Note 4 – Inventories

The Company’s inventories consist of high technology semiconductor devices 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):



	December 29, 2012		March 31, 2012
Raw materials	$	498	$	936
Work-in-process		8,170		8,221
Finished goods		1,867		4,195
Finished goods at distributors and on consignment		892		1,086
Total Inventories	$	11,427	$	14,438

The Company wrote down excess and obsolete inventory totaling $776,000 and $1,530,000 for the three and nine months ended December 29, 2012 compared to $1,471,000 and $2,946,000, respectively, for the same periods of the prior fiscal year. The Company sold previously written-down inventory of $394,000 and $1,158,000 for the three and nine months ended December 29, 2012, respectively. For the same periods of the prior fiscal year, such sales were $231,000 and $775,000, respectively.