jdl 's portfolio of technology solutions includes managed services , virtualization and cloud solutions , wired and wireless network design and implementation services , and converged infrastructure configuration and deployment . jdl has provided many of these technology services to one of the largest school districts in the us for more than a decade , and also provides these services to a number of commercial and healthcare clients . net2edge net2edge designs , assembles and sells ethernet based switches based around the international mef standards . those products range from legacy over packet interfaces such as serial , tdm or isdn and native ethernet from 1g to 10g . net2edge targets these products at telecommunications service providers as network interface devices . by design , the products transmit data from the subscriber enterprise to the provider edge , usually a router . the products are sophisticated , carrying multiple services with definable quality of service metrics over fiber optic paths . these products assist in resolving challenges in the areas of bandwidth constraints , security risks , and distance limitations as networks extend from local area to wide area networks and adapt to ever increasing end-user demands . as enterprise networks continue to change and evolve , our solutions enable customers to integrate multiples services into their existing infrastructure . all net2edge products incorporate features for performing advanced levels of fault management and automated provisioning minimizing the administrative burden of the operator . key 2018 developments ● the company 's 2018 sales were $ 65.8 million , a 20 % decrease from 2017 sales of $ 82.3 million . ● the company 's 2018 net loss was $ 6.8 million , or ( $ 0.75 ) per diluted share , compared to net loss of $ 11.8 million or ( $ 1.32 ) per diluted share in fiscal 2017 . ● at 2018 year end , the company had cash , cash equivalents and investments of $ 11.1 million and positive working capital of $ 30.7 million compared to cash , cash equivalents and investments of $ 18.0 million and working capital of $ 36.5 million at december 31 , 2017 . ● transition networks sales decreased 5 % to $ 36.5 million in 2018 from $ 38.5 million in 2017. transition had increased operating income of $ 1.9 million in 2018 , however , compared to operating income of $ 1.4 million in 2017 . 21 ● suttle sales decreased 28 % to $ 23.4 million in 2018 from $ 32.4 million in 2017. suttle incurred $ 2.3 million in restructuring expense in 2017 related to the planned closure of its costa rica facility . suttle had an operating loss of $ 5.1 million in 2018 compared to an operating loss of $ 9.8 million in 2017 . ● jdl technologies sales decreased 54 % to $ 5.1 million in 2018 from $ 11.2 million in 2017. jdl had an operating loss of $ 0.6 million in 2018 compared to an operating loss of $ 0.8 million in 2017 , due to a $ 1.5 million goodwill impairment loss recognized in the second quarter of 2017 . ● net2edge sales increased 58 % to $ 1.7 million in 2018 from $ 1.1 million in 2017. net2edge had an operating loss of $ 2.8 million in 2018 compared to an operating loss of $ 2.6 million in 2017. forward looking statements in this report and from time to time , in reports filed with the securities and exchange commission , in press releases , and in other communications to shareholders or the investing public , we may make “ forward looking statements ” within the meaning of the private securities litigation reform act of 1995. we may make these forward looking statements concerning possible or anticipated future financial performance , business activities , plans , pending claims , investigations or litigation , which are typically preceded by the words “ believes , ” “ expects , ” “ anticipates , ” “ intends ” or similar expressions . for these forward-looking statements , the company claims the protection of the safe harbor for forward-looking statements contained in federal securities laws . shareholders and the investing public should understand that these forward looking statements are subject to risks and uncertainties that could cause actual performance , activities , anticipated results , outcomes or plans to differ significantly from those indicated in the forward-looking statements . for a detailed discussion of a number of these risk factors , please see item 1a above . critical accounting policies inventory valuation : we value inventories at the lower of cost or net realizable value . reserves for excess and obsolescence are estimated and recorded