see note 8 - inventory in the notes to the consolidated financial statements for additional information related to our inventory . valuation of long-lived assets long-lived assets consist primarily of property , plant , and equipment , net . because most of our long-lived assets are subject to amortization , we review these assets for impairment in accordance with the provisions of accounting standards codification ( `` asc `` ) 360 , property , plant , and equipment . we review long-lived assets for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable . our impairment testing of long-lived assets consists of determining whether the carrying amount of the long-lived asset ( asset group ) is recoverable , in other words , whether the sum of the future undiscounted cash flows expected to result from the use and eventual disposition of the asset ( asset group ) exceeds its carrying amount . the determination of the existence of impairment involves judgments that are subjective in nature and may require the use of estimates in forecasting future results and cash flows related to an asset or group of assets . in making this determination , we use certain assumptions , including estimates of future cash flows expected to be generated by these assets , which are based on additional assumptions such as asset utilization , the length of service that assets will be used in our operations , and estimated salvage values . see note 9 - property , plant , and equipment , net in the notes to the consolidated financial statements for additional disclosures related to our long-lived assets . income taxes in accordance with the authoritative guidance on accounting for income taxes , we recognize income taxes using an asset and liability approach . this approach requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our consolidated financial statements or tax returns . the measurement of current and deferred taxes is based on provisions of the enacted tax law and the effects of future changes in tax laws or rates are not anticipated . the authoritative guidance provides for recognition of deferred tax assets if the realization of such deferred tax assets is more likely than not to occur based on an evaluation of all available evidence , both positive and negative , and the relative weight of the evidence . with the exception of the gains resulting from the completed photovoltaics asset sale , we have determined that at this time it is more likely than not that deferred tax assets attributable to all other items will not be realized , primarily due to uncertainties related to our ability to utilize our net operating loss carryforwards before they expire . accordingly , we have established a valuation allowance for such deferred tax assets which we do not expect to realize . if there is a change in our ability to realize our deferred tax assets for which a valuation allowance has been established , then our tax valuation allowance may decrease in the period in which we determine that realization is more likely than not . likewise , if we determine that it is not more likely than not that deferred tax assets will be realized , then a valuation allowance may be established for such deferred tax assets and our tax provision may increase in the period in which we make the determination . see note 12 - income and other taxes in the notes to the consolidated financial statements for additional information related to our income taxes . 47 revenue recognition revenue is recognized upon shipment , provided persuasive evidence of a contract exists , the price is fixed , the product meets our customer 's specifications , title and ownership have transferred to the customer , and there is reasonable assurance of collection of the sales proceeds . the majority of our products have shipping terms that are free on board or free carrier alongside ( “ fca ” ) shipping point , which means that we fulfill our delivery obligation when the goods are handed over to the freight carrier at our shipping dock . this means the customer typically bears all costs and risks of loss or damage to the goods from that point . we account for shipping and related transportation costs by recording the charges that are invoiced to customers as revenue , with the corresponding cost recorded as cost of revenue . in those instances where inventory is maintained at a consigned location , revenue is recognized only when our customer pulls product for use and after title and ownership has transferred to the customer . any warranty cost and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenue is recognized . distributors . we use a number of distributors around the world and recognize revenue upon shipment of product to these distributors . title and risk of loss pass to the distributors upon shipment , and our distributors are contractually obligated to pay us on standard commercial terms , just like our other direct customers . we do not sell to our distributors on consignment and , except in the event of product discontinuance , do not give distributors a right of