Inventories

Inventories consist of the following at:



	January 31, 2018		July 31, 2017
Raw materials and components	$	52,592,000	50,569,000
Work-in-process and finished goods	35,162,000		26,053,000
Total inventories	87,754,000		76,622,000
Less reserve for excess and obsolete inventories	16,047,000		16,019,000
Inventories, net	$	71,707,000	60,603,000

As of January 31, 2018 and July 31, 2017, the amount of inventory directly related to long-term contracts (including contracts-in-progress) was $1,420,000 and $2,148,000, respectively.

As of January 31, 2018 and July 31, 2017, $1,528,000 and $1,718,000, respectively, of the inventory balance above related to contracts from third party commercial customers who outsource their manufacturing to us.