to reduce the carrying value to estimated net realizable value . the amount of the reserve is determined based on historical usage , projected sales information , plans for discontinued products and other factors . though management considers these reserves adequate and proper , changes in sales volumes due to unexpected economic or competitive conditions are among the factors that could materially affect the adequacy of this reserve . income taxes : in the preparation of the company 's consolidated financial statements , management calculates income taxes . this includes estimating the company 's current tax liability as well as assessing temporary differences resulting from different treatment of items for tax and book accounting purposes . these differences result in deferred tax assets and liabilities , which are recorded on the balance sheet . these assets and liabilities are analyzed regularly and management assesses the likelihood it will realize these deferred assets from future taxable income . story_separator_special_tag 23 selling , general and administrative expenses decreased 4 % to $ 14,812,000 , or 41 % of sales , in 2018 from $ 15,371,000 , or 40 % of sales in 2017 due to a continued focus on expense management . operating income was $ 1,883,000 in 2018 compared to operating income of $ 1,391,000 in 2017. suttle results suttle sales decreased 28 % to $ 23,410,000 in 2018 compared to $ 32,384,000 in 2017 due to lower sales to tier 1 service providers from volume declines in legacy products , and a shift in purchasing decisions from tier 1 telecommunications suppliers to installers . sales by product groups in 2018 and 2017 were : replace_table_token_4_th suttle 's sales by customer groups in 2018 and 2017 were : replace_table_token_5_th sales to the major communication service providers decreased 33 % to $ 19,370,000 in 2018 compared to $ 29,071,000 in 2017 due to decreased demand for legacy products during the switch to fiber-based network architectures . sales to these customers accounted for 83 % of suttle 's sales in 2018 and 90 % in 2017. sales to distributors decreased 18 % due to decreased demand from service providers that are being served by the channel , and accounted for 9 % of sales in 2018 compared to 8 % in 2017. international sales accounted for 8 % of suttle 's 2018 sales and increased 157 % compared to 2017 due to the execution of key projects by major service providers in central america . sales of structured cabling and connecting system products decreased 27 % primarily due to the changing product mix and the shift in purchasing decisions from tier 1 telecommunications suppliers to installers . sales of dsl and other products decreased 32 % due to major technology changes implemented by service providers reflected by a switch to fiber-based network architectures . suttle 's gross margin increased 160 % to $ 3,685,000 in 2018 compared to $ 1,420,000 in 2017. gross margin as a percentage of sales increased to 16 % in 2018 as compared to 4 % in 2017 primarily due to large adjustments in the prior year , including a $ 417,000 write off of prepaid royalties under a product development agreement and increases to the inventory reserves , driven by suttle 's decision to discontinue certain legacy products . the margin impact of excess and obsolete inventory adjustments was $ 1,100,000 in 2018 ( 4.7 % of sales ) compared to $ 4,214,000 ( 13.0 % of sales ) in 2017. selling , general and administrative expenses decreased $ 507,000 , or 6 % to $ 8,393,000 , or 36 % of sales , in 2018 compared to $ 8,900,000 in 2017 , or 27 % of sales , due to reduced research and development expenditures and ongoing expense control measures . suttle incurred $ 244,000 and $ 528,000 in research and development expenses in 2018 and 2017 , respectively . suttle incurred $ 364,000 in restructuring expense related to organization changes in 2018 as compared to $ 2,285,000 in 2017 related to the planned closure of its costa rica facility . suttle had an operating loss of $ 5,072,000 in 2018 compared to an operating loss of $ 9,765,000 in 2017 . 