key factors affecting our business investment in semiconductor manufacturing equipment the design and manufacturing of semiconductor devices is constantly evolving and becoming more complex in order to achieve greater performance and efficiency . to keep pace with these changes , oems need to refine their existing products and invest in developing new products . in addition , semiconductor device manufacturers will continue to invest in new wafer fabrication equipment to expand their production capacity and to support new manufacturing processes . outsourcing of subsystems by semiconductor oems faced with increasing manufacturing complexities , more complex subsystems , shorter product lead times , shorter industry spend cycles , and significant capital requirements , outsourcing of subsystems and components by oems has continued to grow . in the past two decades , oems have outsourced most of their gas delivery systems to suppliers such as us . oems have also started to outsource their chemical delivery systems in recent years . our results will be affected by the degree to which outsourcing of these fluid delivery systems by oems continues to grow . cyclicality of semiconductor device industry our business is indirectly subject to the cyclicality of the semiconductor device industry . in 2017 , we derived approximately 93 % of our sales from the semiconductor device industry . demand for semiconductor devices can fluctuate significantly based on changes in general economic conditions , including consumer spending , demand for the products that include these devices and other factors . these fluctuations have in the past resulted in significant variations in our results of operations . the cyclicality of the semiconductor device industries will continue to impact our results of operations in the future . 30 customer concentration the number of capital equipment manufacturers for the semiconductor device industry has undergone significant consolidation in recent years , resulting in a small number of large manufacturers . our customers have led much of this consolidation , resulting in our sales being concentrated in a few customers . in 2017 , our two largest customers were lam research and applied materials , which accounted for approximately 53 % and 40 % of sales , respectively . the sales we generated from these customers in 2017 were spread across 35 different product lines utilized in 13 unique manufacturing process steps . we believe the diversity of products that we provide to these customers , combined with the fact that our customers use our products on numerous types of process equipment , lessens the impact of the inherent concentration in the industry . our customers often require reduced prices or other pricing , quality or delivery commitments as a condition to their purchasing from us in any given period or increasing their purchase volume , which can , among other things , result in reduced gross margins in order to maintain or expand our market share . although we do not have any long-term contracts that require customers to place orders with us , lam research and applied materials have been our customers for over 10 years . acquisitions we acquired cal‑weld , a california-based leader in the design and fabrication of precision , high purity industrial components , subsystems , and systems , in july 2017 for $ 56.9 million . we also acquired talon , a minnesota-based leader in the design and manufacturing of high precision machined parts used in leading edge semiconductor tools , in december 2017 for $ 137.0 million . on a combined basis , these acquisitions contributed approximately $ 57.5 million to sales in 2017. we intend to continue to evaluate opportunistic acquisitions to supplement our organic growth , and any such acquisitions could have a material impact on our business and results of operations . discontinued operations discontinued operations consist of the results of operations for our systems integration business with the primary purpose of building modules and tools ( metal organic chemical vapor deposition or ion implant ) for veeco instruments , inc. in january 2016 , our management and the board of directors decided to discontinue this business because it consumed a significant amount of resources while generating low gross margins and contributing only a small amount to our net income . we completed our final builds of these products at the end of may 2016. components of our results of operations the following discussion sets forth certain components of our statements of operations as well as significant factors that impact those items . sales we generate sales primarily from the design , manufacture and sale of subsystems and components for semiconductor capital equipment . sales are recognized when persuasive evidence of an arrangement exists , transfer of title has occurred , the fee is fixed or determinable , and collectability is reasonably assured . our shipping terms are fob shipping point or fob destination , or equivalent terms , and accordingly , sales are recognized when legal title has passed to the customer upon shipment or delivery . cost of sales and gross profit cost of sales consists primarily of purchased materials , direct labor , indirect labor , factory overhead cost and depreciation expense for our manufacturing facilities and equipment , as well as certain engineering costs that are related to non-recurring engineering services that we provide to , and for which we invoice , our customers in connection with their product development activities . our business has a highly variable cost structure with a low fixed overhead structure as a percentage of cost of sales . in addition , our existing global manufacturing plant capacity is scalable and we are able to adjust to increased customer demand for our products without significant additional capital investment . we operate our business in this manner in order to avoid having excessive fixed costs during a cyclical downturn while retaining flexibility to expand our production volumes during periods of growth . story_separator_special_tag non-gaap adjusted net income from continuing operations is defined as : ( 1 ) net income from continuing operations ; ( 2 ) excluding amortization of intangible assets , share-based compensation expense , non-recurring expenses including adjustments to the cost of goods sold and a loss on the ajax acquisition arbitration settlement , and the tax adjustments related to those non-gaap adjustments ; and ( 3 ) non-recurring discrete tax items including tax benefits from acquisitions , the tax benefit from re-characterizing intercompany debt to equity , and the tax impact from enactment of the tax act . non-gaap adjusted diluted eps is defined as non-gaap adjusted net income from continuing operations divided by adjusted diluted ordinary shares , which assumes the ipo shares sold , conversion of preferred shares into ordinary shares , and vesting of restricted shares and options that vested at the ipo occurred at the beginning of the measurement period . no adjustment to gaap diluted ordinary shares was necessary for 2017. the following table presents our non-gaap adjusted net income from continuing operations and a reconciliation from net income from continuing operations , the most comparable gaap measure , for the periods indicated : replace_table_token_10_th ( 1 ) included in this amount for 2017 are ( i ) acquisition-related expenses , ( ii ) expenses incurred in connection with sales or other dispositions of our ordinary shares by affiliates of francisco partners , ( iii ) executive search expenses incurred in connection with replacing the company 's chief financial officer , ( iv ) a refund of previously paid consulting fees from francisco partners consulting ( “ fpc ” ) , and ( v ) a gain on sale of our investment in chawk . included in this amount for 2016 and 2015 are 38 ( i ) acquisit ion-related expenses , ( ii ) bonuses paid to members of our management in connection with the cash dividend paid by us in august 2015 , ( iii ) consulting fees paid to fpc , and ( iv ) ipo preparation expenses . ( 2 ) we recorded $ 7.6 million in tax benefits during 2017 in connection with our acquisitions of talon and cal-weld . we recorded $ 2.3 million in tax benefits in 2016 in connection with its acquisition of ajax . ( 3 ) in the third quarter of 2017 we re-characterized intercompany debt to equity between our u.s. and singapore entities resulting in a tax benefit of $ 1.6 million related to the reversal of previously accrued withholding taxes . ( 4 ) this adjustment represents the impact of the tax cuts and jobs act , including revaluing our deferred tax assets from 35 % to 21 % . ( 5 ) during the second quarter of 2017 , we corrected an error related to translating the inventory balances at our malaysia and singapore subsidiaries at an incorrect foreign currency rate . the error arose in prior period financial statements beginning in periods prior to 2014 and through 2016. the correction resulted in a $ 1.75 million increase in cost of sales and a corresponding decrease in gross profit in our consolidated statement of operations and a decrease to inventories in our consolidated balance sheet during the second quarter of 2017 . ( 6 ) as part of our purchase price allocation for our acquisition of talon and cal‑weld , we recorded inventory at fair value , resulting in a fair value step‑up to acquired inventory of $ 6.2 million and $ 3.6 million , respectively . as the related inventory was sold during 2017 , we released $ 1.6 million and $ 3.6 million of talon and cal‑weld 's step‑up , respectively , to cost of sales . ( 7 ) during the third quarter of 2017 , we received a final arbitration ruling on our working capital claim with the sellers of ajax . the ruling was outside the one year measurement period and therefore could not be considered an adjustment to goodwill , resulting in a charge to selling , general , and administrative expense . ( 8 ) for 2016 and 2015 , assumes the shares sold , the conversion of preferred shares into ordinary shares , and vesting of restricted shares and options in connection with our december 2016 ipo occurred at the beginning of each period , for comparability between periods . no adjustment to gaap diluted ordinary shares was necessary for 2017. non-gaap adjusted net income from continuing operations has limitations as an analytical tool , and you should not consider it in isolation or as a substitute for net income or any of our