(7) Inventory — Inventory consisted of third party hardware and software held for resale. Included in inventory at June 30, 2011 was $0.4 million of labor costs associated with implementation services, software integration, and training services for contracts in progress as of June 30, 2011. Such costs will be recognized as expense in the period the revenue is recognized. The consolidated balances consisted of the following for the periods stated:


	June 30,		December 31,
	2011		2010
	(Dollars in thousands)

Purchased hardware and software, net	$	2,495	$	160
Work in process		350		—

Total inventory	$	2,845	$	160