our research and development expenses increased to $ 96.6 million from $ 56.9 million in 2010. research and development expenses were 10 % of net sales in 2011 , compared with 6 % in 2010 ; net income from continuing operations in 2011 was $ 190.5 million compared $ 277.2 million in 2010 ; diluted net income from continuing operations per share was $ 4.63 compared to $ 6.52 in 2010 . 30 business highlights of 2011 in 2011 , veeco achieved revenue of $ 979.1 million and net income from continuing operations of $ 190.5 million . during the first half of 2011 veeco experienced strong levels of business driven by growth in led , including new orders in excess of $ 300 million in second quarter of 2011. business conditions began to deteriorate mid-year due to oversupply in the led market and veeco 's bookings slowed dramatically in the third and fourth quarters of the year . veeco 's revenue increase in our led & solar segment was primarily due to penetration of new customers , including strong adoption of our mocvd technology by a rapidly expanding chinese customer base , increased market share , and the introduction of the industry 's first multi-chamber mocvd system , the maxbright . veeco 's data storage business delivered record revenue and profit levels as a result of strong technology alignment with our key customers , and our flexible manufacturing strategy . outlook veeco 's first quarter 2012 revenue is currently forecasted to be between $ 115 million and $ 140 million . earnings per share are currently forecasted to be between $ 0.04 and $ 0.25. we do n't see signs of near-term improvement in the led environment and the current overcapacity situation could mean that mocvd orders remain at these depressed levels for multiple quarters . in data storage , while overall market conditions are healthy , the continued consolidation of our customer base will likely mean that order patterns will fluctuate from quarter to quarter . the led industry is currently experiencing an overcapacity situation , evidenced by low tool utilization rates being reported by many key global customers . as a result , new orders for veeco 's mocvd systems declined sharply in both the third and fourth quarters of 2011 and we do not see signs of a near-term improvement in mocvd business conditions . in the short term , it is difficult for us to predict when the supply/demand of leds will return to equilibrium and what the demand for our mocvd products will be . according to the semiconductor equipment and materials industry 's ( semi ) january 2012 opto/led fab watch report , worldwide mocvd purchases will decline by 40 % in 2012 compared to 2011. while veeco is currently expecting revenue growth in its data storage and mbe businesses in 2012 , the company has forecasted that total revenue will decline from 38-48 % in 2012 to be in the range of $ 500-600 million as a result of the cyclical downturn in mocvd equipment purchases . our outlook discussion above constitutes `` forward-looking statements `` within the meaning of section 27a of the securities act of 1933 , as amended , and section 21e of the securities exchange act of 1934 , as amended . our expectations regarding future results are subject to risks and uncertainties . our actual results may differ materially from those anticipated . you should not place undue reliance on any forward-looking statements , which speak only as of the dates they are made . 31 results of operations years ended december 31 , 2011 and 2010 the following table shows our consolidated statements of income , percentages of sales and comparisons between 2011 and 2010 ( dollars in 000s ) : replace_table_token_6_th * not meaningful 32 net sales and orders net sales of $ 979.1 million for the year ended december 31 , 2011 , were up 5.2 % compared to 2010. the following is an analysis of sales and orders by segment and by region ( dollars in 000s ) : replace_table_token_7_th by segment , led & solar sales increased 4.1 % in 2011 primarily due to increases in shipments of our newest systems as compared to 2010 ( 3.9 % increase in mocvd reactor shipments from 2010 ) as a result of the high demand which slowed by the beginning of the second half 2011 for led applications . data storage sales also increased 11.8 % , primarily as a result of an increase in capital spending by data storage customers for capacity and technology buys . led & solar sales represented 84.5 % of total sales for the year ended december 31 , 2011 , down from 85.5 % in the prior year . data storage sales accounted for 15.5 % of net sales , up from 14.5 % in the prior year . by region , net sales increased by 10.0 % in asia pacific , primarily due to mocvd sales to hb led customers . in addition , sales in the americas increased 8.6 % and sales in emea decreased 37.4 % . we believe that there will continue to be year-to-year variations in the geographic distribution of sales . orders in 2011 decreased 27.1 % compared to 2010 , primarily attributable to a 32.8 % decrease in led & solar orders that were principally driven by a mid-year deterioration due to oversupply in the led market , slowing orders dramatically in the third and fourth quarters after hitting a peak in the second quarter of 2011. data storage orders increased 9.0 % from the continued increase in our customer 's capital spending for capacity and technology buys . story_separator_special_tag revenue recognition : we recognize revenue based on current accounting guidance provided by the securities and exchange commission ( `` sec `` ) and the financial accounting standards board ( `` fasb `` ) . our revenue transactions include sales of products under multiple-element arrangements . revenue under these arrangements is allocated to each element based upon its estimated selling price . we consider a broad array of facts and circumstances when evaluating each of our sales arrangements in determining when to recognize revenue , including specific terms of the purchase order , contractual obligations to the customer , the complexity of the customer 's post-delivery acceptance provisions , customer creditworthiness and the installation process . management also considers the party responsible for installation , whether there are process specification requirements which need to be demonstrated before final sign off and payment , whether veeco can replicate the field testing conditions and procedures in our factory and our past experience with demonstrating and installing a particular system . sales arrangements are reviewed on a case-by-case basis ; however , the company 's revenue recognition protocol for established systems is as described below . system revenue is generally recognized upon shipment or delivery provided title and risk of loss has passed to the customer , evidence of an arrangement exists , prices are contractually fixed or determinable , collectability is reasonably assured and there are no material uncertainties regarding customer acceptance . revenue from installation services is recognized at the time acceptance is received from the customer . if the arrangement does not meet all the above criteria , the entire amount of the sales arrangement is deferred until the criteria have been met or all elements have been delivered to the customer or been completed . for those transactions on which we recognize systems revenue , either at the time of shipment or delivery , our sales and contractual arrangements with customers do not contain provisions for right of return or forfeiture , refund or other purchase price concessions . in the rare instances where such provisions are included , the company defers all revenue until customer acceptance is achieved . in cases where products are sold with a retention of 10 % to 20 % , which is typically payable by the customer when installation and field acceptance provisions are completed , the customer has the right to withhold this payment until such provisions have been achieved . we defer the greater of the retention amount or the estimated selling price of the installation on systems that we recognize revenue at the time of shipment or delivery . for new products , new applications of existing products or for products with substantive customer acceptance provisions where performance can not be fully assessed prior to meeting agreed upon specifications at the customer site , revenue is deferred as deferred profit in the accompanying consolidated balance sheets and fully recognized upon completion of installation and receipt of final customer acceptance . our systems are principally sold to manufacturers in the hb-led , the data storage , solar and other industries . sales arrangements for these systems generally include customer acceptance criteria based upon veeco and or customer specifications . prior to shipment a customer source inspection of the system is performed in our facility or test data is sent to the customer documenting that the system is functioning within agreed upon specifications . such source inspection or test data replicates the acceptance testing that will be performed at the customer 's site prior to final acceptance of the system . customer acceptance provisions include reassembly and installation of the system at the customer site , which includes performing functional or mechanical test procedures ( i.e . hardware checks , leak testing , 41 gas flow monitoring and quality control checks of the basic features of the product ) . additionally , a material demonstration process may be performed to validate the functionality of the product . upon meeting the agreed upon specifications the customer approves final acceptance of the product . veeco generally is required to install these products and demonstrate compliance with acceptance tests at the customer 's facility . such installations typically are not considered complex and the installation process is not deemed essential to the functionality of the equipment because it does not involve significant changes