we believe that the best opportunity for increasing sales in china will be best met by having a strong presence directly in the country . we expect that internal cash flow from our operations , as well as financing available through lenders will continue to fund our growth opportunities . we will continue our dividend program as we believe that our cash flows can support our growth initiatives and also reward our shareholders at the same time . we will emphasize gross margin improvement . gross margin improvement requires cost reduction , new products emphasizing more complete motion control systems and a support structure trained to sell , apply and service our products and customers . we made good progress in 2012 and these initiatives will continue in 2013. further development and promotion of our parent brand , allied motion , will continue in 2013. a global structure has been defined and we intend to use that to our advantage in the marketplace . and last but not least , we are taking our commitment to ast to a new level as we have invested in additional resources as part of our operational excellence team . as always , we will continuously utilize ast to improve efficiencies and eliminate waste throughout our company . ast is critical to and helps create the path to success in all regions of the world . 10 operating results year 2012 compared to 2011 replace_table_token_4_th net income : the company achieved net income for the year ended december 31 , 2012 of $ 5,397,000 or $ .63 per diluted share compared to $ 6,967,000 or $ 0.81 per diluted share for 2011. the 2011 results include a $ 1.1 million adjustment to the earnout that was part of the östergrens acquisition in 2010. excluding the earnout adjustment of $ 1.1 million , the company 's net income for 2011 was $ 0.68 per diluted share , and the company 's net income decreased 7 % , or $ 0.05 per diluted share . ebitda and adjusted ebitda : ebitda was $ 9,309,000 and $ 11,774,000 for 2012 and 2011 , respectively . adjusted ebitda was $ 9,918,000 for 2012 compared to $ 11,376,000 for 2011. ebitda and adjusted ebitda are non-gaap measurements . ebitda consists of income before interest expense , provision for income taxes , depreciation and amortization . adjusted ebitda is before stock compensation expense , as well as other nonrecurring items , such as adjustments to the earnout related to the östergrens acquisition . see information included in `` non-gaap measures `` below for a reconciliation of net income to ebitda and adjusted ebitda . revenues : revenues were $ 101,968,000 in 2012 compared to $ 110,941,000 in 2011. the 8 % decrease in sales from last year was the result of decreased sales in virtually all of our major industry sectors , partially offset by increased sales into the company 's medical markets . the 8 % decrease in sales is comprised of a 4 % decrease in sales to us customers and a 13 % decrease in sales to non-us customers . 56 % of our sales for the year were to us customers with the balance of our sales to customers primarily in europe , canada and asia . of the 8 % decrease in revenues , 6 % was due to a decrease in sales volume for the year and 2 % was due to the dollar strengthening against the foreign currencies in which the company does business , primarily the euro and the swedish krona . 11 backlog : the company 's backlog at december 31 , 2012 consisted of sales orders totaling approximately $ 32,915,000 while backlog at december 31 , 2011 was $ 44,005,000 reflecting a 25 % decrease from the end of 2011. backlog may fluctuate up or down throughout the year for various reasons , not limited to the following : customer order patterns , annual versus intermittent orders , and long-term blanket orders versus new product orders . beginning in 2013 , for booking reporting purposes , we will no longer include the full value of the blanket orders when received and will only report them as bookings once a release date is provided from the customer . gross margin : gross margin as a percentage of revenues was 29 % and 30 % for 2012 and 2011 , respectively . this 1 % decrease in gross margin for 2012 , when compared to 2011 , was due to the sales mix , lower fixed overhead absorption based on the lower sales , and a warranty charge that was recorded to cover the expected costs of replacing certain products in the field due to an incorrect electronic component in a printed circuit board supplied by one of the company 's sub-contract suppliers . selling expenses : selling expenses were $ 5,093,000 and $ 5,626,000 in 2012 and 2011 , respectively . the 9 % decrease in 2012 is primarily due to a change in responsibility for certain employees of the company who were previously involved in sales , as well as lower sales incentive compensation when compared to 2011. general and administrative expenses : general and administrative expenses were $ 10,811,000 in 2012 and $ 12,639,000 for 2011. the 14 % decrease is primarily a result of lower compensation expense , which includes incentive bonuses . amortization of