Inventories

Inventories consist of the following at:



	January 31, 2015		July 31, 2014
Raw materials and components	$	53,236,000	50,423,000
Work-in-process and finished goods	30,360,000		27,218,000
Total inventories	83,596,000		77,641,000
Less reserve for excess and obsolete inventories	16,124,000		16,309,000
Inventories, net	$	67,472,000	61,332,000

At January 31, 2015 and July 31, 2014, the amount of inventory directly related to long-term contracts (including contracts-in-progress) was $4,139,000 and $1,000,000, respectively. As of January 31, 2015, $1,728,000 of our long-term contract inventory relates to our contract to develop and manufacture the Advanced Time Division Multiple Access Interface Processor ("ATIP") for the U.S. Navy's Space and Naval Warfare Systems Command.

At January 31, 2015 and July 31, 2014, $517,000 and $654,000, respectively, of the inventory above related to contracts from third party commercial customers who outsource their manufacturing to us.