to the features or capabilities of the equipment or involve building complex interfaces or connections . we have a demonstrated history of completing such installations in a timely , consistent manner and can reliably estimate the costs of such . in such cases , the test environment at our facilities prior to shipment replicates the customer 's environment . while there are others in the industry with sufficient knowledge about the installation process for our systems as a practical matter , most customers engage the company to perform the installation services . in japan , where our contractual terms with customers generally specify risk of loss and title transfers upon customer acceptance , revenue is recognized and the customer is billed upon receipt of written customer acceptance . revenue related to maintenance and service contracts is recognized ratably over the applicable contract term . component and spare part revenue is recognized at the time of shipment or delivery in accordance with the terms of the applicable sales arrangement . short-term investments : we determine the appropriate balance sheet classification of our investments at the time of purchase and evaluate the classification at each balance sheet date . as part of our cash management program , we maintain a portfolio of marketable securities which are classified as available-for-sale . these securities include fdic insured corporate bonds , treasury bills , commercial paper and cdars with maturities of greater than three months when purchased in principal amounts that , when aggregated with interest to accrue over the term , will not exceed fdic limits . securities classified as available-for-sale are carried at fair market

liquidity and capital resources historically , our principal capital requirements have included the funding of acquisitions , working capital , capital expenditures and the repayment of debt . we traditionally have generated cash from operations and stock issuances . our ability to generate sufficient cash flows from operations is dependent on the continued demand for our products and services . cash and cash equivalents as of december 31 , 2011 was $ 217.9 million . this amount represents a decrease of $ 27.2 million from december 31 , 2010. we also had short-term investments and restricted cash of $ 273.6 million and $ 0.6 million , respectively , as of december 31 , 2011. a summary of the current year cash flow activity is as follows ( in thousands ) : replace_table_token_10_th cash provided by operations during the year ended december 31 , 2011 was $ 115.4 million compared to $ 194.2 million during the year ended december 31 , 2010. the $ 115.4 million cash provided by operations in 2011 included adjustments to the $ 128.0 million of net income for non-cash items , which increased the cash provided by net income by $ 76.9 million . the adjustments consisted of $ 44.4 million of discontinued operations , $ 12.9 million of depreciation and amortization , $ 12.8 million of non-cash equity-based compensation expense , $ 11.3 million of deferred income taxes , $ ( 10.4 ) million of excess tax benefits from stock option exercises , $ 3.3 million of loss on extinguishment of debt , $ 1.3 million of amortization of debt discount , $ 0.8 million of inventory write-offs and a $ 0.6 million asset impairment charge .


 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 historically , our principal capital requirements have included the funding of acquisitions , working capital , capital expenditures and the repayment of debt . we traditionally have generated cash from operations and stock issuances . our ability to generate sufficient cash flows from operations is dependent on the continued demand for our products and services . cash and cash equivalents as of december 31 , 2011 was $ 217.9 million . this amount represents a decrease of $ 27.2 million from december 31 , 2010. we also had short-term investments and restricted cash of $ 273.6 million and $ 0.6 million , respectively , as of december 31 , 2011. a summary of the current year cash flow activity is as follows ( in thousands ) : replace_table_token_10_th cash provided by operations during the year ended december 31 , 2011 was $ 115.4 million compared to $ 194.2 million during the year ended december 31 , 2010. the $ 115.4 million cash provided by operations in 2011 included adjustments to the $ 128.0 million of net income for non-cash items , which increased the cash provided by net income by $ 76.9 million . the adjustments consisted of $ 44.4 million of discontinued operations , $ 12.9 million of depreciation and amortization , $ 12.8 million of non-cash equity-based compensation expense , $ 11.3 million of deferred income taxes , $ ( 10.4 ) million of excess tax benefits from stock option exercises , $ 3.3 million of loss on extinguishment of debt , $ 1.3 million of amortization of debt discount , $ 0.8 million of inventory write-offs and a $ 0.6 million asset impairment charge .
