Inventories

Inventories consisted of the following (in thousands):



	September 30, 2014			December 31, 2013
Raw materials	$	12,833		$	22,416
Work-in-process	609			1,194
Finished goods	10,330			9,644
	23,772			33,254
Less: inventory valuation allowance	(6,726		)	(7,845		)
Inventories, net	$	17,046		$	25,409

The balance of consigned inventory at the Company’s contract manufacturing partner was $4.3 million and $10.3 million at September 30, 2014 and December 31, 2013.

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 $5.7 million and $12.0 million at September 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				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
Inventory, net	$	875	$	280	$	2,219	$	1,454
Adverse purchase commitments	378		271		532		403