18 we believe the web application development market in north america and europe is growing and fragmented . we believe established yet small web application development companies have the ability to market , sell and install our iapps product suite in their local metropolitan markets . we believe these companies also have a .net customer base and a niche presence in the local markets in which they operate . we believe there is an opportunity for us to acquire companies that specialize in web application development that are based in large north american cities in which we currently do not operate . we believe that by acquiring certain of these companies and applying our business practices and efficiencies , we can accelerate our time to market of the iapps product suite . we did not complete any acquisitions during the fiscal year ended september 30 , 2011. however , on october 3 , 2011 , we completed the acquisition of magnetic corporation ( “ magnetic ” ) , a tampa , florida based web technology company . the company acquired all of the outstanding capital stock of magnetic for consideration consisting of ( i ) $ 150 thousand in cash ( ii ) assumption of $ 130 thousand of indebtedness and ( iii ) contingent consideration of up to $ 600 thousand in cash and 166,666 shares of bridgeline digital common stock . the contingent consideration is payable quarterly over the 12 consecutive calendar quarters following the acquisition , contingent upon the acquired business achieving certain quarterly revenue and quarterly operating income targets during the period . the contingent common stock has been issued and is being held in escrow pending satisfaction of the applicable targets . to the extent that either the quarterly revenue targets or the quarterly operating income targets are not met in a particular quarter , the earn-out period will be extended for up to four additional quarters . we expect to make additional acquisitions in the foreseeable future . we believe these acquisitions are consistent with our iapps product suite distribution strategy and growth strategy by providing bridgeline with new geographical distribution opportunities , an expanded customer base , an expanded sales force and an expanded developer force . in addition , integrating acquired companies into our existing operations allows us to consolidate the finance , human resources , legal , marketing , research and development of the acquired businesses with our own internal resources , hence reducing the aggregate of these expenses for the combined businesses and resulting in improved operating results . customer information we had 532 customers at september 30 , 2011 and of these customers approximately 71 % paid us a recurring monthly subscription fee or a recurring monthly managed service fee . approximately 70 % of our customers in fiscal 2010 continued to be revenue generating customers in fiscal 2011 , demonstrating a deep customer traction model . summary of results of operations total revenue for the fiscal year ended september 30 , 2011 ( “ fiscal 2011 ” ) increased 11 % compared with total revenue for the fiscal year ended september 30 , 2010 ( “ fiscal 2010 ” ) . loss from operations for fiscal 2011 was ( $ 547 ) thousand compared with loss from operations of ( $ 239 ) thousand for fiscal 2010. we had a net loss for fiscal 2011 of ( $ 782 ) thousand compared with a net loss of ( $ 377 ) thousand for fiscal 2010. loss per share for fiscal 2011 was ( $ 0.06 ) compared with loss per share of ( $ 0.03 ) for fiscal 2010. in fiscal 2010 , we completed two acquisitions . we acquired tmx interactive , inc. ( now bridgeline philadelphia ) on may 11 , 2010 and e.magination network , llc . ( now bridgeline baltimore ) on july 09 , 2010. the results of operations for these two acquisitions are included in our results of operations from the date of acquisition . highlights of fiscal 2011 highlights of fiscal 2011 include the achievement of record revenues , record iapps license sales and key iapps product releases and updates : · in fiscal 2011 , bridgeline digital achieved record revenues of $ 26.3 million , an 11 % increase compared to fiscal 2010 . · in fiscal 2011 , bridgeline digital had a record number of iapps licenses sold within a fiscal year . the company sold 213 new iapps licenses during fiscal 2011 , a 47 % increase when compared to fiscal 2010 . · iapps version 4.6 – in the third quarter of fiscal 2011 , bridgeline released iapps version 4.6 providing multiple feature enhancements to iapps analyzer and various key updates to iapps content manager and iapps marketier . 19 replace_table_token_1_th 20 revenue our revenue is derived from three sources : ( i ) web application development services ( ii ) managed service hosting and ( iii ) subscription and perpetual licenses . total revenue for fiscal 2011 increased 11 % compared with total revenue for fiscal 2010. total revenue was $ 26.3 million for fiscal 2011 compared with $ 23.6 million for fiscal 2010. web application development services web application development services revenue is comprised of iapps development related services and other development related services generated from non iapps customers . revenue total from web application development increased $ 2.0 million , or 10 % to $ 21.9 million from $ 19.9 million for fiscal 2011 compared to fiscal 2010. the increases in web application development for fiscal 2011 compared to fiscal 2010 is primarily related to our acquisitions of tmx ( may 2010 ) and e.magination ( july 2010 ) completed in the last two quarters of fiscal 2010. also contributing to the increases are services engagements generated from sales of our iapps product . story_separator_special_tag effective for interim and annual periods ending after september 15 , 2009 , the financial accounting standards board ( “ fasb ” ) accounting standards codification ( the “ codification ” ) became the single source of authoritative nongovernmental us gaap . the company adopted the codification during the quarter ending september 30 , 2009. the adoption had no effect on the company 's consolidated financial statements . the preparation of financial statements in accordance us gaap requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period . we regularly make estimates and assumptions that affect the reported amounts of assets and liabilities . the most significant estimates included in our financial statements are the valuation of accounts receivable and long-term assets , including intangibles , goodwill and deferred tax assets , stock-based compensation , amounts of revenue to be recognized on service contracts in progress , unbilled receivables , and deferred revenue . we base our estimates and assumptions on current facts , historical experience and various other factors that we believe to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources . the actual results experienced by us may differ materially and adversely from our estimates . to the extent there are material differences between our estimates and the actual results , our future results of operations will be affected . we consider the following accounting policies to be both those most important to the portrayal of our financial condition and those that require the most subjective judgment : · revenue recognition ; 26 · allowance for doubtful accounts ; · accounting for cost of computer software to be sold , leased or otherwise marketed ; · accounting for goodwill and other intangible assets ; and · accounting for stock-based compensation . revenue recognition overview we enter into arrangements to sell web application development services ( professional services ) , software licenses or combinations thereof . revenue is categorized into ( i ) web application development services ( ii ) managed service hosting , and ( iii ) subscriptions and perpetual licenses . we recognize revenue as required by the revenue recognition topic of the codification . revenue is generally recognized when all of the following conditions are satisfied : ( 1 ) there is persuasive evidence of an arrangement ; ( 2 ) delivery has occurred or the services have been provided to the customer ; ( 3 ) the amount of fees to be paid by the customer is fixed or determinable ; and ( 4 ) the collection of the fees is reasonably assured . billings made or payments received in advance of providing services are deferred until the period these services are provided . during fiscal 2010 , we began to develop a reseller channel to supplement our direct sales force for our iapps product suite . we continued to develop this reseller channel in fiscal 2011. resellers are generally located in territories where we do not have a direct sales force . customers generally sign a license agreement directly with us . revenue from perpetual licenses sold through resellers is recognized upon delivery to the end user as long as evidence of an arrangement exists , collectability is probable , and the fee is fixed and determinable . revenue for subscription licenses is recognized monthly as the services are delivered . web application development services web application development services include professional services primarily related to the company 's web development solutions that address specific customer needs such as information architecture and usability engineering , interface configuration , application development , rich media development , back end integration , search engine optimization , and project management . web application development services are contracted for on either a fixed price or time and materials basis . for its fixed price engagements , after assigning the relative selling price to the elements of the arrangement , the company applies the proportional performance model ( if not subject to contract accounting ) to recognize revenue based on cost incurred in relation to total estimated cost at completion . the company has determined that labor costs are the most appropriate measure to allocate revenue among reporting periods , as they are the primary input when providing application development services . customers are invoiced monthly or upon the completion of milestones . for milestone based projects , since milestone pricing is based on expected hourly costs and the duration of such engagements is relatively short , this input approach principally mirrors an output approach under the proportional performance model for revenue recognition on such fixed priced engagements . for time and materials contracts , revenues are recognized as the services are provided . web application development services also include retained professional services contracted for on an “ on call ” basis or for a certain amount of hours each month . such arrangements generally provide for a guaranteed availability of a number of professional services hours each month on a “ use it or lose it ” basis . for retained professional services sold on a stand-alone basis we recognize revenue as the services are delivered or over the term of the contractual retainer period . these arrangements do not require formal customer acceptance and do not grant any future right to labor hours contracted for but not used . managed service hosting managed service hosting includes hosting arrangements that provide for the use of certain hardware and infrastructure for those customers who do not wish to host our applications independently . hosting agreements are either annual or month-to-month arrangements that provide for termination for convenience by either party generally upon 30-days notice .

