(

)

SEGMENT INFORMATION

As discussed in Note

during

2016,

we reorganized our business from

three

product segments (Thermal Products, Mechanical Products and Electrical Products) into

two

product segments (Thermal and EMS). As a result of the completion of this reorganization,

we determined that we have

two

reportable segments. Accordingly, the segment information presented below has been reclassified to reflect the changes to our reportable segments and to be comparable to the presentation of this information that was implemented effective

January 1, 2017.

Thermal includes the operations of Temptronic Corporation, Thermonics, Sigma, inTEST Thermal Solutions GmbH (Germany), and inTEST Pte, Limited (Singapore). Sales of this segment consist primarily of temperature management systems which we design, manufacture and market under our Temptronic, Thermonics and Sigma product lines. In addition, this segment provides post warranty service and support.

EMS includes the operations of our manufacturing facilities in Mt. L

aurel, New Jersey and Fremont, California. Sales of this segment consist primarily of manipulator, docking hardware and tester interface products, which we design, manufacture and market.

We operate our business worldwide and sell our products both domestically and internationally. Both of our segments sell to semiconductor manufacturers,

third

-party test and assembly houses and ATE manufacturers. Our Thermal segment also sells into a variety of markets outside of the ATE market, including the automotive, consumer electronics, defense/aerospace, energy, industrial and telecommunications markets. Intercompany pricing between segments is either a multiple of cost for component parts or list price for finished goods.

	Years Ended December 31,
	2016			2015
Net revenues from unaffiliated customers:
Thermal	$	24,033		$	24,084
EMS		16,194			14,805
	$	40,227		$	38,889
Depreciation/amortization:
Thermal	$	440		$	581
EMS		159			173
	$	599		$	754
Operating income (loss):
Thermal	$	4,210		$	4,517
EMS		989			(1,229	)
Corporate		(1,053	)		(726	)
	$	4,146		$	2,562
Earnings (loss) before income tax expense (benefit):
Thermal	$	4,193		$	4,479
EMS		1,021			(1,170	)
Corporate		(1,007	)		(726	)
	$	4,207		$	2,583
Income tax expense (benefit):
Thermal	$	1,544		$	1,252
EMS		376			(327	)
Corporate		(371	)		(203	)
	$	1,549		$	722
Net earnings (loss):
Thermal	$	2,649		$	3,227
EMS		645			(843	)
Corporate		(636	)		(523	)
	$	2,658		$	1,861

	Years Ended December 31,
	2016		2015
Capital expenditures:
Thermal	$	262	$	389
EMS		77		210
	$	339	$	599

	December 31,
	2016		2015
Identifiable assets:
Thermal	$	19,893	$	16,983
EMS		22,951		23,001
	$	42,844	$	39,984

The following table provides information about our geographic areas of operation. Net revenues from unaffiliated customers are based on the location to which the goods are shipped.

	Years Ended December 31,
	2016		2015
Net revenues from unaffiliated customers:
U.S.	$	13,061	$	14,294
Foreign		27,166		24,595
	$	40,227	$	38,889

	December 31,
	2016		2015
Property and equipment:
U.S.	$	691	$	797
Foreign		253		315
	$	944	$	1,112