BUSINESS SEGMENTS

6 Months Ended

Dec. 31, 2014

Notes to Financial Statements

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

In fiscal 2013, the Company operated in five 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, the real estate segment in China and the fabrication services segment in Batam, Indonesia. In the fourth quarter of fiscal 2013, the Company discontinued operations in the fabrication segment. Hence, in fiscal 2014 and 2015, the Company operated in four segments.

The real estate segment recorded other income of $16 and $68, respectively, for the three and six months ended December 31, 2014 as compared to $51 and $102, respectively, for the same periods in the last fiscal year. Due to the short-term nature of the investments, the investments were classified as loan receivables based on ASC Topic 310-10-25 Receivables. Thus the investment income was 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 $97 and $142 for the three and six months ended December 31, 2014, respectively, as compared to $48 and $196, 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. 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 six months ended December 31:

Business Segment Information:
	Six months			Operating					Depr.
	Ended	Net		(Loss)			Total		and		Capital
	Dec. 31,	Revenue		Income			Assets		Amort.		Expenditures
Manufacturing	2014	$	6,395	$	(735	)	$	13,460	$	70	$	23
	2013	$	8,569	$	(328	)		10,872	$	77	$	221
Testing Services	2014		9,691		1,274			14,896		1,065		870
	2013		8,645		391			19,331		1,067		1,500
Distribution	2014		817		-			678		-		6
	2013		1,532		199			418		-		-
Real Estate	2014		87		(91	)		3,686		54		-
	2013		90		(45	)		3,893		54		-
Fabrication *	2014		-		-			33		-		-
Services	2013		-		-			106		-		-
Corporate &	2014		-		(134	)		117		-		-
Unallocated	2013		-		(336	)		76		-		-
Total Company	2014	$	16,990	$	314		$	32,870	$	1,189	$	899
	2013	$	18,836	$	(119	)	$	34,696	$	1,198	$	1,721

The following segment information is un-audited for the three months ended December 31:

Business Segment Information:
	Three months			Operating					Depr.
	Ended	Net		(Loss)			Total		and		Capital
	Dec. 31,	Revenue		Income			Assets		Amort.		Expenditures
Manufacturing	2014	$	3,348	$	(117	)	$	13,460	$	43	$	6
	2013	$	4,368	$	(201	)	$	10,872	$	38	$	91
Testing Services	2014		5,073		687			14,896		496		426
	2013		4,597		289			19,331		531		1,146
Distribution	2014		432		36			678		-		-
	2013		328		7			418		-		-
Real Estate	2014		44		(44	)		3,686		27		-
	2013		46		(22	)		3,893		27		-
Fabrication *	2014		-		-			33		-		-
Services	2013		-		-			106		-		-
Corporate &	2014		-		(126	)		117		-		-
Unallocated	2013		-		(179	)		76		-		-
Total Company	2014	$	8,897	$	437		$	32,870	$	566	$	432
	2013	$	9,339	$	(106	)	$	34,696	$	596	$	1,237

 * Fabrication services is a discontinued operation (Note 16).