19. BUSINESS SEGMENTS

12 Months Ended

Jun. 30, 2015

Notes to Financial Statements

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

19. BUSINESS SEGMENTS

In fiscal 2015, the Company operated 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. Hence, in fiscal 2014 and first three quarters of fiscal 2015, the Company operated in four segments.

The real estate segment recorded other income of $68 and $202 and allowance for doubtful interest receivables of $68 and $80 for fiscal year 2015 and 2014, respectively, based on the average exchange rate for the twelve months ended June 30, 2015 and 2014, respectively, published by the Monetary Authority of Singapore. Due to the short-term nature of the investments, the investments were classified as loan receivables based on ASC Topic 310. 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 sales were sales from the manufacturing segment to the testing and distribution segment. Total inter-segment sales were $1,655 in fiscal year 2015 and $591 in fiscal year 2014. 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 on a pre-determined fixed amount calculated based on the annual budgeted sales, except the Malaysia operation, which is calculated based on actual sales. The following segment information table includes segment operating income or loss after including corporate expenses allocated to the segments, which gets eliminated in the consolidation.

Business Segment Information:

	Year			Operating					Depr.
	Ended	Net		Income			Total		and			Capital
	June 30,	Revenue		(Loss)			Assets		Amort.			Expenditures
Manufacturing	2015	$	12,873	$	(426	)	$	5,515	$	151		$	512
	2014	$	15,715	$	(761	)	$	10,761	$	162		$	340
Testing Services	2015		18,020		1,955			21,906		1,981			2,175
	2014		18,017		984			19,367		2,023			2,749
Distribution	2015		2,866		23			854		-			6
	2014		2,353		232			465		-			-
Real Estate	2015		173		(129	)		3,635		108			1
	2014		177		(93	)		3,788		109			1
Fabrication Services*	2015		-		-			30		-			-
	2014		-		-			77		-			-
Corporate & Unallocated	2015		-		(216	)		97			-		-
	2014		-		(364	)		132			-		-
Total Company	2015	$	33,932	$	1,207		$	32,037	$	2,240		$	2,694
	2014	$	36,262	$	(2	)	$	34,590	$	2,294		$	3,090

* Fabrication services is a discontinued operation (Note 24).