our revenue , income from continuing operations and adjusted ebitda for fiscal 2010 were $ 199.8 million , $ 28.1 million and $ 29.9 million , respectively . our revenue , income from continuing operations and adjusted ebitda for fiscal 2009 were $ 188.9 million , $ 7.9 million and $ 22.9 million , respectively . see page 27 of this annual report for a reconciliation of our adjusted ebitda to income from continuing operations . our operations are organized in the following two business units : advanced computing solutions , or acs . this business unit is focused on specialized , high performance signal end-to-end processing solutions that encompass signal acquisition including microwave front-end , digitalization , computing , storage and communications , targeted to key market segments , including defense , communications and other commercial application . acs 's open system architecture solutions span the full range of embedded technologies from board level products to fully integrated sub-systems . our products utilize leading-edge processor technologies architected to address highly data-intensive applications that include signal , sensor and image processing within environmentally constrained military and commercial applications . in addition , acs now has a portfolio of microwave sub-assemblies to address needs in ew , sigint , elint and high bandwidth communications subsystems . these products are highly optimized for size , weight and power , as well as for the performance and ruggedization requirements of our customers . customized design and sub-systems integration services extend our capabilities to tailor solutions to meet the specialized requirements of our customers . in fiscal 2011 , acs accounted for 95 % of our total net revenues . mercury federal systems , or mfs . this business unit is focused on services and support work with the department of defense , or the dod , and federal intelligence and homeland security agencies , including designing and engineering new intelligence , surveillance and reconnaissance , or isr , capabilities to address present and emerging threats to u.s. forces . mfs is part of our long-term strategy to expand our software and services presence and pursue growth in platform-ready isr sub-systems , particularly those with classified intellectual property . mfs offers a wide range of engineering architecture and design services that enable clients to deploy leading edge computing capabilities for isr systems on an accelerated time cycle . this business unit enables us to combine classified intellectual property with the commercially developed application-ready sub-systems being developed by acs , providing customers with platform-ready , affordable isr sub-systems . in fiscal 2011 , mfs accounted for 5 % of our total net revenues . since we are an oem supplier to our commercial markets and conduct business with our defense customers via commercial items , requests by customers are a primary driver of revenue fluctuations from quarter to quarter . customers specify delivery date requirements that coincide with their need for our products . because these customers may use our products in connection with a variety of defense programs or other projects of different sizes and durations , a customer 's orders for one quarter generally do not indicate a trend for future orders by that customer . additionally , order patterns do not necessarily correlate amongst customers and , therefore , we generally can not identify sequential quarterly trends , even within our business units . non-gaap financial measures in our periodic communications , we discuss two important measures that are not calculated according to u.s. generally accepted accounting principles ( gaap ) , adjusted ebitda and free cash flow . adjusted ebitda is defined as earnings from continuing operations before interest income and expense , income taxes , depreciation , amortization of acquired intangible assets , restructuring , impairment of long-lived assets , 34 acquisition costs and other related expenses , fair value adjustments from purchase accounting and stock-based compensation costs . we use adjusted ebitda as an important indicator of the operating performance of our business . we use adjusted ebitda in internal forecasts and models when establishing internal operating budgets , supplementing the financial results and forecasts reported to our board of directors , determining a component of bonus compensation for executive officers and other key employees based on operating performance and evaluating short-term and long-term operating trends in our operations . we believe the adjusted ebitda financial measure assists in providing a more complete understanding of our underlying operational measures to manage our business , to evaluate our performance compared to prior periods and the marketplace , and to establish operational goals . we believe that these non-gaap financial adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in our financial and operational decision-making . adjusted ebitda is a non-gaap financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with gaap . this non-gaap financial measure may not be computed in the same manner as similarly titled measures used by other companies . we expect to continue to incur expenses similar to the adjusted ebitda financial adjustments described