SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2011

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Inventories

Inventories

        Inventories are stated at the lower of standard cost (which approximates actual cost on a first-in, first-out basis for raw materials and purchased parts; and an average-cost basis for work in progress and finished goods) or market. Market is based on estimated net realizable value. The Company establishes provisions for lower of cost or market and excess and obsolescence write-downs. The determination of obsolete or excess inventory requires an estimation of the future demand for the Company's products and these reserves are recorded when the inventory on hand exceeds management's estimate of future demand for each product. Once the inventory is written down, a new cost basis is established and these inventory reserves are not released until the related inventory has been sold or scrapped.

        Inventories are comprised of the following:

	June 30, 2011		Revised March 31, 2011		December 31, 2010
	(in thousands)
Raw materials and purchased parts	$	28,497	$	24,553	$	12,689
Work-in-progress		230,649		168,264		158,599
Finished goods		107,524		125,711		105,362
	$	366,670	$	318,528	$	276,650

        As of March 31, 2011, the Company had incorrectly reported work-in progress and finished goods as $125,711 and $168,264, respectively, which had no impact to ending inventories on the condensed consolidated balance sheet. The accurate amounts for work-in-progress and finished goods in the period ended March 31, 2011 are $168,264 and $125,711, respectively, as shown in the table above.