we believe that we are well positioned in the ems industry to continue expansion of our customer base and continue long-term growth . the concentration of our largest customers decreased during fiscal year 2014 with the top five customers ' sales decreasing to 62 percent of total sales in 2014 from 71 percent in 2013 , and 73 percent in 2012 . our current customer relationships involve a variety of products , including consumer electronics , electronic storage devices , plastics , household products , gaming devices , specialty printers , telecommunications , industrial equipment , military supplies , computer accessories , electronic whiteboards , medical , educational , irrigation , automotive , transportation management , robotics , rfid , power supply , off-road vehicle equipment , fitness equipment , hvac controls , and consumer products . gross profit as a percent of sales was 8.8 percent in fiscal year 2014 compared to 9.6 percent for the prior fiscal year . this 0.8 percentage point decrease in gross profit as a percentage of net sales during fiscal year 2014 as compared to fiscal year 2013 is primarily related to a 5.1 percentage point increase in certain overhead costs as we brought on additional headcount and equipment to support new customer programs , partially offset by a 4.3 percentage point improvement in material costs . the level of gross margin is impacted by product mix , timing of the startup of new programs , facility utilization , pricing within the electronics industry and material costs , which can fluctuate significantly from quarter to quarter and year to year . operating income as a percentage of sales for fiscal year 2014 was 3.0 percent compared to 5.0 percent for fiscal year 2013 . the decrease in operating income as a percentage of net sales was primarily due to a decrease in gross margin and a slight increase in headcount in program management and engineering to support new program wins and anticipated future growth . net income for fiscal year 2014 was $ 7.6 million or $ 0.67 per diluted share , as compared to net income of $ 12.6 million or $ 1.12 per diluted share for fiscal year 2013 . the decrease in net income for fiscal year 2014 as compared to fiscal year 2013 was primarily due to a decrease in demand from some of our large , longstanding customers as well as an increase in certain overhead costs as a percentage of net sales , partially offset by a decrease in material-related costs as a percentage of net sales . 18 we maintain a strong balance sheet with a current ratio of 2.4 and currently have no bank debt apart from $ 7.9 million outstanding under a factoring agreement described in note 5. total cash provided by operating activities as defined on our cash flow statement was $ 1.5 million during fiscal year 2014 . we maintain sufficient liquidity for our expected future operations . we did not have an outstanding balance on our revolving line of credit with wells fargo bank , n.a . as of june 28 , 2014 . as a result , $ 30.0 million remained available to borrow as of june 28 , 2014 . we believe cash flow from operations , our borrowing capacity , our accounts receivable sale program , and equipment lease financing should provide adequate capital for planned growth over the long term . results of operations comparison of the fiscal year ended june 28 , 2014 with the fiscal year ended june 29 , 2013 the following table sets forth for the periods indicated certain items of the consolidated statements of income expressed as a percentage of net sales . the financial information and discussion below should be read in conjunction with the consolidated financial statements and notes contained in this annual report . replace_table_token_5_th net sales the decrease in net sales from prior year was primarily driven by an approximate $ 67.4 million decrease in revenues related to decreased demand from current customer programs , an approximate $ 5.2 million decrease in revenues related to program losses , partially offset by a $ 17.0 million increase in revenues related to new program wins and the revenue generated from the acquisition of sabre . the following table shows the revenue by industry sectors as a percentage of revenue for fiscal years 2014 and 2013 : replace_table_token_6_th we provide services to customers in a number of industries and produce a variety of products for our customers in each industry . as we continue to diversify our customer base and win new customers we will continue to see a change in the industry concentrations of our revenue . sales to foreign locations outside the united states represented 35.3 percent , and 31.8 percent of our total net sales in fiscal years 2014 , and 2013 , respectively . 