Inventories

Inventories consist of the following at:



	October 31, 2015		July 31, 2015
Raw materials and components	$	51,058,000	51,272,000
Work-in-process and finished goods	28,565,000		27,700,000
Total inventories	79,623,000		78,972,000
Less reserve for excess and obsolete inventories	16,730,000		16,904,000
Inventories, net	$	62,893,000	62,068,000

At October 31, 2015 and July 31, 2015, the amount of inventory directly related to long-term contracts (including contracts-in-progress) was $2,152,000 and $2,261,000, respectively.

At October 31, 2015 and July 31, 2015, $854,000 and $609,000, respectively, of the inventory balance above related to contracts from third party commercial customers who outsource their manufacturing to us.