Inventories

12 Months Ended

Jul. 31, 2011

Inventories, Net [Abstract]

Inventories

 (4) Inventories

                Inventories consist of the following at July 31, 2011 and 2010:  

	2011	2010
Raw materials and components	$   53,678,000	55,380,000
Work-in-process and finished goods	34,299,000	31,973,000
Total inventories	87,977,000	87,353,000
Less reserve for excess and obsolete inventories	13,316,000	13,791,000
Inventories, net	$   74,661,000	73,562,000

At July 31, 2011 and 2010, the amount of total inventories expected to be used for long-term contracts (including contracts-in-progress) was $8,041,000 and $12,063,000, respectively.

As of July 31, 2011, $1,411,000 of our long-term contract inventory relates to our BFT-1 contract. Our BFT-1 contract is known as an "indefinite delivery/indefinite quantity" type contract; thus, the U.S. Army is not obligated to purchase any additional products or services from us in the future. Almost the entire long-term BFT-1 inventory relates to BFT-1 orders already in our backlog. The remaining portion is expected to be used for incidental purchases and customer repairs. If we are left with inventories of unusable parts, we would likely have to write-off the remaining balance in the period that we make such determination.

At July 31, 2011 and 2010, $1,339,000 and $1,976,000, respectively, of the inventory balance above related to contracts from third party commercial customers who outsource their manufacturing to us.