Inventory

Inventory is stated at the lower of cost (first-in, first-out) or market value, and consists of materials, labor and overhead. On a quarterly basis, the Company uses consistent methodologies to evaluate inventory for net realizable value. Once an item is written down, the value becomes the new inventory cost basis. The Company reduces the value of inventory for excess and obsolete inventory, consisting of on-hand and non-cancelable on-order inventory in excess of estimated usage. The excess and obsolete inventory evaluation is based upon assumptions about future demand, history, product mix and possible alternative uses. Inventory was comprised of the following:



	December 31, 2014		June 30, 2014
Raw materials	$	13,691	$	13,755
Work in process	12,263		12,677
Finished goods	4,057		5,223
Total	$	30,011	$	31,655

There are no amounts in inventory relating to contracts having production cycles longer than one year.