return . contract manufacturers . prior to certain customers accepting product that is manufactured at one of our contract manufacturers , these customers require that they first qualify the product and manufacturing processes at our contract manufacturer . the customers ' qualification process determines whether the product manufactured at our contract manufacturer achieves their quality , performance , and reliability standards . after a customer completes the initial qualification process , we receive approval to ship qualified product to that customer . story_separator_special_tag our r & d costs are expensed as incurred . we believe that in order to remain competitive , we must invest significant financial resources in developing new product features and enhancements and in maintaining customer satisfaction worldwide . stock-based compensation expense within r & d totaled approximately $ 0.5 million and $ 0.4 million during the fiscal years ended september 30 , 2017 and 2016 , respectively . r & d expense for the fiscal year ended september 30 , 2017 was higher than the amounts reported in the prior year primarily due to higher compensation costs and increased project spending primarily related to navigation products and linear externally modulated lasers . as a percentage of revenue , r & d expenses were 10.2 % and 10.8 % for the fiscal years ended september 30 , 2017 and 2016 , respectively . the decrease in r & d expense as a percentage of revenue in the fiscal year ended september 30 , 2017 compared to the prior year is due to the increase in revenues in the fiscal year ended september 30 , 2017 . impairments in march 2017 , in connection with the transition of our manufacturing operations in china to a new manufacturing facility in china , we identified equipment with a net book value of approximately $ 0.6 million that would no longer be utilized after the planned move later in fiscal year 2017. after taking into consideration the costs of disposal and estimated net funds from the sale of the equipment of approximately $ 0.1 million , we recorded a charge to impairments of approximately $ 0.5 million in the fiscal year ended september 30 , 2017 . see note 8 - property , plant and equipment , net in the notes to the consolidated financial statements for additional information . 53 recovery of previously incurred litigation related fees and expenses from arbitration award recovery of previously incurred litigation related fees and expenses from arbitration award consists of the fees awarded to the company as a result of the sei arbitration award in april 2016. as a percentage of revenue , the recovery of previously incurred litigation related fees and expenses from arbitration award was 2.8 % for the fiscal year ended september 30 , 2016 . gain from change in estimate on aro as a result of the revision in the estimated amount and timing of cash flows for aro during the fiscal year ended september 30 , 2017 , the company reduced the aro liability by $ 45,000 and recorded a gain from change in estimate on aro liability of $ 45,000 . see note 13 - commitments and contingencies in the notes to the consolidated financial statements for additional information . operating income operating income represents revenue less the cost of revenue and direct operating expenses incurred . operating income is a measure of profit and loss that executive management uses to assess performance and make decisions . as a percentage of revenue , our operating income was 6.3 % and 3.2 % for the fiscal years ended september 30 , 2017 and 2016 , respectively . the increase in operating income as a percentage of revenue in the fiscal year ended september 30 , 2017 compared to the prior year is due to the increase in operating income in the fiscal year ended september 30 , 2017 . other income ( expense ) interest income , net during the fiscal years ended september 30 , 2017 and 2016 , we recorded $ 0.4 million and $ 0.2 million , respectively , of interest income earned on cash and cash equivalents balances , which was partially offset by interest expense and letter of credit fees related to our credit facility ( as defined below ) . interest income for the fiscal year ended september 30 , 2017 was higher than the amount reported in the prior year due to higher interest income earned on cash and cash equivalents balances . foreign exchange gains or losses from foreign currency transactions denominated in currencies other than the u.s. dollar , both realized and unrealized , are recorded as foreign exchange gain ( loss ) on our consolidated statements of operations and comprehensive income . the gain ( losses ) recorded relate to the change in value of the yuan renminbi relative to the u.s. dollar . 