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 Suspicious Activity Report : our research and development expenses increased to $ 96.6 million from $ 56.9 million in 2010. research and development expenses were 10 % of net sales in 2011 , compared with 6 % in 2010 ; net income from continuing operations in 2011 was $ 190.5 million compared $ 277.2 million in 2010 ; diluted net income from continuing operations per share was $ 4.63 compared to $ 6.52 in 2010 . 30 business highlights of 2011 in 2011 , veeco achieved revenue of $ 979.1 million and net income from continuing operations of $ 190.5 million . during the first half of 2011 veeco experienced strong levels of business driven by growth in led , including new orders in excess of $ 300 million in second quarter of 2011. business conditions began to deteriorate mid-year due to oversupply in the led market and veeco 's bookings slowed dramatically in the third and fourth quarters of the year . veeco 's revenue increase in our led & solar segment was primarily due to penetration of new customers , including strong adoption of our mocvd technology by a rapidly expanding chinese customer base , increased market share , and the introduction of the industry 's first multi-chamber mocvd system , the maxbright . veeco 's data storage business delivered record revenue and profit levels as a result of strong technology alignment with our key customers , and our flexible manufacturing strategy . outlook veeco 's first quarter 2012 revenue is currently forecasted to be between $ 115 million and $ 140 million . earnings per share are currently forecasted to be between $ 0.04 and $ 0.25. we do n't see signs of near-term improvement in the led environment and the current overcapacity situation could mean that mocvd orders remain at these depressed levels for multiple quarters . in data storage , while overall market conditions are healthy , the continued consolidation of our customer base will likely mean that order patterns will fluctuate from quarter to quarter . the led industry is currently experiencing an overcapacity situation , evidenced by low tool utilization rates being reported by many key global customers . as a result , new orders for veeco 's mocvd systems declined sharply in both the third and fourth quarters of 2011 and we do not see signs of a near-term improvement in mocvd business conditions . in the short term , it is difficult for us to predict when the supply/demand of leds will return to equilibrium and what the demand for our mocvd products will be . according to the semiconductor equipment and materials industry 's ( semi ) january 2012 opto/led fab watch report , worldwide mocvd purchases will decline by 40 % in 2012 compared to 2011. while veeco is currently expecting revenue growth in its data storage and mbe businesses in 2012 , the company has forecasted that total revenue will decline from 38-48 % in 2012 to be in the range of $ 500-600 million as a result of the cyclical downturn in mocvd equipment purchases . our outlook discussion above constitutes `` forward-looking statements `` within the meaning of section 27a of the securities act of 1933 , as amended , and section 21e of the securities exchange act of 1934 , as amended . our expectations regarding future results are subject to risks and uncertainties . our actual results may differ materially from those anticipated . you should not place undue reliance on any forward-looking statements , which speak only as of the dates they are made . 31 results of operations years ended december 31 , 2011 and 2010 the following table shows our consolidated statements of income , percentages of sales and comparisons between 2011 and 2010 ( dollars in 000s ) : replace_table_token_6_th * not meaningful 32 net sales and orders net sales of $ 979.1 million for the year ended december 31 , 2011 , were up 5.2 % compared to 2010. the following is an analysis of sales and orders by segment and by region ( dollars in 000s ) : replace_table_token_7_th by segment , led & solar sales increased 4.1 % in 2011 primarily due to increases in shipments of our newest systems as compared to 2010 ( 3.9 % increase in mocvd reactor shipments from 2010 ) as a result of the high demand which slowed by the beginning of the second half 2011 for led applications . data storage sales also increased 11.8 % , primarily as a result of an increase in capital spending by data storage customers for capacity and technology buys . led & solar sales represented 84.5 % of total sales for the year ended december 31 , 2011 , down from 85.5 % in the prior year . data storage sales accounted for 15.5 % of net sales , up from 14.5 % in the prior year . by region , net sales increased by 10.0 % in asia pacific , primarily due to mocvd sales to hb led customers . in addition , sales in the americas increased 8.6 % and sales in emea decreased 37.4 % . we believe that there will continue to be year-to-year variations in the geographic distribution of sales . orders in 2011 decreased 27.1 % compared to 2010 , primarily attributable to a 32.8 % decrease in led & solar orders that were principally driven by a mid-year deterioration due to oversupply in the led market , slowing orders dramatically in the third and fourth quarters after hitting a peak in the second quarter of 2011. data storage orders increased 9.0 % from the continued increase in our customer 's capital spending for capacity and technology buys . story_separator_special_tag revenue recognition : we recognize revenue based on current accounting guidance provided by the securities and exchange commission ( `` sec `` ) and the financial accounting standards board ( `` fasb `` ) . our revenue transactions include sales of products under multiple-element arrangements . revenue under these arrangements is allocated to each element based upon its estimated selling price . we consider a broad array