Inventories

Inventories, net of reserves, consisted of the following:



	As of December 31,
	2012		2011
Current:
Raw materials	$	734	$	1,091
Finished goods	10,139		11,474
	$	10,873	$	12,565
Long-term:
Raw materials	$	891	$	444
Finished goods	1,064		1,461
	$	1,955	$	1,905

Long-term inventory represents inventory held in excess of our current (next 12 months) 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 $1,289 and $1,199 as of December 31, 2012 and 2011, respectively. Consigned inventory represents inventory at distributors and other customers where revenue recognition criteria have not been achieved.

The losses incurred on valuation of inventory at the lower of cost or market value and write-off of obsolete inventory amounted to $1,235 and $188 during the years ended December 31, 2012 and 2011, respectively.