Inventories

Inventories consist of the following at July 31, 2019 and 2018:



	2019		2018
Raw materials and components	$	53,959,000	53,649,000
Work-in-process and finished goods	40,576,000		38,854,000
Total inventories	94,535,000		92,503,000
Less reserve for excess and obsolete inventories	19,696,000		17,427,000
Inventories, net	$	74,839,000	75,076,000

As of July 31, 2019 and 2018, the amount of inventory directly related to long-term contracts (including contracts-in-progress) was $4,053,000 and $1,249,000, respectively, and the amount of inventory related to contracts from third-party commercial customers who outsource their manufacturing to us was $1,513,000 and $1,310,000, respectively.