19 cost of sales total cost of sales as a percentage of net sales was 91.2 percent and 90.4 percent in fiscal years 2014 , and 2013 , respectively . total cost of materials as a percentage of net sales was approximately 64.5 percent and 68.5 percent in fiscal years 2014 and 2013 , respectively . the change from year-to-year is primarily the result of a change in product mix and to a lesser degree improved pricing of certain raw materials . production and support costs as a percentage of net sales were 26.7 percent and 21.9 percent in fiscal years 2014 and 2013 , respectively . the increase in fiscal year 2014 is primarily related to adding headcount and manufacturing capacity to support new programs . we provide a reserve for obsolete and non-saleable inventories based on specific identification of inventory against current demand and recent usage . story_separator_special_tag we review the adequacy of this accrual quarterly based on historical analysis and anticipated product returns and rework costs . as we have made the transition from manufacturing primarily keyboards to primarily ems products , our exposure to warranty claims has declined significantly . our warranty period for keyboards is generally longer than that for ems products . we only warrant materials and workmanship on ems products , and we do not warrant design defects for ems customers . income taxes income tax expense includes u.s. and international income taxes and the provision for u.s. taxes on undistributed earnings of foreign subsidiaries not deemed to be permanently invested . we do not record u.s. tax liabilities on undistributed earnings of international subsidiaries that are deemed to be permanently reinvested . certain income and expenses are not reported in tax returns and financial statements in the same year . the tax effect of such temporary differences is reported as deferred income taxes . the deferred income taxes are classified as current or long-term based on the classification of the related asset or liability . the most significant areas involving management judgments include deferred income tax assets and liabilities , uncertain tax positions , and research and development tax credits . our estimates of the realization of the deferred tax assets related to our tax credits are based upon our estimates of future taxable income which may change . stock-based compensation stock-based compensation is accounted for according to financial accounting standards board ( fasb ) accounting standards codification ( asc ) 718 , compensation—stock compensation . asc 718 requires us to expense the fair value of employee stock options , stock appreciation rights and other forms of stock-based compensation . under the fair value recognition provisions of asc 718 , share-based compensation cost is estimated at the grant date based upon the fair value of the award and is recognized as expense ratably over the requisite service period of the award ( generally the vesting period ) . determining the appropriate fair value model and calculating the fair value of share-based awards requires judgment , including estimating the expected life of the share-based award , the expected stock price volatility over the expected life of the share-based award and forfeitures . 26 to determine the fair value of stock based awards on the date of grant we use the black-scholes option-pricing model . inherent in this model are assumptions related to expected stock price volatility , option life , risk-free interest rate and dividend yield . the risk-free interest rate is a less-subjective assumption as it is based on factual data derived from public sources . we use a dividend yield of zero as we have never paid cash dividends and have no intention to pay cash dividends in the foreseeable future . the expected stock price volatility and option life assumptions require a greater level of judgment . our expected stock-price volatility assumption is based upon the historical volatility of our stock which is obtained from public data sources . the expected life represents the weighted average period of time that share-based awards are expected to be outstanding , giving consideration to vesting schedules and historical exercise patterns . we determine the expected life assumption based upon the exercise and post-vesting behavior that has been exhibited historically , adjusted for specific factors that may influence future exercise patterns . if expected volatility or expected life were to increase , that would result in an increase in the fair value of our stock options which would result in higher compensation charges , while a decrease in volatility or the expected life would result in a lower fair value of our stock option awards resulting in lower compensation charges . we estimate forfeitures for all of our awards based upon historical experience of stock-based pre-vesting forfeitures . we believe that our estimates are based upon outcomes that are reasonably likely to occur . if actual forfeitures are higher than our estimates it would result in lower compensation expense and to the extent the actual forfeitures are lower than our estimate we would record higher compensation expense . impairment of long-lived assets long-lived assets , such as property , plant , and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . the recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated undiscounted future cash flows , an impairment charge would be recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset . derivatives and hedging activity