Inventory

9 Months Ended

Sep. 30, 2019

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, 2019 and December 31, 2018 was $1.4 million and $1.4 million, respectively, of trial and evaluation hardware units. Provisions are made to reduce excess, obsolete or slow-moving inventories to their net realizable value. Inventory consisted of the following at September 30, 2019 and December 31, 2018 (in thousands):



	September 30, 2019		December 31, 2018
Raw materials	$	21,096	$	19,670
Finished goods	19,570		14,093
Total inventory	$	40,666	$	33,763