intangible assets : amortization of intangible assets expense was $ 548,000 and $ 732,000 in 2012 and 2011 , respectively . the 25 % decrease is the result of certain intangible assets becoming fully amortized in 2012. income taxes : provision for income taxes was $ 2,101,000 and $ 2,552,000 for 2012 and 2011 , respectively . the effective income tax rate as a percentage of income before income taxes was 28.0 % and 26.8 % in 2012 and 2011 , respectively . the effective tax rate for 2012 and 2011 is lower story_separator_special_tag we believe that the best opportunity for increasing sales in china will be best met by having a strong presence directly in the country . we expect that internal cash flow from our operations , as well as financing available through lenders will continue to fund our growth opportunities . we will continue our dividend program as we believe that our cash flows can support our growth initiatives and also reward our shareholders at the same time . we will emphasize gross margin improvement . gross margin improvement requires cost reduction , new products emphasizing more complete motion control systems and a support structure trained to sell , apply and service our products and customers . we made good progress in 2012 and these initiatives will continue in 2013. further development and promotion of our parent brand , allied motion , will continue in 2013. a global structure has been defined and we intend to use that to our advantage in the marketplace . and last but not least , we are taking our commitment to ast to a new level as we have invested in additional resources as part of our operational excellence team . as always , we will continuously utilize ast to improve efficiencies and eliminate waste throughout our company . ast is critical to and helps create the path to success in all regions of the world . 10 operating results year 2012 compared to 2011 replace_table_token_4_th net income : the company achieved net income for the year ended december 31 , 2012 of $ 5,397,000 or $ .63 per diluted share compared to $ 6,967,000 or $ 0.81 per diluted share for 2011. the 2011 results include a $ 1.1 million adjustment to the earnout that was part of the östergrens acquisition in 2010. excluding the earnout adjustment of $ 1.1 million , the company 's net income for 2011 was $ 0.68 per diluted share , and the company 's net income decreased 7 % , or $ 0.05 per diluted share . ebitda and adjusted ebitda : ebitda was $ 9,309,000 and $ 11,774,000 for 2012 and 2011 , respectively . adjusted ebitda was $ 9,918,000 for 2012 compared to $ 11,376,000 for 2011. ebitda and adjusted ebitda are non-gaap measurements . ebitda consists of income before interest expense , provision for income taxes , depreciation and amortization . adjusted ebitda is before stock compensation expense , as well as other nonrecurring items , such as adjustments to the earnout related to the östergrens acquisition . see information included in `` non-gaap measures `` below for a reconciliation of net income to ebitda and adjusted ebitda . revenues : revenues were $ 101,968,000 in 2012 compared to $ 110,941,000 in 2011. the 8 % decrease in sales from last year was the result of decreased sales in virtually all of our major industry sectors , partially offset by increased sales into the company 's medical markets . the 8 % decrease in sales is comprised of a 4 % decrease in sales to us customers and a 13 % decrease in sales to non-us customers . 56 % of our sales for the year were to us customers with the balance of our sales to customers primarily in europe , canada and asia . of the 8 % decrease in revenues , 6 % was due to a decrease in sales volume for the year and 2 % was due to the dollar strengthening against the foreign currencies in which the company does business , primarily the euro and the swedish krona . 11 backlog : the company 's backlog at december 31 , 2012 consisted of sales orders totaling approximately $ 32,915,000 while backlog at december 31 , 2011 was $ 44,005,000 reflecting a 25 % decrease from the end of 2011. backlog may fluctuate up or down throughout the year for various reasons , not limited to the following : customer order patterns , annual versus intermittent orders , and long-term blanket orders versus new product orders . beginning in 2013 , for booking reporting purposes , we will no longer include the full value of the blanket orders when received and will only report them as bookings once a release date is provided from the customer . gross margin : gross margin as a percentage of revenues was 29 % and 30 % for 2012 and 2011 , respectively . this 1 % decrease in gross margin for 2012 , when compared to 2011 , was due to the sales mix , lower fixed overhead absorption based on the lower sales , and a warranty charge that was recorded to cover the expected costs of replacing certain products in the field due to an incorrect electronic component in a printed circuit board supplied by one of the company 's sub-contract suppliers . selling expenses : selling expenses were $ 5,093,000 and $ 5,626,000 in 2012 and 2011 , respectively . the 9 % decrease in 2012 is primarily due to a change in responsibility for certain employees of the company who were previously involved in sales , as well as lower sales incentive compensation when compared to 2011. general and administrative expenses : general and administrative expenses were $ 10,811,000 in 2012 and $ 12,639,000 for 2011. the 14 % decrease is primarily a result of lower compensation expense , which includes incentive bonuses . amortization of intangible assets : amortization of intangible assets expense was $ 548,000 and $ 732,000 in 2012 and 2011 , respectively . the 25 % decrease is the result of certain intangible assets becoming fully amortized in 2012. income taxes : provision for income taxes was $ 2,101,000 and $ 2,552,000 for 2012 and 2011 , respectively . the effective income tax rate as a percentage of income before income taxes was 28.0 % and 26.8 % in 2012 and 2011 , respectively . the effective tax rate for 2012 and 2011 is lower

liquidity and capital resources the company 's liquidity position as measured by cash and cash equivalents increased $ 573,000 during 2012 to a balance of $ 9,728,000 at december 31 , 2012 , compared to an increase of 5,602,000 during 2011. during 2012 , operations provided $ 4,604,000 in cash compared to $ 8,881,000 provided for 2011. the decrease in cash provided from operations of $ 4,277,000 is due to lower profits , higher incentive bonus payments made in 2012 for bonuses earned in 2011 and higher tax payments . net cash used in investing activities was $ 3,947,000 and $ 2,181,000 for 2012 and 2011 , respectively . purchases of property and equipment were $ 2,597,000 and $ 1,849,000 in 2012 and 2011 , respectively . investing activities also included a payment of $ 1,350,000 , which is the final portion of consideration for the östergrens acquisition . net cash used in financing activities was $ 244,000 in 2012 compared to $ 838,000 for 2011. the decrease in cash used in 2012 is primarily due to the company paying off debt in 2011. the activity in 2012 consists of dividend payments to shareholders , primarily offset by more company stock purchased by the allied motion employee stock ownership plan ( esop ) , based on higher company contributions to the plan for 2011. at december 31 , 2012 , the company had $ 397,000 in debt obligations . the average outstanding borrowings for 2012 were $ 198,000. the company 's credit agreement , as amended , is used for borrowing needs that may occur in the united states and europe . the credit agreement provides revolving credit up to $ 4 million and 3 million . borrowings under the revolver incur interest of libor plus 1.5 % . overnight borrowings incur interest at prime plus 0.50 % . the unused portion of the revolver is charged a commitment fee of .375 % per annum . the credit agreement contains certain financial covenants related to maximum leverage , minimum fixed charge coverage and minimum tangible net worth of the company .


 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 the company 's liquidity position as measured by cash and cash equivalents increased $ 573,000 during 2012 to a balance of $ 9,728,000 at december 31 , 2012 , compared to an increase of 5,602,000 during 2011. during 2012 , operations provided $ 4,604,000 in cash compared to $ 8,881,000 provided for 2011. the decrease in cash provided from operations of $ 4,277,000 is due to lower profits , higher incentive bonus payments made in 2012 for bonuses earned in 2011 and higher tax payments . net cash used in investing activities was $ 3,947,000 and $ 2,181,000 for 2012 and 2011 , respectively . purchases of property and equipment were $ 2,597,000 and $ 1,849,000 in 2012 and 2011 , respectively . investing activities also included a payment of $ 1,350,000 , which is the final portion of consideration for the östergrens acquisition . net cash used in financing activities was $ 244,000 in 2012 compared to $ 838,000 for 2011. the decrease in cash used in 2012 is primarily due to the company paying off debt in 2011. the activity in 2012 consists of dividend payments to shareholders , primarily offset by more company stock purchased by the allied motion employee stock ownership plan ( esop ) , based on higher company contributions to the plan for 2011. at december 31 , 2012 , the company had $ 397,000 in debt obligations . the average outstanding borrowings for 2012 were $ 198,000. the company 's credit agreement , as amended , is used for borrowing needs that may occur in the united states and europe . the credit agreement provides revolving credit up to $ 4 million and 3 million . borrowings under the revolver incur interest of libor plus 1.5 % . overnight borrowings incur interest at prime plus 0.50 % . the unused portion of the revolver is charged a commitment fee of .375 % per annum . the credit agreement contains certain financial covenants related to maximum leverage , minimum fixed charge coverage and minimum tangible net worth of the company .
