under these revised distribution agreements , selling prices are now fixed and determinable on the date of shipment and revenue is recognized upon shipment . under these revised distribution agreements , we recognized additional 32 revenue of $ 2.0 million in fiscal 2018 on the dates that the distribution agreements were revised for product held by our distributors as the price became fixed and determinable . historically , a small number of oem customers have accounted for a substantial portion of our net revenues , and we expect that significant customer concentration will continue for the foreseeable future . many of our oems use contract manufacturers to manufacture their equipment . accordingly , a significant percentage of our net revenues is derived from sales to these contract manufacturers and to consignment warehouses . in addition , a significant portion of our sales are made to foreign and domestic distributors who resell our products to oems , as well as their contract manufacturers . direct sales to contract manufacturers and consignment warehouses accounted for 34.9 % , 39.0 % and 37.6 % of our net revenues for fiscal 2018 , 2017 and 2016 , respectively . sales to foreign and domestic distributors accounted for 62.5 % , 59.1 % and 50.4 % of our net revenues for fiscal 2018 , 2017 and 2016 , respectively . the following direct customers accounted for 10 % or more of our net revenues in one or more of the following periods : replace_table_token_4_th nokia was our largest customer in fiscal 2018 , 2017 and 2016. nokia purchases products directly from us and through contract manufacturers and distributors . based on information provided to us by its contract manufacturers and our distributors , purchases by nokia represented approximately 36 % , 41 % and 32 % of our net revenues in fiscal 2018 , 2017 and 2016 , respectively . our revenues have been substantially impacted by significant fluctuations in sales to nokia , and we expect that future direct and indirect sales to nokia will continue to fluctuate substantially on a quarterly basis and that such fluctuations may significantly affect our operating results in future periods . to our knowledge , none of our other oem customers accounted for more than 10 % of our net revenues in fiscal 2018 , 2017 or 2016 . cost of revenues . our cost of revenues consists primarily of wafer fabrication costs , wafer sort , assembly , test and burn-in expenses , the amortized cost of production mask sets , stock-based compensation and the cost of materials and overhead from operations . all of our wafer manufacturing and assembly operations , and a significant portion of our wafer sort testing operations , are outsourced . accordingly , most of our cost of revenues consists of payments to tsmc , powerchip and independent assembly and test houses . because we do not have long-term , fixed-price supply contracts , our wafer fabrication and other outsourced manufacturing costs are subject to the cyclical fluctuations in demand for semiconductors . cost of revenues also includes expenses related to supply chain management , quality assurance , and final product testing and documentation control activities conducted at our headquarters in sunnyvale , california and our branch operations in taiwan . gross profit . our gross profit margins vary among our products and are generally greater on our higher density products and , within a particular density , greater on our higher speed and industrial temperature products . we expect that our overall gross margins will fluctuate from period to period as a result of shifts in product mix , changes in average selling prices and our ability to control our cost of revenues , including costs associated with outsourced wafer fabrication and product assembly and testing . research and development expenses . research and development expenses consist primarily of salaries and related expenses for design engineers and other technical personnel , the cost of developing prototypes , stock-based 33 compensation and fees paid to consultants . we charge all research and development expenses to operations as incurred . we charge mask costs used in production to cost of revenues over a 12-month period . however , we charge costs related to pre-production mask sets , which are not used in production , to research and development expenses at the time they are incurred . these charges often arise as we transition to new process technologies and , accordingly , can cause research and development expenses to fluctuate on a quarterly basis . we believe that continued investment in research and development is critical to our long-term success , and we expect to continue to devote significant resources to product development activities . in particular , we are devoting substantial resources to the development of a new category of in-place associative computing products . accordingly , we expect that our research and development expenses will continue to be substantial in future periods and may lead to operating losses in some periods . such expenses as a percentage