proposed new products may be subject to regulatory clearance or approval prior to commercialization and the time period for introducing a new product to the marketplace can be unpredictable . we also focus on controlling costs by investing in modern manufacturing technologies and controlling purchasing processes . we have been successful in consistently generating cash from operations and have used that cash to reduce or eliminate indebtedness , to fund capital expenditures , to make investment purchases , to repurchase stock and to pay dividends . - 18 - our strategic objective is to further enhance our position in our served markets by : · focusing on customer needs ; · expanding existing product lines and developing new products ; · maintaining a culture of controlling cost ; and · preserving and fostering a collaborative , entrepreneurial management structure . for the year ended december 31 , 2012 , we reported revenues of $ 119.1 million , operating income of $ 33.6 million and net income of $ 23.6 million . results of operations our net income was $ 23.6 million , or $ 11.72 per basic and $ 11.66 per diluted share , in 2012 , compared to net income of $ 26.0 million , or $ 12.90 per basic and $ 12.82 per diluted share , in 2011 and net income of $ 21.0 million , or $ 10.38 per basic and $ 10.32 per diluted share , in 2010. revenues were $ 119.1 million in 2012 , compared with $ 117.7 million in 2011 and $ 108.6 million in 2010. the 1 percent revenue increase in 2012 over 2011 and 8 percent revenue increase in 2011 over 2010 were generally attributable to higher sales volumes . increases in revenues in 2012 in our fluid delivery and cardiovascular product lines were largely offset by reduced sales to a large customer with which we have a long-term contract that had accumulated too large of an inventory of one of our products in 2011. annual revenues by product lines were as follows ( in thousands ) : replace_table_token_4_th our cost of goods sold was $ 62.9 million in 2012 and $ 57.7 million in each of 2011 and 2010. product mix , higher depreciation expense and lower manufacturing efficiencies in one product line partially offset by the impact of continued cost improvement initiatives were the primary contributors to the 9 percent increase in cost of goods sold for 2012 over 2011. gross profit in 2012 was $ 56.1 million compared with $ 60.0 million in 2011 and $ 50.9 million in 2010. our gross profit was 47 percent of revenues in 2012 , 51 percent of revenues in 2011 and 47 percent of revenues in 2010. the decrease in gross profit percentage in 2012 was primarily related to a product mix that was less favorable than 2011 's product mix . the increases in gross profit percentage in 2011 from the prior year were primarily due to a more favorable product mix , improvements in manufacturing efficiencies and the impact of cost-savings projects . operating expenses were $ 22.5 million in 2012 compared with $ 21.8 million in 2011 and $ 19.9 million in 2010. in 2012 increases in selling expenses and increases in research and development , or r & d , expenses were partially offset by decreases in general and administrative , or g & a , expenses . r & d expenses increased $ 898,000 in 2012 as compared to 2011 primarily related to increased compensation costs , increased supplies costs , increased travel costs and increased outside services . r & d expenses consist primarily of salaries and other related expenses of our r & d personnel as well as costs associated with regulatory matters . in 2012 , selling expenses increased $ 369,000 primarily related to increased compensation , commissions and promotional expenses . selling expenses consist primarily of salaries , commissions and other related expenses for sales and marketing personnel , marketing , advertising and promotional expenses . g & a expenses decreased $ 592,000 in 2012 as compared to 2011 primarily related to decreased outside services . g & a expenses consist primarily of salaries and other related expenses of administrative , executive and financial personnel and outside professional fees . - 19 - in 2011 , increases in g & a expenses and increases in r & d expenses were partially offset by decreases in selling expenses . g & a expenses increased $ 1.7 million in 2011 as compared to 2010 primarily related to increased compensation and increased outside services . r & d expenses increased $ 199,000 in 2011 as compared to 2010 primarily related to increased compensation costs , increased supplies costs and increased outside services . in 2011 , selling expenses decreased $ 43,000 primarily related to decreased compensation and promotional expenses . our