derivatives are recognized on the balance sheet at their estimated fair value . on the date a derivative contract is entered into , the company designates the derivative as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ( a “ cash flow ” hedge ) . the company does not enter into derivatives for speculative purposes . changes in the fair value of a derivative that qualifies as a cash flow hedge are recorded in “ accumulated other comprehensive income ” , until earnings are affected by the variability of cash flows . see note 11 of the company 's consolidated financial statements for additional information . long-term incentive compensation accrual long-term incentive compensation is recognized as expense ratably over the requisite service period of the award which is generally three years . the board of directors approve target performance measures for the three year period for each of the company 's officers and non-employee directors . performance measures are based on a combination of sales growth targets and return on

capital resources and liquidity operating cash flow net cash provided by operating activities for fiscal year 2014 was $ 1.5 million compared to net cash provided by operating activities of $ 29.3 million and net cash used in operating activities of $ 5.1 million in fiscal years 2013 and 2012 , respectively . the working capital year-over-year change is primarily related to a $ 10.5 million increase in inventory , a $ 2.7 million increase in accounts receivable , partially offset by a $ 6.1 million increase in accounts payable . the working capital changes during fiscal year 2013 are primarily due to a $ 13.3 million decrease in inventory and a $ 13.6 million decrease in accounts receivable , which were partially offset by a $ 16.6 million decrease in accounts payable . accounts receivable fluctuates based on the timing of shipments , terms offered and collections . accounts payable fluctuates with changes in inventory levels , volume of inventory purchases , negotiated supplier terms , and taking advantage of early pay discounts . we purchase inventory based on customer forecasts and orders , and when those forecasts and orders change , the amount of inventory may also fluctuate . investing cash flow cash flows used in investing activities were $ 13.8 million , $ 3.3 million , and $ 4.6 million in fiscal years 2014 , 2013 and 2012 , respectively . our primary investing activity during fiscal year 2014 was the acquisition of sabre as discussed in further detail in footnote 14 of the `` notes to consolidated financial statements . '' in addition , investing cash flows consists of capital expenditures to purchase sheet metal and plastic injection molding equipment to support production . operating and capital leases are often utilized when potential technical obsolescence and funding requirement advantages outweigh the benefits of equipment ownership . capital expenditures and periodic lease payments are expected to be financed with internally generated funds and available borrowing capacities .


 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.
     ```capital resources and liquidity operating cash flow net cash provided by operating activities for fiscal year 2014 was $ 1.5 million compared to net cash provided by operating activities of $ 29.3 million and net cash used in operating activities of $ 5.1 million in fiscal years 2013 and 2012 , respectively . the working capital year-over-year change is primarily related to a $ 10.5 million increase in inventory , a $ 2.7 million increase in accounts receivable , partially offset by a $ 6.1 million increase in accounts payable . the working capital changes during fiscal year 2013 are primarily due to a $ 13.3 million decrease in inventory and a $ 13.6 million decrease in accounts receivable , which were partially offset by a $ 16.6 million decrease in accounts payable . accounts receivable fluctuates based on the timing of shipments , terms offered and collections . accounts payable fluctuates with changes in inventory levels , volume of inventory purchases , negotiated supplier terms , and taking advantage of early pay discounts . we purchase inventory based on customer forecasts and orders , and when those forecasts and orders change , the amount of inventory may also fluctuate . investing cash flow cash flows used in investing activities were $ 13.8 million , $ 3.3 million , and $ 4.6 million in fiscal years 2014 , 2013 and 2012 , respectively . our primary investing activity during fiscal year 2014 was the acquisition of sabre as discussed in further detail in footnote 14 of the `` notes to consolidated financial statements . '' in addition , investing cash flows consists of capital expenditures to purchase sheet metal and plastic injection molding equipment to support production . operating and capital leases are often utilized when potential technical obsolescence and funding requirement advantages outweigh the benefits of equipment ownership . capital expenditures and periodic lease payments are expected to be financed with internally generated funds and available borrowing capacities .