above , and investors should not infer from our presentation of this non-gaap financial measure that these costs are unusual , infrequent or non-recurring . the following tables reconcile our adjusted ebitda to the most directly comparable gaap financial measure : replace_table_token_5_th free cash flow , a non-gaap measure for reporting cash flow , is defined as cash provided by operating activities less capital expenditures for property and equipment , which includes capitalized software development costs . we believe free cash flow provides investors with an important perspective on cash available for investments and acquisitions after making capital investments required to support ongoing business operations and long-term value creation . we believe that trends in our free cash flow are valuable indicators of our operating performance and liquidity . story_separator_special_tag million in fiscal 2010. this decrease was driven by expected declines in sales of legacy product to medical equipment customers , partially offset by increases in sales to commercial communications and semiconductor inspection equipment customers . 41 mfs revenues increased $ 5.2 million , or 94 % , during fiscal 2010 as compared to fiscal 2009. this increase in revenue was primarily driven by an increase of $ 5.5 million in revenue relating to an isr qrc development program . this increase was slightly offset by the year over year completion of other development programs . net other revenues increased $ 0.1 million to $ 0.1 million during fiscal 2010 as compared to nil during fiscal 2009. net other revenue is attributable to development programs where the revenue recognized in our two business segments under contract accounting is either greater or less than revenue recognized on a consolidated basis . g ross m argin gross margin was 56.3 % for fiscal 2010 , an increase of 50 basis points from the 55.8 % gross margin achieved in fiscal 2009. the increase in gross margin was primarily due to a $ 5.8 million decrease in provisions for obsolete inventory , a $ 1.5 million decrease in warranty expense and a $ 0.8 million decrease in scrap expenditures , as compared to fiscal 2009. this increase was partially offset by a decrease in direct margin due to an unfavorable shift in product and business mix . significant reserves for inventory obsolescence were booked in fiscal 2009 largely due to lower demand in our commercial markets . s elling , g eneral and a dministrative selling , general and administrative expenses increased 0.7 % or $ 0.3 million to $ 51.5 million during fiscal 2010 compared to $ 51.2 million during fiscal 2009. the increase was primarily due to a $ 1.1 million increase in salary and fringe expense primarily attributed to an increase in severance expense for terminated employees and a $ 0.2 million increase in recruiting costs associated with filling key executive positions . these increases were partially offset by decreases of $ 0.8 million in legal fees and $ 0.4 million in sales commissions paid due to lower bookings . even with an increase in overall selling , general and administrative expenses in fiscal 2010 , these expenses represented approximately 25.7 % of our revenues during fiscal 2010 , down from 27.1 % in fiscal 2009 due to our continued focus on improving the underlying leverage of the business . r esearch and d evelopment research and development expenses decreased 2 % or $ 0.9 million to $ 41.5 million during fiscal 2010 compared to $ 42.4 million for fiscal 2009. the decrease was primarily the result of a $ 3.8 million increase in the time spent by our engineers on billable projects , a $ 0.5 million decrease in stock-based compensation expense due to the difference in the values of awards that were fully vested in fiscal 2010 and the values of new grants , and a $ 0.3 million decrease in depreciation expense due to assets becoming fully depreciated . the decrease in research and development expenses was partially offset by a $ 2.1 million increase in salary expense due to an increase in headcount , a $ 0.8 million increase in prototype material spending , and a $ 0.4 million increase in equipment and supply costs . research and development continues to be a focus of our business with approximately 20.8 % of our revenues dedicated to research and development activities during fiscal 2010 and approximately 22.4 % of our revenues dedicated to such activities during fiscal 2009. we continue to focus on improving the leverage of our research and development investments in order to realize a more near-term return . a mortization of a cquired i ntangible a ssets amortization of acquired intangible assets decreased 29 % or $ 0.7 million to $ 1.7 million during fiscal 2010 compared to $ 2.4 million for fiscal 2009. the decrease was attributable to assets becoming fully amortized during fiscal 2010 and a fiscal 2010 impairment of a terminated license agreement . 