INVENTORIES

Inventories are stated at the lower of cost or net realizable value using the first-in, first-out method. Inventory we manufacture includes the cost of material, labor and overhead. If the cost of inventories exceeds estimated net realizable value, provisions are made to reduce the carrying value to estimated net realizable value.

Inventories, net consist of the following (in thousands):



	December 31,			June 30,
	2015			2016
Raw materials	$	8,531		$	10,097
Work in process	2,839			4,089
Finished goods	6,122			5,194
Allowance for excess or obsolete inventory	(1,391		)	(1,304		)
Total inventory	$	16,101		$	18,076