Inventories, Net and Significant Suppliers (Tables)

6 Months Ended

Jun. 30, 2014

Inventories, net were as follows:



(In thousands)	June 30, 2014			December 31, 2013
Raw materials	$	19,235		$	18,990
Components	14,742			18,623
Work in process	3,874			2,017
Finished goods	53,015			59,393
Reserve for excess and obsolete inventory	(2,090		)	(2,714		)
Inventories, net	$	88,776		$	96,309

Schedule of Reserve for Excess and Obsolete Inventory

Changes in the reserve for excess and obsolete inventory were as follows:



(In thousands)	Six Months Ended June 30,
(In thousands)	2014			2013
Balance at beginning of period	$	2,714		$	2,024
Additions charged to costs and expenses ⁽¹⁾	1,369			1,022
Sell through ⁽²⁾	(473		)	(219		)
Write-offs/FX effects	(1,520		)	(905		)
Balance at end of period	$	2,090		$	1,922


⁽¹⁾	The additions charged to costs and expenses do not include inventory directly written-off that was scrapped during production totaling $0.2 million and $0.1 million for the six months ended June 30, 2014 and 2013, respectively. These amounts are production waste and are not included in management’s reserve for excess and obsolete inventory.


⁽²⁾	These amounts represent the reversal of reserves associated with inventory items that were sold during the period. Sell through is the result of differences between our judgment concerning the saleability of inventory items during the excess and obsolete inventory review process and our subsequent experience.

Schedule of Purchases from Significant Supplier(s) to Inventory

We had purchases from the following significant supplier that totaled more than 10% of our total inventory purchases as follows:



	Three Months Ended June 30,
	2014				2013
	$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases
Maxim Integrated Products International Limited	$	9,148	11.9	%	$	—	—	%



	Six Months Ended June 30,
	2014				2013
	$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases
Maxim Integrated Products International Limited	$	17,202	12.4	%	$	—	—	%

Schedule of Related Party Transactions

We purchase certain printed circuit board assemblies from a related party vendor. The vendor is considered a related party for financial reporting purposes because our Senior Vice President of Manufacturing owns 40% of this vendor. Inventory purchases from this vendor were as follows:



	Three Months Ended June 30,
	2014				2013
	$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases
Related party vendor	$	2,507	3.3	%	$	2,469	3.0	%



	Six Months Ended June 30,
	2014				2013
	$ (thousands)		% of Total Inventory Purchases		$ (thousands)		% of Total Inventory Purchases
Related party vendor	$	4,230	3.0	%	$	4,685	3.2	%

The total accounts payable to this vendor were the following:



	June 30, 2014				December 31, 2013
	$ (thousands)		% of Accounts Payable		$ (thousands)		% of Accounts Payable
Related party vendor	$	2,533	3.6	%	$	2,439	4.2	%