of net revenues may fluctuate from period to period . selling , general and administrative expenses . selling , general and administrative expenses consist primarily of commissions paid to independent sales representatives , salaries , stock-based compensation and related expenses for personnel engaged in sales , marketing , administrative , finance and human resources activities , professional fees , costs associated with the promotion of our products and other corporate expenses . we expect that our sales and marketing expenses will increase in absolute dollars in future periods if we are able to grow and expand our sales force but that , to the extent our revenues increase in future periods , these expenses will generally decline as a percentage of net revenues . we also expect that , in support of any future growth that we are able to achieve , general and administrative expenses will generally increase in absolute dollars . story_separator_special_tag as of march 31 , 2018 , the accrual for potential payment of contingent consideration was $ 5.5 million . critical accounting policies and estimates the preparation of our consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the united states ( “ gaap ” ) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period . significant estimates are inherent in the preparation of the consolidated financial statements and include estimates affecting revenue recognition , obsolete and excess inventory , the valuation allowance on deferred tax assets , stock-based compensation , contingent consideration and the valuation of goodwill . we believe that we consistently apply these judgments and estimates and that our financial statements and accompanying notes fairly represent our financial results for all periods presented . however , any errors in these judgments and estimates may have a material impact on our balance sheet and statement of operations . critical accounting estimates , as defined by the securities and exchange commission , are those that are most important to the portrayal of our financial condition and results of operations and require our most difficult and subjective judgments and estimates of matters that are inherently uncertain . our critical accounting estimates include those regarding revenue recognition , the valuation of inventories , taxes , stock-based compensation , contingent consideration and the valuation of goodwill . revenue recognition . we recognize revenue when persuasive evidence of an arrangement exists , delivery has occurred , the price is fixed or determinable and collectability of the resulting receivable is reasonably assured . under these criteria , revenue from the sale of our products is generally recognized upon shipment according to our shipping terms , net of accruals for estimated sales returns and allowances based on historical experience . sales to consignment warehouses , who purchase products from us for use by contract manufacturers , are recorded upon delivery to the contract manufacturers . sales to certain distributors were previously made under agreements allowing for returns or credits under certain circumstances . we therefore deferred recognition of revenue on sales to those distributors under these terms until products were resold by the distributor . during fiscal 2018 , we revised our distribution agreements to these distributors to eliminate ship from stock and debits and price protection . under these revised distribution agreements , selling prices are now fixed and determinable on the date of shipment and revenue is recognized upon shipment . under these revised distribution agreements , we recognized additional revenue of $ 2.0 million in fiscal 2018 on the dates that the distribution agreements were revised for product held by our distributors as the price became fixed and determinable . valuation of inventories . inventories are stated at the lower of cost or market value , cost being determined on a weighted average basis . our inventory write-down allowance is established when conditions indicate that the selling price of our products could be less than cost due to physical deterioration , obsolescence , changes in price levels , or other causes . we consider the need to establish the allowance for excess inventory generally based on inventory levels in excess of 12 months of forecasted demand for each specific product . inventory consists of finished goods at our premises or consignment warehouses , work in progress at our premises or our contract manufacturers and finished goods at distributors that have price protection and ship from stock and debit rights and takes into account any un-cancellable purchase commitments . historically , it has been difficult to forecast customer demand especially at the part-number level . many of the orders we receive from our customers and distributors 40 request delivery of product on relatively short notice and with lead times less than our manufacturing cycle time . in order to provide competitive delivery times to our customers , we build and stock a certain amount of