INVENTORIES

3 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Note 3- INVENTORIES (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)

Inventories consisted of the following:

	Dec. 31, 2012			June 30,
	(Unaudited)			2012
Raw materials	$	1,094		$	1,261
Work in progress		1,600			1,870
Finished goods		232			175
Less: provision for obsolete inventory		(897	)		(884	)
Currency translation effect		109			(98	)
	$	2,138		$	2,324

The following table represents the changes in provision for obsolete inventory:

	Dec. 31,
	2012			June 30,
	(Unaudited)			2012
Beginning	$	884		$	937
Additions charged to expenses		—			31
Usage - disposition		(14	)		(59	)
Currency translation effect		27			(25	)
Ending	$	897		$	884