was $ 120.2 million , an increase of 12 % from $ 107.0 million in 2012. non-core pc postage revenue in 2013 was $ 2.9 million , a decrease of 5 % from $ 3.0 million in 2012. the following table sets forth the breakdown of pc postage revenue , which includes core pc postage revenue and non-core pc postage revenue for 2013 and 2012 and the resulting percent change ( revenue in $ 000s ) : replace_table_token_7_th the increase in core pc postage revenue was primarily attributable to an increase in paid customers . annual average paid customers increased 11 % to 466,000 in 2013 from 421,000 in 2012. the decrease in non-core pc postage revenue was primarily attributable to lower marketing spend in the online enhanced promotion channel . we define paid customers for the quarter as ones from whom we successfully collected service fees at least once during that quarter , and we define average paid customers for the year as the average of the paid customers for each of the four quarters during the year . the following table sets forth the number of paid customers ( 000s ) in the period for our core pc postage business : replace_table_token_8_th the following table sets forth the growth in paid customers and average annual revenue per paid customer for our core pc postage business : replace_table_token_9_th 25 the increase in paid customers is primarily driven by an increased number of new customers acquired , which was driven by our increased spend in core pc postage marketing channels , while our lost customer churn rates remained at levels that were consistent with the prior year . for our core pc postage business , our average annual and monthly core pc postage revenue per paid customer in 2013 was $ 258 and $ 21.51 respectively , which increased by 2 % compared to $ 254 and $ 21.18 , respectively in 2012. the increase in average revenue per paid customer was primarily attributable to higher service revenue per paid customer from our high volume shipping and enterprise customers and higher store revenue per paid customer from increased sales of netstamps labels ; partially offset by a reduction in revenue per paid customer from our amazon partnership . revenue by product the following table shows our components of revenue and their respective percentages of total revenue for the periods indicated ( in 000s except percentage ) : replace_table_token_10_th our revenue is derived primarily from five sources : ( 1 ) service revenue from subscription , transaction and other fees related to our pc postage services and integrations ; ( 2 ) product revenue from the direct sale of consumables and supplies through our supplies store ; ( 3 ) insurance revenue from the sale of package insurance to our customers ; ( 4 ) photostamps revenue from selling sheets of photostamps postage ; and ( 5 ) other revenue , consisting primarily of advertising revenue derived from advertising programs with our existing customers . service revenue increased 12 % to $ 99.0 million in 2013 from $ 88.2 million in 2012. the 12 % increase in service revenue in 2013 consisted of a 13 % increase in service revenue from our core pc postage business while the service revenue from our non-core pc postage business decreased 5 % . the 12 % increase in our core pc postage service revenue consisted of an 11 % increase in our annual average paid customers and a 2 % increase in our annual average revenue per paid customer . product revenue increased 13 % to $ 16.6 million in 2013 from $ 14.7 million in 2012. the increase was primarily attributable to the following : ( 1 ) increase in netstamps label sales ; ( 2 ) growth in our paid customer base ; ( 3 ) the postal rate increase in january 2013 , which generated incremental label sales for the period of time around the rate increase ; ( 4 ) marketing our supplies store to our existing customer base ; and ( 5 ) growth in postage printed , which helps drive sales of consumable supplies such as labels . total postage printed by customers using our service in 2013 was $ 1.6 billion , a 36 % increase from the $ 1.1 billion printed in 2012. insurance revenue increased 6 % to $ 7.5 million in 2013 from $ 7.1 million in 2012. this increase was primarily attributable to increased insurance purchases by our high volume shippers , partially offset by a reduction in insurance revenue through our amazon partnership . we continued to reduce our photostamps sales and marketing spending in 2013 compared with 2012 , and plan to continue to reduce our sales and marketing spending on photostamps in future periods to maintain or improve profitability in that business , although we believe that there may be potential opportunities to grow the business in a better economic environment . as a result of this decision photostamps revenue decreased 17 % to $ 4.7 million in 2013 from $ 5.7 million in 2012. total photostamps sheets shipped in 2013 decreased 20 % to 255 thousand compared to 2012 and average revenue per photostamps sheet shipped increased 4 % to $ 18.50 in 2013 compared to 2012. the decrease in sheets shipped was primarily attributable to our lower marketing spend and the increase in average revenue per sheet shipped was primarily attributable to less discounting on custom negotiated pricing . 