Note 18 - Business Segments

12 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

18.  BUSINESS SEGMENTS

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 (assembly of equipment that tests the structural integrity of integrated circuits and other products); distribution of various products from other manufacturers in Singapore and Asia; and the real estate segment in China.

The cost of equipment, current year investment in new equipment and depreciation expense are allocated into respective segments based on the primary purpose for which the equipment was acquired.

All intersegment sales were sales from the Manufacturing segment to the Testing and Distribution segment. Total intersegment sales were $366 in the year ended June 30, 2024 and $517 in the year ended June 30, 2023. Corporate assets consisted primarily of cash and prepaid expense. Corporate expense consisted primarily of stock option expense, salaries, insurance, professional expenses and directors' fees.

Corporate expenses are allocated to the four segments on a combination of factors involving revenue, manpower costs and fixed assets investments. 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.

				Operating
	Year Ended			Income /			Total		Depr. And		Capital
	Jun. 30,	Revenue		(Loss)			Assets		Amort.		Expenditures
Manufacturing	2024	$	16,057	$	616		$	17,978	$	393	$	58
	2023	$	13,827	$	(58	)	$	13,864	$	481	$	143
Testing Services	2024		17,933	$	(322	)	$	20,193	$	3,849	$	235
	2023		23,130		1,648			24,559		4,532		4,329
Distribution	2024		8,297	$	1,129		$	1,609	$	-	$	38
	2023		6,270		816			1,275		-		-
Real Estate	2024		25	$	(100	)	$	2,377	$	72	$	-
	2023		23		(98	)		1,988		75		-
Corporate & Unallocated	2024		-	$	(230	)	$	383	$	27	$	211
	2023		-		(80	)		500		-		26
Total Company	2024	$	42,312	$	1,093		$	42,540	$	4,341	$	542
	2023	$	43,250	$	2,228		$	42,186	$	5,088	$	4,498

Management periodically evaluates the ongoing contributions of each of its business segments to its current and future revenue and prospects. As a result, it may divest one or more business segments in the future to enable management to concentrate on segments where it anticipates opportunities for future revenue growth, thereby maximizing shareholder value.

Subsequent to June 30, 2024, management is in the process of changing the structure of its internal organization. The information regularly reviewed by the Chief Operating Decision Maker (CODM) is being changed to align with the strategic objectives of the Company. This could result in changes to reporting segments in subsequent periods.