we believe the most significant of these challenges include increasing competition in the markets for both our consumer and government and industrial products , our ability to obtain u.s. federal government funding for research and development programs , and our ability to successfully develop and introduce products and product enhancements . 28 revenue we currently derive revenue from product sales , government research and development contracts , and commercial research and development contracts . product revenue is derived from the sale of our various home cleaning robots and government and industrial robots and related accessories . research and development revenue is derived from the execution of contracts awarded by the u.s. federal government , other governments and a small number of other partners . in the future , we expect to derive increasing revenue from product maintenance and support services due to a focused effort to market these services to the expanding installed base of our robots . we currently derive a majority of our product revenue from the sale of our home cleaning robots , and our packbot and sugv tactical military robots . for the fiscal years ended january 1 , 2011 and january 2 , 2010 , product revenues accounted for 89.9 % and 87.8 % of total revenue , respectively . for the fiscal years ended january 1 , 2011 and january 2 , 2010 , our funded research and development contracts accounted for approximately 10.1 % and 12.2 % of our total revenue , respectively . we expect to continue to perform funded research and development work with the intent of leveraging the technology developed to advance our new product development efforts . in the future , however , we expect that revenue from funded research and development contracts could grow modestly on an absolute dollar basis and represent a decreasing percentage of our total revenue due to the anticipated growth in consumer and military product revenue . for the fiscal years ended january 1 , 2011 and january 2 , 2010 , approximately 65.7 % and 56.0 % , respectively , of our home robot product revenue resulted from sales to 15 customers . for fiscal 2010 and fiscal 2009 , the customers were comprised of both u.s. retailers and international distributors . direct-to-consumer revenue generated through our domestic and international on-line stores accounted for 11.5 % of our home robot product revenue for the fiscal year ended january 1 , 2011 compared to 17.1 % in the fiscal year ended january 2 , 2010. in addition , 87.6 % and 78.6 % of military product revenue , and 96.5 % and 94.5 % of funded research and development contract revenue , resulted from orders and contracts or subcontracts with the u.s. federal government in the fiscal years ended january 1 , 2011 and january 2 , 2010 , respectively . for the fiscal years ended january 1 , 2011 and january 2 , 2010 , sales to non-u.s. customers accounted for 41.1 % and 33.3 % of total revenue , respectively . our revenue from product sales is generated through sales to our retail distribution channels , our distributor network and to certain u.s. and foreign governments . we recognize revenue from the sales of home robots under the terms of the customer agreement upon transfer of title and risk of loss to the customer , net of estimated returns , provided that collection is determined to be reasonably assured and no significant obligations remain . revenue from our military robot sales and revenue from funded research and development contracts are occasionally influenced by the september 30 fiscal year-end of the u.s. federal government . in addition , our revenue can be affected by the timing of the release of new products and the size and timing of contract awards from military and other government agencies . historically , revenue from consumer product sales has been significantly seasonal , with a majority of our consumer product revenue generated in the second half of the year ( in advance of the holiday season ) . as a result of the growth of our international consumer business , which is less seasonal than our domestic consumer business , our consumer product revenue is spread more evenly throughout the year . cost of revenue cost of product revenue includes the cost of raw materials and labor that go into the development and manufacture of our products as well as manufacturing overhead costs such as manufacturing engineering , quality assurance , logistics and warranty costs . for the fiscal years ended january 1 , 2011 and january 2 , 2010 , cost of product revenue was 63.4 % and 67.4 % of total product revenue , respectively . raw material costs , which are our most significant cost items , can fluctuate materially on a periodic basis , although many components have been historically stable . additionally , unit costs can vary significantly depending on the mix of products sold . there can be no assurance that our costs of raw materials will not increase . labor costs also comprise a significant portion of our cost of revenue . we outsource the manufacture of our home robots to contract