pctel maintains expertise in several technology areas in order to be competitive in the test tool and related engineering services market . these include radio frequency engineering , digital signal processing ( “ dsp ” ) engineering , manufacturing , mechanical engineering , product quality and testing , and wireless network engineering . 16 results of operations for continuing operations years ended december 31 , 2016 , 2015 , and 2014 ( all amounts in tables , other than percentages , are in thousands ) revenues by segment replace_table_token_5_th revenues were approximately $ 96.7 million for the year ended december 31 , 2016 , a decrease of 9.3 % from the prior year . revenues declined by $ 6.1 million ( 16.5 % ) for the rf solutions segment due to lower revenues for both products and services . approximately 71 % of the decline in revenues in 2016 for the rf solutions segment is due to the decline in service revenues . the service revenue decline was due to a downturn in north american cellular carrier spending and slower distributed communication system ( “ das ” ) deployments . revenues for the connected solutions segment decreased $ 3.8 million ( 5.5 % ) primarily due to lower kitting revenues and due to the exit from mobile towers . approximately 42 % of the revenue decline during 2016 was due to the exit from mobile towers . revenues were approximately $ 106.6 million for the year ended december 31 , 2015 , a decrease of 0.5 % from the prior year . revenues for the rf solutions segment increased by $ 2.1 million ( 6.1 % ) due to the additional revenue generated from the business acquired from nexgen , offset by lower revenues for scanning receivers . revenues for the connected solutions segment decreased $ 2.8 million ( 3.8 % ) . within connected solutions , revenues increased for antenna products , but decreased for cellular kitting products and mobile towers . we exited the mobile tower product line as of september 30 , 2015. the decline in revenues from mobile towers contributed 2.6 % of the 3.8 % decrease in revenues for connected solutions for the year ended december 31 , 2015 compared to the prior year . gross profit by segment replace_table_token_6_th gross profit was 36.4 % for the year ended december 31 , 2016 , an increase of 1.5 % compared to 2015. the rf solution 's segment gross profit increased 1.4 % to 46.5 % due to more favorable product mix with a higher proportion of scanning receivers versus services compared to 2015. the connected solutions segment 's gross profit was 31.5 % , an increase of 2.1 % compared to 2015. the margin improvement was primarily due to more favorable product mix with a higher proportion of antenna revenues , less kitting revenues and the exit from the mobile tower product line . gross profit was 34.9 % for the year ended december 31 , 2015 , lower by 5.8 % compared to 2014. the rf solutions segment 's gross profit was 45.1 % , a decrease of ( 14.0 % ) . the decrease was due to less favorable product mix of lower revenues from scanning receivers and higher revenues from engineering services . the connected solutions segment 's gross profit was 29.4 % , lower by 2.1 % compared to 2014. the margin decline was primarily due to the fixed cost capacity variance created by the decline in mobile tower revenue and charges for excess inventories . 17 consolidated operating expenses replace_table_token_7_th research and development research and development expenses decreased $ 1.0 million from 2015 to 2016 due to reductions in expenses of $ 0.9 million for rf solutions and $ 0.3 million for connected solutions , offset by an increase of $ 0.2 million for stock compensation . the decrease in rf solutions is due to headcount reductions in the third quarter 2015 for scanning receivers and in the first quarter 2016 for seehawk analytics . research and development expenses decreased $ 0.5 million from 2014 to 2015. development expenses for scanning receivers declined $ 1.7 million and stock compensation expenses declined $ 0.2 million , offsetting $ 1.4 million of development expenses related to seehawk analytics . development expenses declined for scanning receivers because the ib flex ® scanning receiver was launched in 2014. we had 49 , 61 , and 57 full-time equivalent employees in research and development at december 31 , 2016 , 2015 , and 2014 , respectively . sales and marketing 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 decreased $ 0.4 million from 2015 to 2016 as expenses declined by $ 0.7 million within connected solutions and declined by $ 0.1 million within rf solutions , offset by an increase of $ 0.4 million for stock compensation . the decrease from connected solutions is primarily due to headcount reductions in marketing and site solution sales . sales and marketing expenses increased $ 1.2 million from 2014 to 2015. the increase consisted of $ 1.0 million related to the business acquired from nexgen and $ 0.6 million related to sales headcount and marketing expenses , offset by a $ 0.4 million reduction in stock compensation expenses . we had 56 , 61 , and 65 full-time equivalent employees in sales and marketing at december 31 , 2016 , 2015 , and 2014 , respectively . general and administrative 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 . story_separator_special_tag obsolete reserves are based on our identification of inventory where carrying value is above net realizable value . we believe the accounting estimate related to excess and obsolete inventory is a critical accounting estimate because it requires us to make assumptions about future sales volumes and product mix , both of which are highly uncertain . changes in these estimates can have a material impact on our financial statements . warranty costs - we offer repair and replacement warranties of primarily five years for antenna products and scanning receiver products . our warranty reserve is based on historical sales and costs of repair and replacement trends . we believe that the accounting estimate related to warranty costs is a critical accounting estimate because it requires us to make assumptions about matters that are highly uncertain , including future rates of product failure and repair costs . changes in warranty reserves could be material to our financial statements . stock-based compensation - we recognize stock-based compensation expense for all equity awards in accordance with fair value recognition provisions . under the fair value provisions , we recognize stock-based compensation expense net of an estimated forfeiture rate , recognizing compensation cost only for those awards expected to vest over requisite service periods of the awards . stock-based compensation expense and disclosures are dependent on assumptions used in calculating such amounts . these assumptions include risk-free interest rates , expected term of the stock-based compensation instrument granted , volatility of stock and option prices , expected time between grant date and date of exercise , attrition , performance , and other factors . these factors require us to use judgment . our estimates of these assumptions typically are based on historical experience and currently available market place data . while management believes that the estimates used are appropriate , differences in actual experience or changes in assumptions may affect our future stock-based compensation expense and disclosures . income taxes - income taxes are accounted for under the asset and liability method . deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . our operations have international subsidiaries located in china , united kingdom and israel , as well as an international branch office located in hong kong . the complexities that arise from operating in several different tax jurisdictions inevitably lead to an increased exposure to worldwide taxes . should review of the tax filings result in unfavorable adjustments to our tax returns , the operating results , cash flows , and financial position could be materially and adversely affected . we are subject to the continuous examination of our income tax returns by the internal revenue service and other tax authorities . a change in the assessment of the outcomes of such matters could materially impact our consolidated financial statements . the calculation of tax liabilities involves dealing with uncertainties in the application of complex tax regulations . we recognize liabilities for anticipated tax audit issues based on our estimate of whether , and the extent to which , additional taxes may be required . if we ultimately determine that payment of these amounts is unnecessary , then we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary . we also recognize tax benefits to the extent that it is more likely than not that our positions will be sustained if challenged by the taxing authorities . 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 . 24 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 valuatio n allowance until sufficient positive evidence exists to support its reversal . changes in the amount or timing of expected future deductions or taxable income may have a material impact on the level of income tax valuation allowances . our assessment of t he 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 e xercise 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 adjustme nts 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

liquidity and capital resources overview at december 31 , 2016 , our cash , cash equivalents , and investments were approximately $ 33.3 million and we had working capital of approximately $ 55.2 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 , payment of dividends 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 2.0 % and 5.0 % of our revenues and the primary use of capital is for manufacturing and engineering development requirements . our capital expenditures during the year ended december 31 , 2016 was approximately 2.0 % of revenues . we historically have significant transfers between investments and cash as we rotate our large cash balances 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 short-term investment balances 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 . within financing activities , we have historically generated funds from the exercise of stock options and proceeds from the issuance of common stock through the employee stock purchase plan ( “ espp ” ) and have historically used funds to repurchase shares of our 21 common stock through our share repurchase programs and through quarterly dividends .


