INVENTORIES:

Inventories (which consist of costs associated with the purchases of wafers from offshore foundries and of packaged components from offshore assembly manufacturers, as well as internal labor and overhead associated with the testing of both wafers and packaged components) are stated at the lower of cost (first-in, first-out) or market. Provisions, when required, are made to reduce excess and obsolete inventories to their estimated net realizable values. Inventories consist of the following (in thousands):



	September 30, 2011		December 31, 2010
Raw materials	$	9,636	$	20,334
Work-in-process	10,144		13,171
Finished goods	31,983		28,572
Total	$	51,763	$	62,077