26 cost of revenue the following table shows cost of revenues and cost of revenues as a percentage of its associated revenue for the periods indicated ( in 000s except percentage ) : replace_table_token_11_th cost of service revenue principally consists of the cost of customer service , certain promotional expenses , system operating costs , credit card processing fees and customer misprints that do not qualify for reimbursement from the usps . story_separator_special_tag product revenue increased 9 % to $ 14.7 million in 2012 from $ 13.5 million in 2011. the increase is primarily attributable to the following : ( 1 ) growth in our paid customer base ; ( 2 ) the postal rate increase in january 2012 which generated incremental label sales for the period of time around the rate increase ; ( 3 ) marketing our supplies store to our existing customer base ; and ( 4 ) growth in postage printed , which helps drive sales of consumable supplies such as labels . total postage printed by customers using our service in 2012 was $ 1.1 billion , a 71 % increase from the $ 672 million printed in 2011. insurance revenue increased 65 % to $ 7.1 million in 2012 from $ 4.3 million in 2011. this increase is primarily attributable to : ( 1 ) the expansion of our existing package insurance offering to cover packages being shipped to international destinations ; ( 2 ) insurance purchases resulting from our partnership with amazon.com ; and ( 3 ) increased insurance purchases by high volume shippers . postage printed by our high volume shipping customers was up 66 % in 2012 compared to 2011. photostamps revenue decreased 32 % to $ 5.7 million in 2012 from $ 8.3 million in 2011. the decrease is primarily attributable to : ( 1 ) we continued to reduce our photostamps sales and marketing spending in 2012 compared with 2011 to maintain or improve profitability in that business and ( 2 ) during the second quarter of 2011 , we first applied breakage accounting to our photostamps boxes sold through retail channels which resulted in an incremental $ 2.2 million of photostamps revenue in 2011 which did not repeat in 2012. please see note 2 “ summary of significant accounting policies—photostamps retail boxes ” in our notes to consolidated financial statements for further discussion . photostamps sheets shipped decreased 5 % to 319,000 in 2012 from 335,000 in 2011 primarily as a result of the reduced marketing spending . average revenue per photostamps sheet shipped decreased 3 % to $ 17.71 in 2012 from $ 18.21 in 2011 as a result of an increase in high volume business orders which are typically sold at discounted price compared to consumer website orders . other revenue consisting of commissions from the advertising or sale of products by third party vendors to our customer increased 9 % to $ 7,000 in 2012 from $ 6,000 in 2011. commission revenue from the advertising or sale of products by third party vendors is currently not material to our consolidated financial statements . 32 cost of revenue the following table shows cost of revenues and cost of revenues as a percentage of its associated revenue for the periods indicated ( in $ 000s except percentage ) : replace_table_token_18_th cost of service revenue principally consists of the cost of customer service , certain promotional expenses , system operating costs , credit card processing fees and customer misprints that do not qualify for reimbursement from the usps . cost of product revenue principally consists of the cost of products sold through our mailing & shipping supplies store and the related costs of shipping and handling . the cost of insurance revenue principally consists of parcel insurance offering costs . cost of photostamps revenue principally consists of the face value of postage , customer service , image review costs , and printing and fulfillment costs . cost of service revenue increased 7 % to $ 15.7 million in 2012 from $ 14.7 million in 2011. the increase in cost of service revenue is primarily attributable to higher customer service costs to support our growing customer base . promotional expense , which represents a material portion of total cost of service revenue , is expensed in the period in which a customer qualifies for the promotion , while the revenue associated with the acquired customer is earned over the customer 's lifetime . as a result , promotional expense for newly acquired customers may exceed the revenue earned from those customers in that period . promotional expense decreased 2 % to $ 3.5 million in 2012 from $ 3.6 million in 2011. the decrease in promotion expense is primarily attributable to lower coupon redemption rates . as a result , cost of service revenue as a percentage of service revenue decreased slightly from 19 % in 2011 to 18 % in 2012. cost of product revenue increased 11 % to $ 5.4 million in 2012 from $ 4.9 million in 2011. the increase in product costs was driven by increased product revenue . cost of product revenue as a percentage of product revenue increased slightly from 36 % in 2011 to 37 % in 2012 as a result of higher fulfillment costs that were not passed on to customers . cost of insurance revenue increased 55 % to $ 2.3 million in 2012 from $ 1.5 million in 2011. the increase is primarily attributable to increased insurance revenue resulting from increased activity by our high volume shipping customers . cost of insurance revenue as a percentage of insurance revenue decreased slightly from 35 % in 2011 to 33 % in 2012 as a result of changes and mix shifts in insurance pricing and discounting to the end customers . cost of photostamps revenue decreased 16 % to $ 4.3 million in 2012 from $ 5.1 million in 2011. the decrease is primarily attributable to the decrease in photostamps revenue and the decrease in cost of photostamps revenue related to initial application of photostamps retail box breakage in 2011 that did not repeat in 2012. cost of photostamps revenue increased from 61 % in 2011 to 76 % in 2012. this increase was primarily attributable to the initial application of photostamps retail box breakage accounting in 2011 which was at a higher gross margin compared to the rest of the photostamps business .

