INVENTORIES

6 Months Ended

Apr. 30, 2022

As of the dates indicated, inventories are comprised of the following (in thousands):


	April 30, 2022		October 30, 2021
Raw materials	$	373,517	$	175,399
Work-in-process	12,268		10,260
Finished goods	157,919		180,800
Deferred cost of goods sold	28,921		44,765
Gross inventories	572,625		411,224
Reserve for inventory excess and obsolescence	(35,747)		(36,959)
Inventories, net	$	536,878	$	374,265

The increase in raw materials inventory is related to the steps Ciena is taking to mitigate the impact of current supply chain constraints and the global market shortage of semiconductor parts. Ciena writes down its inventory for estimated obsolescence or unmarketable inventory by an amount equal to the difference between the cost of inventory and the estimated net realizable value based on assumptions about future demand, which are affected by changes in Ciena’s strategic direction, discontinuance of a product or introduction of newer versions of products, declines in the sales of or forecasted demand for certain products, and general market conditions. During the first six months of fiscal 2022, Ciena recorded a provision for inventory excess and obsolescence of $8.5 million, primarily related to a decrease in the forecasted demand for certain Networking Platforms products. Deductions from the provision for excess and obsolete inventory relate primarily to disposal activities.