Inventories

Inventories consisted of the following (in thousands):



	June 30, 2014			December 31, 2013
Raw materials	$	16,836		$	22,416
Work-in-process	665			1,194
Finished goods	9,750			9,644
	27,251			33,254
Less: inventory valuation allowance	(7,475		)	(7,845		)
Inventories, net	$	19,776		$	25,409

As of June 30, 2014, the balance of consigned inventory at the Company’s contract manufacturing partner was $6.1 million.

Consigned inventory is held at third-party locations, including the Company's contract manufacturing partner and customers. The Company retains title to the inventory until purchased by the third-party. The Company is contractually obligated to purchase the inventory on consignment from its contract manufacturer for the cost of excess inventory that is purchased as a result of the Company's forecasted demand when there is no alternative use. Consigned inventory, consisting of raw materials and finished goods was $8.0 million and $12.0 million at June 30, 2014 and December 31, 2013.

The Company recorded the following charges associated with the valuation of inventory and the adverse purchase commitment liability (in thousands):



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Inventory, net	$	182	$	429	$	1,344	$	1,467
Adverse purchase commitments	281		164		154		132