inventory in anticipation of customer demand that may not materialize . moreover , as is common in the semiconductor industry , we may allow customers to cancel orders with minimal advance notice . thus , even product built to satisfy specific customer orders may not ultimately be required to fulfill customer demand . nevertheless , at any point in time , some portion of our inventory is subject to the risk of being materially in excess of our projected demand . additionally , our average selling prices could decline due to market or other conditions , which creates a risk that costs of manufacturing our inventory may not be recovered . these factors contribute to the risk that we may be required to record additional inventory write-downs in the future , which could be material . in addition , if actual market conditions are more favorable than expected , inventory previously written down may be sold to customers resulting in lower cost of sales and higher income from operations than expected in that period . taxes . we account for income taxes under the liability method , whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income . we make certain estimates and judgments in the calculation of tax liabilities and the determination of deferred tax assets , which arise from temporary differences between tax and financial statement recognition methods . we record a valuation allowance to reduce our deferred tax assets to the amount that management estimates is more likely than not to be realized . as of march 31 , 2018 , our net deferred tax assets of $ 6.0 million are subject to a valuation

liquidity and capital resources as of march 31 , 2018 , our principal sources of liquidity were cash , cash equivalents and short-term investments of $ 58.4 million compared to $ 49.9 million as of march 31 , 2017 . cash , cash equivalents and short-term investments totaling $ 31.7 million were held in foreign locations as of march 31 , 2018. net cash provided by operating activities was $ 1.1 million for fiscal 2018 compared to $ 2.1 million for fiscal 2017 and $ 460,000 for fiscal 2016 . the primary sources of cash in fiscal 2018 were a reduction in inventory of $ 2.1 million , non-cash stock-based compensation expense of $ 2.1 million , a provision for excess and obsolete inventory of $ 1.6 million , depreciation and amortization expense of $ 1.3 million and a decrease in accounts receivable of $ 1.1 million . the primary uses of cash in fiscal 2018 were and net loss of $ 4.5 million , a decrease in deferred revenue of $ 1.7 million and a decrease in accrued expenses and other liabilities of $ 1.2 million . the decrease in deferred revenue is due to revisions in our distribution agreements in fiscal 2018 that resulted in the elimination of ship from stock and debit rights and price protection rights for our distributors to eliminate any uncertainty in regards to a final selling price and to establish a selling price that is fixed and determinable at the time of shipment to the distributor and enable us to recognize revenue upon shipment to our distributors that was previously deferred . the primary 38 sources of cash in fiscal 2017 were non-cash stock-based compensation expense of $ 1.9 million , depreciation and amortization expense of $ 1.5 million and a decrease in accounts receivable of $ 1.1 million .


 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 as of march 31 , 2018 , our principal sources of liquidity were cash , cash equivalents and short-term investments of $ 58.4 million compared to $ 49.9 million as of march 31 , 2017 . cash , cash equivalents and short-term investments totaling $ 31.7 million were held in foreign locations as of march 31 , 2018. net cash provided by operating activities was $ 1.1 million for fiscal 2018 compared to $ 2.1 million for fiscal 2017 and $ 460,000 for fiscal 2016 . the primary sources of cash in fiscal 2018 were a reduction in inventory of $ 2.1 million , non-cash stock-based compensation expense of $ 2.1 million , a provision for excess and obsolete inventory of $ 1.6 million , depreciation and amortization expense of $ 1.3 million and a decrease in accounts receivable of $ 1.1 million . the primary uses of cash in fiscal 2018 were and net loss of $ 4.5 million , a decrease in deferred revenue of $ 1.7 million and a decrease in accrued expenses and other liabilities of $ 1.2 million . the decrease in deferred revenue is due to revisions in our distribution agreements in fiscal 2018 that resulted in the elimination of ship from stock and debit rights and price protection rights for our distributors to eliminate any uncertainty in regards to a final selling price and to establish a selling price that is fixed and determinable at the time of shipment to the distributor and enable us to recognize revenue upon shipment to our distributors that was previously deferred . the primary 38 sources of cash in fiscal 2017 were non-cash stock-based compensation expense of $ 1.9 million , depreciation and amortization expense of $ 1.5 million and a decrease in accounts receivable of $ 1.1 million .
