35 our aspenone subscription offering has not changed the method or timing of our customer billing or cash collections and our net cash provided by operating activities increased in each of fiscal 2011 and 2010. the principal accounting implications of the change in our licensing model are as follows : the majority of our license revenue is no longer recognized on an upfront basis . as the result of the transition to our aspenone subscription offering , our license revenue for fiscal 2011 and 2010 was significantly less than the level achieved in the fiscal years preceding our licensing model change . we expect that our revenue will continue to increase as customers renew their previous upfront licensing arrangements under our subscription-based licensing model . we do not expect to recognize levels of revenue comparable to prior fiscal years until a significant majority of our existing license agreements have been renewed under our subscription-based licensing model . because the timing of our incurrence of operating costs has not changed , the lower levels of revenue expected over the next few years may result in operating losses . the amount of our installments receivable will continue to decrease , as license agreements executed under our upfront revenue model reach the end of their terms . uninvoiced payments are not recorded on our consolidated balance sheet under the subscription-based licensing model . the amount of our deferred revenue will continue to increase over time , as installments for license transactions executed under our aspenone subscription offering are deferred and recognized on a subscription basis . for additional information about the recognition of revenue under the upfront revenue model and our subscription offering , see `` revenue . `` because of the accounting implications of our aspenone subscription offering , we believe that , for the next several years , a number of performance indicators based on u.s. generally accepted accounting principles , or gaap , will be of reduced value in assessing our performance , growth and financial condition . accordingly , we are focusing on a number of other business metrics , including those described under `` key business metrics . `` future impact of enhanced sms offering in july 2011 , we released an enhanced sms offering to provide more value to our customers . as part of this offering , customers receive 24x7 support , faster response times and dedicated technical advocates . the enhanced sms offering is being provided to both ( i ) aspenone subscription customers and ( ii ) customers who have licensed point products on a term basis with sms included for the term of the arrangement . we do not have a history of selling this new sms offering to customers on a stand-alone basis and can not establish vendor-specific evidence of fair value , or `` vsoe `` . as a result , beginning in july 2011 , the revenue associated with point product arrangements that include the enhanced sms offering is being recognized on a `` daily ratable `` basis , consistent with the revenue recognition of fees on our aspenone subscription offering arrangements . beginning in fiscal 2012 , the ratable revenue from both aspenone subscription arrangements and point product arrangements with enhanced sms will be presented as `` subscription and software revenue . `` we expect the impact of the loss of vsoe to result in moderately lower revenue in fiscal 2012 due to timing . we currently recognize software revenue on point product arrangements over the contract term when the related installments become due . however , in fiscal 2012 , we are recognizing revenue on a daily ratable basis , beginning when the installment becomes due . as a result of this change , only a portion of the revenue associated with the installment will be recognized during fiscal 2012. the new sms offering did not impact our results of operations or income statement presentation for fiscal 2011 , 2010 , or 2009 . 36 revenue we generate revenue primarily from the following sources : software licenses . we provide integrated process optimization software solutions designed specifically for the process industries . we license our software products , together with sms , primarily on a term basis , and we offer extended payment options for our term license agreements that generally require annual payments , which we also refer to as installments . sms and other . our sms business consists primarily of providing customer technical support and access to software fixes and upgrades . we provide customer technical support services throughout the world from our three global call centers as well as via email and through our support website . our training business provides customers with a variety of training solutions , including on-site , internet-based and customized training . professional services . we offer professional services that include implementing and integrating our technology with customers ' existing systems in order to improve their plant performance and gain better operational data . customers who use our professional services typically engage us to provide those services over periods of up to 24 months . we charge customers for professional services on a