Inventory

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted average cost of raw materials which approximates the first-in, first-out (“FIFO”) method and includes allocations of manufacturing labor and overhead. Included in finished goods at September 30, 2017 and December 31, 2016 was $1.3 million and $0.7 million, respectively, of trial and evaluation hardware units. Provisions are made to reduce excess, obsolete or slow-moving inventories to their net realizable value. Inventories consisted of the following at September 30, 2017 and December 31, 2016 (in thousands):



	2017		2016
Raw materials	$	26,426	$	18,002
Finished goods	26,266		16,839
Total inventory	$	52,692	$	34,841