```    
 Suspicious Activity Report : we believe that we are well positioned in the ems industry to continue expansion of our customer base and continue long-term growth . the concentration of our largest customers decreased during fiscal year 2014 with the top five customers ' sales decreasing to 62 percent of total sales in 2014 from 71 percent in 2013 , and 73 percent in 2012 . our current customer relationships involve a variety of products , including consumer electronics , electronic storage devices , plastics , household products , gaming devices , specialty printers , telecommunications , industrial equipment , military supplies , computer accessories , electronic whiteboards , medical , educational , irrigation , automotive , transportation management , robotics , rfid , power supply , off-road vehicle equipment , fitness equipment , hvac controls , and consumer products . gross profit as a percent of sales was 8.8 percent in fiscal year 2014 compared to 9.6 percent for the prior fiscal year . this 0.8 percentage point decrease in gross profit as a percentage of net sales during fiscal year 2014 as compared to fiscal year 2013 is primarily related to a 5.1 percentage point increase in certain overhead costs as we brought on additional headcount and equipment to support new customer programs , partially offset by a 4.3 percentage point improvement in material costs . the level of gross margin is impacted by product mix , timing of the startup of new programs , facility utilization , pricing within the electronics industry and material costs , which can fluctuate significantly from quarter to quarter and year to year . operating income as a percentage of sales for fiscal year 2014 was 3.0 percent compared to 5.0 percent for fiscal year 2013 . the decrease in operating income as a percentage of net sales was primarily due to a decrease in gross margin and a slight increase in headcount in program management and engineering to support new program wins and anticipated future growth . net income for fiscal year 2014 was $ 7.6 million or $ 0.67 per diluted share , as compared to net income of $ 12.6 million or $ 1.12 per diluted share for fiscal year 2013 . the decrease in net income for fiscal year 2014 as compared to fiscal year 2013 was primarily due to a decrease in demand from some of our large , longstanding customers as well as an increase in certain overhead costs as a percentage of net sales , partially offset by a decrease in material-related costs as a percentage of net sales . 18 we maintain a strong balance sheet with a current ratio of 2.4 and currently have no bank debt apart from $ 7.9 million outstanding under a factoring agreement described in note 5. total cash provided by operating activities as defined on our cash flow statement was $ 1.5 million during fiscal year 2014 . we maintain sufficient liquidity for our expected future operations . we did not have an outstanding balance on our revolving line of credit with wells fargo bank , n.a . as of june 28 , 2014 . as a result , $ 30.0 million remained available to borrow as of june 28 , 2014 . we believe cash flow from operations , our borrowing capacity , our accounts receivable sale program , and equipment lease financing should provide adequate capital for planned growth over the long term . results of operations comparison of the fiscal year ended june 28 , 2014 with the fiscal year ended june 29 , 2013 the following table sets forth for the periods indicated certain items of the consolidated statements of income expressed as a percentage of net sales . the financial information and discussion below should be read in conjunction with the consolidated financial statements and notes contained in this annual report . replace_table_token_5_th net sales the decrease in net sales from prior year was primarily driven by an approximate $ 67.4 million decrease in revenues related to decreased demand from current customer programs , an approximate $ 5.2 million decrease in revenues related to program losses , partially offset by a $ 17.0 million increase in revenues related to new program wins and the revenue generated from the acquisition of sabre . the following table shows the revenue by industry sectors as a percentage of revenue for fiscal years 2014 and 2013 : replace_table_token_6_th we provide services to customers in a number of industries and produce a variety of products for our customers in each industry . as we continue to diversify our customer base and win new customers we will continue to see a change in the industry concentrations of our revenue . sales to foreign locations outside the united states represented 35.3 percent , and 31.8 percent of our total net sales in fiscal years 2014 , and 2013 , respectively . 19 cost of sales total cost of sales as a percentage of net sales was 91.2 percent and 90.4 percent in fiscal years 2014 , and 2013 , respectively . total cost of materials as a percentage of net sales was approximately 64.5 percent and 68.5 percent in fiscal years 2014 and 2013 , respectively . the change from year-to-year is primarily the result of a change in product mix and to a lesser degree improved pricing of certain raw materials . production and support costs as a percentage of net sales were 26.7 percent and 21.9 percent in fiscal years 2014 and 2013 , respectively . the increase in fiscal year 2014 is primarily related to adding headcount and manufacturing capacity to support new programs . we provide a reserve for obsolete and non-saleable inventories based on specific identification of inventory against current demand and recent usage . story_separator_special_tag we review the adequacy of this accrual quarterly