time-and-materials or fixed-price basis . before we can recognize revenue , the following four basic criteria generally must be met : persuasive evidence of an arrangement as evidence of the existence of an arrangement , we use a contract signed by the customer for software licenses and sms and we use a signed contract and a statement of work for professional services . delivery of product software and the corresponding access keys are generally delivered to customers via disk media with standard shipping terms of free carrier , our warehouse . our software license agreements do not contain conditions for acceptance . fee is fixed or determinable we assess whether a fee is fixed or determinable at the outset of the arrangement . story_separator_special_tag as a result , we believe that , for the next few years , a number of our performance indicators based on u.s. generally accepted accounting principles or gaap , including revenue , gross profit , operating income ( loss ) and net income ( loss ) , will be of limited value in assessing our performance , growth and financial condition . accordingly , we instead are focusing on certain non-gaap and other business metrics , including the key metrics set forth below , to track our business performance . none of these metrics should be considered as an alternative to any measure of financial performance calculated in accordance with gaap . to supplement our statements of cash flows presented on a gaap basis , we use the non-gaap measure of free cash flow to analyze cash flows generated from our operations . management believes that this financial measure is useful to investors because it permits investors to view our performance using the same tools that management uses to gauge progress in achieving our goals . we believe this measure is also useful to investors because it is an indication of cash flow that may be available to fund further investments in future growth initiatives and it is also useful as a basis for comparing our performance with that of our competitors . to supplement our presentation of total cost of revenue and total operating costs presented on a gaap basis , we use a non-gaap measure of adjusted total costs , which excludes certain non-cash and non-recurring expenses . management believes that this financial measure is useful to investors because it demonstrates the cash operating costs of the business . the presentation of these non-gaap measures is not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity or as an alternative to total cost of revenue and total operating costs as a measure of our total costs . total term contract value total term contract value , or tcv , is an estimate of the renewal value , as of a specific date , of our active portfolio of term license agreements . tcv is calculated by multiplying the terminal annual payment for each active term license agreement by the original length of the existing license term , and then aggregating this amount for all active term license agreements . accordingly , tcv represents the full renewal value of all of our current term license agreements under the hypothetical assumption that all of those agreements are simultaneously renewed for the identical license terms and at the same terminal annual payment amounts . tcv includes the value of sms for any multi-year license agreements for which sms is committed for the entire license term . tcv does not include any 42 amounts for perpetual licenses , professional services , training or standalone renewal sms . tcv is calculated using constant currency assumptions for agreements denominated in currencies other than u.s. dollars in order to remove the impact of currency fluctuations between comparison dates . we also estimate a license-only tcv , which we refer to as `` tlcv , `` by removing the sms portion of tcv using our historic estimated selling price for sms . our portfolio of active license agreements currently reflect a mix of ( a ) license agreements that include sms for the entire license term and ( b ) legacy license agreements that do not include sms . tlcv provides a consistent basis for assessing growth , particularly while customers are continuing to transition to arrangements that include sms for the term of the arrangement . we believe tcv and tlcv are useful metrics for analyzing our business performance , particularly while we are transitioning to our aspenone subscription offering and revenue comparisons between fiscal periods do not reflect the actual growth rate of our business . comparing tcv and tlcv for different dates provides insight into the growth and retention rate of our business during the period between those dates . tcv and tlcv increase as the result of : new term license agreements with new or existing customers ; renewals or modifications of existing license agreements that result in higher license fees due to price escalation or an increase in the number of tokens ( units of software usage ) or products licensed ; and renewals of existing license agreements that increase the length of the license term . the renewal of an existing license agreement will not increase tcv and tlcv unless the renewal results in higher license fees or a longer license term . tcv and tlcv are