24 jdl technologies , inc. results sales by jdl technologies decreased 54 % to $ 5,134,000 in 2018 compared to $ 11,210,000 in 2017. the following table summarizes jdl 's revenues by customer group in 2018 and 2017 : replace_table_token_6_th revenues from the education sector decreased $ 5,509,000 or 68 % in 2018 due to a decrease in the number of network related projects completed during the year and a delay in the approval of the federal funding for the 2017-2018 funding cycle , which were ultimately resolved in the fourth quarter of 2018. federal and local funding for public school district investments in it infrastructure and services varies substantially from year to year , and jdl technologies expects to continue to experience notable swings in quarterly and annual revenues as a result . revenue from jdl technologies ' sales to small and medium-sized commercial businesses ( smbs ) , which are primarily healthcare and commercial clients , decreased by 19 % or $ 567,000 due to the expiration of two large customer contracts late in 2017. jdl gross margin decreased 53 % to $ 1,304,000 in 2018 compared to $ 2,773,000 in 2017. gross margin as a percentage of sales remained flat at 25 % in 2018 and 2017. selling , general and administrative expenses decreased 11 % in 2018 to $ 1,879,000 , or 37 % of sales , compared to $ 2,101,000 in 2017 , or 19 % of sales due to cost saving measures implemented over the past year . jdl reported an operating loss of $ 575,000 in 2018 compared to an operating loss of $ 791,000 in 2017 , which included a $ 1,463,000 goodwill impairment loss recognized in the second quarter of 2017. jdl technologies continues to aggressively leverage opportunities to provide managed services , cloud migration and virtualization services , hipaa-compliant technology services , and other network and infrastructure services to the commercial and healthcare markets . this strategic , multiyear plan to reduce the impact of volatile government funding is beginning to produce results . net2edge results net2edge 's sales increased 58 % to $ 1,700,000 in 2018 compared to $ 1,079,000 in 2017 , due to revenue from established csi accounts with new higher featured products . gross margin decreased 29 % to $ 485,000 in 2018 compared to $ 681,000 in 2017. gross margin as a percentage of sales decreased to 29 % in 2018 from 63 % in 2017 , due to product mix and additional costs incurred to expedite product shipments . selling , general and administrative expenses increased 5 % to $ 3,279,000 in 2018 compared to $ 3,127,000 in 2017 due to increased spending on engineering and research

liquidity and capital resources as of december 31 , 2018 , the company had approximately $ 11,056,000 in cash , cash equivalents and investments . of this amount , $ 8,428,000 was invested in short-term money market funds that are not considered to be bank deposits and are not insured or guaranteed by the fdic or other government agency . these money market funds seek to preserve the value of the investment at $ 1.00 per share ; however , it is possible to lose money investing in these funds . the remainder in cash and cash equivalents is operating cash . the company had working capital of $ 30,695,000 , consisting of current assets of approximately $ 42,335,000 and current liabilities of $ 11,640,000 at december 31 , 2018 compared to working capital of $ 36,506,000 , consisting of current assets of $ 45,466,000 and current liabilities of $ 8,960,000 at the end of 2017. cash flow used in operating activities was approximately $ 4,723,000 in 2018 compared to $ 3,650,000 provided in 2017. significant working capital changes from 2017 to 2018 included an increase in inventories of $ 2.2 million in receivables of $ 1.2 million , offset by an increase in other accrued liabilities of $ 1.6 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 as of december 31 , 2018 , the company had approximately $ 11,056,000 in cash , cash equivalents and investments . of this amount , $ 8,428,000 was invested in short-term money market funds that are not considered to be bank deposits and are not insured or guaranteed by the fdic or other government agency . these money market funds seek to preserve the value of the investment at $ 1.00 per share ; however , it is possible to lose money investing in these funds . the remainder in cash and cash equivalents is operating cash . the company had working capital of $ 30,695,000 , consisting of current assets of approximately $ 42,335,000 and current liabilities of $ 11,640,000 at december 31 , 2018 compared to working capital of $ 36,506,000 , consisting of current assets of $ 45,466,000 and current liabilities of $ 8,960,000 at the end of 2017. cash flow used in operating activities was approximately $ 4,723,000 in 2018 compared to $ 3,650,000 provided in 2017. significant working capital changes from 2017 to 2018 included an increase in inventories of $ 2.2 million in receivables of $ 1.2 million , offset by an increase in other accrued liabilities of $ 1.6 million .
