due to the typical size of most of tvg 's and vim 's contracts , it is unlikely the loss or termination of any individual tvg or vim contract would have a material adverse effect on our business , financial condition or results of operations . ppg the contracts within the products group were either performance based or fee for service and may have required sales , marketing and distribution of a product . in performance based contracts , we typically provided and financed a portion , if not all , of the commercial activities in support of a brand in return for a percentage of product sales . an important performance parameter was normally the level of sales or prescriptions attained by the product during the period of our marketing or promotional responsibility , and in some cases , for periods after our promotional activities have ended . critical accounting policies we prepare our financial statements in accordance with u.s. generally accepted accounting principles ( gaap ) . the preparation of financial statements and related disclosures in conformity with gaap requires our management to make judgments , estimates and assumptions at a specific point in time that affect the amounts reported in the consolidated financial statements and disclosed in the accompanying notes . these assumptions and estimates are inherently uncertain . outlined below are accounting policies , which are important to our financial position and results of operations , and require the most significant judgments on the part of our management in their application . some of those judgments can be subjective and complex . management 's estimates are based on historical experience , information from third-party professionals , facts and circumstances available at the time and various other assumptions that are believed to be reasonable . actual results could differ from those estimates . additionally , changes in estimates could have a material impact on our consolidated results of operations in any one period . for a summary of all of our significant accounting policies , including the accounting policies discussed below , see note 1 to our consolidated financial statements . revenue recognition and associated costs revenue and associated costs under pharmaceutical detailing contracts are generally based on the number of physician details made or the number of sales representatives utilized . with respect to risk-based contracts , all or a portion of revenues earned are based on contractually defined percentages of either product revenues or the market value of prescriptions written and filled in a given period . these contracts are generally for terms of one to two years and may be renewed or extended . the majority of these contracts , however , are terminable by the customer for any reason upon 30 to 90 days ' notice . certain contracts provide for termination payments if the customer terminates us without cause . typically , however , these penalties do not offset the revenue we could have earned under the contract or the costs we may incur as a result of its termination . the loss or termination of a large pharmaceutical detailing contract or the loss of multiple contracts could have a material adverse effect on our business , financial condition or results of operations . revenue and associated costs under marketing service contracts are generally based on a single deliverable such as a promotional program , accredited continuing medical education seminar or marketing research/advisory program . the contracts are generally terminable by the customer for any reason . upon termination , the customer is generally responsible for payment for all work completed to date , plus the cost of any nonrefundable commitments made on behalf of the customer . there is significant customer concentration in our pharmakon business , and the loss or termination of one or more of pharmakon 's large master service agreements would have a material adverse on our business , financial condition or results of operations . due to the typical size of most contracts of tvg and vim , it is unlikely the loss or termination of any individual tvg or vim contract would have a material adverse effect on our business , financial condition or results of operations . 21 pdi , inc. annual report on form 10-k ( continued ) revenue is recognized on product detailing programs and certain marketing , promotional and medical education contracts as services are performed and the right to receive payment for the services is assured . many of the product detailing contracts allow for additional periodic incentive fees to be earned if certain performance benchmarks have been attained . revenue earned from incentive fees are recognized in the period earned and when we are reasonably assured that payment will be made . under performance based contracts , revenue is recognized when the performance based parameters are achieved . many contracts also stipulate penalties if agreed upon performance benchmarks have not been met . revenue is recognized net of any potential penalties until the performance criteria