of facts and circumstances when evaluating each of our sales arrangements in determining when to recognize revenue , including specific terms of the purchase order , contractual obligations to the customer , the complexity of the customer 's post-delivery acceptance provisions , customer creditworthiness and the installation process . management also considers the party responsible for installation , whether there are process specification requirements which need to be demonstrated before final sign off and payment , whether veeco can replicate the field testing conditions and procedures in our factory and our past experience with demonstrating and installing a particular system . sales arrangements are reviewed on a case-by-case basis ; however , the company 's revenue recognition protocol for established systems is as described below . system revenue is generally recognized upon shipment or delivery provided title and risk of loss has passed to the customer , evidence of an arrangement exists , prices are contractually fixed or determinable , collectability is reasonably assured and there are no material uncertainties regarding customer acceptance . revenue from installation services is recognized at the time acceptance is received from the customer . if the arrangement does not meet all the above criteria , the entire amount of the sales arrangement is deferred until the criteria have been met or all elements have been delivered to the customer or been completed . for those transactions on which we recognize systems revenue , either at the time of shipment or delivery , our sales and contractual arrangements with customers do not contain provisions for right of return or forfeiture , refund or other purchase price concessions . in the rare instances where such provisions are included , the company defers all revenue until customer acceptance is achieved . in cases where products are sold with a retention of 10 % to 20 % , which is typically payable by the customer when installation and field acceptance provisions are completed , the customer has the right to withhold this payment until such provisions have been achieved . we defer the greater of the retention amount or the estimated selling price of the installation on systems that we recognize revenue at the time of shipment or delivery . for new products , new applications of existing products or for products with substantive customer acceptance provisions where performance can not be fully assessed prior to meeting agreed upon specifications at the customer site , revenue is deferred as deferred profit in the accompanying consolidated balance sheets and fully recognized upon completion of installation and receipt of final customer acceptance . our systems are principally sold to manufacturers in the hb-led , the data storage , solar and other industries . sales arrangements for these systems generally include customer acceptance criteria based upon veeco and or customer specifications . prior to shipment a customer source inspection of the system is performed in our facility or test data is sent to the customer documenting that the system is functioning within agreed upon specifications . such source inspection or test data replicates the acceptance testing that will be performed at the customer 's site prior to final acceptance of the system . customer acceptance provisions include reassembly and installation of the system at the customer site , which includes performing functional or mechanical test procedures ( i.e . hardware checks , leak testing , 41 gas flow monitoring and quality control checks of the basic features of the product ) . additionally , a material demonstration process may be performed to validate the functionality of the product . upon meeting the agreed upon specifications the customer approves final acceptance of the product . veeco generally is required to install these products and demonstrate compliance with acceptance tests at the customer 's facility . such installations typically are not considered complex and the installation process is not deemed essential to the functionality of the equipment because it does not involve significant changes to the features or capabilities of the equipment or involve building complex interfaces or connections . we have a demonstrated history of completing such installations in a timely , consistent manner and can reliably estimate the costs of such . in such cases , the test environment at our facilities prior to shipment replicates the customer 's environment . while there are others in the industry with sufficient knowledge about the installation process for our systems as a practical matter , most customers engage the company to perform the installation services . in japan , where our contractual terms with customers generally specify risk of loss and title transfers upon customer acceptance , revenue is recognized and the customer is billed upon receipt of written customer acceptance . revenue related to maintenance and service contracts is recognized ratably over the applicable contract term . component and spare part revenue is recognized at the time of shipment or delivery in accordance with the terms of the applicable sales arrangement . short-term investments : we determine the appropriate balance sheet classification of our investments at the time of purchase and evaluate the classification at each balance sheet date . as part of our cash management program , we maintain a portfolio of marketable securities which are classified as available-for-sale . these securities include fdic insured corporate bonds , treasury bills , commercial paper and cdars with maturities of greater than three months when purchased in principal amounts that , when aggregated with interest to accrue over the term , will not exceed fdic limits . securities classified as available-for-sale are carried at fair market