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 Suspicious Activity Report : under these revised distribution agreements , selling prices are now fixed and determinable on the date of shipment and revenue is recognized upon shipment . under these revised distribution agreements , we recognized additional 32 revenue of $ 2.0 million in fiscal 2018 on the dates that the distribution agreements were revised for product held by our distributors as the price became fixed and determinable . historically , a small number of oem customers have accounted for a substantial portion of our net revenues , and we expect that significant customer concentration will continue for the foreseeable future . many of our oems use contract manufacturers to manufacture their equipment . accordingly , a significant percentage of our net revenues is derived from sales to these contract manufacturers and to consignment warehouses . in addition , a significant portion of our sales are made to foreign and domestic distributors who resell our products to oems , as well as their contract manufacturers . direct sales to contract manufacturers and consignment warehouses accounted for 34.9 % , 39.0 % and 37.6 % of our net revenues for fiscal 2018 , 2017 and 2016 , respectively . sales to foreign and domestic distributors accounted for 62.5 % , 59.1 % and 50.4 % of our net revenues for fiscal 2018 , 2017 and 2016 , respectively . the following direct customers accounted for 10 % or more of our net revenues in one or more of the following periods : replace_table_token_4_th nokia was our largest customer in fiscal 2018 , 2017 and 2016. nokia purchases products directly from us and through contract manufacturers and distributors . based on information provided to us by its contract manufacturers and our distributors , purchases by nokia represented approximately 36 % , 41 % and 32 % of our net revenues in fiscal 2018 , 2017 and 2016 , respectively . our revenues have been substantially impacted by significant fluctuations in sales to nokia , and we expect that future direct and indirect sales to nokia will continue to fluctuate substantially on a quarterly basis and that such fluctuations may significantly affect our operating results in future periods . to our knowledge , none of our other oem customers accounted for more than 10 % of our net revenues in fiscal 2018 , 2017 or 2016 . cost of revenues . our cost of revenues consists primarily of wafer fabrication costs , wafer sort , assembly , test and burn-in expenses , the amortized cost of production mask sets , stock-based compensation and the cost of materials and overhead from operations . all of our wafer manufacturing and assembly operations , and a significant portion of our wafer sort testing operations , are outsourced . accordingly , most of our cost of revenues consists of payments to tsmc , powerchip and independent assembly and test houses . because we do not have long-term , fixed-price supply contracts , our wafer fabrication and other outsourced manufacturing costs are subject to the cyclical fluctuations in demand for semiconductors . cost of revenues also includes expenses related to supply chain management , quality assurance , and final product testing and documentation control activities conducted at our headquarters in sunnyvale , california and our branch operations in taiwan . gross profit . our gross profit margins vary among our products and are generally greater on our higher density products and , within a particular density , greater on our higher speed and industrial temperature products . we expect that our overall gross margins will fluctuate from period to period as a result of shifts in product mix , changes in average selling prices and our ability to control our cost of revenues , including costs associated with outsourced wafer fabrication and product assembly and testing . research and development expenses . research and development expenses consist primarily of salaries and related expenses for design engineers and other technical personnel , the cost of developing prototypes , stock-based 33 compensation and fees paid to consultants . we charge all research and development expenses to operations as incurred . we charge mask costs used in production to cost of revenues over a 12-month period . however , we charge costs related to pre-production mask sets , which are not used in production , to research and development expenses at the time they are incurred . these charges often arise as we transition to new process technologies and , accordingly , can cause research and development expenses to fluctuate on a quarterly basis . we believe that continued investment in research and development is critical to our long-term success , and we expect to continue to devote significant resources to product development activities . in particular , we are devoting substantial resources to the development of a new category of in-place associative computing products . accordingly , we expect that our research and development expenses will continue to be substantial in future periods and may lead to operating losses in some periods . such expenses as a percentage of net revenues may fluctuate from period to period . selling , general and administrative expenses . selling , general and administrative expenses consist primarily of commissions paid to independent sales representatives , salaries , stock-based compensation and related expenses for personnel engaged in sales , marketing , administrative , finance and human resources activities , professional fees , costs associated with the promotion of our products and other corporate expenses . we expect that our sales and marketing expenses will increase in absolute dollars in future periods if we are able to grow and expand our sales force but that , to the extent our revenues increase in future periods , these expenses will generally decline as a percentage of net