BUSINESS SEGMENTS

3 Months Ended

Sep. 30, 2014

Notes to Financial Statements

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

In fiscal year 2015, 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.

The real estate segment recorded other income of $51 and $49, for the first quarter of fiscal year 2015 and fiscal year 2014, 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 receivable 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 $45 for the three months ending September 30, 2014, as compared to $255 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 four 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, 2014 and September 30, 2013:

Business Segment Information:

	Three Months Ended Sept. 30,	Net Revenue		Operating (Loss) Income			Total Assets		Depr. And Amort.		Capital Expenditures
Manufacturing	2014	$	3,047	$	(618	)	$	10,437	$	27	$	17
	2013		4,201		(127	)		11,869		39		130
Testing Services	2014		4,618		576			18,471		569		444
	2013		4,048		102			18,149		536		354
Distribution	2014		385		(36	)		494		-		6
	2013		1,204		192			678		-		-
Real Estate	2014		43		(48	)		3,807		27		-
	2013		44		(23	)		4,134		27		-
Fabrication	2014		-		-			51		-		-
Services *	2013		-		-			126		-		-
Corporate &	2014		-		(8	)		75		-		-
Unallocated	2013		-		(157	)		79		-		-
Total Company	2014	$	8,093	$	(134	)	$	33,335	$	623	$	467
	2013	$	9,497	$	(13	)	$	35,035	$	602	$	484

* Fabrication Services is a discontinued operation (Note 19).