relating to the penalties have been achieved . commissions based revenue is recognized when performance is completed less an allowance for estimated cancellations based on contractual commitments and experience . revenue and associated costs from marketing research contracts are recognized upon completion of the contract . these contracts are generally short-term in nature , typically lasting two to six months . cost of services consists primarily of the costs associated with executing product detailing programs , performance based contracts or other sales and marketing services identified in the contract . cost of services includes personnel costs and other costs associated with executing a product detailing or other marketing or promotional program , as well as the initial direct costs associated with staffing a product detailing program . such costs include , but are not limited to , facility rental fees , honoraria and travel expenses , sample expenses and other promotional expenses . story_separator_special_tag because the likelihood of paying these penalties was deemed remote , the accrual was reversed in the fourth quarter of 2007 and recognized as revenue . the decrease in gross profit attributable to the marketing services segment was commensurate with the decrease in revenue discussed above as total gross profit decreased at all three business units . the gross profit percentage decreased to 44.1 % from 46.1 % in the comparable prior year period . the ppg segment had no gross profit in 2007 or 2006 . ( note : compensation and other selling , general and administrative ( other sg & a ) expense amounts for each segment contain allocated corporate overhead . ) replace_table_token_6_th the decrease in compensation expense for both sales services and marketing services segments in 2007 was the result of reduced headcount and unfilled executive positions when compared to 2006. as a percentage of total revenue , compensation expense increased to 20.9 % for 2007 from 11.7 % in 2006 primarily due to the decrease in revenue . the ppg segment did not have any compensation expense in 2007 or 2006. replace_table_token_7_th total other sg & a expenses decreased primarily due to the following : 1 ) a decrease in audit and related costs of $ 1.5 million ; 2 ) a decrease in facility costs of approximately $ 390,000 ; 3 ) a reduction in business insurance expense of approximately $ 400,000 ; and 4 ) approximately $ 600,000 less in marketing expense . these decreases were partially offset by an approximately $ 550,000 accrual in state franchise taxes pertaining to one particular state 's assessment . as a percentage of total revenue , other sg & a expenses increased to 17.1 % from 9.5 % in 2006 due to the decrease in revenue in 2007. executive severance in 2007 , we did not have any executive severance costs . in 2006 , we incurred approximately $ 573,000 in executive severance costs that related to the departure of one executive . legal and related costs in 2007 , we had legal expenses of approximately $ 335,000 , which primarily pertained to legal expenses incurred by us in the ordinary course of business . in 2006 , we had a net credit to legal expense of $ 3.3 million . the credit to legal expense included approximately $ 3.5 million in cash received in relation to the cellegy litigation matter and approximately $ 516,000 in credits related to the reversing of the california class action lawsuit accrual . for details on both legal matters , see note 9 to the consolidated financial statements . 27 pdi , inc. annual report on form 10-k ( continued ) facilities realignment in 2007 , we had net charges of approximately $ 1.0 million primarily related to the impairment of fixed assets and other expenses related to our exiting the computer data center space at our saddle river , new jersey location in december 2007. total charges in 2007 for the sales services segment were approximately $ 1.0 million and approximately $ 26,000 was credited to the marketing services segment . in 2006 , we had net charges of approximately $ 657,000 related to unused office space capacity at our saddle river , new jersey and dresher , pennsylvania locations and approximately $ 1.3 million in expense related to the impairment of fixed assets associated with the unused office space at these facilities . total charges in 2006 for the sales services segment were approximately $ 1.3 million and approximately $ 675,000 was charged to the marketing services segment . replace_table_token_8_th the operating loss in 2007 is primarily attributable to the decline in revenue and gross profit in the sales services segment due to the termination of sales force contracts mentioned previously . there was an operating loss in 2007 for the marketing services segment of $ 362,000 compared to operating income of $ 2.8 million in 2006. the decrease in operating income from marketing services segment was primarily attributable to a decrease in revenue and gross profit at all three units due to fewer projects . there was operating income of $ 3.1 million in 2006 in the ppg segment which