42 i mpairment of g oodwill and l ong - lived a ssets we recorded $ 0.2 million in impairment charges in fiscal 2010 compared to no impairment charges recorded in fiscal 2009. these fiscal 2010 charges were the result of the $ 0.1 million impairment of the remaining value of a terminated license agreement and $ 0.1 million for the impairment of the fair value of the shares we received as compensation in the sale of our former biotech business . following the vi and vsg divestitures , acs is the only reporting unit containing goodwill , and in june 2010 , we performed our annual goodwill impairment test in accordance with fasb asc 350. this evaluation was performed consistent with prior years and relied on a discounted cash flow analysis , which was corroborated by two market-based analyses : one evaluated guideline companies and another that reviewed comparable transactions . for each analysis performed , the fair value of the acs reporting unit was deemed to be in excess of the book value . as such , no impairment charge was recorded . there were no impairment charges in fiscal 2009. r estructuring e xpense restructuring expense for fiscal 2010 decreased $ 1.5 million to $ 0.2 million as compared to $ 1.7 million in fiscal 2009. this decrease reflects no additional substantial activities and was primarily due to improved operating results in fiscal 2010 and an improved outlook for fiscal 2011 and beyond . as a result of the restructuring actions taken in fiscal 2010 , we eliminated four positions , while we eliminated approximately 35 positions in fiscal 2009. i nterest i ncome interest income for fiscal 2010 decreased by $ 1.6 million to $ 0.5 million compared to $ 2.1 million in fiscal 2009. the decrease was primarily attributable to decreased rates

cash flows replace_table_token_11_th our cash and cash equivalents increased by $ 106.6 million during fiscal 2011 primarily as the result of $ 31.5 million generated by operating activities , $ 93.6 million net proceeds received from a follow-on public 46 stock offering , $ 18.0 million cash proceeds from sale of marketable securities and $ 4.6 million generated from stock related activities , offset by $ 29.5 million in payment , net of cash acquired , for the lnx acquisition , $ 8.8 million in capital expenditures and $ 2.4 million in payments for acquired intangible assets . operating activities during fiscal 2011 , we generated $ 31.5 million in cash from operations compared to $ 15.7 million generated from operations during fiscal 2010. the $ 15.8 million increase in the amount of cash generated from operations was driven by a $ 15.5 million improvement in accounts receivable primarily driven by collection of a large receivable shipped at the end of fiscal 2010 , an $ 11.6 million increase in provision for deferred income taxes , a $ 4.0 million increase in cash generated from prepaid income taxes and income taxes payable , a $ 3.4 million increase in inventory activities , a $ 1.6 million increase in stock-based compensation , a $ 1.5 million increase in depreciation and amortization expense , and a $ 0.9 million reduction in other non-cash items . these improvements were partially offset by lower comparative net income of $ 9.9 million , a $ 4.8 million increase in cash used for accounts payable and accrued expenses , a $ 4.8 million increase in cash used for deferred revenue , customer advances , and other non-current liabilities , and a $ 3.2 million increase in cash used for prepaid expenses and other current and non-current assets . our ability to generate cash from operations in future periods will depend in large part on profitability , the rate of collection of accounts receivable , our inventory turns and our ability to manage other areas of working capital .


 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.
     ```cash flows replace_table_token_11_th our cash and cash equivalents increased by $ 106.6 million during fiscal 2011 primarily as the result of $ 31.5 million generated by operating activities , $ 93.6 million net proceeds received from a follow-on public 46 stock offering , $ 18.0 million cash proceeds from sale of marketable securities and $ 4.6 million generated from stock related activities , offset by $ 29.5 million in payment , net of cash acquired , for the lnx acquisition , $ 8.8 million in capital expenditures and $ 2.4 million in payments for acquired intangible assets . operating activities during fiscal 2011 , we generated $ 31.5 million in cash from operations compared to $ 15.7 million generated from operations during fiscal 2010. the $ 15.8 million increase in the amount of cash generated from operations was driven by a $ 15.5 million improvement in accounts receivable primarily driven by collection of a large receivable shipped at the end of fiscal 2010 , an $ 11.6 million increase in provision for deferred income taxes , a $ 4.0 million increase in cash generated from prepaid income taxes and income taxes payable , a $ 3.4 million increase in inventory activities , a $ 1.6 million increase in stock-based compensation , a $ 1.5 million increase in depreciation and amortization expense , and a $ 0.9 million reduction in other non-cash items . these improvements were partially offset by lower comparative net income of $ 9.9 million , a $ 4.8 million increase in cash used for accounts payable and accrued expenses , a $ 4.8 million increase in cash used for deferred revenue , customer advances , and other non-current liabilities , and a $ 3.2 million increase in cash used for prepaid expenses and other current and non-current assets . our ability to generate cash from operations in future periods will depend in large part on profitability , the rate of collection of accounts receivable , our inventory turns and our ability to manage other areas of working capital .
