Note 3 - Inventory

12 Months Ended

Apr. 30, 2012

3. INVENTORY

Inventories are stated at the lower of cost or fair value, using the first-in, first-out (FIFO) method. Inventories, net of reserves of approximately $677,000 and $623,000, at April 30, 2012 and 2011, respectively, are summarized by major classification as follows (in thousands):

	April 30, 2012		April 30, 2011
Raw material	$	2,684	$	2,926
Work-in-process		707		858
Finished goods		2,549		2,096
	$	5,940	$	5,880

The Company has entered into supplier arrangements with some of its larger customers that allow for the Company to produce finished goods for those customers based on their forecasted requirements. As of April 30, 2012 and 2011, finished goods inventory of approximately $696,000 and $332,000, respectively, was directly related to those customer agreements.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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