BUSINESS SEGMENTS

3 Months Ended

Sep. 30, 2013

Notes to Financial Statements

BUSINESS SEGMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)

In fiscal 2014, the Company operates in four segments; the testing service industry (which performs structural and electronic tests of semiconductor devices), the designing and manufacturing of equipment (which equipment tests the structural integrity of integrated circuits and other products), and distribution of various products from other manufacturers in Singapore and Southeast Asia and the real estate segment in China. In fiscal 2013, the Company was also in the fabrication segment (which performed fabrication services in Indonesia for the oil and gas industry). In the fourth quarter of fiscal 2013, the Company discontinued operations in the fabrication segment.

The real estate segment recorded other income of $49 and $65, for the first quarters of fiscal 2014 and fiscal 2013 respectively, based on the average exchange rate for the respective periods published by the Monetary Authority of Singapore. Due to the short-term nature of the investment, the amount was classified as a loan receivables based on ASC Topic 310-10-25 Receivables, hence the investment income was also classified under other income, which is not part of the below table.

The revenue allocated to individual countries was based on where the customers were located. The allocation of the cost of equipment, the current year investment in new equipment and depreciation expense have been made on the basis of the primary purpose for which the equipment was acquired.

All inter-segment revenue was from the manufacturing segment to the testing and distribution segments. Total inter-segment revenue was $255 for the three months ended September 30, 2013, as compared to $217 for the same period in the last fiscal year.  Corporate assets mainly consisted of cash and prepaid expenses. Corporate expenses mainly consisted of stock option expenses, salaries, insurance, professional expenses and directors' fees. Corporate expenses are allocated to the five segments. The following segment information table includes segment operating (loss) / income after including the corporate expenses allocated to the segments, which gets eliminated in the consolidation.

The following segment information is un-audited for the three months ended September 30, 2013:

Business Segment Information:
	Three Months			Operating					Depr.
	Ended	Net		(Loss)			Total		And		Capital
	Sept. 30,	Revenue		Income			Assets		Amort.		Expenditures
Manufacturing	2013	$	4,201	$	(127	)	$	11,869	$	39	$	130
	2012		5,292		(240	)		11,871		46		6
Testing Services	2013		4,048		102			18,149		536		354
	2012		3,909		104			21,165		551		667
Distribution	2013		1,204		192			678		-		-
	2012		344		46			321		1		-
Real Estate	2013		44		(23	)		4,134		27		-
	2012		30		(64	)		4,055		27		-
Fabrication	2013		-		-			126		-		-
Services *	2012		-		(24	)		804		-		-
Corporate &	2013		-		(157	)		79		-		-
Unallocated	2012		-		68			54		-		-
Total Company	2013	$	9,497	$	(13	)	$	35,035	$	602	$	484
	2012	$	9,575	$	(110	)	$	38,270	$	625		673

* Fabrication Services is a discontinued operation (Note 19)