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 Suspicious Activity Report : our revenue , income from continuing operations and adjusted ebitda for fiscal 2010 were $ 199.8 million , $ 28.1 million and $ 29.9 million , respectively . our revenue , income from continuing operations and adjusted ebitda for fiscal 2009 were $ 188.9 million , $ 7.9 million and $ 22.9 million , respectively . see page 27 of this annual report for a reconciliation of our adjusted ebitda to income from continuing operations . our operations are organized in the following two business units : advanced computing solutions , or acs . this business unit is focused on specialized , high performance signal end-to-end processing solutions that encompass signal acquisition including microwave front-end , digitalization , computing , storage and communications , targeted to key market segments , including defense , communications and other commercial application . acs 's open system architecture solutions span the full range of embedded technologies from board level products to fully integrated sub-systems . our products utilize leading-edge processor technologies architected to address highly data-intensive applications that include signal , sensor and image processing within environmentally constrained military and commercial applications . in addition , acs now has a portfolio of microwave sub-assemblies to address needs in ew , sigint , elint and high bandwidth communications subsystems . these products are highly optimized for size , weight and power , as well as for the performance and ruggedization requirements of our customers . customized design and sub-systems integration services extend our capabilities to tailor solutions to meet the specialized requirements of our customers . in fiscal 2011 , acs accounted for 95 % of our total net revenues . mercury federal systems , or mfs . this business unit is focused on services and support work with the department of defense , or the dod , and federal intelligence and homeland security agencies , including designing and engineering new intelligence , surveillance and reconnaissance , or isr , capabilities to address present and emerging threats to u.s. forces . mfs is part of our long-term strategy to expand our software and services presence and pursue growth in platform-ready isr sub-systems , particularly those with classified intellectual property . mfs offers a wide range of engineering architecture and design services that enable clients to deploy leading edge computing capabilities for isr systems on an accelerated time cycle . this business unit enables us to combine classified intellectual property with the commercially developed application-ready sub-systems being developed by acs , providing customers with platform-ready , affordable isr sub-systems . in fiscal 2011 , mfs accounted for 5 % of our total net revenues . since we are an oem supplier to our commercial markets and conduct business with our defense customers via commercial items , requests by customers are a primary driver of revenue fluctuations from quarter to quarter . customers specify delivery date requirements that coincide with their need for our products . because these customers may use our products in connection with a variety of defense programs or other projects of different sizes and durations , a customer 's orders for one quarter generally do not indicate a trend for future orders by that customer . additionally , order patterns do not necessarily correlate amongst customers and , therefore , we generally can not identify sequential quarterly trends , even within our business units . non-gaap financial measures in our periodic communications , we discuss two important measures that are not calculated according to u.s. generally accepted accounting principles ( gaap ) , adjusted ebitda and free cash flow . adjusted ebitda is defined as earnings from continuing operations before interest income and expense , income taxes , depreciation , amortization of acquired intangible assets , restructuring , impairment of long-lived assets , 34 acquisition costs and other related expenses , fair value adjustments from purchase accounting and stock-based compensation costs . we use adjusted ebitda as an important indicator of the operating performance of our business . we use adjusted ebitda in internal forecasts and models when establishing internal operating budgets , supplementing the financial results and forecasts reported to our board of directors , determining a component of bonus compensation for executive officers and other key employees based on operating performance and evaluating short-term and long-term operating trends in our operations . we believe the adjusted ebitda financial measure assists in providing a more complete understanding of our underlying operational measures to manage our business , to evaluate our performance compared to prior periods and the marketplace , and to establish operational goals . we believe that these non-gaap financial adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in our financial and operational decision-making . adjusted ebitda is a non-gaap financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with gaap . this non-gaap financial measure may not be computed in the same manner as similarly titled measures used by other companies . we expect to continue to incur expenses similar to the adjusted ebitda financial adjustments described above , and investors should not infer from our presentation of this non-gaap financial measure that these costs are unusual , infrequent or non-recurring . the following tables reconcile our adjusted ebitda to the most directly comparable gaap financial measure : replace_table_token_5_th free cash flow , a non-gaap measure for reporting cash flow , is defined as cash provided by operating activities less capital expenditures for property and equipment , which includes capitalized software development costs . we believe free cash flow provides investors with an important perspective on cash available for investments and acquisitions after making capital investments required to support ongoing business operations and long-term value creation . we believe that trends in our free cash flow are valuable indicators of our operating performance and liquidity . story_separator_special_tag million in fiscal 2010. this decrease was driven by expected declines in sales of legacy product to medical equipment customers , partially offset by increases in sales to commercial communications and semiconductor inspection equipment customers . 