INVENTORIES

Inventories are stated at the lower of cost or market, with cost determined based on the first-in, first-out method. We establish inventory allowances for excess, slow-moving and obsolete inventory based on inventory levels, expected product life and forecasted sales. Inventories are written down to market value based on historical demand, competitive factors, changes in technology and product lifecycles.

Inventories consisted of the following (in thousands):



	As of
	June 30, 2015		December 31, 2014
Finished goods	$	26,741	$	23,765
Parts and components	1,638		1,131
Total inventories	$	28,379	$	24,896