other operating results reported under gaap . other companies may calculate adjusted net income differently or may use other measures to evaluate their performance , both of which could reduce the usefulness of our adjusted net income as a tool for comparison . because of these limitations , you should consider non-gaap adjusted net income from continuing operations alongside other financial performance measures , including net income from continuing operations and other financial results presented in accordance with gaap . in addition , in evaluating non-gaap adjusted net income , you should be aware that in the future we will incur expenses such as those that are the subject of adjustments in deriving adjusted net income and you should not infer from our presentation of adjusted net income that our future results will not be affected by these expenses or any unusual or non-recurring items . 39 unaudited quarterly financial results the following table set forth statement of operations data for the periods indicated . the information for each of these periods is unaudited and has been prepared on the same basis as our audited consolidated financial statements included herein and includes all adjustments , consisting only of normal recurring adjustments that we consider necessary for a fair presentation of our unaudited operations data for the periods presented . historical

liquidity and capital resources we had cash and restricted cash of $ 69.3 million as of december 29 , 2017 , compared to $ 52.6 million as of december 30 , 2016. our principal uses of liquidity are to fund our working capital needs , satisfy our debt obligations , and purchase new capital equipment . the increase in cash is primarily due to proceeds from the issuance of $ 150.0 million in long-term debt and cash from operations of $ 38.8 million , partially offset by cash paid for our acquisitions of cal‑weld and talon of $ 181.0 million and capital expenditures of $ 8.2 million . we believe that our cash , the amounts available under our credit facilities and our cash flows from operations , together with the net proceeds from our ipo , will be sufficient to meet our anticipated cash needs for working capital and capital expenditures for at least the next 12 months . 41 cash flow analysis the following table sets forth a summary of operating , investing , and financing activities for the periods presented : replace_table_token_13_th operating activities we generated $ 38.8 million of cash from operating activities during 2017 due to net income of $ 56.5 million , partially offset by net non‑cash charges of $ ( 0.2 ) million and an increase in our net operating assets and liabilities of $ 17.4 million . non‑cash charges primarily related to $ 12.5 million in depreciation and amortization , $ 2.2 million in share-based compensation , and $ 0.6 million in amortization of debt issuance cost , offset by $ 15.3 million in deferred tax benefit and a gain on the sale of our investment in chawk of $ 0.2 million . the increase in net operating assets and liabilities was primarily due to an increase in inventories of $ 43.4 million in order to meet sales demand in the first quarter of 2018 , partially offset by an increase in accounts payable of $ 22.6 million and prepaid expenses and other assets of $ 3.4 million .


 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 we had cash and restricted cash of $ 69.3 million as of december 29 , 2017 , compared to $ 52.6 million as of december 30 , 2016. our principal uses of liquidity are to fund our working capital needs , satisfy our debt obligations , and purchase new capital equipment . the increase in cash is primarily due to proceeds from the issuance of $ 150.0 million in long-term debt and cash from operations of $ 38.8 million , partially offset by cash paid for our acquisitions of cal‑weld and talon of $ 181.0 million and capital expenditures of $ 8.2 million . we believe that our cash , the amounts available under our credit facilities and our cash flows from operations , together with the net proceeds from our ipo , will be sufficient to meet our anticipated cash needs for working capital and capital expenditures for at least the next 12 months . 41 cash flow analysis the following table sets forth a summary of operating , investing , and financing activities for the periods presented : replace_table_token_13_th operating activities we generated $ 38.8 million of cash from operating activities during 2017 due to net income of $ 56.5 million , partially offset by net non‑cash charges of $ ( 0.2 ) million and an increase in our net operating assets and liabilities of $ 17.4 million . non‑cash charges primarily related to $ 12.5 million in depreciation and amortization , $ 2.2 million in share-based compensation , and $ 0.6 million in amortization of debt issuance cost , offset by $ 15.3 million in deferred tax benefit and a gain on the sale of our investment in chawk of $ 0.2 million . the increase in net operating assets and liabilities was primarily due to an increase in inventories of $ 43.4 million in order to meet sales demand in the first quarter of 2018 , partially offset by an increase in accounts payable of $ 22.6 million and prepaid expenses and other assets of $ 3.4 million .