based on historical analysis and anticipated product returns and rework costs . as we have made the transition from manufacturing primarily keyboards to primarily ems products , our exposure to warranty claims has declined significantly . our warranty period for keyboards is generally longer than that for ems products . we only warrant materials and workmanship on ems products , and we do not warrant design defects for ems customers . income taxes income tax expense includes u.s. and international income taxes and the provision for u.s. taxes on undistributed earnings of foreign subsidiaries not deemed to be permanently invested . we do not record u.s. tax liabilities on undistributed earnings of international subsidiaries that are deemed to be permanently reinvested . certain income and expenses are not reported in tax returns and financial statements in the same year . the tax effect of such temporary differences is reported as deferred income taxes . the deferred income taxes are classified as current or long-term based on the classification of the related asset or liability . the most significant areas involving management judgments include deferred income tax assets and liabilities , uncertain tax positions , and research and development tax credits . our estimates of the realization of the deferred tax assets related to our tax credits are based upon our estimates of future taxable income which may change . stock-based compensation stock-based compensation is accounted for according to financial accounting standards board ( fasb ) accounting standards codification ( asc ) 718 , compensation—stock compensation . asc 718 requires us to expense the fair value of employee stock options , stock appreciation rights and other forms of stock-based compensation . under the fair value recognition provisions of asc 718 , share-based compensation cost is estimated at the grant date based upon the fair value of the award and is recognized as expense ratably over the requisite service period of the award ( generally the vesting period ) . determining the appropriate fair value model and calculating the fair value of share-based awards requires judgment , including estimating the expected life of the share-based award , the expected stock price volatility over the expected life of the share-based award and forfeitures . 26 to determine the fair value of stock based awards on the date of grant we use the black-scholes option-pricing model . inherent in this model are assumptions related to expected stock price volatility , option life , risk-free interest rate and dividend yield . the risk-free interest rate is a less-subjective assumption as it is based on factual data derived from public sources . we use a dividend yield of zero as we have never paid cash dividends and have no intention to pay cash dividends in the foreseeable future . the expected stock price volatility and option life assumptions require a greater level of judgment . our expected stock-price volatility assumption is based upon the historical volatility of our stock which is obtained from public data sources . the expected life represents the weighted average period of time that share-based awards are expected to be outstanding , giving consideration to vesting schedules and historical exercise patterns . we determine the expected life assumption based upon the exercise and post-vesting behavior that has been exhibited historically , adjusted for specific factors that may influence future exercise patterns . if expected volatility or expected life were to increase , that would result in an increase in the fair value of our stock options which would result in higher compensation charges , while a decrease in volatility or the expected life would result in a lower fair value of our stock option awards resulting in lower compensation charges . we estimate forfeitures for all of our awards based upon historical experience of stock-based pre-vesting forfeitures . we believe that our estimates are based upon outcomes that are reasonably likely to occur . if actual forfeitures are higher than our estimates it would result in lower compensation expense and to the extent the actual forfeitures are lower than our estimate we would record higher compensation expense . impairment of long-lived assets long-lived assets , such as property , plant , and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . the recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of an asset exceeds its estimated undiscounted future cash flows , an impairment charge would be recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset . derivatives and hedging activity derivatives are recognized on the balance sheet at their estimated fair value . on the date a derivative contract is entered into , the company designates the derivative as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ( a “ cash flow ” hedge ) . the company does not enter into derivatives for speculative purposes . changes in the fair value of a derivative that qualifies as a cash flow hedge are recorded in “ accumulated other comprehensive income ” , until earnings are affected by the variability of cash flows . see note 11 of the company 's consolidated financial statements for additional information . long-term incentive compensation accrual long-term incentive compensation is recognized as expense ratably over the requisite service period of the award which is generally three years . the board of directors approve target performance measures for the three year period for each of the company 's officers and non-employee directors . performance measures are based on a combination of sales growth targets and return on