consisted entirely of settlement payments from cellegy , net of legal expenses . there was no operating income from ppg in 2007. interest income , net interest income , net , for 2007 and 2006 was approximately $ 6.1 million and $ 4.7 million , respectively . the increase is primarily attributable to an increase in interest rates for 2007 as well as larger available cash balances . provision for income taxes we recorded a provision for income taxes of $ 1.8 million for 2007 , compared to a benefit for income taxes of $ 724,000 for 2006. our overall effective tax rate was a provision of 21.5 % and a benefit of 6.8 % for 2007 and 2006 , respectively . the tax provision for 2007 is primarily attributable to the full valuation allowance on the net deferred tax assets except for the basis difference in goodwill . federal tax attribute carryforwards at december 31 , 2007 , consist primarily of approximately $ 9.7 million of net operating losses and $ 339,000 of capital losses . in addition , we have approximately $ 47.9 million of state net operating losses carryforwards . the utilization of the federal carryforwards as an available offset to future taxable income is subject to limitations under federal income tax laws . if the federal net operating losses are not utilized , they will expire in 2027. the capital losses can only be utilized against capital gains and $ 339,000 will expire in 2009 . ( loss ) income from continuing operations there was a loss from continuing operations for 2007 of approximately $ 10.0 million , compared to income from continuing operations of approximately $ 11.4 million for 2006. discontinued operations revenue from discontinued operations for 2006 was approximately $ 1.9

liquidity and capital resources as of december 31 , 2007 , we had cash and cash equivalents and short-term investments of approximately $ 107.0 million and working capital of $ 111.6 million , compared to cash and cash equivalents and short-term investments of approximately $ 114.7 million and working capital of approximately $ 112.2 million at december 31 , 2006. during 2007 , net cash used in operating activities was $ 6.2 million as compared to net cash provided by operating activities of $ 19.7 million during 2006. the primarily use of cash was to fund operations due to the decline in operating revenue in all segments in 2007. additionally , unearned revenue declined by $ 5.8 million due to the decline in revenue and a significant customer revising its procurement policy ( we can no longer pre-bill for services ) , partially offset by the collection of accounts receivable of $ 2.7 million and receipt of a federal income tax refund of $ 1.9 million . the net changes in the “ other changes in assets and liabilities ” section of the consolidated statement of cash flows may fluctuate depending on a number of factors , including the number and size of programs , contract terms and other timing issues . these variations may change in size and direction with each reporting period . as of december 31 , 2007 , we had $ 3.5 million of unbilled costs and accrued profits on contracts in progress . when services are performed in advance of billing , the value of such services is recorded as unbilled costs and accrued profits on contracts in progress . normally , all unbilled costs and accrued profits are earned and billed within 12 months from the end of the respective period .


 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 , 2007 , we had cash and cash equivalents and short-term investments of approximately $ 107.0 million and working capital of $ 111.6 million , compared to cash and cash equivalents and short-term investments of approximately $ 114.7 million and working capital of approximately $ 112.2 million at december 31 , 2006. during 2007 , net cash used in operating activities was $ 6.2 million as compared to net cash provided by operating activities of $ 19.7 million during 2006. the primarily use of cash was to fund operations due to the decline in operating revenue in all segments in 2007. additionally , unearned revenue declined by $ 5.8 million due to the decline in revenue and a significant customer revising its procurement policy ( we can no longer pre-bill for services ) , partially offset by the collection of accounts receivable of $ 2.7 million and receipt of a federal income tax refund of $ 1.9 million . the net changes in the “ other changes in assets and liabilities ” section of the consolidated statement of cash flows may fluctuate depending on a number of factors , including the number and size of programs , contract terms and other timing issues . these variations may change in size and direction with each reporting period . as of december 31 , 2007 , we had $ 3.5 million of unbilled costs and accrued profits on contracts in progress . when services are performed in advance of billing , the value of such services is recorded as unbilled costs and accrued profits on contracts in progress . normally , all unbilled costs and accrued profits are earned and billed within 12 months from the end of the respective period .