liquidity and capital resources as of december 31 , 2013 and 2012 , we had $ 87 million and $ 47 million in cash , short-term and long-term investments , respectively . we invest available funds in short-term and long-term money market funds , commercial paper , asset-backed securities , corporate notes and bonds and municipal securities and do not engage in hedging or speculative activities . on january 23 , 2012 , we completed the purchase of two adjacent buildings in el segundo , california that now serve as our corporate headquarters for an aggregate purchase price of $ 13.4 million . we substantially completed the renovation and construction project on the property in 2012. we moved into our new corporate headquarters during the third quarter of 2012. we occupy a portion of the 99,600 square foot space , with the remaining portion of the space continuing to be leased to the existing tenants . the purchase of the property and renovations were funded out of our cash flow from operations and existing cash and investments . net cash provided by operating activities was approximately $ 36 million and $ 27 million in 2013 and 2012 , respectively . the increase in net cash provided by operating activities was primarily attributable to the growth in our revenue and net income and the resulting changes in our operating assets and liabilities . net cash used in investing activities was approximately $ 9 million and $ 28 million in 2013 and 2012 , respectively .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources as of december 31 , 2013 and 2012 , we had $ 87 million and $ 47 million in cash , short-term and long-term investments , respectively . we invest available funds in short-term and long-term money market funds , commercial paper , asset-backed securities , corporate notes and bonds and municipal securities and do not engage in hedging or speculative activities . on january 23 , 2012 , we completed the purchase of two adjacent buildings in el segundo , california that now serve as our corporate headquarters for an aggregate purchase price of $ 13.4 million . we substantially completed the renovation and construction project on the property in 2012. we moved into our new corporate headquarters during the third quarter of 2012. we occupy a portion of the 99,600 square foot space , with the remaining portion of the space continuing to be leased to the existing tenants . the purchase of the property and renovations were funded out of our cash flow from operations and existing cash and investments . net cash provided by operating activities was approximately $ 36 million and $ 27 million in 2013 and 2012 , respectively . the increase in net cash provided by operating activities was primarily attributable to the growth in our revenue and net income and the resulting changes in our operating assets and liabilities . net cash used in investing activities was approximately $ 9 million and $ 28 million in 2013 and 2012 , respectively .
