we believe we are competitively positioned in the market with the strongest product portfolio that we have offered in several years . 25 we increased sales traction with the var channel during fiscal 2011 as evidenced by an increase in our branded revenue for the year . this was the result of both increased sales by certain existing partners and expanding our partner base . our sales and marketing teams implemented a number of initiatives and efforts to provide our channel partners with support ranging from lead generation to customer references as well as product education and other training programs . we have noted those partners that are more closely technically aligned with regard to our product portfolio are the partners with stronger results . in addition , we continued to work with our channel partners to take advantage of opportunities to reach end customers that have historically chosen competitor products , but due to consolidation in the market and resulting actions by competitors , purchased quantum products . we continued to improve our capital structure in fiscal 2011 by significantly reducing our senior term debt , making the final payment on the convertible subordinated debt issued in 2003 and refinancing the 12 % subordinated term debt with proceeds from the issuance of 3.5 % convertible subordinated debt . at march 31 , 2011 , we had $ 104.3 million of senior term debt and $ 135 million of convertible subordinated debt . we plan to continue making principal prepayments on the senior term debt during fiscal 2012. we view fiscal 2011 as a year that we shifted our focus from repositioning and restructuring quantum to a focus on growth . we had expected revenue declines in oem and royalty revenue this year ; however , we delivered revenue growth in those areas where we were focused , which were total branded revenue and both branded disk systems and branded software solutions revenue . we made significant progress adding new customers that sell our disk systems and software solutions as well as tape automation systems and increased our alignment with existing and new channel partners . we focused our development efforts on launching quantum branded products that provide end user customers with unique solutions and value to meet their backup , recovery and archive needs . evaluating the growth in the markets for our products and their associated impact to our fiscal 2012 plans , we participate in a tape market that is mature , a disk backup market that is growing and a file system and archive market that is also growing with significant potential for innovation and new solutions . as a result , in fiscal 2012 we expect total revenue to increase due to growth in branded disk systems and software solutions revenue , and we expect branded tape automation systems revenue to remain similar in fiscal 2012 compared to fiscal 2011 due to our continued efforts to increase market share by acquiring new customers in this declining market . we anticipate declines in oem , royalty and branded devices and media revenue consistent with overall market expectations for the tape market . although our strategy , opportunity and goals for fiscal 2012 are not significantly different than fiscal 2011 , we believe we are better positioned to execute on our growth plan . we have made changes in our sales and marketing organization to support growth in fiscal 2012 , including restructuring our sales resources based on end user requirements , increasing our efforts to achieve tighter technical alignment on our complete product portfolio with our channel partners as well as actively pursuing opportunities to expand the market reach for our products . another key area of focus for fiscal 2012 is continuing to expand and improve our products and solutions , with emphasis on branded disk systems and software solutions as well as introducing our initial stornext appliance and expanding professional services and custom engineering . we believe our current tape automation systems , disk systems and software solutions provide excellent value propositions for customers and we plan to continue to expand the breadth and depth of our product and service offerings in fiscal 2012. we are focused on advancing these objectives to take advantage of our improved position in the markets in which we participate to grow revenue in fiscal 2012 and create shareholder value . results in fiscal 2011 , we saw improved revenue momentum with our partners , especially for midrange disk systems , and our continued efforts to increase revenue from disk systems and software solutions resulted in a 33 % increase in disk systems and software solutions revenue in fiscal 2011 compared to a 5 % decrease in fiscal 2010 from fiscal 2009. in fiscal 2011 , we invested significantly in our product portfolio and continued to develop new technologies that will be the framework for future new product introductions . we had our second consecutive fiscal year of net income and continued to improve gross margins . in addition , we generated $ 52.3 million in cash from operations . we had total revenue of $ 672.3 million in fiscal 2011 , a 1 % decrease from fiscal 2010 primarily due to expected reductions in oem revenue , including devices and media and tape automation systems . our product revenue from oem customers decreased 16 % while revenue from branded products increased 7 % from fiscal 2010 primarily due to increased disk systems and