 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 , 2016 , our cash , cash equivalents , and investments were approximately $ 33.3 million and we had working capital of approximately $ 55.2 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 , payment of dividends 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 2.0 % and 5.0 % of our revenues and the primary use of capital is for manufacturing and engineering development requirements . our capital expenditures during the year ended december 31 , 2016 was approximately 2.0 % of revenues . we historically have significant transfers between investments and cash as we rotate our large cash balances 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 short-term investment balances 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 . within financing activities , we have historically generated funds from the exercise of stock options and proceeds from the issuance of common stock through the employee stock purchase plan ( “ espp ” ) and have historically used funds to repurchase shares of our 21 common stock through our share repurchase programs and through quarterly dividends .
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 Suspicious Activity Report : pctel maintains expertise in several technology areas in order to be competitive in the test tool and related engineering services market . these include radio frequency engineering , digital signal processing ( “ dsp ” ) engineering , manufacturing , mechanical engineering , product quality and testing , and wireless network engineering . 16 results of operations for continuing operations years ended december 31 , 2016 , 2015 , and 2014 ( all amounts in tables , other than percentages , are in thousands ) revenues by segment replace_table_token_5_th revenues were approximately $ 96.7 million for the year ended december 31 , 2016 , a decrease of 9.3 % from the prior year . revenues declined by $ 6.1 million ( 16.5 % ) for the rf solutions segment due to lower revenues for both products and services . approximately 71 % of the decline in revenues in 2016 for the rf solutions segment is due to the decline in service revenues . the service revenue decline was due to a downturn in north american cellular carrier spending and slower distributed communication system ( “ das ” ) deployments . revenues for the connected solutions segment decreased $ 3.8 million ( 5.5 % ) primarily due to lower kitting revenues and due to the exit from mobile towers . approximately 42 % of the revenue decline during 2016 was due to the exit from mobile towers . revenues were approximately $ 106.6 million for the year ended december 31 , 2015 , a decrease of 0.5 % from the prior year . revenues for the rf solutions segment increased by $ 2.1 million ( 6.1 % ) due to the additional revenue generated from the business acquired from nexgen , offset by lower revenues for scanning receivers . revenues for the connected solutions segment decreased $ 2.8 million ( 3.8 % ) . within connected solutions , revenues increased for antenna products , but decreased for cellular kitting products and mobile towers . we exited the mobile tower product line as of september 30 , 2015. the decline in revenues from mobile towers contributed 2.6 % of the 3.8 % decrease in revenues for connected solutions for the year ended december 31 , 2015 compared to the prior year . gross profit by segment replace_table_token_6_th gross profit was 36.4 % for the year ended december 31 , 2016 , an increase of 1.5 % compared to 2015. the rf solution 's segment gross profit increased 1.4 % to 46.5 % due to more favorable product mix with a higher proportion of scanning receivers versus services compared to 2015. the connected solutions segment 's gross profit was 31.5 % , an increase of 2.1 % compared to 2015. the margin improvement was primarily due to more favorable product mix with a higher proportion of antenna revenues , less kitting revenues and the exit from the mobile tower product line . gross profit was 34.9 % for the year ended december 31 , 2015 , lower by 5.8 % compared to 2014. the rf solutions segment 's gross profit was 45.1 % , a decrease of ( 14.0 % ) . the decrease was due to less favorable product mix of lower revenues from scanning receivers and higher revenues from engineering services . the connected solutions segment 's gross profit was 29.4 % , lower by 2.1 % compared to 2014. the margin decline was primarily due to the fixed cost capacity variance created by the decline in mobile tower revenue and charges for excess inventories . 