INVENTORIES

As of the dates indicated, inventories are comprised of the following (in thousands):



	October 31, 2012			April 30, 2013
Raw materials	$	39,678		$	49,933
Work-in-process	10,736			9,749
Finished goods	178,210			145,051
Deferred cost of goods sold	71,484			84,159
	300,108			288,892
Provision for excess and obsolescence	(40,010		)	(40,796		)
	$	260,098		$	248,096

Ciena writes down its inventory for estimated obsolescence or unmarketable inventory equal to the difference between the cost of inventory and the estimated net realizable value based on assumptions about future demand and market conditions. During the first six months of fiscal 2013, Ciena recorded a provision for excess and obsolescence of $9.0 million, primarily related to engineering design changes and the discontinuance of certain parts and components used in the manufacture of our Optical Transport and Converged Packet Optical products. Deductions from the provision for excess and obsolete inventory relate to disposal activities.