```    
 Suspicious Activity Report : we believe that the best opportunity for increasing sales in china will be best met by having a strong presence directly in the country . we expect that internal cash flow from our operations , as well as financing available through lenders will continue to fund our growth opportunities . we will continue our dividend program as we believe that our cash flows can support our growth initiatives and also reward our shareholders at the same time . we will emphasize gross margin improvement . gross margin improvement requires cost reduction , new products emphasizing more complete motion control systems and a support structure trained to sell , apply and service our products and customers . we made good progress in 2012 and these initiatives will continue in 2013. further development and promotion of our parent brand , allied motion , will continue in 2013. a global structure has been defined and we intend to use that to our advantage in the marketplace . and last but not least , we are taking our commitment to ast to a new level as we have invested in additional resources as part of our operational excellence team . as always , we will continuously utilize ast to improve efficiencies and eliminate waste throughout our company . ast is critical to and helps create the path to success in all regions of the world . 10 operating results year 2012 compared to 2011 replace_table_token_4_th net income : the company achieved net income for the year ended december 31 , 2012 of $ 5,397,000 or $ .63 per diluted share compared to $ 6,967,000 or $ 0.81 per diluted share for 2011. the 2011 results include a $ 1.1 million adjustment to the earnout that was part of the östergrens acquisition in 2010. excluding the earnout adjustment of $ 1.1 million , the company 's net income for 2011 was $ 0.68 per diluted share , and the company 's net income decreased 7 % , or $ 0.05 per diluted share . ebitda and adjusted ebitda : ebitda was $ 9,309,000 and $ 11,774,000 for 2012 and 2011 , respectively . adjusted ebitda was $ 9,918,000 for 2012 compared to $ 11,376,000 for 2011. ebitda and adjusted ebitda are non-gaap measurements . ebitda consists of income before interest expense , provision for income taxes , depreciation and amortization . adjusted ebitda is before stock compensation expense , as well as other nonrecurring items , such as adjustments to the earnout related to the östergrens acquisition . see information included in `` non-gaap measures `` below for a reconciliation of net income to ebitda and adjusted ebitda . revenues : revenues were $ 101,968,000 in 2012 compared to $ 110,941,000 in 2011. the 8 % decrease in sales from last year was the result of decreased sales in virtually all of our major industry sectors , partially offset by increased sales into the company 's medical markets . the 8 % decrease in sales is comprised of a 4 % decrease in sales to us customers and a 13 % decrease in sales to non-us customers . 56 % of our sales for the year were to us customers with the balance of our sales to customers primarily in europe , canada and asia . of the 8 % decrease in revenues , 6 % was due to a decrease in sales volume for the year and 2 % was due to the dollar strengthening against the foreign currencies in which the company does business , primarily the euro and the swedish krona . 11 backlog : the company 's backlog at december 31 , 2012 consisted of sales orders totaling approximately $ 32,915,000 while backlog at december 31 , 2011 was $ 44,005,000 reflecting a 25 % decrease from the end of 2011. backlog may fluctuate up or down throughout the year for various reasons , not limited to the following : customer order patterns , annual versus intermittent orders , and long-term blanket orders versus new product orders . beginning in 2013 , for booking reporting purposes , we will no longer include the full value of the blanket orders when received and will only report them as bookings once a release date is provided from the customer . gross margin : gross margin as a percentage of revenues was 29 % and 30 % for 2012 and 2011 , respectively . this 1 % decrease in gross margin for 2012 , when compared to 2011 , was due to the sales mix , lower fixed overhead absorption based on the lower sales , and a warranty charge that was recorded to cover the expected costs of replacing certain products in the field due to an incorrect electronic component in a printed circuit board supplied by one of the company 's sub-contract suppliers . selling expenses : selling expenses were $ 5,093,000 and $ 5,626,000 in 2012 and 2011 , respectively . the 9 % decrease in 2012 is primarily due to a change in responsibility for certain employees of the company who were previously involved in sales , as well as lower sales incentive compensation when compared to 2011. general and administrative expenses : general and administrative expenses were $ 10,811,000 in 2012 and $ 12,639,000 for 2011. the 14 % decrease is primarily a result of lower compensation expense , which includes incentive bonuses . amortization of intangible assets : amortization of intangible assets expense was $ 548,000 and $ 732,000 in 2012 and 2011 , respectively . the 25 % decrease is the result of certain intangible assets becoming fully amortized in 2012. income taxes : provision for income taxes was $ 2,101,000 and $ 2,552,000 for 2012 and 2011 , respectively . the effective income tax rate as a percentage of income before income taxes was 28.0 % and 26.8 % in 2012 and 2011 , respectively . the effective tax rate for 2012 and 2011 is