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 Suspicious Activity Report : jdl 's portfolio of technology solutions includes managed services , virtualization and cloud solutions , wired and wireless network design and implementation services , and converged infrastructure configuration and deployment . jdl has provided many of these technology services to one of the largest school districts in the us for more than a decade , and also provides these services to a number of commercial and healthcare clients . net2edge net2edge designs , assembles and sells ethernet based switches based around the international mef standards . those products range from legacy over packet interfaces such as serial , tdm or isdn and native ethernet from 1g to 10g . net2edge targets these products at telecommunications service providers as network interface devices . by design , the products transmit data from the subscriber enterprise to the provider edge , usually a router . the products are sophisticated , carrying multiple services with definable quality of service metrics over fiber optic paths . these products assist in resolving challenges in the areas of bandwidth constraints , security risks , and distance limitations as networks extend from local area to wide area networks and adapt to ever increasing end-user demands . as enterprise networks continue to change and evolve , our solutions enable customers to integrate multiples services into their existing infrastructure . all net2edge products incorporate features for performing advanced levels of fault management and automated provisioning minimizing the administrative burden of the operator . key 2018 developments ● the company 's 2018 sales were $ 65.8 million , a 20 % decrease from 2017 sales of $ 82.3 million . ● the company 's 2018 net loss was $ 6.8 million , or ( $ 0.75 ) per diluted share , compared to net loss of $ 11.8 million or ( $ 1.32 ) per diluted share in fiscal 2017 . ● at 2018 year end , the company had cash , cash equivalents and investments of $ 11.1 million and positive working capital of $ 30.7 million compared to cash , cash equivalents and investments of $ 18.0 million and working capital of $ 36.5 million at december 31 , 2017 . ● transition networks sales decreased 5 % to $ 36.5 million in 2018 from $ 38.5 million in 2017. transition had increased operating income of $ 1.9 million in 2018 , however , compared to operating income of $ 1.4 million in 2017 . 21 ● suttle sales decreased 28 % to $ 23.4 million in 2018 from $ 32.4 million in 2017. suttle incurred $ 2.3 million in restructuring expense in 2017 related to the planned closure of its costa rica facility . suttle had an operating loss of $ 5.1 million in 2018 compared to an operating loss of $ 9.8 million in 2017 . ● jdl technologies sales decreased 54 % to $ 5.1 million in 2018 from $ 11.2 million in 2017. jdl had an operating loss of $ 0.6 million in 2018 compared to an operating loss of $ 0.8 million in 2017 , due to a $ 1.5 million goodwill impairment loss recognized in the second quarter of 2017 . ● net2edge sales increased 58 % to $ 1.7 million in 2018 from $ 1.1 million in 2017. net2edge had an operating loss of $ 2.8 million in 2018 compared to an operating loss of $ 2.6 million in 2017. forward looking statements in this report and from time to time , in reports filed with the securities and exchange commission , in press releases , and in other communications to shareholders or the investing public , we may make “ forward looking statements ” within the meaning of the private securities litigation reform act of 1995. we may make these forward looking statements concerning possible or anticipated future financial performance , business activities , plans , pending claims , investigations or litigation , which are typically preceded by the words “ believes , ” “ expects , ” “ anticipates , ” “ intends ” or similar expressions . for these forward-looking statements , the company claims the protection of the safe harbor for forward-looking statements contained in federal securities laws . shareholders and the investing public should understand that these forward looking statements are subject to risks and uncertainties that could cause actual performance , activities , anticipated results , outcomes or plans to differ significantly from those indicated in the forward-looking statements . for a detailed discussion of a number of these risk factors , please see item 1a above . critical accounting policies inventory valuation : we value inventories at the lower of cost or net realizable value . reserves for excess and obsolescence are estimated and recorded to reduce the carrying value to estimated net realizable value . the amount of the reserve is determined based on historical usage , projected sales information , plans for discontinued products and other factors . though management considers these reserves adequate and proper , changes in sales volumes due to unexpected economic or competitive conditions are among the factors that could materially affect the adequacy of this reserve . income taxes : in the preparation of the company 's consolidated financial statements , management calculates income taxes . this includes estimating the company 's current tax liability as well as assessing temporary differences resulting from different treatment of items for tax and book accounting purposes . these differences result in deferred tax assets and liabilities , which are recorded on the balance sheet . these assets and liabilities are analyzed regularly and management assesses the likelihood it will realize these deferred assets from future taxable income . story_separator_special_tag 