```    
 Suspicious Activity Report : due to the typical size of most of tvg 's and vim 's contracts , it is unlikely the loss or termination of any individual tvg or vim contract would have a material adverse effect on our business , financial condition or results of operations . ppg the contracts within the products group were either performance based or fee for service and may have required sales , marketing and distribution of a product . in performance based contracts , we typically provided and financed a portion , if not all , of the commercial activities in support of a brand in return for a percentage of product sales . an important performance parameter was normally the level of sales or prescriptions attained by the product during the period of our marketing or promotional responsibility , and in some cases , for periods after our promotional activities have ended . critical accounting policies we prepare our financial statements in accordance with u.s. generally accepted accounting principles ( gaap ) . the preparation of financial statements and related disclosures in conformity with gaap requires our management to make judgments , estimates and assumptions at a specific point in time that affect the amounts reported in the consolidated financial statements and disclosed in the accompanying notes . these assumptions and estimates are inherently uncertain . outlined below are accounting policies , which are important to our financial position and results of operations , and require the most significant judgments on the part of our management in their application . some of those judgments can be subjective and complex . management 's estimates are based on historical experience , information from third-party professionals , facts and circumstances available at the time and various other assumptions that are believed to be reasonable . actual results could differ from those estimates . additionally , changes in estimates could have a material impact on our consolidated results of operations in any one period . for a summary of all of our significant accounting policies , including the accounting policies discussed below , see note 1 to our consolidated financial statements . revenue recognition and associated costs revenue and associated costs under pharmaceutical detailing contracts are generally based on the number of physician details made or the number of sales representatives utilized . with respect to risk-based contracts , all or a portion of revenues earned are based on contractually defined percentages of either product revenues or the market value of prescriptions written and filled in a given period . these contracts are generally for terms of one to two years and may be renewed or extended . the majority of these contracts , however , are terminable by the customer for any reason upon 30 to 90 days ' notice . certain contracts provide for termination payments if the customer terminates us without cause . typically , however , these penalties do not offset the revenue we could have earned under the contract or the costs we may incur as a result of its termination . the loss or termination of a large pharmaceutical detailing contract or the loss of multiple contracts could have a material adverse effect on our business , financial condition or results of operations . revenue and associated costs under marketing service contracts are generally based on a single deliverable such as a promotional program , accredited continuing medical education seminar or marketing research/advisory program . the contracts are generally terminable by the customer for any reason . upon termination , the customer is generally responsible for payment for all work completed to date , plus the cost of any nonrefundable commitments made on behalf of the customer . there is significant customer concentration in our pharmakon business , and the loss or termination of one or more of pharmakon 's large master service agreements would have a material adverse on our business , financial condition or results of operations . due to the typical size of most contracts of tvg and vim , it is unlikely the loss or termination of any individual tvg or vim contract would have a material adverse effect on our business , financial condition or results of operations . 21 pdi , inc. annual report on form 10-k ( continued ) revenue is recognized on product detailing programs and certain marketing , promotional and medical education contracts as services are performed and the right to receive payment for the services is assured . many of the product detailing contracts allow for additional periodic incentive fees to be earned if certain performance benchmarks have been attained . revenue earned from incentive fees are recognized in the period earned and when we are reasonably assured that payment will be made . under performance based contracts , revenue is recognized when the performance based parameters are achieved . many contracts also stipulate penalties if agreed upon performance benchmarks have not been met . revenue is recognized net of any potential penalties until the performance criteria relating to the penalties have been achieved . commissions based revenue is recognized when performance is completed less an allowance for estimated cancellations based on contractual commitments and experience . revenue and associated costs from marketing research contracts are recognized upon completion of the contract . these contracts are generally short-term in nature , typically lasting two to six months . cost of services consists primarily of the costs associated with executing product detailing programs , performance based contracts or other sales and marketing services identified in the contract . cost of services includes personnel costs and other costs associated with executing a product detailing or other marketing or promotional program , as well as the initial direct costs associated with staffing a product detailing