software solutions revenue . service revenue decreased primarily due to lower oem repair revenue . our focus on growing the branded business during the fiscal year is reflected in the greater proportion of non-royalty revenue from our branded business , at 79 % in fiscal 2011 compared to 74 % in fiscal 2010 and 67 % in fiscal 2009. royalty revenue decreased 7 % primarily due to declining royalties from older dlt media , partially offset by growth in lto royalties . story_separator_special_tag in addition , branded service revenue comprised a larger proportion of service revenue in fiscal 2011 than in fiscal 2010 primarily due to declines in repairs for oem customers . product repairs and service for oem customers typically have a lower service margin than similar services for branded products . we have reduced expense in our service delivery model by repairing certain product lines in our facilities at a lower cost in fiscal 2011 than we incurred with external service providers in prior years . fiscal 2010 compared to fiscal 2009 service gross margin dollars increased $ 16.1 million , or approximately 41 % , despite a 5 % reduction in service revenue in fiscal 2010 compared to the prior year . additionally , our service gross margin percentage increased to 35.6 % in fiscal 2010 from 24.0 % in fiscal 2009. these increases were primarily due to cost reductions in our service delivery model and reduced lower-margin oem repair activities . efficiencies in our service delivery model that contributed to the increased service gross margin percentage included streamlining processes , consolidating service inventory locations , reducing headcount and decreasing third party external service providers and freight vendors as well as related expenses . in addition , we had decreased lower of cost or market inventory charges related to imminent end of service life dates on certain product families and planned product roadmap transitions compared to fiscal 2009. looking forward in fiscal 2012 , we expect the projected growth in overall revenue to increase the gross margin rate due to the increased percentage of revenue from branded sales which typically have a higher gross margin . tempering this anticipated increase is the absence of the majority of the oem deduplication software revenue that was included in our fiscal 2011 results as well as expected declines in royalty revenue in fiscal 2012. oem deduplication software revenue and royalty revenue both provide some of our highest gross margins . in addition , we continue to closely manage our manufacturing , service and repair costs . research and development expenses replace_table_token_2_th fiscal 2011 compared to fiscal 2010 the increase in research and development expenses for fiscal 2011 was primarily due to a $ 3.7 million increase in salaries and benefits from investment in our disk systems and software engineering teams to support new product development efforts . partially offsetting this increase was a $ 0.8 million decrease in project materials due to the types of products under development and related testing material requirements compared to the prior year . 31 fiscal 2010 compared to fiscal 2009 research and development expenses decreased slightly during fiscal 2010 compared to fiscal 2009 largely due to cost-cutting initiatives and efforts to streamline processes that reduced expenses . these cost reductions were largely offset by increased research and development activities in strategic areas of our business , including the release of several new products in fiscal 2010. depreciation expense decreased $ 1.0 million due to a number of assets supporting our research and development efforts becoming fully depreciated during fiscal 2010. salaries and benefits decreased $ 0.4 million primarily due to lower headcount compared to fiscal 2009. a $ 0.3 million decrease in project materials was primarily due to reduced tape automation system development material needs compared to fiscal 2009. these decreases were partially offset by a $ 1.2 million increase in external service provider expense in support of a number of new products under development in fiscal 2010. looking forward in fiscal 2012 , we anticipate increased research and development expenses from additional investments in development efforts to expand our disk systems and software solutions offerings , including the launch of our initial stornext appliance . sales and marketing expenses replace_table_token_3_th fiscal 2011 compared to fiscal 2010 sales and marketing expenses increased in fiscal 2011 primarily due to a $ 5.4 million increase in salaries and benefits from growing our branded sales force and marketing team . in addition , advertising and marketing expenditures increased by $ 1.8 million from supporting new product introductions and efforts to expand our position with existing and new channel partners to drive future growth . fiscal 2010 compared to fiscal 2009 sales and marketing expenses decreased during fiscal 2010 compared to fiscal 2009 due to continued cost-saving initiatives and efforts to continue to align our sales and marketing resources with market conditions and opportunities . salaries and benefits decreased $ 13.6 million due to reduced headcount in fiscal 2010. marketing-related expenses , such as marketing materials and trade shows , decreased $ 4.7 million , travel expenses decreased $ 3.1 million and external service provider expense decreased $ 1.1 million in fiscal 2010 compared to the prior year . in addition , amortization expense decreased $ 1.5 million during fiscal 2010 compared to fiscal 2009 due to certain intangible assets becoming fully amortized during fiscal 2009. looking forward in fiscal 2012 , we anticipate similar sales and marketing expenses as in fiscal 2011 ; however , we have implemented changes to our sales and marketing organization to apply sales resources based on end user requirements and to deploy our marketing resources with increased emphasis on expanding technical alignment across our product portfolio with our existing and new channel partners , including increasing the breadth and depth of technical resources and training for our partners . 