business , and formulate projections . we use metrics relating to yearly shipments ( inverters shipped , power optimizers shipped , and megawatts shipped ) to evaluate our sales performance and to track market acceptance of our products from year to year . we use metrics relating to monitoring ( systems monitored and megawatts monitored ) to evaluate market acceptance of our products and usage of our solution . we provide the “ megawatts shipped ” metric , which is calculated based on nameplate capacity shipped , to show adoption of our system on a nameplate capacity basis . nameplate capacity shipped is the maximum rated power output capacity of an inverter and corresponds to our financial results in that higher total capacities shipped are generally associated with higher total revenues . however , revenues increase with each additional unit , not necessarily each additional mw of capacity , sold . accordingly , we also provide the “ inverters shipped ” and “ power optimizers shipped ” operating metrics . 34 key components of our results of operations the following discussion describes certain line items in our consolidated statements of operations . revenues we generate revenues from the sale of dc optimized inverter systems for solar pv installations which include power optimizers , inverters , and our cloud‑based monitoring platform . our customer base includes distributors , large solar installers , wholesalers , epcs , and pv module manufacturers . our revenues are affected by changes in the volume and average selling prices of our dc optimized inverter systems . the volume and average selling price of our systems is driven by the supply and demand for our products , changes in the product mix between our residential and commercial products , the customer mix between large and small customers , the geographical mix of our sales , sales incentives , end‑user government incentives , seasonality , and competitive product offerings . our revenue growth is dependent on our ability to expand our market share in each of the geographies in which we compete , expand our global footprint to new evolving markets , grow our production capabilities to meet demand , and to continue to develop and introduce new and innovative products that address the changing technology and performance requirements of our customers . cost of revenues and gross profit cost of revenues consists primarily of product costs , including purchases from our contract manufacturers and other suppliers , as well as costs related to shipping , customer support , product warranty , personnel , depreciation of test and manufacturing equipment , hosting services for our cloud‑based monitoring platform , and other logistics services . our product costs are affected by technological innovations , such as advances in semiconductor integration and new product introductions , economies of scale resulting in lower component costs , and improvements in production processes and automation . some of these costs , primarily personnel and depreciation of test and manufacturing equipment , are not directly affected by sales volume . story_separator_special_tag a technological preferred enterprise , as defined in the 2017 amendment , that is located in the central region of israel , will be subject to tax at a rate of 12 % on profits deriving from intellectual property ( in development area a - a tax rate of 7.5 % ) . solaredge technologies ltd. will be entitled to an effective tax at a rate of 14.02 % under the 2017 amendment . our subsidiaries are subject to taxes in each of the countries in which they operate . all of our products are developed and manufactured by our subsidiary , solaredge technologies ltd. , which sells our products to its customers as well as to other entities in the solaredge group , which then sell them to their customers . all intercompany sales of products and services are paid for or reimbursed pursuant to transfer price policies established for each of the countries in which we operate , consistent with arm 's length profit levels . due to our history of losses from inception through the end of fiscal 2014 , we have recorded a full valuation allowance on our deferred tax assets . in fiscal 2015 , the first fiscal year in which we were profitable , we used a portion of our carryforward losses from previous years in israel and california . in fiscal 2016 , we continued being profitable , stopped recording valuation allowances , and started recording deferred tax assets in the amount of $ 5.0 million in israel , most of which is related to operating loss carryforward . in the six months ended december 31 , 2016 , we utilized all of our operating loss carryforwards in israel and became profitable for tax purposes . as of june 30 , 2016 , we are entitled to benefit from a 24 months tax exemption until june 30 , 2018 , as part of the beneficiary enterprise tax incentive program extended by the israeli government . results of operations the following tables set forth our consolidated statements of operations for the calendar years ended december 31 , 2016 and 2017 , the six months ended december 31 , 2015 and 2016 , and for the fiscal years ended june 30 , 2015 and 2016. we have derived this data from our consolidated financial statements included elsewhere in this annual report . this information should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this this annual report . the results of historical periods are not necessarily indicative of the results of operations for any future period . 38 comparison of year ended december 31 , 2016 ( unaudited ) and year ended december 31 , 2017 ( audited ) replace_table_token_5_th revenues replace_table_token_6_th revenues increased by $ 117.1 million , or 23.9 % , in 2017 as compared to 2016 , primarily due to an increase in the number of systems sold outside of the u.s. specifically , non-u.s. revenues comprised 42.5 % of our revenues in 2017 as compared to 34.0 % in 2016 , with significant growth in revenues coming from germany and the netherlands as well as from non-u.s. markets outside of europe . the number of power optimizers sold increased by approximately 1.4 million units , or 24.5 % , from approximately 5.9 million units in 2016 to approximately 7.3 million units in 2017. the number of inverters sold increased by approximately 82,000 units , or 35.1 % , from approximately 234,000 units in 2016 to approximately 316,000 units in 2017. while selling price per product remained relatively stable in 2017 , our blended average selling price per watt for units shipped decreased by $ 0.029 , or 10.2 % , in 2017 as compared to 2016 , primarily due to increased sales of our commercial products which are characterized with lower average selling price per watt and a change in our customer mix , which included larger portion of sales to distribution channels and large customers to whom we provide volume discounts . 39 cost of revenues and gross profit replace_table_token_7_th cost of revenues increased by $ 63.1 million , or 19.2 % , in 2017 as compared to 2016 , primarily due to : · an increase in the volume of products sold ; · increased warranty expenses and warranty accruals of $ 5.3 million associated with the rapid increase in our install base ; · increased shipment and logistical costs of $ 11.1 million attributed , in part , to the growth in volumes shipped , and to an increase in air shipments caused by power component shortages ; and · increased personnel-related costs of $ 8.9 million connected to the expansion of our operations and increased support headcount which is growing in parallel with our growing install base worldwide . gross profit as a percentage of revenue increased from 32.8 % in 2016 to 35.4 % in 2017 , primarily due to : · reductions in per-unit production costs that exceeded price erosion of our products ; · increased efficiency in our supply chain ; · lower costs associated with warranty product replacements ; and · general economies of scale in our personnel-related costs and other costs associated with our support and operations departments . operating expenses : research and development , net replace_table_token_8_th research and development , net increased by $ 16.7 million , or 43.8 % , in 2017 as compared to 2016 , primarily due to : · an increase in personnel-related costs of $ 11.7 million as a result of an increased headcount of engineers . the increase in headcount reflects our continuing investment in enhancements of existing products as well as development associated with bringing new products to market ; · expenses related to other directly related overhead costs that increased by $ 2.2 million ; · expenses related to consultants and sub‑contractors that increased by $ 1.1 million ; · depreciation expenses related to lab