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 Suspicious Activity Report : was $ 120.2 million , an increase of 12 % from $ 107.0 million in 2012. non-core pc postage revenue in 2013 was $ 2.9 million , a decrease of 5 % from $ 3.0 million in 2012. the following table sets forth the breakdown of pc postage revenue , which includes core pc postage revenue and non-core pc postage revenue for 2013 and 2012 and the resulting percent change ( revenue in $ 000s ) : replace_table_token_7_th the increase in core pc postage revenue was primarily attributable to an increase in paid customers . annual average paid customers increased 11 % to 466,000 in 2013 from 421,000 in 2012. the decrease in non-core pc postage revenue was primarily attributable to lower marketing spend in the online enhanced promotion channel . we define paid customers for the quarter as ones from whom we successfully collected service fees at least once during that quarter , and we define average paid customers for the year as the average of the paid customers for each of the four quarters during the year . the following table sets forth the number of paid customers ( 000s ) in the period for our core pc postage business : replace_table_token_8_th the following table sets forth the growth in paid customers and average annual revenue per paid customer for our core pc postage business : replace_table_token_9_th 25 the increase in paid customers is primarily driven by an increased number of new customers acquired , which was driven by our increased spend in core pc postage marketing channels , while our lost customer churn rates remained at levels that were consistent with the prior year . for our core pc postage business , our average annual and monthly core pc postage revenue per paid customer in 2013 was $ 258 and $ 21.51 respectively , which increased by 2 % compared to $ 254 and $ 21.18 , respectively in 2012. the increase in average revenue per paid customer was primarily attributable to higher service revenue per paid customer from our high volume shipping and enterprise customers and higher store revenue per paid customer from increased sales of netstamps labels ; partially offset by a reduction in revenue per paid customer from our amazon partnership . revenue by product the following table shows our components of revenue and their respective percentages of total revenue for the periods indicated ( in 000s except percentage ) : replace_table_token_10_th our revenue is derived primarily from five sources : ( 1 ) service revenue from subscription , transaction and other fees related to our pc postage services and integrations ; ( 2 ) product revenue from the direct sale of consumables and supplies through our supplies store ; ( 3 ) insurance revenue from the sale of package insurance to our customers ; ( 4 ) photostamps revenue from selling sheets of photostamps postage ; and ( 5 ) other revenue , consisting primarily of advertising revenue derived from advertising programs with our existing customers . service revenue increased 12 % to $ 99.0 million in 2013 from $ 88.2 million in 2012. the 12 % increase in service revenue in 2013 consisted of a 13 % increase in service revenue from our core pc postage business while the service revenue from our non-core pc postage business decreased 5 % . the 12 % increase in our core pc postage service revenue consisted of an 11 % increase in our annual average paid customers and a 2 % increase in our annual average revenue per paid customer . product revenue increased 13 % to $ 16.6 million in 2013 from $ 14.7 million in 2012. the increase was primarily attributable to the following : ( 1 ) increase in netstamps label sales ; ( 2 ) growth in our paid customer base ; ( 3 ) the postal rate increase in january 2013 , which generated incremental label sales for the period of time around the rate increase ; ( 4 ) marketing our supplies store to our existing customer base ; and ( 5 ) growth in postage printed , which helps drive sales of consumable supplies such as labels . total postage printed by customers using our service in 2013 was $ 1.6 billion , a 36 % increase from the $ 1.1 billion printed in 2012. insurance revenue increased 6 % to $ 7.5 million in 2013 from $ 7.1 million in 2012. this increase was primarily attributable to increased insurance purchases by our high volume shippers , partially offset by a reduction in insurance revenue through our amazon partnership . we continued to reduce our photostamps sales and marketing spending in 2013 compared with 2012 , and plan to continue to reduce our sales and marketing spending on photostamps in future periods to maintain or improve profitability in that business , although we believe that there may be potential opportunities to grow the business in a better economic environment . as a result of this decision photostamps revenue decreased 17 % to $ 4.7 million in 2013 from $ 5.7 million in 2012. total photostamps sheets shipped in 2013 decreased 20 % to 255 thousand compared to 2012 and average revenue per photostamps sheet shipped increased 4 % to $ 18.50 in 2013 compared to 2012. the decrease in sheets shipped was primarily attributable to our lower marketing spend and the increase in average revenue per sheet shipped was primarily attributable to less discounting on custom negotiated pricing . 