Note 4 – Inventories

The Company’s inventories consist of high technology semiconductor devices and integrated circuits that are specialized in nature, subject to rapid technological obsolescence, and sold in a highly competitive industry. Inventory balances at the end of each period are stated at the lower of cost (determined on a first-in, first-out basis) or net realizable value.

Inventories consist of (in thousands):



	June 30, 2012		March 31, 2012
Raw materials	$	626	$	936
Work-in-process		7,728		8,221
Finished goods		3,406		4,195
Finished goods at distributors and on consignment		1,164		1,086
Total Inventories	$	12,924	$	14,438

The Company wrote down excess and obsolete inventory totaling $156,000 for the three months ended June 30, 2012 compared to $958,000 for the same period of the prior fiscal year. The Company sold previously written-down inventory of $345,000 for the three months ended June 30, 2012. For the same period of the prior fiscal year, such sales were $295,000.