32 general and administrative expenses replace_table_token_4_th fiscal 2011 compared to fiscal 2010 the decrease in general and administrative expenses was primarily due to a $ 1.0 million decrease in net vat expense primarily due to provisions for vat audits during fiscal 2010 that were not repeated in fiscal 2011. in addition , we had a $ 0.8 million decrease in legal expenses compared to fiscal 2010. fiscal 2010 compared to fiscal 2009 the $ 15.3 million decrease in general and administrative expenses during fiscal 2010 compared to fiscal 2009 was primarily due to decreases of $ 6.1 million in legal expenses , $ 3.4 million in

liquidity and capital resources replace_table_token_11_th 37 fiscal 2011 the $ 47.8 million difference between reported net income and cash provided by operating activities in fiscal 2011 was primarily due to $ 67.5 million of non-cash expenses , including $ 30.3 million in amortization , $ 13.8 million in service parts lower of cost or market adjustment , $ 11.7 million in depreciation and $ 10.4 million in share-based compensation . these noncash expenses were partially offset by a $ 14.9 million increase in accounts receivable primarily due to increased sales of products and service billings in the fourth quarter of fiscal 2011 compared to the fourth quarter of fiscal 2010. cash used in investing activities during fiscal 2011 was primarily due to $ 12.3 million in purchases of property and equipment . equipment purchases were primarily for engineering test equipment to support product development activities . cash used in financing activities during fiscal 2011 was primarily due to net debt repayments of $ 95.5 million , including $ 81.7 million of principal on the senior secured term debt . we refinanced the subordinated term loans with 3.50 % convertible subordinated debt in fiscal 2011 , and the repayment of this long-term debt was offset by borrowings of convertible subordinated debt , net . for additional information regarding this refinancing , see note 7 “ convertible subordinated debt and long-term debt ” to the consolidated financial statements . in addition , we received $ 16.5 million from the issuance of common stock . fiscal 2010 the $ 83.5 million difference between reported net income and cash provided by operating activities in fiscal 2010 was primarily due to $ 71.3 million of non-cash expenses comprised of $ 38.5 million in amortization , $ 12.1 million in depreciation , $ 11.4 million in service parts lower of cost or market adjustment and $ 9.8 million in share-based compensation . these non-cash expenses were partially offset by a $ 15.6 million non-cash gain on debt extinguishment .


 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 replace_table_token_11_th 37 fiscal 2011 the $ 47.8 million difference between reported net income and cash provided by operating activities in fiscal 2011 was primarily due to $ 67.5 million of non-cash expenses , including $ 30.3 million in amortization , $ 13.8 million in service parts lower of cost or market adjustment , $ 11.7 million in depreciation and $ 10.4 million in share-based compensation . these noncash expenses were partially offset by a $ 14.9 million increase in accounts receivable primarily due to increased sales of products and service billings in the fourth quarter of fiscal 2011 compared to the fourth quarter of fiscal 2010. cash used in investing activities during fiscal 2011 was primarily due to $ 12.3 million in purchases of property and equipment . equipment purchases were primarily for engineering test equipment to support product development activities . cash used in financing activities during fiscal 2011 was primarily due to net debt repayments of $ 95.5 million , including $ 81.7 million of principal on the senior secured term debt . we refinanced the subordinated term loans with 3.50 % convertible subordinated debt in fiscal 2011 , and the repayment of this long-term debt was offset by borrowings of convertible subordinated debt , net . for additional information regarding this refinancing , see note 7 “ convertible subordinated debt and long-term debt ” to the consolidated financial statements . in addition , we received $ 16.5 million from the issuance of common stock . fiscal 2010 the $ 83.5 million difference between reported net income and cash provided by operating activities in fiscal 2010 was primarily due to $ 71.3 million of non-cash expenses comprised of $ 38.5 million in amortization , $ 12.1 million in depreciation , $ 11.4 million in service parts lower of cost or market adjustment and $ 9.8 million in share-based compensation . these non-cash expenses were partially offset by a $ 15.6 million non-cash gain on debt extinguishment .