lower story_separator_special_tag we believe that the best opportunity for increasing sales in china will be best met by having a strong presence directly in the country . we expect that internal cash flow from our operations , as well as financing available through lenders will continue to fund our growth opportunities . we will continue our dividend program as we believe that our cash flows can support our growth initiatives and also reward our shareholders at the same time . we will emphasize gross margin improvement . gross margin improvement requires cost reduction , new products emphasizing more complete motion control systems and a support structure trained to sell , apply and service our products and customers . we made good progress in 2012 and these initiatives will continue in 2013. further development and promotion of our parent brand , allied motion , will continue in 2013. a global structure has been defined and we intend to use that to our advantage in the marketplace . and last but not least , we are taking our commitment to ast to a new level as we have invested in additional resources as part of our operational excellence team . as always , we will continuously utilize ast to improve efficiencies and eliminate waste throughout our company . ast is critical to and helps create the path to success in all regions of the world . 10 operating results year 2012 compared to 2011 replace_table_token_4_th net income : the company achieved net income for the year ended december 31 , 2012 of $ 5,397,000 or $ .63 per diluted share compared to $ 6,967,000 or $ 0.81 per diluted share for 2011. the 2011 results include a $ 1.1 million adjustment to the earnout that was part of the östergrens acquisition in 2010. excluding the earnout adjustment of $ 1.1 million , the company 's net income for 2011 was $ 0.68 per diluted share , and the company 's net income decreased 7 % , or $ 0.05 per diluted share . ebitda and adjusted ebitda : ebitda was $ 9,309,000 and $ 11,774,000 for 2012 and 2011 , respectively . adjusted ebitda was $ 9,918,000 for 2012 compared to $ 11,376,000 for 2011. ebitda and adjusted ebitda are non-gaap measurements . ebitda consists of income before interest expense , provision for income taxes , depreciation and amortization . adjusted ebitda is before stock compensation expense , as well as other nonrecurring items , such as adjustments to the earnout related to the östergrens acquisition . see information included in `` non-gaap measures `` below for a reconciliation of net income to ebitda and adjusted ebitda . revenues : revenues were $ 101,968,000 in 2012 compared to $ 110,941,000 in 2011. the 8 % decrease in sales from last year was the result of decreased sales in virtually all of our major industry sectors , partially offset by increased sales into the company 's medical markets . the 8 % decrease in sales is comprised of a 4 % decrease in sales to us customers and a 13 % decrease in sales to non-us customers . 56 % of our sales for the year were to us customers with the balance of our sales to customers primarily in europe , canada and asia . of the 8 % decrease in revenues , 6 % was due to a decrease in sales volume for the year and 2 % was due to the dollar strengthening against the foreign currencies in which the company does business , primarily the euro and the swedish krona . 11 backlog : the company 's backlog at december 31 , 2012 consisted of sales orders totaling approximately $ 32,915,000 while backlog at december 31 , 2011 was $ 44,005,000 reflecting a 25 % decrease from the end of 2011. backlog may fluctuate up or down throughout the year for various reasons , not limited to the following : customer order patterns , annual versus intermittent orders , and long-term blanket orders versus new product orders . beginning in 2013 , for booking reporting purposes , we will no longer include the full value of the blanket orders when received and will only report them as bookings once a release date is provided from the customer . gross margin : gross margin as a percentage of revenues was 29 % and 30 % for 2012 and 2011 , respectively . this 1 % decrease in gross margin for 2012 , when compared to 2011 , was due to the sales mix , lower fixed overhead absorption based on the lower sales , and a warranty charge that was recorded to cover the expected costs of replacing certain products in the field due to an incorrect electronic component in a printed circuit board supplied by one of the company 's sub-contract suppliers . selling expenses : selling expenses were $ 5,093,000 and $ 5,626,000 in 2012 and 2011 , respectively . the 9 % decrease in 2012 is primarily due to a change in responsibility for certain employees of the company who were previously involved in sales , as well as lower sales incentive compensation when compared to 2011. general and administrative expenses : general and administrative expenses were $ 10,811,000 in 2012 and $ 12,639,000 for 2011. the 14 % decrease is primarily a result of lower compensation expense , which includes incentive bonuses . amortization of intangible assets : amortization of intangible assets expense was $ 548,000 and $ 732,000 in 2012 and 2011 , respectively . the 25 % decrease is the result of certain intangible assets becoming fully amortized in 2012. income taxes : provision for income taxes was $ 2,101,000 and $ 2,552,000 for 2012 and 2011 , respectively . the effective income tax rate as a percentage of income before income taxes was 28.0 % and 26.8 % in 2012 and 2011 , respectively . the effective tax rate for 2012 and 2011 is lower

