(8) INVENTORIES

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


	October 31,			April 30,
	2010			2011
Raw materials	$	30,569		$	40,106
Work-in-process		6,993			8,445
Finished goods		177,994			197,636
Deferred cost of goods sold		76,830			69,216

		292,386			315,403
Provision for excess and obsolescence		(30,767	)		(29,707	)

	$	261,619		$	285,696

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 2011, Ciena recorded a provision for excess and obsolescence of $6.4 million, primarily related to changes in forecasted sales for certain products. Deductions from the provision for excess and obsolete inventory relate to disposal activities.

The following table summarizes the activity in Ciena’s reserve for excess and obsolete inventory for the periods indicated (in thousands):


	Balance at
Six months ended	beginning of						Balance at
April 30,	period		Provisions		Disposals		end of period
2010	$	24,002	$	7,100	$	3,105	$	27,997
2011	$	30,767	$	6,413	$	7,473	$	29,707