```    
 Suspicious Activity Report : we believe we are competitively positioned in the market with the strongest product portfolio that we have offered in several years . 25 we increased sales traction with the var channel during fiscal 2011 as evidenced by an increase in our branded revenue for the year . this was the result of both increased sales by certain existing partners and expanding our partner base . our sales and marketing teams implemented a number of initiatives and efforts to provide our channel partners with support ranging from lead generation to customer references as well as product education and other training programs . we have noted those partners that are more closely technically aligned with regard to our product portfolio are the partners with stronger results . in addition , we continued to work with our channel partners to take advantage of opportunities to reach end customers that have historically chosen competitor products , but due to consolidation in the market and resulting actions by competitors , purchased quantum products . we continued to improve our capital structure in fiscal 2011 by significantly reducing our senior term debt , making the final payment on the convertible subordinated debt issued in 2003 and refinancing the 12 % subordinated term debt with proceeds from the issuance of 3.5 % convertible subordinated debt . at march 31 , 2011 , we had $ 104.3 million of senior term debt and $ 135 million of convertible subordinated debt . we plan to continue making principal prepayments on the senior term debt during fiscal 2012. we view fiscal 2011 as a year that we shifted our focus from repositioning and restructuring quantum to a focus on growth . we had expected revenue declines in oem and royalty revenue this year ; however , we delivered revenue growth in those areas where we were focused , which were total branded revenue and both branded disk systems and branded software solutions revenue . we made significant progress adding new customers that sell our disk systems and software solutions as well as tape automation systems and increased our alignment with existing and new channel partners . we focused our development efforts on launching quantum branded products that provide end user customers with unique solutions and value to meet their backup , recovery and archive needs . evaluating the growth in the markets for our products and their associated impact to our fiscal 2012 plans , we participate in a tape market that is mature , a disk backup market that is growing and a file system and archive market that is also growing with significant potential for innovation and new solutions . as a result , in fiscal 2012 we expect total revenue to increase due to growth in branded disk systems and software solutions revenue , and we expect branded tape automation systems revenue to remain similar in fiscal 2012 compared to fiscal 2011 due to our continued efforts to increase market share by acquiring new customers in this declining market . we anticipate declines in oem , royalty and branded devices and media revenue consistent with overall market expectations for the tape market . although our strategy , opportunity and goals for fiscal 2012 are not significantly different than fiscal 2011 , we believe we are better positioned to execute on our growth plan . we have made changes in our sales and marketing organization to support growth in fiscal 2012 , including restructuring our sales resources based on end user requirements , increasing our efforts to achieve tighter technical alignment on our complete product portfolio with our channel partners as well as actively pursuing opportunities to expand the market reach for our products . another key area of focus for fiscal 2012 is continuing to expand and improve our products and solutions , with emphasis on branded disk systems and software solutions as well as introducing our initial stornext appliance and expanding professional services and custom engineering . we believe our current tape automation systems , disk systems and software solutions provide excellent value propositions for customers and we plan to continue to expand the breadth and depth of our product and service offerings in fiscal 2012. we are focused on advancing these objectives to take advantage of our improved position in the markets in which we participate to grow revenue in fiscal 2012 and create shareholder value . results in fiscal 2011 , we saw improved revenue momentum with our partners , especially for midrange disk systems , and our continued efforts to increase revenue from disk systems and software solutions resulted in a 33 % increase in disk systems and software solutions revenue in fiscal 2011 compared to a 5 % decrease in fiscal 2010 from fiscal 2009. in fiscal 2011 , we invested significantly in our product portfolio and continued to develop new technologies that will be the framework for future new product introductions . we had our second consecutive fiscal year of net income and continued to improve gross margins . in addition , we generated $ 52.3 million in cash from operations . we had total revenue of $ 672.3 million in fiscal 2011 , a 1 % decrease from fiscal 2010 primarily due to expected reductions in oem revenue , including devices and media and tape automation systems . our product revenue from oem customers decreased 16 % while revenue from branded products increased 7 % from fiscal 2010 primarily due to increased disk systems and software solutions revenue . service revenue decreased primarily due to lower oem repair revenue . our focus on growing the branded business during the fiscal year is reflected in the greater proportion of non-royalty revenue from our branded business , at 79 % in fiscal 2011 compared to 74 % in fiscal 2010 and 67 % in fiscal 2009. royalty revenue decreased 7 % primarily due to declining royalties from older dlt media , partially offset by growth in lto royalties . story_separator_special_tag in addition , branded service revenue comprised a larger proportion of service revenue in fiscal 2011 than in fiscal 2010 primarily due to declines in repairs for oem customers . product repairs and service for oem customers typically have a lower service margin than similar services for branded products . we have reduced expense in our service delivery model by repairing certain product lines in our facilities at a lower cost in fiscal 2011 than we incurred with external service providers in prior years . fiscal 2010 compared to fiscal 2009 service gross margin dollars increased $ 16.1 million , or approximately 41 % , despite a 5 % reduction in service revenue in fiscal 2010 compared to the prior year . additionally , our service gross margin percentage increased to 35.6 % in fiscal 2010 from 24.0 % in fiscal 2009. these increases were primarily due to cost reductions in our service delivery model and reduced lower-margin oem repair activities . efficiencies in our service delivery model that contributed to the increased service gross margin percentage included streamlining processes , consolidating service inventory locations , reducing headcount and decreasing third party external service providers and freight vendors as well as related expenses . in addition , we had decreased lower of cost or market inventory charges related to imminent end of service life dates on certain product families and planned product roadmap transitions compared to fiscal 2009. looking forward in fiscal 2012 , we expect the projected growth in overall revenue to increase the gross margin rate due to the increased percentage of revenue from branded sales which typically have a higher gross margin . tempering this anticipated increase is the absence of the majority of the oem deduplication software revenue that was included in our fiscal 2011 results as well as expected declines in royalty revenue in fiscal 2012. oem deduplication software revenue and royalty revenue both provide some of our highest gross margins . in addition , we continue to closely manage our manufacturing , service and repair costs . research and development expenses replace_table_token_2_th fiscal 2011 compared to fiscal 2010 the increase in research and development expenses for fiscal 2011 was primarily due to a $ 3.7 million increase in salaries and benefits from investment in our disk systems and software engineering teams to support new product development efforts . partially offsetting this increase was a $ 0.8 million decrease in project materials due to the types of products under development and related testing material requirements compared to the prior year . 31 fiscal 2010 compared to fiscal 2009 research and development expenses decreased slightly during fiscal 2010 compared to fiscal 2009 largely due to cost-cutting initiatives and efforts to streamline processes that reduced expenses . these cost reductions were largely offset by increased research and development activities in strategic areas of our business , including the release of several new products in fiscal 2010. depreciation expense decreased $ 1.0 million due to a number of assets supporting our research and development efforts becoming fully depreciated during fiscal 2010. salaries and benefits decreased $ 0.4 million primarily due to lower headcount compared to fiscal 2009. a $ 0.3 million decrease in project materials was primarily due to reduced tape automation system development material needs compared to fiscal 2009. these decreases were partially offset by a $ 1.2 million increase in external service provider expense in support of a number of new products under development in fiscal 2010. looking forward in fiscal 2012 , we anticipate increased research and development expenses from additional investments in development efforts to expand our disk systems and software solutions offerings , including the launch of our initial stornext appliance . sales and marketing expenses replace_table_token_3_th fiscal 2011 compared to fiscal 2010 sales and marketing expenses increased in fiscal 2011 primarily due to a $ 5.4 million increase in salaries and benefits from growing our branded sales force and marketing team . in addition , advertising and marketing expenditures increased by $ 1.8 million from supporting new product introductions and efforts to expand our position with existing and new channel partners to drive future growth . fiscal 2010 compared to fiscal 2009 sales and marketing expenses decreased during fiscal 2010 compared to fiscal 2009 due to continued cost-saving initiatives and efforts to continue to align our sales and marketing resources with market conditions and opportunities . salaries and benefits decreased $ 13.6 million due to reduced headcount in fiscal 2010. marketing-related expenses , such as marketing materials and trade shows , decreased $ 4.7 million , travel expenses decreased $ 3.1 million and external service provider expense decreased $ 1.1 million in fiscal 2010 compared to the prior year . in addition , amortization expense decreased $ 1.5 million during fiscal 2010 compared to fiscal 2009 due to certain intangible assets becoming fully amortized during fiscal 2009. looking forward in fiscal 2012 , we anticipate similar sales and marketing expenses as in fiscal 2011 ; however , we have implemented changes to our sales and marketing organization to apply sales resources based on end user requirements and to deploy our marketing resources with increased emphasis on expanding technical alignment across our product portfolio with our existing and new channel partners , including increasing the breadth and depth of technical resources and training for our partners . 32 general and administrative expenses replace_table_token_4_th fiscal 2011 compared to fiscal 2010 the decrease in general and administrative expenses was primarily due to a $ 1.0 million decrease in net vat expense primarily due to provisions for vat audits during fiscal 2010 that were not repeated in fiscal 2011. in addition , we had a $ 0.8 million decrease in legal expenses compared to fiscal 2010. fiscal 2010 compared to fiscal 2009 the $ 15.3 million decrease in general and administrative expenses during fiscal 2010 compared to fiscal 2009 was primarily due to decreases of $ 6.1 million in legal expenses , $ 3.4 million in

