3. Inventories

Inventories as of June 30, 2018 and December 31, 2017 consist of the following (in thousands):


	June 30, 2018			December 31, 2017
Finished goods	$	10,953		$	13,737
Semi-finished goods and work-in-process		35,862			53,148
Raw materials		14,502			12,445
Materials in-transit		838			134
Less: inventory reserve		(4,699	)		(6,391	)

Inventories, net	$	57,456		$	73,073

Changes in inventory reserve for the three and six months ended June 30, 2018 and 2017 are as follows (in thousands):


	Three Months Ended			Six Months Ended			Three Months Ended			Six Months Ended
	June 30, 2018						June 30, 2017
Beginning balance	$	(4,672	)	$	(6,391	)	$	(7,966	)	$	(7,177	)
Change in reserve
Inventory reserve charged to costs of sales		(1,504	)		(2,515	)		(1,399	)		(2,286	)
Sale of previously reserved inventory		898			1,118			2,943			3,445

		(606	)		(1,397	)		1,544			1,159
Write off		339			2,863			983			1,150
Translation adjustments		240			226			142			(429	)

Ending balance	$	(4,699	)	$	(4,699	)	$	(5,297	)	$	(5,297	)

Inventory reserve represents the Company’s best estimate in value lost due to excessive inventory level, physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. Inventory reserve relates to inventory items including finished goods, semi-finished goods and work-in-process. Write off of this reserve is recognized only when the related inventory has been disposed or scrapped.