operating income for 2012 was $ 33.6 million , compared with $ 38.2 million in 2011 and $ 31.0 million in 2010. operating income was 28 percent of revenues for 2012 , 32 percent of revenues for 2011 and 29 percent of revenues for 2010. the decrease in gross profit and the increase in operating expenses described above were the major contributors to the operating income decrease in 2012 compared to the previous year . the increase in gross profit partially offset by the increase in operating expenses described above was the major contributor to the operating income improvement in 2011 compared to the previous year . during 2013 we anticipate increases in r & d expenses and depreciation charges . story_separator_special_tag after taking these items into consideration , we expect growth in our operating income during 2013 as compared to 2012. our interest income for 2012 was $ 1.4 million compared with $ 1.3 million in 2011 and $ 1.0 million in 2010. the increases in 2012 and 2011 were primarily related to the increased levels of cash and investments during 2012 and 2011. results for 2012 and 2011 were also favorably impacted by investing in bonds with slightly longer maturities and higher yields . income tax expense in 2012 totaled $ 11.4 million , compared with $ 13.4 million in 2011 and $ 11.0 million in 2010. the effective tax rates for 2012 , 2011 and 2010 were 32.6 percent , 34.0 percent and 34.5 percent , respectively . the decrease in our effective tax rate for 2012 was primarily related to a favorable adjustment to an uncertain tax position related to income tax credits claimed for research and development following the conclusion of an internal revenue service examination of our united states federal income tax returns for 2006 , 2007 and 2008. benefits from tax incentives for domestic production totaled $ 949,000 in 2012 , $ 996,000 in 2011 and $ 957,000 in 2010. benefits from changes in uncertain tax positions totaled $ 720,000 in 2012 and $ 159,000 in 2011. expenses from changes in uncertain tax positions totaled $ 255,000 in 2010. we expect our effective tax rate for 2013 to be approximately 33.5 percent . story_separator_special_tag inflation primarily in the prices we pay for labor , materials and services . over the last three years , we have experienced the effects of moderate inflation in these costs . at times , we have been able to offset a portion of these increased costs by increasing the sales prices of our products . however , competitive pressures have not allowed for full recovery of these cost increases . new accounting pronouncements from time to time , new accounting standards updates applicable to us are issued by the fasb , which we will adopt as of the specified effective date . unless otherwise discussed , we believe the impact of recently issued standards updates that are not yet effective will not have a material impact on our consolidated financial statements upon adoption . critical accounting policies the discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . in the preparation of these financial statements , we make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosures of contingent assets and liabilities . we believe the following discussion addresses our most critical accounting policies and estimates , which are those that are most important to the portrayal of our financial condition and results and require management 's most difficult , subjective and complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . actual results could differ significantly from those estimates under different assumptions and conditions . from time to time , we accrue legal costs associated with certain litigation . in making determinations of likely outcomes of litigation matters , we consider the evaluation of legal counsel knowledgeable about each matter , case law and other case-specific issues . we believe these accruals are adequate to cover the legal fees and expenses associated with litigating these matters . however , the time and cost required to litigate these matters as well as the outcomes of the proceedings may vary from what we have projected . we maintain an allowance for doubtful accounts to reflect estimated losses resulting from the failure of customers to make required payments . on an ongoing basis , the collectability of accounts receivable is assessed based upon historical collection trends , current economic factors and the assessment of the collectability of specific accounts . we evaluate the collectability of specific accounts and determine when to grant credit to our customers using a combination of factors , including the age of the outstanding balances , evaluation of customers ' current and past financial condition , recent payment history , current economic environment , and discussions with our personnel and with the customers directly . accounts are written off when it is determined the receivable will not be collected . if circumstances change , our estimates of the collectability of amounts could be changed by a material amount . we are required to estimate our provision for income taxes and uncertain tax positions in each of the jurisdictions in which we operate . this process involves estimating our actual current tax exposure , including assessing the risks associated with tax audits , together with assessing temporary differences resulting from the different treatment of items for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included within the balance sheet . we assess the likelihood that our deferred tax assets will be recovered from future taxable income and , to the extent we believe that recovery is more likely than not , do not establish a valuation allowance . in the event that actual results differ from these estimates , the provision for income taxes could be materially impacted . - 22 - we assess the impairment of our long-lived identifiable assets , excluding goodwill which is tested for impairment as explained below , whenever events or changes in circumstances indicate that the carrying value may not be recoverable . this review is based upon projections of anticipated future cash flows . although we believe that our estimates of future cash flows are reasonable , different assumptions regarding such cash flows or future changes in our business plan could materially affect our evaluations . no such changes are anticipated at this time

liquidity and capital resources effective october 1 , 2011 , our revolving credit facility with a money center bank was amended to increase the maximum principal amount of our revolving line of credit from $ 25.0 million to $ 40.0 million and to extend the termination date for advances under the revolving line of credit to october 1 , 2016. the credit facility is to be utilized for the funding of operations and for major capital projects or acquisitions , subject to certain limitations and restrictions . borrowings under the credit facility bear interest that is payable monthly at 30-day , 60-day or 90-day libor , as selected by us , plus one percent . from time to time prior to october 1 , 2016 and assuming an event of default is not then existing , we can convert outstanding advances under the revolving line of credit to term loans with a term of up to two years . we had no outstanding borrowings under our credit facility at december 31 , 2012 or 2011. the credit facility contains various restrictive covenants , none of which is expected to impact our liquidity or capital resources . at december 31 , 2012 , we were in compliance with all financial covenants . we believe the bank providing the credit facility is highly-rated and that the entire $ 40.0 million under the credit facility is currently available to us . if that bank were unable to provide such funds , we believe such inability would not impact our ability to fund operations .


 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 effective october 1 , 2011 , our revolving credit facility with a money center bank was amended to increase the maximum principal amount of our revolving line of credit from $ 25.0 million to $ 40.0 million and to extend the termination date for advances under the revolving line of credit to october 1 , 2016. the credit facility is to be utilized for the funding of operations and for major capital projects or acquisitions , subject to certain limitations and restrictions . borrowings under the credit facility bear interest that is payable monthly at 30-day , 60-day or 90-day libor , as selected by us , plus one percent . from time to time prior to october 1 , 2016 and assuming an event of default is not then existing , we can convert outstanding advances under the revolving line of credit to term loans with a term of up to two years . we had no outstanding borrowings under our credit facility at december 31 , 2012 or 2011. the credit facility contains various restrictive covenants , none of which is expected to impact our liquidity or capital resources . at december 31 , 2012 , we were in compliance with all financial covenants . we believe the bank providing the credit facility is highly-rated and that the entire $ 40.0 million under the credit facility is currently available to us . if that bank were unable to provide such funds , we believe such inability would not impact our ability to fund operations .
