Inventories

3 Months Ended

Sep. 30, 2011

Inventories {2}

Inventories

Inventories, net of reserves, consisted of the following:

	As of
	September 30, 2011	December 31, 2010
Current:
Raw materials	$          1,367	$            776
Finished goods	10,545	8,004
	$        11,912	$         8,780
Long-term:
Raw materials	$             146	$            569
Finished goods	1,450	2,048
	$          1,596	$         2,617

Long-term inventory represents inventory held in excess of our current requirements based on our recent sales and forecasted level of sales. We have developed programs to reduce the inventory to normal operating levels in the near future. We expect to sell the above inventory, net of reserves, at or above the stated cost and believe that no loss will be incurred on its sale.

Current finished goods include consigned inventory in the amounts of approximately $1,382 and $1,742 as of September 30, 2011 and December 31, 2010, respectively. Consigned inventory represents inventory at distributors and other customers where revenue recognition criteria have not been achieved.

The following table summarizes the losses incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory during the three and nine months ended September 30, 2011 and 2010, respectively.

	Three months ended		Nine months ended
	September 30, 2011	September 30, 2010	September 30, 2011	September 30, 2010
Losses incurred on valuation of inventory and write-off of obsolete inventory	$                -	$               4	$                -	$           149