program . such costs include , but are not limited to , facility rental fees , honoraria and travel expenses , sample expenses and other promotional expenses . story_separator_special_tag because the likelihood of paying these penalties was deemed remote , the accrual was reversed in the fourth quarter of 2007 and recognized as revenue . the decrease in gross profit attributable to the marketing services segment was commensurate with the decrease in revenue discussed above as total gross profit decreased at all three business units . the gross profit percentage decreased to 44.1 % from 46.1 % in the comparable prior year period . the ppg segment had no gross profit in 2007 or 2006 . ( note : compensation and other selling , general and administrative ( other sg & a ) expense amounts for each segment contain allocated corporate overhead . ) replace_table_token_6_th the decrease in compensation expense for both sales services and marketing services segments in 2007 was the result of reduced headcount and unfilled executive positions when compared to 2006. as a percentage of total revenue , compensation expense increased to 20.9 % for 2007 from 11.7 % in 2006 primarily due to the decrease in revenue . the ppg segment did not have any compensation expense in 2007 or 2006. replace_table_token_7_th total other sg & a expenses decreased primarily due to the following : 1 ) a decrease in audit and related costs of $ 1.5 million ; 2 ) a decrease in facility costs of approximately $ 390,000 ; 3 ) a reduction in business insurance expense of approximately $ 400,000 ; and 4 ) approximately $ 600,000 less in marketing expense . these decreases were partially offset by an approximately $ 550,000 accrual in state franchise taxes pertaining to one particular state 's assessment . as a percentage of total revenue , other sg & a expenses increased to 17.1 % from 9.5 % in 2006 due to the decrease in revenue in 2007. executive severance in 2007 , we did not have any executive severance costs . in 2006 , we incurred approximately $ 573,000 in executive severance costs that related to the departure of one executive . legal and related costs in 2007 , we had legal expenses of approximately $ 335,000 , which primarily pertained to legal expenses incurred by us in the ordinary course of business . in 2006 , we had a net credit to legal expense of $ 3.3 million . the credit to legal expense included approximately $ 3.5 million in cash received in relation to the cellegy litigation matter and approximately $ 516,000 in credits related to the reversing of the california class action lawsuit accrual . for details on both legal matters , see note 9 to the consolidated financial statements . 27 pdi , inc. annual report on form 10-k ( continued ) facilities realignment in 2007 , we had net charges of approximately $ 1.0 million primarily related to the impairment of fixed assets and other expenses related to our exiting the computer data center space at our saddle river , new jersey location in december 2007. total charges in 2007 for the sales services segment were approximately $ 1.0 million and approximately $ 26,000 was credited to the marketing services segment . in 2006 , we had net charges of approximately $ 657,000 related to unused office space capacity at our saddle river , new jersey and dresher , pennsylvania locations and approximately $ 1.3 million in expense related to the impairment of fixed assets associated with the unused office space at these facilities . total charges in 2006 for the sales services segment were approximately $ 1.3 million and approximately $ 675,000 was charged to the marketing services segment . replace_table_token_8_th the operating loss in 2007 is primarily attributable to the decline in revenue and gross profit in the sales services segment due to the termination of sales force contracts mentioned previously . there was an operating loss in 2007 for the marketing services segment of $ 362,000 compared to operating income of $ 2.8 million in 2006. the decrease in operating income from marketing services segment was primarily attributable to a decrease in revenue and gross profit at all three units due to fewer projects . there was operating income of $ 3.1 million in 2006 in the ppg segment which consisted entirely of settlement payments from cellegy , net of legal expenses . there was no operating income from ppg in 2007. interest income , net interest income , net , for 2007 and 2006 was approximately $ 6.1 million and $ 4.7 million , respectively . the increase is primarily attributable to an increase in interest rates for 2007 as well as larger available cash balances . provision for income taxes we recorded a provision for income taxes of $ 1.8 million for 2007 , compared to a benefit for income taxes of $ 724,000 for 2006. our overall effective tax rate was a provision of 21.5 % and a benefit of 6.8 % for 2007 and 2006 , respectively . the tax provision for 2007 is primarily attributable to the full valuation allowance on the net deferred tax assets except for the basis difference in goodwill . federal tax attribute carryforwards at december 31 , 2007 , consist primarily of approximately $ 9.7 million of net operating losses and $ 339,000 of capital losses . in addition , we have approximately $ 47.9 million of state net operating losses carryforwards . the utilization of the federal carryforwards as an available offset to future taxable income is subject to limitations under federal income tax laws . if the federal net operating losses are not utilized , they will expire in 2027. the capital losses can only be utilized against capital gains and $ 339,000 will expire in 2009 . ( loss ) income from continuing operations there was a loss from continuing operations for 2007 of approximately $ 10.0 million , compared to income from continuing operations of approximately $ 11.4 million for 2006. discontinued operations revenue from discontinued operations for 2006 was approximately $ 1.9