54 income tax expense for the fiscal year ended september 30 , 2017 , the company recorded income tax expense from continuing operations of approximately $ 0.2 million , and $ 0 of income tax expense within income from discontinued operations . for the fiscal year ended september 30 , 2016 , the company recorded income tax expense from continuing operations of approximately $ 14,000 and $ 24,000 of income tax benefit within income from discontinued operations . income from discontinued operations , net of tax replace_table_token_7_th during the fiscal year ended september 30 , 2016 , we recorded income from discontinued operations from the photovoltaics business and digital products business of $ 1.0 million and $ 4.6 million , respectively . included in cost of revenue for the fiscal year ended september 30 , 2016 is $ 0.4 million due to a reduction in expected product warranty liabilities from a settlement agreement associated with the digital products business and a gain of $ 0.3 million on the lease termination associated with the digital products business . during the fiscal year ended september 30 , 2016 , we recognized a gain associated with the release of the $ 3.4 million deferred gain and reversal of other liabilities of $ 0.4 million that had been recorded as of september 30 , 2015 , resulting in a credit of $ 3.8 million to recognition of previously deferred gain on sale of assets within discontinued operations of the digital products business as the result of the favorable ruling from the sei arbitration . see note 13 - commitments and contingencies in

liquidity and capital resources other than the fiscal year ended september 30 , 2017 , in recent years we have historically consumed cash from operations and , until recently , in most periods we have incurred operating losses from continuing operations . we have managed our liquidity position through the sale of assets and cost reduction initiatives , as well as , from time to time in prior periods , borrowings from our credit facility ( defined below ) and capital markets transactions . for the fiscal year ended september 30 , 2017 , we earned net income of $ 8.2 million and generated cash flows of approximately $ 3.9 million from operating , investing and financing activities . as of september 30 , 2017 , cash and cash equivalents totaled $ 68.3 million and net working capital totaled approximately $ 103.0 million . net working capital , calculated as current assets 59 minus current liabilities , is a financial metric we use which represents available operating liquidity . with respect to measures related to liquidity : tender offer : on june 15 , 2015 , we completed the modified “ dutch auction ” tender offer ( the “ tender offer ” ) and purchased 6.9 million shares of our common stock at a purchase price of $ 6.55 per share , for an aggregate cost of $ 45.0 million excluding fees and expenses . repurchased common stock was recorded to treasury stock . we incurred costs of $ 0.7 million in connection with the tender offer , which were recorded to treasury stock . dividend payment : on july 5 , 2016 , the company declared a special cash dividend of $ 1.50 per share , or a total of $ 39.2 million . the dividend was paid on july 29 , 2016 to shareholders of record as of july 18 , 2016 . resolution of outstanding litigation : in june 2016 we collected $ 2.6 million in fees and costs from sei and $ 1.9 million held in escrow as the result of the favorable ruling from the sei arbitration .


 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 other than the fiscal year ended september 30 , 2017 , in recent years we have historically consumed cash from operations and , until recently , in most periods we have incurred operating losses from continuing operations . we have managed our liquidity position through the sale of assets and cost reduction initiatives , as well as , from time to time in prior periods , borrowings from our credit facility ( defined below ) and capital markets transactions . for the fiscal year ended september 30 , 2017 , we earned net income of $ 8.2 million and generated cash flows of approximately $ 3.9 million from operating , investing and financing activities . as of september 30 , 2017 , cash and cash equivalents totaled $ 68.3 million and net working capital totaled approximately $ 103.0 million . net working capital , calculated as current assets 59 minus current liabilities , is a financial metric we use which represents available operating liquidity . with respect to measures related to liquidity : tender offer : on june 15 , 2015 , we completed the modified “ dutch auction ” tender offer ( the “ tender offer ” ) and purchased 6.9 million shares of our common stock at a purchase price of $ 6.55 per share , for an aggregate cost of $ 45.0 million excluding fees and expenses . repurchased common stock was recorded to treasury stock . we incurred costs of $ 0.7 million in connection with the tender offer , which were recorded to treasury stock . dividend payment : on july 5 , 2016 , the company declared a special cash dividend of $ 1.50 per share , or a total of $ 39.2 million . the dividend was paid on july 29 , 2016 to shareholders of record as of july 18 , 2016 . resolution of outstanding litigation : in june 2016 we collected $ 2.6 million in fees and costs from sei and $ 1.9 million held in escrow as the result of the favorable ruling from the sei arbitration .