manufacturers in china . while labor costs in china traditionally have been favorable compared to labor costs elsewhere in the world , including the 29 united states , we believe that labor in china is becoming more scarce . consequently , the labor costs for our home robots could increase in the future . cost of contract revenue includes the direct labor costs of engineering resources committed to funded research and development contracts , as well as third-party consulting , travel and associated direct material costs . additionally , we include overhead expenses such as indirect engineering labor , occupancy costs associated with the project resources , engineering tools and supplies and program management expenses . story_separator_special_tag percentage points and the government and industrial division gross margin increasing 2.9 percentage points . the 7.8 percentage point increase in the home robots division is attributable to lower return provisions , the increase in units shipped through our higher-margin international channel , price increases on certain international products , continued product cost reduction efforts , lower excess and obsolete inventory provisions and improved leverage of our overhead expense against higher revenue in fiscal 2010 as compared to fiscal 2009. the 2.9 percentage point increase in the government and industrial division is primarily attributable to leveraging our overhead expense against higher revenue , and an increase in higher-margin product life cycle revenue , partially offset by a decrease due to product mix primarily attributable to a significant number of sugv 310 units shipped in fiscal 2010 as compared to fiscal 2009. our margins relating to contract revenue increased in fiscal 2010 as compared to fiscal 2009 due to higher-margin firm-fixed-priced contracts awarded in 2010. research and development replace_table_token_9_th research and development expenses increased by $ 10.1 million , or 68.2 % , to $ 24.8 million ( 6.2 % of revenue ) in fiscal 2010 , from $ 14.7 million ( 4.9 % of revenue ) for fiscal 2009. the increase in research and development expenses is primarily due to increases in compensation , recruiting , employee benefits , materials and consulting 36 costs associated with internal research and development projects in our home robots division and expenses related to our healthcare research . the increase in our home robots division is primarily the result of our increased efforts in the areas of product development and advanced development relating to our consumer products . in addition to our research and development activities classified as research and development expense , we incur research and development expenses under funded development arrangements with governments and industrial third parties . for fiscal 2010 , these expenses amounted to $ 27.1 million compared to $ 30.8 million for fiscal 2009. in accordance with generally accepted accounting principles , these expenses have been classified as cost of contract revenue rather than research and development expense . the combined investment in future technologies , classified as cost of revenue and research and development expense , was $ 51.9 million for fiscal 2010 , compared to $ 45.5 million for fiscal 2009. selling and marketing replace_table_token_10_th selling and marketing expenses increased by $ 9.6 million , or 23.6 % , to $ 50.5 million ( 12.6 % of revenue ) in fiscal 2010 from $ 40.9 million ( 13.7 % of revenue ) in fiscal 2009. this was driven by an increase in our home robots division of $ 7.9 million attributable to increases in advertising , promotions , on-line media , sales commission expenses as a result of higher sales , and an increase in compensation and employee-related expense supporting our international home robot sales for fiscal 2010 as compared to fiscal 2009. selling and marketing expenses in our government and industrial division increased by $ 1.7 million attributable to an increase in compensation expenses and other expenses relating to bid and proposal activities , and sales commissions as a result of higher sales in fiscal 2010 as compared to fiscal 2009. in fiscal 2011 , we expect to continue to invest in sales and marketing to increase brand awareness . accordingly , we anticipate selling and marketing expenses will increase in absolute dollars but remain at the same level or slightly above fiscal 2010 as a percentage of revenue . general and administrative replace_table_token_11_th general and administrative expenses increased by $ 6.5 million , or 21.6 % , to $ 36.6 million ( 9.1 % of revenue ) in fiscal 2010 from $ 30.1 million ( 10.1 % of revenue ) in fiscal 2009. this increase is attributable to increased compensation , benefit and recruiting expenses related to increased headcount and an increase in incentive compensation expense , stock based compensation , and an increase in legal expense , primarily attributable to our international expansion and intellectual property prosecution and enforcement , for fiscal 2010 as compared to fiscal 2009. other income ( expense ) , net replace_table_token_12_th 37 other income ( expense ) , net amounted to $ 0.5 million in fiscal 2010 compared to $ ( 0.1 ) million in fiscal 2009. other income ( expense ) , net , for fiscal 2010 was related to interest income of $ 0.8 million offset by foreign currency exchange losses of $ 0.3 million resulting from foreign currency exchange rate fluctuations . other income ( expense ) , net , for fiscal 2009 was directly related to foreign currency exchange losses resulting from foreign currency exchange rate fluctuations . income tax provision replace_table_token_13_th in fiscal 2010 , we recorded a $ 8.5 million tax provision based on an effective income tax rate of 24.9 % . the provision for income taxes for fiscal 2010 consists of $ 10.2 million of federal taxes , $ 0.1 million of foreign taxes and $ ( 1.8 ) million of state taxes , which includes the $ 2.3 million associated with the full release of our valuation allowance relating to state deferred tax assets . in fiscal 2009 , we recorded a $ 2.0 million tax provision based on an effective income tax rate of 38 % . the provision for income taxes for fiscal 2009 consists of $ 1.6 million of federal taxes and $ 0.4 million of state taxes . included in the 2009 provision is a $ 0.2 million provision associated with an out-of-period error correction with respect to the earnings of our india subsidiary and a $ 0.3 million one-time benefit from the conversion of incentive stock options to non-qualified stock options as a result of our stock option exchange program which concluded in our second fiscal quarter of 2009. comparison of years ended january 2 , 2010 and december 27 , 2008 revenue replace_table_token_14_th our

liquidity and capital resources at january 1 , 2011 , our principal sources of liquidity were cash and cash equivalents totaling $ 108.4 million , short-term investments of $ 13.9 million and accounts receivable of $ 34.1 million . we manufacture and distribute our products through contract manufacturers and third-party logistics providers . we believe that this approach gives us the advantages of relatively low capital investment and significant flexibility in scheduling production and managing inventory levels . by leasing our office facilities , we also minimize the cash needed for expansion . accordingly , our capital spending is generally limited to leasehold improvements , computers , office furniture , product-specific production tooling , internal use software and test equipment . in the fiscal years ended january 1 , 2011 and january 2 , 2010 , we spent $ 12.6 million and $ 5.0 million , respectively , on capital equipment . our strategy for delivering products to our retail customers gives us the flexibility to provide container shipments directly to the retailer from china and , alternatively , allows our retail partners to take possession of product on a domestic basis . accordingly , our home robots product inventory consists of goods shipped to our third-party logistics providers for the fulfillment of retail orders and direct-to-consumer sales . our inventory of government and industrial products is relatively low as they are generally built to order . our contract manufacturers are responsible for purchasing and stocking the majority of components required for the production of our products , and they invoice us when the finished goods are shipped .


 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 at january 1 , 2011 , our principal sources of liquidity were cash and cash equivalents totaling $ 108.4 million , short-term investments of $ 13.9 million and accounts receivable of $ 34.1 million . we manufacture and distribute our products through contract manufacturers and third-party logistics providers . we believe that this approach gives us the advantages of relatively low capital investment and significant flexibility in scheduling production and managing inventory levels . by leasing our office facilities , we also minimize the cash needed for expansion . accordingly , our capital spending is generally limited to leasehold improvements , computers , office furniture , product-specific production tooling , internal use software and test equipment . in the fiscal years ended january 1 , 2011 and january 2 , 2010 , we spent $ 12.6 million and $ 5.0 million , respectively , on capital equipment . our strategy for delivering products to our retail customers gives us the flexibility to provide container shipments directly to the retailer from china and , alternatively , allows our retail partners to take possession of product on a domestic basis . accordingly , our home robots product inventory consists of goods shipped to our third-party logistics providers for the fulfillment of retail orders and direct-to-consumer sales . our inventory of government and industrial products is relatively low as they are generally built to order . our contract manufacturers are responsible for purchasing and stocking the majority of components required for the production of our products , and they invoice us when the finished goods are shipped .