adversely affected by customer non-renewals and by renewals that result in lower license fees or a shorter license term . our standard license term historically has been between five and six years , and we do not expect this standard term to change in the future . many of our contracts have escalating annual payments throughout the term of the arrangement . by calculating tcv and tlcv based on the terminal year annual payment , we are typically using the highest annual fee from the existing arrangement to calculate the hypothetical renewal value of our portfolio of term arrangements . we estimate that tlcv grew by approximately 11.7 % during fiscal 2011 from $ 1.14 billion at june 30 , 2010 to $ 1.28 billion at june 30 , 2011 , principally as the result of an increase in the number of tokens or products licensed . we estimate that tcv grew 16.9 % during fiscal 2011 from $ 1.22 billion at june 30 , 2010 to $ 1.42 billion at june 30 , 2011. future cash collections and billings backlog future cash collections is the sum of billings backlog , accounts receivable , undiscounted installments receivable and undiscounted collateralized receivables . billings backlog represents the aggregate value of uninvoiced bookings from prior and current periods that is not reflected

liquidity and capital resources resources we have historically financed our operations with cash generated from operating activities and borrowings secured by our installment receivable contracts . as of june 30 , 2011 , our principal sources of liquidity consisted of $ 150.0 million in cash and cash equivalents . we previously maintained a bank credit facility , which we decided not to renew or extend when it matured on february 13 , 2011. we believe our existing cash and cash equivalents and our cash flow from operating activities will be sufficient to meet our anticipated cash needs for at least the next twelve months . to the extent our cash and cash equivalents and cash flow from operating activities are insufficient to fund our future activities , we may need to raise additional funds through the financing of additional receivables or from public or private equity or debt financings . we also may need to raise additional funds in the event we determine in the future to effect one or more acquisitions of businesses , technologies and products . if additional funding is required , we may not be able to effect a receivable , equity or debt financing on terms acceptable to us or at all . 61 the following table summarizes our cash flow activities for the years indicated : replace_table_token_28_th operating activities our primary source of cash is from the annual fee payments associated with our software license arrangements and related software support services , and to a lesser extent from professional services and training . we believe that cash inflows from our term license business will grow as we benefit from the continued growth of our portfolio of term license contracts , and as customers renew expiring contracts that were previously paid upfront . we anticipate that existing cash balances , together with funds generated from operations , will be sufficient to finance our operations and meet our cash requirements for the foreseeable future .


 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 resources we have historically financed our operations with cash generated from operating activities and borrowings secured by our installment receivable contracts . as of june 30 , 2011 , our principal sources of liquidity consisted of $ 150.0 million in cash and cash equivalents . we previously maintained a bank credit facility , which we decided not to renew or extend when it matured on february 13 , 2011. we believe our existing cash and cash equivalents and our cash flow from operating activities will be sufficient to meet our anticipated cash needs for at least the next twelve months . to the extent our cash and cash equivalents and cash flow from operating activities are insufficient to fund our future activities , we may need to raise additional funds through the financing of additional receivables or from public or private equity or debt financings . we also may need to raise additional funds in the event we determine in the future to effect one or more acquisitions of businesses , technologies and products . if additional funding is required , we may not be able to effect a receivable , equity or debt financing on terms acceptable to us or at all . 61 the following table summarizes our cash flow activities for the years indicated : replace_table_token_28_th operating activities our primary source of cash is from the annual fee payments associated with our software license arrangements and related software support services , and to a lesser extent from professional services and training . we believe that cash inflows from our term license business will grow as we benefit from the continued growth of our portfolio of term license contracts , and as customers renew expiring contracts that were previously paid upfront . we anticipate that existing cash balances , together with funds generated from operations , will be sufficient to finance our operations and meet our cash requirements for the foreseeable future .