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 Suspicious Activity Report : key factors affecting our business investment in semiconductor manufacturing equipment the design and manufacturing of semiconductor devices is constantly evolving and becoming more complex in order to achieve greater performance and efficiency . to keep pace with these changes , oems need to refine their existing products and invest in developing new products . in addition , semiconductor device manufacturers will continue to invest in new wafer fabrication equipment to expand their production capacity and to support new manufacturing processes . outsourcing of subsystems by semiconductor oems faced with increasing manufacturing complexities , more complex subsystems , shorter product lead times , shorter industry spend cycles , and significant capital requirements , outsourcing of subsystems and components by oems has continued to grow . in the past two decades , oems have outsourced most of their gas delivery systems to suppliers such as us . oems have also started to outsource their chemical delivery systems in recent years . our results will be affected by the degree to which outsourcing of these fluid delivery systems by oems continues to grow . cyclicality of semiconductor device industry our business is indirectly subject to the cyclicality of the semiconductor device industry . in 2017 , we derived approximately 93 % of our sales from the semiconductor device industry . demand for semiconductor devices can fluctuate significantly based on changes in general economic conditions , including consumer spending , demand for the products that include these devices and other factors . these fluctuations have in the past resulted in significant variations in our results of operations . the cyclicality of the semiconductor device industries will continue to impact our results of operations in the future . 30 customer concentration the number of capital equipment manufacturers for the semiconductor device industry has undergone significant consolidation in recent years , resulting in a small number of large manufacturers . our customers have led much of this consolidation , resulting in our sales being concentrated in a few customers . in 2017 , our two largest customers were lam research and applied materials , which accounted for approximately 53 % and 40 % of sales , respectively . the sales we generated from these customers in 2017 were spread across 35 different product lines utilized in 13 unique manufacturing process steps . we believe the diversity of products that we provide to these customers , combined with the fact that our customers use our products on numerous types of process equipment , lessens the impact of the inherent concentration in the industry . our customers often require reduced prices or other pricing , quality or delivery commitments as a condition to their purchasing from us in any given period or increasing their purchase volume , which can , among other things , result in reduced gross margins in order to maintain or expand our market share . although we do not have any long-term contracts that require customers to place orders with us , lam research and applied materials have been our customers for over 10 years . acquisitions we acquired cal‑weld , a california-based leader in the design and fabrication of precision , high purity industrial components , subsystems , and systems , in july 2017 for $ 56.9 million . we also acquired talon , a minnesota-based leader in the design and manufacturing of high precision machined parts used in leading edge semiconductor tools , in december 2017 for $ 137.0 million . on a combined basis , these acquisitions contributed approximately $ 57.5 million to sales in 2017. we intend to continue to evaluate opportunistic acquisitions to supplement our organic growth , and any such acquisitions could have a material impact on our business and results of operations . discontinued operations discontinued operations consist of the results of operations for our systems integration business with the primary purpose of building modules and tools ( metal organic chemical vapor deposition or ion implant ) for veeco instruments , inc. in january 2016 , our management and the board of directors decided to discontinue this business because it consumed a significant amount of resources while generating low gross margins and contributing only a small amount to our net income . we completed our final builds of these products at the end of may 2016. components of our results of operations the following discussion sets forth certain components of our statements of operations as well as significant factors that impact those items . sales we generate sales primarily from the design , manufacture and sale of subsystems and components for semiconductor capital equipment . sales are recognized when persuasive evidence of an arrangement exists , transfer of title has occurred , the fee is fixed or determinable , and collectability is reasonably assured . our shipping terms are fob shipping point or fob destination , or equivalent terms , and accordingly , sales are recognized when legal title has passed to the customer upon shipment or delivery . cost of sales and gross profit cost of sales consists primarily of purchased materials , direct labor , indirect labor , factory overhead cost and depreciation expense for our manufacturing facilities and equipment , as well as certain engineering costs that are related to non-recurring engineering services that we provide to , and for which we invoice , our customers in connection with their product development activities . our business has a highly variable cost structure with a low fixed overhead structure as a percentage of cost of sales . in addition , our existing global manufacturing plant capacity is scalable and we are able to adjust to increased customer demand for our products without significant additional capital investment . we operate our business in