Inventories

Inventories consist of the following at:



	January 31, 2016		July 31, 2015
Raw materials and components	$	50,530,000	51,272,000
Work-in-process and finished goods	24,025,000		27,700,000
Total inventories	74,555,000		78,972,000
Less reserve for excess and obsolete inventories	16,131,000		16,904,000
Inventories, net	$	58,424,000	62,068,000

At January 31, 2016 and July 31, 2015, the amount of inventory directly related to long-term contracts (including contracts-in-progress) was $2,010,000 and $2,261,000, respectively.

At January 31, 2016 and July 31, 2015, $949,000 and $609,000, respectively, of the inventory balance above related to contracts from third party commercial customers who outsource their manufacturing to us.