BUSINESS SEGMENTS

6 Months Ended

Dec. 31, 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), distribution of various products from other manufacturers in Singapore and Southeast Asia, and the real estate segment in China. In the fourth quarter of fiscal 2013, the Company discontinued operations in the fabrication segment.

The real estate segment recorded other income of $46 and $90, respectively, for the three and six months ended December 31, 2013 as compared to $33 and $63, respectively, for the same periods in the last fiscal year. 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 $48 and $196 for the three and six months ended December 31, 2013, respectively, as compared to $91 and $399, respectively, for the same periods 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. In fiscal 2014, corporate expenses are allocated to the four segments, in fiscal 2013, corporate expenses were allocated to the five then operating segments. The following tables report segment operating (loss) / income and include Corporate expenses allocated to the segments, which expenses are eliminated in the consolidation.

The following segment information is un-audited for the six months ended December 31, 2013:

Business Segment Information:
	Six months			Operating					Depr.
	Ended	Net		(Loss)			Total		and		Capital
	Dec. 31,	Revenue		Income			Assets		Amort.		Expenditures
Manufacturing	2013	$	8,569	$	(328	)	$	10,872	$	77	$	221
	2012		8,371		(431	)		9,777		90		19
Testing Services	2013		8,645		391			19,331		1,067		1,500
	2012		7,678		70			19,292		1,120		745
Distribution	2013		1,532		199			418		-		-
	2012		684		84			378		2		1
Real Estate	2013		90		(45	)		3,893		54		-
	2012		63		(121	)		4,161		54		-
Fabrication *	2013		-		-			106		-		-
Services	2012		-		(34	)		367		-		-
Corporate &	2013		-		(336	)		76		-		-
Unallocated	2012		-		8			58		-		-
Total Company	2013	$	18,836	$	(119	)	$	34,696	$	1,198	$	1,721
	2012	$	16,796	$	(424	)	$	34,033	$	1,266	$	765

The following segment information is unaudited for the three months ended December 31, 2013:

Business Segment Information:
	Three months			Operating					Depr.
	Ended	Net		(Loss)			Total		and		Capital
	Dec. 31,	Revenue		Income			Assets		Amort.		Expenditures
Manufacturing	2013	$	4,368	$	(201	)	$	10,872	$	38	$	91
	2012		3,079		(191	)		9,777		44		13
Testing Services	2013		4,597		289			19,331		531		1,146
	2012		3,769		(34	)		19,292		569		78
Distribution	2013		328		7			418		-		-
	2012		340		38			378		1		1
Real Estate	2013		46		(22	)		3,893		27		-
	2012		33		(57	)		4,161		27		-
Fabrication *	2013		-		-			106		-		-
Services	2012		-		(10	)		367		-		-
Corporate &	2013		-		(179	)		76		-		-
Unallocated	2012		-		(60	)		58		-		-
Total Company	2013	$	9,339	$	(106	)	$	34,696	$	596	$	1,237
	2012	$	7,221	$	(314	)	$	34,033	$	641	$	92

* Fabrication services is a discontinued operation (Note 16)