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 Suspicious Activity Report : 35 our aspenone subscription offering has not changed the method or timing of our customer billing or cash collections and our net cash provided by operating activities increased in each of fiscal 2011 and 2010. the principal accounting implications of the change in our licensing model are as follows : the majority of our license revenue is no longer recognized on an upfront basis . as the result of the transition to our aspenone subscription offering , our license revenue for fiscal 2011 and 2010 was significantly less than the level achieved in the fiscal years preceding our licensing model change . we expect that our revenue will continue to increase as customers renew their previous upfront licensing arrangements under our subscription-based licensing model . we do not expect to recognize levels of revenue comparable to prior fiscal years until a significant majority of our existing license agreements have been renewed under our subscription-based licensing model . because the timing of our incurrence of operating costs has not changed , the lower levels of revenue expected over the next few years may result in operating losses . the amount of our installments receivable will continue to decrease , as license agreements executed under our upfront revenue model reach the end of their terms . uninvoiced payments are not recorded on our consolidated balance sheet under the subscription-based licensing model . the amount of our deferred revenue will continue to increase over time , as installments for license transactions executed under our aspenone subscription offering are deferred and recognized on a subscription basis . for additional information about the recognition of revenue under the upfront revenue model and our subscription offering , see `` revenue . `` because of the accounting implications of our aspenone subscription offering , we believe that , for the next several years , a number of performance indicators based on u.s. generally accepted accounting principles , or gaap , will be of reduced value in assessing our performance , growth and financial condition . accordingly , we are focusing on a number of other business metrics , including those described under `` key business metrics . `` future impact of enhanced sms offering in july 2011 , we released an enhanced sms offering to provide more value to our customers . as part of this offering , customers receive 24x7 support , faster response times and dedicated technical advocates . the enhanced sms offering is being provided to both ( i ) aspenone subscription customers and ( ii ) customers who have licensed point products on a term basis with sms included for the term of the arrangement . we do not have a history of selling this new sms offering to customers on a stand-alone basis and can not establish vendor-specific evidence of fair value , or `` vsoe `` . as a result , beginning in july 2011 , the revenue associated with point product arrangements that include the enhanced sms offering is being recognized on a `` daily ratable `` basis , consistent with the revenue recognition of fees on our aspenone subscription offering arrangements . beginning in fiscal 2012 , the ratable revenue from both aspenone subscription arrangements and point product arrangements with enhanced sms will be presented as `` subscription and software revenue . `` we expect the impact of the loss of vsoe to result in moderately lower revenue in fiscal 2012 due to timing . we currently recognize software revenue on point product arrangements over the contract term when the related installments become due . however , in fiscal 2012 , we are recognizing revenue on a daily ratable basis , beginning when the installment becomes due . as a result of this change , only a portion of the revenue associated with the installment will be recognized during fiscal 2012. the new sms offering did not impact our results of operations or income statement presentation for fiscal 2011 , 2010 , or 2009 . 36 revenue we generate revenue primarily from the following sources : software licenses . we provide integrated process optimization software solutions designed specifically for the process industries . we license our software products , together with sms , primarily on a term basis , and we offer extended payment options for our term license agreements that generally require annual payments , which we also refer to as installments . sms and other . our sms business consists primarily of providing customer technical support and access to software fixes and upgrades . we provide customer technical support services throughout the world from our three global call centers as well as via email and through our support website . our training business provides customers with a variety of training solutions , including on-site , internet-based and customized training . professional services . we offer professional services that include implementing and integrating our technology with customers ' existing systems in order to improve their plant performance and gain better operational data . customers who use our professional services typically engage us to provide those services over periods of up to 24 months . we charge customers for professional services on a time-and-materials or fixed-price basis . before we can recognize revenue , the following four basic criteria generally must be met : persuasive evidence of an arrangement as evidence of the existence of an arrangement , we use a contract signed by the customer for software licenses and sms and we use a signed contract and a statement of work for professional services . delivery of product software and the corresponding access keys are generally delivered to customers via disk media with standard shipping terms of free carrier , our warehouse . our software license agreements do not contain conditions for acceptance . fee is fixed