```    
 Suspicious Activity Report : we believe the most significant of these challenges include increasing competition in the markets for both our consumer and government and industrial products , our ability to obtain u.s. federal government funding for research and development programs , and our ability to successfully develop and introduce products and product enhancements . 28 revenue we currently derive revenue from product sales , government research and development contracts , and commercial research and development contracts . product revenue is derived from the sale of our various home cleaning robots and government and industrial robots and related accessories . research and development revenue is derived from the execution of contracts awarded by the u.s. federal government , other governments and a small number of other partners . in the future , we expect to derive increasing revenue from product maintenance and support services due to a focused effort to market these services to the expanding installed base of our robots . we currently derive a majority of our product revenue from the sale of our home cleaning robots , and our packbot and sugv tactical military robots . for the fiscal years ended january 1 , 2011 and january 2 , 2010 , product revenues accounted for 89.9 % and 87.8 % of total revenue , respectively . for the fiscal years ended january 1 , 2011 and january 2 , 2010 , our funded research and development contracts accounted for approximately 10.1 % and 12.2 % of our total revenue , respectively . we expect to continue to perform funded research and development work with the intent of leveraging the technology developed to advance our new product development efforts . in the future , however , we expect that revenue from funded research and development contracts could grow modestly on an absolute dollar basis and represent a decreasing percentage of our total revenue due to the anticipated growth in consumer and military product revenue . for the fiscal years ended january 1 , 2011 and january 2 , 2010 , approximately 65.7 % and 56.0 % , respectively , of our home robot product revenue resulted from sales to 15 customers . for fiscal 2010 and fiscal 2009 , the customers were comprised of both u.s. retailers and international distributors . direct-to-consumer revenue generated through our domestic and international on-line stores accounted for 11.5 % of our home robot product revenue for the fiscal year ended january 1 , 2011 compared to 17.1 % in the fiscal year ended january 2 , 2010. in addition , 87.6 % and 78.6 % of military product revenue , and 96.5 % and 94.5 % of funded research and development contract revenue , resulted from orders and contracts or subcontracts with the u.s. federal government in the fiscal years ended january 1 , 2011 and january 2 , 2010 , respectively . for the fiscal years ended january 1 , 2011 and january 2 , 2010 , sales to non-u.s. customers accounted for 41.1 % and 33.3 % of total revenue , respectively . our revenue from product sales is generated through sales to our retail distribution channels , our distributor network and to certain u.s. and foreign governments . we recognize revenue from the sales of home robots under the terms of the customer agreement upon transfer of title and risk of loss to the customer , net of estimated returns , provided that collection is determined to be reasonably assured and no significant obligations remain . revenue from our military robot sales and revenue from funded research and development contracts are occasionally influenced by the september 30 fiscal year-end of the u.s. federal government . in addition , our revenue can be affected by the timing of the release of new products and the size and timing of contract awards from military and other government agencies . historically , revenue from consumer product sales has been significantly seasonal , with a majority of our consumer product revenue generated in the second half of the year ( in advance of the holiday season ) . as a result of the growth of our international consumer business , which is less seasonal than our domestic consumer business , our consumer product revenue is spread more evenly throughout the year . cost of revenue cost of product revenue includes the cost of raw materials and labor that go into the development and manufacture of our products as well as manufacturing overhead costs such as manufacturing engineering , quality assurance , logistics and warranty costs . for the fiscal years ended january 1 , 2011 and january 2 , 2010 , cost of product revenue was 63.4 % and 67.4 % of total product revenue , respectively . raw material costs , which are our most significant cost items , can fluctuate materially on a periodic basis , although many components have been historically stable . additionally , unit costs can vary significantly depending on the mix of products sold . there can be no assurance that our costs of raw materials will not increase . labor costs also comprise a significant portion of our cost of revenue . we outsource the manufacture of our home robots to contract manufacturers in china . while labor costs in china traditionally have been favorable compared to labor costs elsewhere in the world , including the 29 united states , we believe that labor in china is becoming more scarce . consequently , the labor costs for our home robots could increase in the future . cost of contract revenue includes the direct labor costs of engineering resources committed to funded research and development contracts , as well as third-party consulting , travel and associated direct material costs . additionally , we include overhead expenses such as indirect engineering labor , occupancy costs associated with the project resources , engineering tools and supplies and program management expenses . story_separator_special_tag percentage points and the government and industrial division gross margin increasing 