19. BUSINESS SEGMENTS

12 Months Ended

Jun. 30, 2016

Notes to Financial Statements

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

In fiscal year 2016, 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

The real estate segment recorded other income of nil and $68 and allowance for doubtful interest receivables of nil and $68 for fiscal year 2016 and 2015, respectively, based on the average exchange rate for the twelve months ended June 30, 2016 and 2015, 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 $1,086 in fiscal year 2016 and $1,655 in fiscal year 2015. 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	2016	$	14,510	$	260		$	7,944	$	202		$	79
	2015	$	12,873	$	(426	)	$	5,515	$	151		$	512
Testing Services	2016		15,280		1,010			19,849		1,531			1,574
	2015		18,020		1,955			21,906		1,981			2,175
Distribution	2016		4,542		224			662		2			4
	2015		2,866		23			854		-			6
Real Estate	2016		122		(100	)		3,306		103			-
	2015		173		(129	)		3,635		108			1
Fabrication	2016		-		-			30		-			-
Services*	2015		-		-			30		-			-
Corporate &	2016		-		66			428			-		-
Unallocated	2015		-		(216	)		97			-		-
Total Company	2016	$	34,454	$	1,460		$	32,219	$	1,838		$	1,657
	2015	$	33,932	$	1,207		$	32,037	$	2,240		$	2,694

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