revenues . we also expect that , in support of any future growth that we are able to achieve , general and administrative expenses will generally increase in absolute dollars . story_separator_special_tag as of march 31 , 2018 , the accrual for potential payment of contingent consideration was $ 5.5 million . critical accounting policies and estimates the preparation of our consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the united states ( “ gaap ” ) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period . significant estimates are inherent in the preparation of the consolidated financial statements and include estimates affecting revenue recognition , obsolete and excess inventory , the valuation allowance on deferred tax assets , stock-based compensation , contingent consideration and the valuation of goodwill . we believe that we consistently apply these judgments and estimates and that our financial statements and accompanying notes fairly represent our financial results for all periods presented . however , any errors in these judgments and estimates may have a material impact on our balance sheet and statement of operations . critical accounting estimates , as defined by the securities and exchange commission , are those that are most important to the portrayal of our financial condition and results of operations and require our most difficult and subjective judgments and estimates of matters that are inherently uncertain . our critical accounting estimates include those regarding revenue recognition , the valuation of inventories , taxes , stock-based compensation , contingent consideration and the valuation of goodwill . revenue recognition . we recognize revenue when persuasive evidence of an arrangement exists , delivery has occurred , the price is fixed or determinable and collectability of the resulting receivable is reasonably assured . under these criteria , revenue from the sale of our products is generally recognized upon shipment according to our shipping terms , net of accruals for estimated sales returns and allowances based on historical experience . sales to consignment warehouses , who purchase products from us for use by contract manufacturers , are recorded upon delivery to the contract manufacturers . sales to certain distributors were previously made under agreements allowing for returns or credits under certain circumstances . we therefore deferred recognition of revenue on sales to those distributors under these terms until products were resold by the distributor . during fiscal 2018 , we revised our distribution agreements to these distributors to eliminate ship from stock and debits and price protection . under these revised distribution agreements , selling prices are now fixed and determinable on the date of shipment and revenue is recognized upon shipment . under these revised distribution agreements , we recognized additional revenue of $ 2.0 million in fiscal 2018 on the dates that the distribution agreements were revised for product held by our distributors as the price became fixed and determinable . valuation of inventories . inventories are stated at the lower of cost or market value , cost being determined on a weighted average basis . our inventory write-down allowance is established when conditions indicate that the selling price of our products could be less than cost due to physical deterioration , obsolescence , changes in price levels , or other causes . we consider the need to establish the allowance for excess inventory generally based on inventory levels in excess of 12 months of forecasted demand for each specific product . inventory consists of finished goods at our premises or consignment warehouses , work in progress at our premises or our contract manufacturers and finished goods at distributors that have price protection and ship from stock and debit rights and takes into account any un-cancellable purchase commitments . historically , it has been difficult to forecast customer demand especially at the part-number level . many of the orders we receive from our customers and distributors 40 request delivery of product on relatively short notice and with lead times less than our manufacturing cycle time . in order to provide competitive delivery times to our customers , we build and stock a certain amount of inventory in anticipation of customer demand that may not materialize . moreover , as is common in the semiconductor industry , we may allow customers to cancel orders with minimal advance notice . thus , even product built to satisfy specific customer orders may not ultimately be required to fulfill customer demand . nevertheless , at any point in time , some portion of our inventory is subject to the risk of being materially in excess of our projected demand . additionally , our average selling prices could decline due to market or other conditions , which creates a risk that costs of manufacturing our inventory may not be recovered . these factors contribute to the risk that we may be required to record additional inventory write-downs in the future , which could be material . in addition , if actual market conditions are more favorable than expected , inventory previously written down may be sold to customers resulting in lower cost of sales and higher income from operations than expected in that period . taxes . we account for income taxes under the liability method , whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income . we make certain estimates and judgments in the calculation of tax liabilities and the determination of deferred tax assets , which arise from temporary differences between tax and financial statement recognition methods . we record a valuation allowance to reduce our deferred tax assets to the amount that management estimates is more likely than not to be realized . as of march 31 , 2018 , our net deferred tax assets of $ 6.0 million are subject to a valuation