cash flows operating activities cash provided by operating activities was $ 823 thousand for the year ended september 30 , 2011 , compared to $ 1.5 million for fiscal 2010. this decrease in cash from operating activities is primarily attributable to lower net income for fiscal 2011 as compared with fiscal 2010 and an increase in accounts receivable . investing activities cash used in investing activities was $ 1.4 million for the year ended september 30 , 2011 compared to $ 5.5 million for fiscal 2010. this amount included expenditures for equipment and improvements of $ 618 thousand for the year ended september 30 , 2011 compared with $ 398 thousand for fiscal 2010 , and capitalized software development costs of $ 59 thousand for the year ended september 30 , 2011 as compared with $ 508 thousand in fiscal 2010. also included in investing activities for the twelve months ended september 30 , 2010 was net cash paid for the tmx and e.magination acquisitions of $ 3.1 million . there were no acquisitions completed in fiscal 2011. contingent acquisition payments were $ 696 thousand for the year ended september 30 , 2011 compared with $ 1.5 million for fiscal 2010. financing activities cash provided by financing activities was $ 34 thousand for the year ended september 30 , 2011 compared with cash provided of $ 3.9 million for fiscal 2010. the cash provided by financing activities for the year ended september 30 , 2011 was attributable to cash generated from the sale of common stock of $ 858 thousand and exercise of employee stock options of


 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.
     ```cash flows operating activities cash provided by operating activities was $ 823 thousand for the year ended september 30 , 2011 , compared to $ 1.5 million for fiscal 2010. this decrease in cash from operating activities is primarily attributable to lower net income for fiscal 2011 as compared with fiscal 2010 and an increase in accounts receivable . investing activities cash used in investing activities was $ 1.4 million for the year ended september 30 , 2011 compared to $ 5.5 million for fiscal 2010. this amount included expenditures for equipment and improvements of $ 618 thousand for the year ended september 30 , 2011 compared with $ 398 thousand for fiscal 2010 , and capitalized software development costs of $ 59 thousand for the year ended september 30 , 2011 as compared with $ 508 thousand in fiscal 2010. also included in investing activities for the twelve months ended september 30 , 2010 was net cash paid for the tmx and e.magination acquisitions of $ 3.1 million . there were no acquisitions completed in fiscal 2011. contingent acquisition payments were $ 696 thousand for the year ended september 30 , 2011 compared with $ 1.5 million for fiscal 2010. financing activities cash provided by financing activities was $ 34 thousand for the year ended september 30 , 2011 compared with cash provided of $ 3.9 million for fiscal 2010. the cash provided by financing activities for the year ended september 30 , 2011 was attributable to cash generated from the sale of common stock of $ 858 thousand and exercise of employee stock options of
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 Suspicious Activity Report : 18 we believe the web application development market in north america and europe is growing and fragmented . we believe established yet small web application development companies have the ability to market , sell and install our iapps product suite in their local metropolitan markets . we believe these companies also have a .net customer base and a niche presence in the local markets in which they operate . we believe there is an opportunity for us to acquire companies that specialize in web application development that are based in large north american cities in which we currently do not operate . we believe that by acquiring certain of these companies and applying our business practices and efficiencies , we can accelerate our time to market of the iapps product suite . we did not complete any acquisitions during the fiscal year ended september 30 , 2011. however , on october 3 , 2011 , we completed the acquisition of magnetic corporation ( “ magnetic ” ) , a tampa , florida based web technology company . the company acquired all of the outstanding capital stock of magnetic for consideration consisting of ( i ) $ 150 thousand in cash ( ii ) assumption of $ 130 thousand of indebtedness and ( iii ) contingent consideration of up to $ 600 thousand in cash and 166,666 shares of bridgeline digital common stock . the contingent consideration is payable quarterly over the 12 consecutive calendar quarters following the acquisition , contingent upon the acquired business achieving certain quarterly revenue and quarterly operating income targets during the period . the contingent common stock has been issued and is being held in escrow pending satisfaction of the applicable targets . to the extent that either the quarterly revenue targets or the quarterly operating income targets are not met in a particular quarter , the earn-out period will be extended for up to four additional quarters . we expect to make additional acquisitions in the foreseeable future . we believe these acquisitions are consistent with our iapps product suite distribution strategy and growth strategy by providing bridgeline with new geographical distribution opportunities , an expanded customer base , an expanded sales force and an expanded developer force . in addition , integrating acquired companies into our existing operations allows us to consolidate the finance , human resources , legal , marketing , research and development of the acquired businesses with our own internal resources , hence reducing the aggregate of these expenses for the combined businesses and resulting in improved operating results . customer information we had 532 customers at september 30 , 2011 and of these customers approximately 71 % paid us a recurring monthly subscription fee or a recurring monthly managed service fee . approximately 70 % of our customers in fiscal 2010 continued to be revenue generating customers in fiscal 2011 , demonstrating a deep customer traction model . summary of results of operations total revenue for the fiscal year ended september 30 , 2011 ( “ fiscal 2011 ” ) increased 11 % compared with total revenue for the fiscal year ended september 30 , 2010 ( “ fiscal 2010 ” ) . loss from operations for fiscal 2011 was ( $ 547 ) thousand compared with loss from operations of ( $ 239 ) thousand for fiscal 2010. we had a net loss for fiscal 2011 of ( $ 782 ) thousand compared with a net loss of ( $ 377 ) thousand for fiscal 2010. loss per share for fiscal 2011 was ( $ 0.06 ) compared with loss per share of ( $ 0.03 ) for fiscal 2010. in fiscal 2010 , we completed two acquisitions . we acquired tmx interactive , inc. ( now bridgeline philadelphia ) on may 11 , 2010 and e.magination network , llc . ( now bridgeline baltimore ) on july 09 , 2010. the results of operations for these two acquisitions are included in our results of operations from the date of acquisition . highlights of fiscal 2011 highlights of fiscal 2011 include the achievement of record revenues , record iapps license sales and key iapps product releases and updates : · in fiscal 2011 , bridgeline digital achieved record revenues of $ 26.3 million , an 11 % increase compared to fiscal 2010 . · in fiscal 2011 , bridgeline digital had a record number of iapps licenses sold within a fiscal year . the company sold 213 new iapps licenses during fiscal 2011 , a 47 % increase when compared to fiscal 2010 . · iapps version 4.6 – in the third quarter of fiscal 2011 , bridgeline released iapps version 4.6 providing multiple feature enhancements to iapps analyzer and various key updates to iapps content manager and iapps marketier . 19 replace_table_token_1_th 20 revenue our revenue is derived from three sources : ( i ) web application development services ( ii ) managed service hosting and ( iii ) subscription and perpetual licenses . total revenue for fiscal 2011 increased 11 % compared with total revenue for fiscal 2010. total revenue was $ 26.3 million for fiscal 2011 compared with $ 23.6 million for fiscal 2010. web application development services web application development services revenue is comprised of iapps development related services and other development related services generated from non iapps customers . revenue total from web application development increased $ 2.0 million , or 10 % to $ 21.9 million from $ 19.9 million for fiscal 2011 compared to fiscal 2010. the increases in web application development for fiscal 2011 compared to fiscal 2010 is primarily related to our acquisitions of tmx ( may 2010 ) and e.magination ( july 2010 ) completed in the last two quarters of fiscal 2010. also contributing to the increases are services engagements generated from sales of our iapps product . story_separator_special_tag effective for interim and annual periods ending after september 15 , 2009 , the financial accounting standards board ( “ fasb ” ) accounting standards codification ( the “ codification ” ) became the single source of authoritative nongovernmental us gaap . the company adopted the codification during the quarter ending september 30 , 2009. the adoption had no effect on the company 's consolidated financial statements . the preparation of financial statements in accordance us gaap requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period . we regularly make estimates and assumptions that affect the reported amounts of assets and liabilities . the most significant estimates included in our financial statements are the valuation of accounts receivable and long-term assets , including intangibles , goodwill and deferred tax assets , stock-based compensation , amounts of revenue to be recognized on service contracts