or determinable we assess whether a fee is fixed or determinable at the outset of the arrangement . story_separator_special_tag as a result , we believe that , for the next few years , a number of our performance indicators based on u.s. generally accepted accounting principles or gaap , including revenue , gross profit , operating income ( loss ) and net income ( loss ) , will be of limited value in assessing our performance , growth and financial condition . accordingly , we instead are focusing on certain non-gaap and other business metrics , including the key metrics set forth below , to track our business performance . none of these metrics should be considered as an alternative to any measure of financial performance calculated in accordance with gaap . to supplement our statements of cash flows presented on a gaap basis , we use the non-gaap measure of free cash flow to analyze cash flows generated from our operations . management believes that this financial measure is useful to investors because it permits investors to view our performance using the same tools that management uses to gauge progress in achieving our goals . we believe this measure is also useful to investors because it is an indication of cash flow that may be available to fund further investments in future growth initiatives and it is also useful as a basis for comparing our performance with that of our competitors . to supplement our presentation of total cost of revenue and total operating costs presented on a gaap basis , we use a non-gaap measure of adjusted total costs , which excludes certain non-cash and non-recurring expenses . management believes that this financial measure is useful to investors because it demonstrates the cash operating costs of the business . the presentation of these non-gaap measures is not meant to be considered in isolation or as an alternative to cash flows from operating activities as a measure of liquidity or as an alternative to total cost of revenue and total operating costs as a measure of our total costs . total term contract value total term contract value , or tcv , is an estimate of the renewal value , as of a specific date , of our active portfolio of term license agreements . tcv is calculated by multiplying the terminal annual payment for each active term license agreement by the original length of the existing license term , and then aggregating this amount for all active term license agreements . accordingly , tcv represents the full renewal value of all of our current term license agreements under the hypothetical assumption that all of those agreements are simultaneously renewed for the identical license terms and at the same terminal annual payment amounts . tcv includes the value of sms for any multi-year license agreements for which sms is committed for the entire license term . tcv does not include any 42 amounts for perpetual licenses , professional services , training or standalone renewal sms . tcv is calculated using constant currency assumptions for agreements denominated in currencies other than u.s. dollars in order to remove the impact of currency fluctuations between comparison dates . we also estimate a license-only tcv , which we refer to as `` tlcv , `` by removing the sms portion of tcv using our historic estimated selling price for sms . our portfolio of active license agreements currently reflect a mix of ( a ) license agreements that include sms for the entire license term and ( b ) legacy license agreements that do not include sms . tlcv provides a consistent basis for assessing growth , particularly while customers are continuing to transition to arrangements that include sms for the term of the arrangement . we believe tcv and tlcv are useful metrics for analyzing our business performance , particularly while we are transitioning to our aspenone subscription offering and revenue comparisons between fiscal periods do not reflect the actual growth rate of our business . comparing tcv and tlcv for different dates provides insight into the growth and retention rate of our business during the period between those dates . tcv and tlcv increase as the result of : new term license agreements with new or existing customers ; renewals or modifications of existing license agreements that result in higher license fees due to price escalation or an increase in the number of tokens ( units of software usage ) or products licensed ; and renewals of existing license agreements that increase the length of the license term . the renewal of an existing license agreement will not increase tcv and tlcv unless the renewal results in higher license fees or a longer license term . tcv and tlcv are adversely affected by customer non-renewals and by renewals that result in lower license fees or a shorter license term . our standard license term historically has been between five and six years , and we do not expect this standard term to change in the future . many of our contracts have escalating annual payments throughout the term of the arrangement . by calculating tcv and tlcv based on the terminal year annual payment , we are typically using the highest annual fee from the existing arrangement to calculate the hypothetical renewal value of our portfolio of term arrangements . we estimate that tlcv grew by approximately 11.7 % during fiscal 2011 from $ 1.14 billion at june 30 , 2010 to $ 1.28 billion at june 30 , 2011 , principally as the result of an increase in the number of tokens or products licensed . we estimate that tcv grew 16.9 % during fiscal 2011 from $ 1.22 billion at june 30 , 2010 to $ 1.42 billion at june 30 , 2011. future cash collections and billings backlog future cash collections is the sum of billings backlog , accounts receivable , undiscounted installments receivable and undiscounted collateralized receivables . billings backlog represents the aggregate value of uninvoiced bookings from prior and current periods that is not reflected