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 Suspicious Activity Report : proposed new products may be subject to regulatory clearance or approval prior to commercialization and the time period for introducing a new product to the marketplace can be unpredictable . we also focus on controlling costs by investing in modern manufacturing technologies and controlling purchasing processes . we have been successful in consistently generating cash from operations and have used that cash to reduce or eliminate indebtedness , to fund capital expenditures , to make investment purchases , to repurchase stock and to pay dividends . - 18 - our strategic objective is to further enhance our position in our served markets by : · focusing on customer needs ; · expanding existing product lines and developing new products ; · maintaining a culture of controlling cost ; and · preserving and fostering a collaborative , entrepreneurial management structure . for the year ended december 31 , 2012 , we reported revenues of $ 119.1 million , operating income of $ 33.6 million and net income of $ 23.6 million . results of operations our net income was $ 23.6 million , or $ 11.72 per basic and $ 11.66 per diluted share , in 2012 , compared to net income of $ 26.0 million , or $ 12.90 per basic and $ 12.82 per diluted share , in 2011 and net income of $ 21.0 million , or $ 10.38 per basic and $ 10.32 per diluted share , in 2010. revenues were $ 119.1 million in 2012 , compared with $ 117.7 million in 2011 and $ 108.6 million in 2010. the 1 percent revenue increase in 2012 over 2011 and 8 percent revenue increase in 2011 over 2010 were generally attributable to higher sales volumes . increases in revenues in 2012 in our fluid delivery and cardiovascular product lines were largely offset by reduced sales to a large customer with which we have a long-term contract that had accumulated too large of an inventory of one of our products in 2011. annual revenues by product lines were as follows ( in thousands ) : replace_table_token_4_th our cost of goods sold was $ 62.9 million in 2012 and $ 57.7 million in each of 2011 and 2010. product mix , higher depreciation expense and lower manufacturing efficiencies in one product line partially offset by the impact of continued cost improvement initiatives were the primary contributors to the 9 percent increase in cost of goods sold for 2012 over 2011. gross profit in 2012 was $ 56.1 million compared with $ 60.0 million in 2011 and $ 50.9 million in 2010. our gross profit was 47 percent of revenues in 2012 , 51 percent of revenues in 2011 and 47 percent of revenues in 2010. the decrease in gross profit percentage in 2012 was primarily related to a product mix that was less favorable than 2011 's product mix . the increases in gross profit percentage in 2011 from the prior year were primarily due to a more favorable product mix , improvements in manufacturing efficiencies and the impact of cost-savings projects . operating expenses were $ 22.5 million in 2012 compared with $ 21.8 million in 2011 and $ 19.9 million in 2010. in 2012 increases in selling expenses and increases in research and development , or r & d , expenses were partially offset by decreases in general and administrative , or g & a , expenses . r & d expenses increased $ 898,000 in 2012 as compared to 2011 primarily related to increased compensation costs , increased supplies costs , increased travel costs and increased outside services . r & d expenses consist primarily of salaries and other related expenses of our r & d personnel as well as costs associated with regulatory matters . in 2012 , selling expenses increased $ 369,000 primarily related to increased compensation , commissions and promotional expenses . selling expenses consist primarily of salaries , commissions and other related expenses for sales and marketing personnel , marketing , advertising and promotional expenses . g & a expenses decreased $ 592,000 in 2012 as compared to 2011 primarily related to decreased outside services . g & a expenses consist primarily of salaries and other related expenses of administrative , executive and financial personnel and outside professional fees . - 19 - in 2011 , increases in g & a expenses and increases in r & d expenses were partially offset by decreases in selling expenses . g & a expenses increased $ 1.7 million in 2011 as compared to 2010 primarily related to increased compensation and increased outside services . r & d expenses increased $ 199,000 in 2011 as compared to 2010 primarily related to increased compensation costs , increased supplies costs and increased outside services . in 2011 , selling expenses decreased $ 43,000 primarily related to decreased compensation and promotional expenses . our operating income for 2012 was $ 33.6 million , compared with $ 38.2 million in 2011 and $ 31.0 million in 2010. operating income was 28 percent of revenues for 2012 , 32 percent of revenues for 2011 and 29 percent of revenues for 2010. the decrease in gross profit and the increase in operating expenses described above were the major contributors to the operating income decrease in 2012 compared to the previous year . the increase in gross profit partially offset by the increase in operating expenses described above was the major contributor to the operating income improvement in 2011 compared to the previous year . during 2013 we anticipate increases in r & d expenses and depreciation charges . story_separator_special_tag after taking these items into consideration , we expect growth in our operating income during 2013 as compared to 2012. our interest income