41 mfs revenues increased $ 5.2 million , or 94 % , during fiscal 2010 as compared to fiscal 2009. this increase in revenue was primarily driven by an increase of $ 5.5 million in revenue relating to an isr qrc development program . this increase was slightly offset by the year over year completion of other development programs . net other revenues increased $ 0.1 million to $ 0.1 million during fiscal 2010 as compared to nil during fiscal 2009. net other revenue is attributable to development programs where the revenue recognized in our two business segments under contract accounting is either greater or less than revenue recognized on a consolidated basis . g ross m argin gross margin was 56.3 % for fiscal 2010 , an increase of 50 basis points from the 55.8 % gross margin achieved in fiscal 2009. the increase in gross margin was primarily due to a $ 5.8 million decrease in provisions for obsolete inventory , a $ 1.5 million decrease in warranty expense and a $ 0.8 million decrease in scrap expenditures , as compared to fiscal 2009. this increase was partially offset by a decrease in direct margin due to an unfavorable shift in product and business mix . significant reserves for inventory obsolescence were booked in fiscal 2009 largely due to lower demand in our commercial markets . s elling , g eneral and a dministrative selling , general and administrative expenses increased 0.7 % or $ 0.3 million to $ 51.5 million during fiscal 2010 compared to $ 51.2 million during fiscal 2009. the increase was primarily due to a $ 1.1 million increase in salary and fringe expense primarily attributed to an increase in severance expense for terminated employees and a $ 0.2 million increase in recruiting costs associated with filling key executive positions . these increases were partially offset by decreases of $ 0.8 million in legal fees and $ 0.4 million in sales commissions paid due to lower bookings . even with an increase in overall selling , general and administrative expenses in fiscal 2010 , these expenses represented approximately 25.7 % of our revenues during fiscal 2010 , down from 27.1 % in fiscal 2009 due to our continued focus on improving the underlying leverage of the business . r esearch and d evelopment research and development expenses decreased 2 % or $ 0.9 million to $ 41.5 million during fiscal 2010 compared to $ 42.4 million for fiscal 2009. the decrease was primarily the result of a $ 3.8 million increase in the time spent by our engineers on billable projects , a $ 0.5 million decrease in stock-based compensation expense due to the difference in the values of awards that were fully vested in fiscal 2010 and the values of new grants , and a $ 0.3 million decrease in depreciation expense due to assets becoming fully depreciated . the decrease in research and development expenses was partially offset by a $ 2.1 million increase in salary expense due to an increase in headcount , a $ 0.8 million increase in prototype material spending , and a $ 0.4 million increase in equipment and supply costs . research and development continues to be a focus of our business with approximately 20.8 % of our revenues dedicated to research and development activities during fiscal 2010 and approximately 22.4 % of our revenues dedicated to such activities during fiscal 2009. we continue to focus on improving the leverage of our research and development investments in order to realize a more near-term return . a mortization of a cquired i ntangible a ssets amortization of acquired intangible assets decreased 29 % or $ 0.7 million to $ 1.7 million during fiscal 2010 compared to $ 2.4 million for fiscal 2009. the decrease was attributable to assets becoming fully amortized during fiscal 2010 and a fiscal 2010 impairment of a terminated license agreement . 42 i mpairment of g oodwill and l ong - lived a ssets we recorded $ 0.2 million in impairment charges in fiscal 2010 compared to no impairment charges recorded in fiscal 2009. these fiscal 2010 charges were the result of the $ 0.1 million impairment of the remaining value of a terminated license agreement and $ 0.1 million for the impairment of the fair value of the shares we received as compensation in the sale of our former biotech business . following the vi and vsg divestitures , acs is the only reporting unit containing goodwill , and in june 2010 , we performed our annual goodwill impairment test in accordance with fasb asc 350. this evaluation was performed consistent with prior years and relied on a discounted cash flow analysis , which was corroborated by two market-based analyses : one evaluated guideline companies and another that reviewed comparable transactions . for each analysis performed , the fair value of the acs reporting unit was deemed to be in excess of the book value . as such , no impairment charge was recorded . there were no impairment charges in fiscal 2009. r estructuring e xpense restructuring expense for fiscal 2010 decreased $ 1.5 million to $ 0.2 million as compared to $ 1.7 million in fiscal 2009. this decrease reflects no additional substantial activities and was primarily due to improved operating results in fiscal 2010 and an improved outlook for fiscal 2011 and beyond . as a result of the restructuring actions taken in fiscal 2010 , we eliminated four positions , while we eliminated approximately 35 positions in fiscal 2009. i nterest i ncome interest income for fiscal 2010 decreased by $ 1.6 million to $ 0.5 million compared to $ 2.1 million in fiscal 2009. the decrease was primarily attributable to decreased rates