2.9 percentage points . the 7.8 percentage point increase in the home robots division is attributable to lower return provisions , the increase in units shipped through our higher-margin international channel , price increases on certain international products , continued product cost reduction efforts , lower excess and obsolete inventory provisions and improved leverage of our overhead expense against higher revenue in fiscal 2010 as compared to fiscal 2009. the 2.9 percentage point increase in the government and industrial division is primarily attributable to leveraging our overhead expense against higher revenue , and an increase in higher-margin product life cycle revenue , partially offset by a decrease due to product mix primarily attributable to a significant number of sugv 310 units shipped in fiscal 2010 as compared to fiscal 2009. our margins relating to contract revenue increased in fiscal 2010 as compared to fiscal 2009 due to higher-margin firm-fixed-priced contracts awarded in 2010. research and development replace_table_token_9_th research and development expenses increased by $ 10.1 million , or 68.2 % , to $ 24.8 million ( 6.2 % of revenue ) in fiscal 2010 , from $ 14.7 million ( 4.9 % of revenue ) for fiscal 2009. the increase in research and development expenses is primarily due to increases in compensation , recruiting , employee benefits , materials and consulting 36 costs associated with internal research and development projects in our home robots division and expenses related to our healthcare research . the increase in our home robots division is primarily the result of our increased efforts in the areas of product development and advanced development relating to our consumer products . in addition to our research and development activities classified as research and development expense , we incur research and development expenses under funded development arrangements with governments and industrial third parties . for fiscal 2010 , these expenses amounted to $ 27.1 million compared to $ 30.8 million for fiscal 2009. in accordance with generally accepted accounting principles , these expenses have been classified as cost of contract revenue rather than research and development expense . the combined investment in future technologies , classified as cost of revenue and research and development expense , was $ 51.9 million for fiscal 2010 , compared to $ 45.5 million for fiscal 2009. selling and marketing replace_table_token_10_th selling and marketing expenses increased by $ 9.6 million , or 23.6 % , to $ 50.5 million ( 12.6 % of revenue ) in fiscal 2010 from $ 40.9 million ( 13.7 % of revenue ) in fiscal 2009. this was driven by an increase in our home robots division of $ 7.9 million attributable to increases in advertising , promotions , on-line media , sales commission expenses as a result of higher sales , and an increase in compensation and employee-related expense supporting our international home robot sales for fiscal 2010 as compared to fiscal 2009. selling and marketing expenses in our government and industrial division increased by $ 1.7 million attributable to an increase in compensation expenses and other expenses relating to bid and proposal activities , and sales commissions as a result of higher sales in fiscal 2010 as compared to fiscal 2009. in fiscal 2011 , we expect to continue to invest in sales and marketing to increase brand awareness . accordingly , we anticipate selling and marketing expenses will increase in absolute dollars but remain at the same level or slightly above fiscal 2010 as a percentage of revenue . general and administrative replace_table_token_11_th general and administrative expenses increased by $ 6.5 million , or 21.6 % , to $ 36.6 million ( 9.1 % of revenue ) in fiscal 2010 from $ 30.1 million ( 10.1 % of revenue ) in fiscal 2009. this increase is attributable to increased compensation , benefit and recruiting expenses related to increased headcount and an increase in incentive compensation expense , stock based compensation , and an increase in legal expense , primarily attributable to our international expansion and intellectual property prosecution and enforcement , for fiscal 2010 as compared to fiscal 2009. other income ( expense ) , net replace_table_token_12_th 37 other income ( expense ) , net amounted to $ 0.5 million in fiscal 2010 compared to $ ( 0.1 ) million in fiscal 2009. other income ( expense ) , net , for fiscal 2010 was related to interest income of $ 0.8 million offset by foreign currency exchange losses of $ 0.3 million resulting from foreign currency exchange rate fluctuations . other income ( expense ) , net , for fiscal 2009 was directly related to foreign currency exchange losses resulting from foreign currency exchange rate fluctuations . income tax provision replace_table_token_13_th in fiscal 2010 , we recorded a $ 8.5 million tax provision based on an effective income tax rate of 24.9 % . the provision for income taxes for fiscal 2010 consists of $ 10.2 million of federal taxes , $ 0.1 million of foreign taxes and $ ( 1.8 ) million of state taxes , which includes the $ 2.3 million associated with the full release of our valuation allowance relating to state deferred tax assets . in fiscal 2009 , we recorded a $ 2.0 million tax provision based on an effective income tax rate of 38 % . the provision for income taxes for fiscal 2009 consists of $ 1.6 million of federal taxes and $ 0.4 million of state taxes . included in the 2009 provision is a $ 0.2 million provision associated with an out-of-period error correction with respect to the earnings of our india subsidiary and a $ 0.3 million one-time benefit from the conversion of incentive stock options to non-qualified stock options as a result of our stock option exchange program which concluded in our second fiscal quarter of 2009. comparison of years ended january 2 , 2010 and december 27 , 2008 revenue replace_table_token_14_th our

