DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN

12 Months Ended

Jun. 30, 2013

Discontinued Operation And Corresponding Restructuring Plan

Note 19. DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (In Thousands)

The Company’s Indonesia operation and the Indonesia operation’s immediate holding company, which comprise the fabrication services segment, suffered continued operating losses in the past four fiscal years, and the cash flow was minimal for the past four years.  The Company established a restructuring plan to close the fabrication services operation,  and in accordance with ASC Topic 205-20, Presentation of Financial Statement Discontinued Operations (“ASC Topic 250-20”), the Company presented the operation results from fabrication services as a discontinued operation as the Company believed that no continued cash flow would be generated by the discontinued component and that the Company would have no significant continuing involvement in the operations of the discontinued component. In accordance with the restructuring plan, the Company is negotiating with its suppliers to settle the outstanding balance of accounts payable of $451 and is collecting the accounts receivable of $86.

The Company’s fabrication operation in Batam, Indonesia, is in the process of commencing winding up the operations. The Company anticipates that it may incur costs and expenses when the winding up the subsidiary in Indonesia takes place.

In January 2010, the Company established a restructuring plan to close the Testing operation in Shanghai, China.  Based on the restructuring plan and in accordance with ASC Topic 205-20, the Company presented the operation results from Shanghai as a discontinued operation as the Company believed that no continued cash flow would be generated by the discontinued component (Shanghai subsidiary) and that the Company would have no significant continuing involvement in the operations of the discontinued component.

The Company did not incur any general and administrative expenses for the year ended June 30, 2013 and incurred $4 for the year ended June 30, 2012. The Company anticipates that it may incur additional costs and expenses at the time of winding up the business of the subsidiary through which the Shanghai, China facility operated.

Loss from discontinued operations for the year ended June 30, 2013 and 2012 was as follows :

	For the Year Ended June 30,
	2013			2012
Revenue	$	389		$	3,111
Cost of sales		821			3,665
Gross loss		(432	)		(554	)
Operating expenses
General and administrative		179			635
Selling		12			51
Impairment		--			216
Total	$	191		$	902
Loss from discontinued operation		(623	)		(1,456	)
Other charges		(111	)		(394	)
Net loss from discontinued operation	$	(734	)	$	(1,850	)

The Company does not provide a separate cash flow statement for the discontinued operation, as the impact of this discontinued operation was immaterial.