23 selling , general and administrative expenses decreased 4 % to $ 14,812,000 , or 41 % of sales , in 2018 from $ 15,371,000 , or 40 % of sales in 2017 due to a continued focus on expense management . operating income was $ 1,883,000 in 2018 compared to operating income of $ 1,391,000 in 2017. suttle results suttle sales decreased 28 % to $ 23,410,000 in 2018 compared to $ 32,384,000 in 2017 due to lower sales to tier 1 service providers from volume declines in legacy products , and a shift in purchasing decisions from tier 1 telecommunications suppliers to installers . sales by product groups in 2018 and 2017 were : replace_table_token_4_th suttle 's sales by customer groups in 2018 and 2017 were : replace_table_token_5_th sales to the major communication service providers decreased 33 % to $ 19,370,000 in 2018 compared to $ 29,071,000 in 2017 due to decreased demand for legacy products during the switch to fiber-based network architectures . sales to these customers accounted for 83 % of suttle 's sales in 2018 and 90 % in 2017. sales to distributors decreased 18 % due to decreased demand from service providers that are being served by the channel , and accounted for 9 % of sales in 2018 compared to 8 % in 2017. international sales accounted for 8 % of suttle 's 2018 sales and increased 157 % compared to 2017 due to the execution of key projects by major service providers in central america . sales of structured cabling and connecting system products decreased 27 % primarily due to the changing product mix and the shift in purchasing decisions from tier 1 telecommunications suppliers to installers . sales of dsl and other products decreased 32 % due to major technology changes implemented by service providers reflected by a switch to fiber-based network architectures . suttle 's gross margin increased 160 % to $ 3,685,000 in 2018 compared to $ 1,420,000 in 2017. gross margin as a percentage of sales increased to 16 % in 2018 as compared to 4 % in 2017 primarily due to large adjustments in the prior year , including a $ 417,000 write off of prepaid royalties under a product development agreement and increases to the inventory reserves , driven by suttle 's decision to discontinue certain legacy products . the margin impact of excess and obsolete inventory adjustments was $ 1,100,000 in 2018 ( 4.7 % of sales ) compared to $ 4,214,000 ( 13.0 % of sales ) in 2017. selling , general and administrative expenses decreased $ 507,000 , or 6 % to $ 8,393,000 , or 36 % of sales , in 2018 compared to $ 8,900,000 in 2017 , or 27 % of sales , due to reduced research and development expenditures and ongoing expense control measures . suttle incurred $ 244,000 and $ 528,000 in research and development expenses in 2018 and 2017 , respectively . suttle incurred $ 364,000 in restructuring expense related to organization changes in 2018 as compared to $ 2,285,000 in 2017 related to the planned closure of its costa rica facility . suttle had an operating loss of $ 5,072,000 in 2018 compared to an operating loss of $ 9,765,000 in 2017 . 24 jdl technologies , inc. results sales by jdl technologies decreased 54 % to $ 5,134,000 in 2018 compared to $ 11,210,000 in 2017. the following table summarizes jdl 's revenues by customer group in 2018 and 2017 : replace_table_token_6_th revenues from the education sector decreased $ 5,509,000 or 68 % in 2018 due to a decrease in the number of network related projects completed during the year and a delay in the approval of the federal funding for the 2017-2018 funding cycle , which were ultimately resolved in the fourth quarter of 2018. federal and local funding for public school district investments in it infrastructure and services varies substantially from year to year , and jdl technologies expects to continue to experience notable swings in quarterly and annual revenues as a result . revenue from jdl technologies ' sales to small and medium-sized commercial businesses ( smbs ) , which are primarily healthcare and commercial clients , decreased by 19 % or $ 567,000 due to the expiration of two large customer contracts late in 2017. jdl gross margin decreased 53 % to $ 1,304,000 in 2018 compared to $ 2,773,000 in 2017. gross margin as a percentage of sales remained flat at 25 % in 2018 and 2017. selling , general and administrative expenses decreased 11 % in 2018 to $ 1,879,000 , or 37 % of sales , compared to $ 2,101,000 in 2017 , or 19 % of sales due to cost saving measures implemented over the past year . jdl reported an operating loss of $ 575,000 in 2018 compared to an operating loss of $ 791,000 in 2017 , which included a $ 1,463,000 goodwill impairment loss recognized in the second quarter of 2017. jdl technologies continues to aggressively leverage opportunities to provide managed services , cloud migration and virtualization services , hipaa-compliant technology services , and other network and infrastructure services to the commercial and healthcare markets . this strategic , multiyear plan to reduce the impact of volatile government funding is beginning to produce results . net2edge results net2edge 's sales increased 58 % to $ 1,700,000 in 2018 compared to $ 1,079,000 in 2017 , due to revenue from established csi accounts with new higher featured products . gross margin decreased 29 % to $ 485,000 in 2018 compared to $ 681,000 in 2017. gross margin as a percentage of sales decreased to 29 % in 2018 from 63 % in 2017 , due to product mix and additional costs incurred to expedite product shipments . selling , general and administrative expenses increased 5 % to $ 3,279,000 in 2018 compared to $ 3,127,000 in 2017 due to increased spending on engineering and research

