Annual report pursuant to Section 13 and 15(d)

Inventories

v2.4.1.9
Inventories
12 Months Ended
Dec. 31, 2014
Inventories
3. Inventories:

Inventories, which are primarily purchased from third parties, consist of the following:

 

(in thousands)

   December 31,  
     2014      2013  

Raw materials

   $ 3,895      $ 4,450   

Finished goods

     11,447        2,227   
  

 

 

    

 

 

 
  15,342      6,677   

Less provision for obsolescence

  (1,669   (1,708
  

 

 

    

 

 

 

Net inventories

$ 13,673    $ 4,969   
  

 

 

    

 

 

 

 

(in thousands)

   Year Ended December 31,  
     2014      2013      2012  

Inventory reserve at January 1,

   $ 1,708       $ 1,669       $ 895   

Additions

     179         1,644         1,346   

Write offs

     (218      (1,605      (572
  

 

 

    

 

 

    

 

 

 

Inventory Reserve at December 31,

$ 1,669    $ 1,708    $ 1,669   
  

 

 

    

 

 

    

 

 

 

The Company terminated its relationship with Seesmart’s logistics supplier in 2013. All related inventories were returned to Seesmart during March 2013.

During 2012, as a result of deteriorating market conditions and aggressive pricing by competitors, the Company experienced a decrease in market price for certain Array products in its LED replacement lamps and fixtures segment. For the year ended December 31, 2012, the Company recorded a reserve for obsolete inventory of $387,000 due to this decrease in market price. In 2013 certain of these inventories were written off.