Inventories

Inventories consist of the following at July 31, 2015 and 2014:



	2015		2014
Raw materials and components	$	51,272,000	50,423,000
Work-in-process and finished goods	27,700,000		27,218,000
Total inventories	78,972,000		77,641,000
Less reserve for excess and obsolete inventories	16,904,000		16,309,000
Inventories, net	$	62,068,000	61,332,000

At July 31, 2015 and 2014, the amount of inventory directly related to long-term contracts (including contracts-in-progress) was $2,261,000 and $1,000,000, respectively.

At July 31, 2015 and 2014, $609,000 and $654,000, respectively, of the inventory balance above related to contracts from third party commercial customers who outsource their manufacturing to us.