26 cost of revenue the following table shows cost of revenues and cost of revenues as a percentage of its associated revenue for the periods indicated ( in 000s except percentage ) : replace_table_token_11_th cost of service revenue principally consists of the cost of customer service , certain promotional expenses , system operating costs , credit card processing fees and customer misprints that do not qualify for reimbursement from the usps . story_separator_special_tag product revenue increased 9 % to $ 14.7 million in 2012 from $ 13.5 million in 2011. the increase is primarily attributable to the following : ( 1 ) growth in our paid customer base ; ( 2 ) the postal rate increase in january 2012 which generated incremental label sales for the period of time around the rate increase ; ( 3 ) marketing our supplies store to our existing customer base ; and ( 4 ) growth in postage printed , which helps drive sales of consumable supplies such as labels . total postage printed by customers using our service in 2012 was $ 1.1 billion , a 71 % increase from the $ 672 million printed in 2011. insurance revenue increased 65 % to $ 7.1 million in 2012 from $ 4.3 million in 2011. this increase is primarily attributable to : ( 1 ) the expansion of our existing package insurance offering to cover packages being shipped to international destinations ; ( 2 ) insurance purchases resulting from our partnership with amazon.com ; and ( 3 ) increased insurance purchases by high volume shippers . postage printed by our high volume shipping customers was up 66 % in 2012 compared to 2011. photostamps revenue decreased 32 % to $ 5.7 million in 2012 from $ 8.3 million in 2011. the decrease is primarily attributable to : ( 1 ) we continued to reduce our photostamps sales and marketing spending in 2012 compared with 2011 to maintain or improve profitability in that business and ( 2 ) during the second quarter of 2011 , we first applied breakage accounting to our photostamps boxes sold through retail channels which resulted in an incremental $ 2.2 million of photostamps revenue in 2011 which did not repeat in 2012. please see note 2 “ summary of significant accounting policies—photostamps retail boxes ” in our notes to consolidated financial statements for further discussion . photostamps sheets shipped decreased 5 % to 319,000 in 2012 from 335,000 in 2011 primarily as a result of the reduced marketing spending . average revenue per photostamps sheet shipped decreased 3 % to $ 17.71 in 2012 from $ 18.21 in 2011 as a result of an increase in high volume business orders which are typically sold at discounted price compared to consumer website orders . other revenue consisting of commissions from the advertising or sale of products by third party vendors to our customer increased 9 % to $ 7,000 in 2012 from $ 6,000 in 2011. commission revenue from the advertising or sale of products by third party vendors is currently not material to our consolidated financial statements . 32 cost of revenue the following table shows cost of revenues and cost of revenues as a percentage of its associated revenue for the periods indicated ( in $ 000s except percentage ) : replace_table_token_18_th cost of service revenue principally consists of the cost of customer service , certain promotional expenses , system operating costs , credit card processing fees and customer misprints that do not qualify for reimbursement from the usps . cost of product revenue principally consists of the cost of products sold through our mailing & shipping supplies store and the related costs of shipping and handling . the cost of insurance revenue principally consists of parcel insurance offering costs . cost of photostamps revenue principally consists of the face value of postage , customer service , image review costs , and printing and fulfillment costs . cost of service revenue increased 7 % to $ 15.7 million in 2012 from $ 14.7 million in 2011. the increase in cost of service revenue is primarily attributable to higher customer service costs to support our growing customer base . promotional expense , which represents a material portion of total cost of service revenue , is expensed in the period in which a customer qualifies for the promotion , while the revenue associated with the acquired customer is earned over the customer 's lifetime . as a result , promotional expense for newly acquired customers may exceed the revenue earned from those customers in that period . promotional expense decreased 2 % to $ 3.5 million in 2012 from $ 3.6 million in 2011. the decrease in promotion expense is primarily attributable to lower coupon redemption rates . as a result , cost of service revenue as a percentage of service revenue decreased slightly from 19 % in 2011 to 18 % in 2012. cost of product revenue increased 11 % to $ 5.4 million in 2012 from $ 4.9 million in 2011. the increase in product costs was driven by increased product revenue . cost of product revenue as a percentage of product revenue increased slightly from 36 % in 2011 to 37 % in 2012 as a result of higher fulfillment costs that were not passed on to customers . cost of insurance revenue increased 55 % to $ 2.3 million in 2012 from $ 1.5 million in 2011. the increase is primarily attributable to increased insurance revenue resulting from increased activity by our high volume shipping customers . cost of insurance revenue as a percentage of insurance revenue decreased slightly from 35 % in 2011 to 33 % in 2012 as a result of changes and mix shifts in insurance pricing and discounting to the end customers . cost of photostamps revenue decreased 16 % to $ 4.3 million in 2012 from $ 5.1 million in 2011. the decrease is primarily attributable to the decrease in photostamps revenue and the decrease in cost of photostamps revenue related to initial application of photostamps retail box breakage in 2011 that did not repeat in 2012. cost of photostamps revenue increased from 61 % in 2011 to 76 % in 2012. this increase was primarily attributable to the initial application of photostamps retail box breakage accounting in 2011 which was at a higher gross margin compared to the rest of the photostamps business .