17 consolidated operating expenses replace_table_token_7_th research and development research and development expenses decreased $ 1.0 million from 2015 to 2016 due to reductions in expenses of $ 0.9 million for rf solutions and $ 0.3 million for connected solutions , offset by an increase of $ 0.2 million for stock compensation . the decrease in rf solutions is due to headcount reductions in the third quarter 2015 for scanning receivers and in the first quarter 2016 for seehawk analytics . research and development expenses decreased $ 0.5 million from 2014 to 2015. development expenses for scanning receivers declined $ 1.7 million and stock compensation expenses declined $ 0.2 million , offsetting $ 1.4 million of development expenses related to seehawk analytics . development expenses declined for scanning receivers because the ib flex ® scanning receiver was launched in 2014. we had 49 , 61 , and 57 full-time equivalent employees in research and development at december 31 , 2016 , 2015 , and 2014 , respectively . sales and marketing 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 decreased $ 0.4 million from 2015 to 2016 as expenses declined by $ 0.7 million within connected solutions and declined by $ 0.1 million within rf solutions , offset by an increase of $ 0.4 million for stock compensation . the decrease from connected solutions is primarily due to headcount reductions in marketing and site solution sales . sales and marketing expenses increased $ 1.2 million from 2014 to 2015. the increase consisted of $ 1.0 million related to the business acquired from nexgen and $ 0.6 million related to sales headcount and marketing expenses , offset by a $ 0.4 million reduction in stock compensation expenses . we had 56 , 61 , and 65 full-time equivalent employees in sales and marketing at december 31 , 2016 , 2015 , and 2014 , respectively . general and administrative 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 . story_separator_special_tag obsolete reserves are based on our identification of inventory where carrying value is above net realizable value . we believe the accounting estimate related to excess and obsolete inventory is a critical accounting estimate because it requires us to make assumptions about future sales volumes and product mix , both of which are highly uncertain . changes in these estimates can have a material impact on our financial statements . warranty costs - we offer repair and replacement warranties of primarily five years for antenna products and scanning receiver products . our warranty reserve is based on historical sales and costs of repair and replacement trends . we believe that the accounting estimate related to warranty costs is a critical accounting estimate because it requires us to make assumptions about matters that are highly uncertain , including future rates of product failure and repair costs . changes in warranty reserves could be material to our financial statements . stock-based compensation - we recognize stock-based compensation expense for all equity awards in accordance with fair value recognition provisions . under the fair value provisions , we recognize stock-based compensation expense net of an estimated forfeiture rate , recognizing compensation cost only for those awards expected to vest over requisite service periods of the awards . stock-based compensation expense and disclosures are dependent on assumptions used in calculating such amounts . these assumptions include risk-free interest rates , expected term of the stock-based compensation instrument granted , volatility of stock and option prices , expected time between grant date and date of exercise , attrition , performance , and other factors . these factors require us to use judgment . our estimates of these assumptions typically are based on historical experience and currently available market place data . while management believes that the estimates used are appropriate , differences in actual experience or changes in assumptions may affect our future stock-based compensation expense and disclosures . income taxes - income taxes are accounted for under the asset and liability method . deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . our operations have international subsidiaries located in china , united kingdom and israel , as well as an international branch office located in hong kong . the complexities that arise from operating in several different tax jurisdictions inevitably lead to an increased exposure to worldwide taxes . should review of the tax filings result in unfavorable adjustments to our tax returns , the operating results , cash flows , and financial position could be materially and adversely affected . we are subject to the continuous examination of our income tax returns by the internal revenue service and other tax authorities . a change in the assessment of the outcomes of such matters could materially impact our consolidated financial statements . the calculation of tax liabilities involves dealing with uncertainties in the application of complex tax regulations . we recognize liabilities for anticipated tax audit issues based on our estimate of whether , and the extent to which , additional taxes may be required . if we ultimately determine that payment of these amounts is unnecessary , then we reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary . we also recognize tax benefits to the extent that it is more likely than not that our positions will be sustained if challenged by the taxing authorities . 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 . 24 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 valuatio n allowance until sufficient positive evidence exists to support its reversal . changes in the amount or timing of expected future deductions or taxable income may have a material impact on the level of income tax valuation allowances . our assessment of t he 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 e xercise 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 adjustme nts 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

