

4.	INVENTORIES:

Inventories consisted of the following (in thousands):



	June 30, 2015		December 31, 2014
Raw materials	$	7,053	$	7,696
Work-in-process	1,888		4,419
Finished goods	8,028		24,994
Inventories	$	16,969	$	37,109

Inventories included $1.0 million of inventory consigned to customers at both June 30, 2015 and December 31, 2014. For the three and six months ended June 30, 2015, and 2014, the Company recorded inventory write-downs of $33.0 million and none, respectively. The write-down for the 2015 period consisted of $22.9 million of work-in-process and $10.1 million of finished goods inventory. During the three months ended June 30, 2015, the Company experienced a faster-than-anticipated decline in host material sales and based on the most recent sales forecast, the Company anticipates significantly lower sales of existing host material. Sales forecasts tend to be volatile, but because of the deterioration in both actual and forecasted sales demand, a write-down in net realizable value primarily to host inventory was required.