for 2012 was $ 1.4 million compared with $ 1.3 million in 2011 and $ 1.0 million in 2010. the increases in 2012 and 2011 were primarily related to the increased levels of cash and investments during 2012 and 2011. results for 2012 and 2011 were also favorably impacted by investing in bonds with slightly longer maturities and higher yields . income tax expense in 2012 totaled $ 11.4 million , compared with $ 13.4 million in 2011 and $ 11.0 million in 2010. the effective tax rates for 2012 , 2011 and 2010 were 32.6 percent , 34.0 percent and 34.5 percent , respectively . the decrease in our effective tax rate for 2012 was primarily related to a favorable adjustment to an uncertain tax position related to income tax credits claimed for research and development following the conclusion of an internal revenue service examination of our united states federal income tax returns for 2006 , 2007 and 2008. benefits from tax incentives for domestic production totaled $ 949,000 in 2012 , $ 996,000 in 2011 and $ 957,000 in 2010. benefits from changes in uncertain tax positions totaled $ 720,000 in 2012 and $ 159,000 in 2011. expenses from changes in uncertain tax positions totaled $ 255,000 in 2010. we expect our effective tax rate for 2013 to be approximately 33.5 percent . story_separator_special_tag inflation primarily in the prices we pay for labor , materials and services . over the last three years , we have experienced the effects of moderate inflation in these costs . at times , we have been able to offset a portion of these increased costs by increasing the sales prices of our products . however , competitive pressures have not allowed for full recovery of these cost increases . new accounting pronouncements from time to time , new accounting standards updates applicable to us are issued by the fasb , which we will adopt as of the specified effective date . unless otherwise discussed , we believe the impact of recently issued standards updates that are not yet effective will not have a material impact on our consolidated financial statements upon adoption . critical accounting policies the discussion and analysis of our financial condition and results of operations are based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . in the preparation of these financial statements , we make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosures of contingent assets and liabilities . we believe the following discussion addresses our most critical accounting policies and estimates , which are those that are most important to the portrayal of our financial condition and results and require management 's most difficult , subjective and complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . actual results could differ significantly from those estimates under different assumptions and conditions . from time to time , we accrue legal costs associated with certain litigation . in making determinations of likely outcomes of litigation matters , we consider the evaluation of legal counsel knowledgeable about each matter , case law and other case-specific issues . we believe these accruals are adequate to cover the legal fees and expenses associated with litigating these matters . however , the time and cost required to litigate these matters as well as the outcomes of the proceedings may vary from what we have projected . we maintain an allowance for doubtful accounts to reflect estimated losses resulting from the failure of customers to make required payments . on an ongoing basis , the collectability of accounts receivable is assessed based upon historical collection trends , current economic factors and the assessment of the collectability of specific accounts . we evaluate the collectability of specific accounts and determine when to grant credit to our customers using a combination of factors , including the age of the outstanding balances , evaluation of customers ' current and past financial condition , recent payment history , current economic environment , and discussions with our personnel and with the customers directly . accounts are written off when it is determined the receivable will not be collected . if circumstances change , our estimates of the collectability of amounts could be changed by a material amount . we are required to estimate our provision for income taxes and uncertain tax positions in each of the jurisdictions in which we operate . this process involves estimating our actual current tax exposure , including assessing the risks associated with tax audits , together with assessing temporary differences resulting from the different treatment of items for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included within the balance sheet . we assess the likelihood that our deferred tax assets will be recovered from future taxable income and , to the extent we believe that recovery is more likely than not , do not establish a valuation allowance . in the event that actual results differ from these estimates , the provision for income taxes could be materially impacted . - 22 - we assess the impairment of our long-lived identifiable assets , excluding goodwill which is tested for impairment as explained below , whenever events or changes in circumstances indicate that the carrying value may not be recoverable . this review is based upon projections of anticipated future cash flows . although we believe that our estimates of future cash flows are reasonable , different assumptions regarding such cash flows or future changes in our business plan could materially affect our evaluations . no such changes are anticipated at this time