this manner in order to avoid having excessive fixed costs during a cyclical downturn while retaining flexibility to expand our production volumes during periods of growth . story_separator_special_tag non-gaap adjusted net income from continuing operations is defined as : ( 1 ) net income from continuing operations ; ( 2 ) excluding amortization of intangible assets , share-based compensation expense , non-recurring expenses including adjustments to the cost of goods sold and a loss on the ajax acquisition arbitration settlement , and the tax adjustments related to those non-gaap adjustments ; and ( 3 ) non-recurring discrete tax items including tax benefits from acquisitions , the tax benefit from re-characterizing intercompany debt to equity , and the tax impact from enactment of the tax act . non-gaap adjusted diluted eps is defined as non-gaap adjusted net income from continuing operations divided by adjusted diluted ordinary shares , which assumes the ipo shares sold , conversion of preferred shares into ordinary shares , and vesting of restricted shares and options that vested at the ipo occurred at the beginning of the measurement period . no adjustment to gaap diluted ordinary shares was necessary for 2017. the following table presents our non-gaap adjusted net income from continuing operations and a reconciliation from net income from continuing operations , the most comparable gaap measure , for the periods indicated : replace_table_token_10_th ( 1 ) included in this amount for 2017 are ( i ) acquisition-related expenses , ( ii ) expenses incurred in connection with sales or other dispositions of our ordinary shares by affiliates of francisco partners , ( iii ) executive search expenses incurred in connection with replacing the company 's chief financial officer , ( iv ) a refund of previously paid consulting fees from francisco partners consulting ( “ fpc ” ) , and ( v ) a gain on sale of our investment in chawk . included in this amount for 2016 and 2015 are 38 ( i ) acquisit ion-related expenses , ( ii ) bonuses paid to members of our management in connection with the cash dividend paid by us in august 2015 , ( iii ) consulting fees paid to fpc , and ( iv ) ipo preparation expenses . ( 2 ) we recorded $ 7.6 million in tax benefits during 2017 in connection with our acquisitions of talon and cal-weld . we recorded $ 2.3 million in tax benefits in 2016 in connection with its acquisition of ajax . ( 3 ) in the third quarter of 2017 we re-characterized intercompany debt to equity between our u.s. and singapore entities resulting in a tax benefit of $ 1.6 million related to the reversal of previously accrued withholding taxes . ( 4 ) this adjustment represents the impact of the tax cuts and jobs act , including revaluing our deferred tax assets from 35 % to 21 % . ( 5 ) during the second quarter of 2017 , we corrected an error related to translating the inventory balances at our malaysia and singapore subsidiaries at an incorrect foreign currency rate . the error arose in prior period financial statements beginning in periods prior to 2014 and through 2016. the correction resulted in a $ 1.75 million increase in cost of sales and a corresponding decrease in gross profit in our consolidated statement of operations and a decrease to inventories in our consolidated balance sheet during the second quarter of 2017 . ( 6 ) as part of our purchase price allocation for our acquisition of talon and cal‑weld , we recorded inventory at fair value , resulting in a fair value step‑up to acquired inventory of $ 6.2 million and $ 3.6 million , respectively . as the related inventory was sold during 2017 , we released $ 1.6 million and $ 3.6 million of talon and cal‑weld 's step‑up , respectively , to cost of sales . ( 7 ) during the third quarter of 2017 , we received a final arbitration ruling on our working capital claim with the sellers of ajax . the ruling was outside the one year measurement period and therefore could not be considered an adjustment to goodwill , resulting in a charge to selling , general , and administrative expense . ( 8 ) for 2016 and 2015 , assumes the shares sold , the conversion of preferred shares into ordinary shares , and vesting of restricted shares and options in connection with our december 2016 ipo occurred at the beginning of each period , for comparability between periods . no adjustment to gaap diluted ordinary shares was necessary for 2017. non-gaap adjusted net income from continuing operations has limitations as an analytical tool , and you should not consider it in isolation or as a substitute for net income or any of our other operating results reported under gaap . other companies may calculate adjusted net income differently or may use other measures to evaluate their performance , both of which could reduce the usefulness of our adjusted net income as a tool for comparison . because of these limitations , you should consider non-gaap adjusted net income from continuing operations alongside other financial performance measures , including net income from continuing operations and other financial results presented in accordance with gaap . in addition , in evaluating non-gaap adjusted net income , you should be aware that in the future we will incur expenses such as those that are the subject of adjustments in deriving adjusted net income and you should not infer from our presentation of adjusted net income that our future results will not be affected by these expenses or any unusual or non-recurring items . 39 unaudited quarterly financial results the following table set forth statement of operations data for the periods indicated . the information for each of these periods is unaudited and has been prepared on the same basis as our audited consolidated financial statements included herein and includes all adjustments , consisting only of normal recurring adjustments that we consider necessary for a fair presentation of our unaudited operations data for the periods presented . historical