in progress , unbilled receivables , and deferred revenue . we base our estimates and assumptions on current facts , historical experience and various other factors that we believe to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources . the actual results experienced by us may differ materially and adversely from our estimates . to the extent there are material differences between our estimates and the actual results , our future results of operations will be affected . we consider the following accounting policies to be both those most important to the portrayal of our financial condition and those that require the most subjective judgment : · revenue recognition ; 26 · allowance for doubtful accounts ; · accounting for cost of computer software to be sold , leased or otherwise marketed ; · accounting for goodwill and other intangible assets ; and · accounting for stock-based compensation . revenue recognition overview we enter into arrangements to sell web application development services ( professional services ) , software licenses or combinations thereof . revenue is categorized into ( i ) web application development services ( ii ) managed service hosting , and ( iii ) subscriptions and perpetual licenses . we recognize revenue as required by the revenue recognition topic of the codification . revenue is generally recognized when all of the following conditions are satisfied : ( 1 ) there is persuasive evidence of an arrangement ; ( 2 ) delivery has occurred or the services have been provided to the customer ; ( 3 ) the amount of fees to be paid by the customer is fixed or determinable ; and ( 4 ) the collection of the fees is reasonably assured . billings made or payments received in advance of providing services are deferred until the period these services are provided . during fiscal 2010 , we began to develop a reseller channel to supplement our direct sales force for our iapps product suite . we continued to develop this reseller channel in fiscal 2011. resellers are generally located in territories where we do not have a direct sales force . customers generally sign a license agreement directly with us . revenue from perpetual licenses sold through resellers is recognized upon delivery to the end user as long as evidence of an arrangement exists , collectability is probable , and the fee is fixed and determinable . revenue for subscription licenses is recognized monthly as the services are delivered . web application development services web application development services include professional services primarily related to the company 's web development solutions that address specific customer needs such as information architecture and usability engineering , interface configuration , application development , rich media development , back end integration , search engine optimization , and project management . web application development services are contracted for on either a fixed price or time and materials basis . for its fixed price engagements , after assigning the relative selling price to the elements of the arrangement , the company applies the proportional performance model ( if not subject to contract accounting ) to recognize revenue based on cost incurred in relation to total estimated cost at completion . the company has determined that labor costs are the most appropriate measure to allocate revenue among reporting periods , as they are the primary input when providing application development services . customers are invoiced monthly or upon the completion of milestones . for milestone based projects , since milestone pricing is based on expected hourly costs and the duration of such engagements is relatively short , this input approach principally mirrors an output approach under the proportional performance model for revenue recognition on such fixed priced engagements . for time and materials contracts , revenues are recognized as the services are provided . web application development services also include retained professional services contracted for on an “ on call ” basis or for a certain amount of hours each month . such arrangements generally provide for a guaranteed availability of a number of professional services hours each month on a “ use it or lose it ” basis . for retained professional services sold on a stand-alone basis we recognize revenue as the services are delivered or over the term of the contractual retainer period . these arrangements do not require formal customer acceptance and do not grant any future right to labor hours contracted for but not used . managed service hosting managed service hosting includes hosting arrangements that provide for the use of certain hardware and infrastructure for those customers who do not wish to host our applications independently . hosting agreements are either annual or month-to-month arrangements that provide for termination for convenience by either party generally upon 30-days notice .

