Inventories, net

3 Months Ended

Sep. 30, 2011

3.) Inventories, net

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. As of September 30, 2011 and June 30, 2011, the balance in this reserve amounted to $2,534,000. 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, 2011		June 30, 2011
Component parts	$	15,210	$	14,014
Work-in-process		4,832		4,452
Finished product		6,209		5,721
	$	26,251	$	24,187