BUSINESS SEGMENTS

9 Months Ended

Mar. 31, 2016

Notes to Financial Statements

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

In fiscal year 2016, 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 did not generate other income for the three and nine months ended March 31, 2016 as compared to nil and $68, 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 $247 and $424 for the three and nine months ended March 31, 2016, respectively, as compared to $1,109 and $1,251, 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 income or loss after including the corporate expenses allocated to the segments, which gets eliminated in the consolidation.

The following segment information is un-audited for the nine months ended March 31:

Business Segment Information:
	Nine months			Operating					Depr.
	Ended	Net		Income /			Total		and		Capital
	Mar. 31,	Revenue		(Loss)			Assets		Amort.		Expenditures
Manufacturing	2016	$	10,884	$	358		$	7,429	$	150	$	32
	2015	$	9,754	$	(768	)	$	5,102	$	110	$	28
Testing Services	2016		11,106		469			20,454		1,147		854
	2015		13,829		1,864			22,067		1,551		1,426
Distribution	2016		3,566		182			664		-		1
	2015		1,820		(28	)		774		-		6
Real Estate	2016		83		(89	)		3,445		78		-
	2015		130		(109	)		3,666		81		-
Fabrication *	2016		-		-			29		-		-
Services	2015		-		-			31		-		-
Corporate &	2016		-		30			69		-		-
Unallocated	2015		-		(173	)		70		-		-
Total Company	2016	$	25,639	$	950		$	32,090	$	1,375	$	887
	2015	$	25,533	$	786		$	31,710	$	1,742	$	1,460

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

Business Segment Information:
	Three months			Operating					Depr.
	Ended	Net		Income /			Total		and		Capital
	Mar. 31,	Revenue		(Loss)			Assets		Amort.		Expenditures
Manufacturing	2016	$	4,468	$	(13	)	$	7,429	$	43	$	13
	2015	$	3,359	$	(33	)	$	5,102	$	40	$	5
Testing Services	2016		3,622		109			20,454		370		559
	2015		4,138		590			22,067		486		556
Distribution	2016		1,232		112			664		-		1
	2015		1,003		(28	)		774		-		-
Real Estate	2016		33		(19	)		3,445		25		-
	2015		43		(18	)		3,666		27		-
Fabrication *	2016		-		-			29		-		-
Services	2015		-		-			31		-		-
Corporate &	2016		-		134			69		-		-
Unallocated	2015		-		(39	)		70		-		-
Total Company	2016	$	9,355	$	323		$	32,090	$	438	$	573
	2015	$	8,543	$	472		$	31,710	$	553	$	561

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