Note 3 - Inventories, net

12 Months Ended

Dec. 31, 2011

(3)	Inventories, net

Inventories consisted of the following at December 31, 2011 and 2010:

	2011			2010

Finished goods	$	19,018		$	19,096
Component parts		9,122			9,999
Allowance for inventory obsolescence		(1,660	)		(2,007	)

	$	26,480		$	27,088

Inventory is determined using the first-in, first-out method and is recorded at the lower of cost or market value. The inventory balance is comprised of purchased raw materials or finished goods at their respective purchase costs; labor, assembly and other capitalizable overhead costs, which are then applied to each unit completed; retained costs representing the excess of manufacturing and other overhead costs that are not yet applied to finished goods; and an estimated allowance for obsolete inventory. At December 31, 2011 and 2010, inventories included $1,187,000 and $797,000 of consigned inventory, respectively.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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