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 Suspicious Activity Report : see note 8 - inventory in the notes to the consolidated financial statements for additional information related to our inventory . valuation of long-lived assets long-lived assets consist primarily of property , plant , and equipment , net . because most of our long-lived assets are subject to amortization , we review these assets for impairment in accordance with the provisions of accounting standards codification ( `` asc `` ) 360 , property , plant , and equipment . we review long-lived assets for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable . our impairment testing of long-lived assets consists of determining whether the carrying amount of the long-lived asset ( asset group ) is recoverable , in other words , whether the sum of the future undiscounted cash flows expected to result from the use and eventual disposition of the asset ( asset group ) exceeds its carrying amount . the determination of the existence of impairment involves judgments that are subjective in nature and may require the use of estimates in forecasting future results and cash flows related to an asset or group of assets . in making this determination , we use certain assumptions , including estimates of future cash flows expected to be generated by these assets , which are based on additional assumptions such as asset utilization , the length of service that assets will be used in our operations , and estimated salvage values . see note 9 - property , plant , and equipment , net in the notes to the consolidated financial statements for additional disclosures related to our long-lived assets . income taxes in accordance with the authoritative guidance on accounting for income taxes , we recognize income taxes using an asset and liability approach . this approach requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our consolidated financial statements or tax returns . the measurement of current and deferred taxes is based on provisions of the enacted tax law and the effects of future changes in tax laws or rates are not anticipated . the authoritative guidance provides for recognition of deferred tax assets if the realization of such deferred tax assets is more likely than not to occur based on an evaluation of all available evidence , both positive and negative , and the relative weight of the evidence . with the exception of the gains resulting from the completed photovoltaics asset sale , we have determined that at this time it is more likely than not that deferred tax assets attributable to all other items will not be realized , primarily due to uncertainties related to our ability to utilize our net operating loss carryforwards before they expire . accordingly , we have established a valuation allowance for such deferred tax assets which we do not expect to realize . if there is a change in our ability to realize our deferred tax assets for which a valuation allowance has been established , then our tax valuation allowance may decrease in the period in which we determine that realization is more likely than not . likewise , if we determine that it is not more likely than not that deferred tax assets will be realized , then a valuation allowance may be established for such deferred tax assets and our tax provision may increase in the period in which we make the determination . see note 12 - income and other taxes in the notes to the consolidated financial statements for additional information related to our income taxes . 47 revenue recognition revenue is recognized upon shipment , provided persuasive evidence of a contract exists , the price is fixed , the product meets our customer 's specifications , title and ownership have transferred to the customer , and there is reasonable assurance of collection of the sales proceeds . the majority of our products have shipping terms that are free on board or free carrier alongside ( “ fca ” ) shipping point , which means that we fulfill our delivery obligation when the goods are handed over to the freight carrier at our shipping dock . this means the customer typically bears all costs and risks of loss or damage to the goods from that point . we account for shipping and related transportation costs by recording the charges that are invoiced to customers as revenue , with the corresponding cost recorded as cost of revenue . in those instances where inventory is maintained at a consigned location , revenue is recognized only when our customer pulls product for use and after title and ownership has transferred to the customer . any warranty cost and remaining obligations that are inconsequential or perfunctory are accrued when the corresponding revenue is recognized . distributors . we use a number of distributors around the world and recognize revenue upon shipment of product to these distributors . title and risk of loss pass to the distributors upon shipment , and our distributors are contractually obligated to pay us on standard commercial terms , just like our other direct customers . we do not sell to our distributors on consignment and , except in the event of product discontinuance , do not give distributors a right of return . contract manufacturers . prior to certain customers accepting product that is manufactured at one of our contract manufacturers , these customers require that they first qualify the product and manufacturing processes at our contract manufacturer . the customers ' qualification process determines whether the product manufactured at our contract manufacturer achieves their quality , performance , and reliability standards . after a customer completes the initial qualification process , we receive approval to ship qualified product to that customer . story_separator_special_tag our r & d costs are expensed as incurred . we believe that in order to remain competitive , we must invest significant financial resources in developing new product features and enhancements and in maintaining customer satisfaction worldwide . stock-based compensation expense within r & d totaled approximately $ 0.5 million and $ 0.4 million during the fiscal years ended september 30 , 2017 and 2016 , respectively . r & d expense for the fiscal year ended september 30 , 2017 was higher than the amounts reported in the prior year primarily due to higher compensation costs and increased project spending primarily related to navigation products and linear externally modulated lasers . as a percentage of revenue , r & d expenses were 10.2 % and 10.8 % for the fiscal years ended september 30 , 2017 and 2016 , respectively . the decrease in r & d expense as a percentage of revenue in the fiscal year ended september 30 , 2017 compared to the prior year is due to the increase in revenues in the fiscal year ended september 30 , 2017 . impairments in march 2017 , in connection with the transition of our manufacturing operations in china to a new manufacturing facility in china , we identified equipment with a net book value of approximately $ 0.6 million that would no longer be utilized after the planned move later in fiscal year 2017. after taking into consideration the costs of disposal and estimated net funds from the sale of the equipment of approximately $ 0.1 million , we recorded a charge to impairments of approximately $ 0.5 million in the fiscal year ended september 30 , 2017 . see note 8 - property , plant and equipment , net in the notes to the consolidated financial statements for additional information . 53 recovery of previously incurred litigation related fees and expenses from arbitration award recovery of previously incurred litigation related fees and expenses from arbitration award consists of the fees awarded to the company as a result of the sei arbitration award in april 2016. as a percentage of revenue , the recovery of previously incurred litigation related fees and expenses from arbitration award was 2.8 % for the fiscal year ended september 30 , 2016 . gain from change in estimate on aro as a result of the revision in the estimated amount and timing of cash flows for aro during the fiscal year ended september 30 , 2017 , the company reduced the aro liability by $ 45,000 and recorded a gain from change in estimate on aro liability of $ 45,000 . see note 13 - commitments and contingencies in the notes to the consolidated financial statements for additional information . operating income operating income represents revenue less the cost of revenue and direct operating expenses incurred . operating income is a measure of profit and loss that executive management uses to assess performance and make decisions . as a percentage of revenue , our operating income was 6.3 % and 3.2 % for the fiscal years ended september 30 , 2017 and 2016 , respectively . the increase in operating income as a percentage of revenue in the fiscal year ended september 30 , 2017 compared to the prior year is due to the increase in operating income in the fiscal year ended september 30 , 2017 . other income ( expense ) interest income , net during the fiscal years ended september 30 , 2017 and 2016 , we recorded $ 0.4 million and $ 0.2 million , respectively , of interest income earned on cash and cash equivalents balances , which was partially offset by interest expense and letter of credit fees related to our credit facility ( as defined below ) . interest income for the fiscal year ended september 30 , 2017 was higher than the amount reported in the prior year due to higher interest income earned on cash and cash equivalents balances . foreign exchange gains or losses from foreign currency transactions denominated in currencies other than the u.s. dollar , both realized and unrealized , are recorded as foreign exchange gain ( loss ) on our consolidated statements of operations and comprehensive income . the gain ( losses ) recorded relate to the change in value of the yuan renminbi relative to the u.s. dollar . 54 income tax expense for the fiscal year ended september 30 , 2017 , the company recorded income tax expense from continuing operations of approximately $ 0.2 million , and $ 0 of income tax expense within income from discontinued operations . for the fiscal year ended september 30 , 2016 , the company recorded income tax expense from continuing operations of approximately $ 14,000 and $ 24,000 of income tax benefit within income from discontinued operations . income from discontinued operations , net of tax replace_table_token_7_th during the fiscal year ended september 30 , 2016 , we recorded income from discontinued operations from the photovoltaics business and digital products business of $ 1.0 million and $ 4.6 million , respectively . included in cost of revenue for the fiscal year ended september 30 , 2016 is $ 0.4 million due to a reduction in expected product warranty liabilities from a settlement agreement associated with the digital products business and a gain of $ 0.3 million on the lease termination associated with the digital products business . during the fiscal year ended september 30 , 2016 , we recognized a gain associated with the release of the $ 3.4 million deferred gain and reversal of other liabilities of $ 0.4 million that had been recorded as of september 30 , 2015 , resulting in a credit of $ 3.8 million to recognition of previously deferred gain on sale of assets within discontinued operations of the digital products business as the result of the favorable ruling from the sei arbitration . see note 13 - commitments and contingencies in

