NOTE 3 - Inventories

Inventories, net of reserves are valued at lower of cost (first-in, first-out method) or market. The Company regularly reviews parts and finished goods inventories on hand and, when necessary, records a provision for excess or obsolete inventories. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current.

Inventories, net of reserves consist of the following (in thousands):

	September 30, 2016		June 30, 2016
Component parts	$	14,279	$	14,021
Work-in-process		3,828		3,758
Finished product		7,697		7,558

	$	25,804	$	25,337

Classification of inventories, net of reserves:

Current	$	21,792	$	21,428
Non-current		4,012		3,909

	$	25,804	$	25,337