BUSINESS SEGMENTS

3 Months Ended

Sep. 30, 2016

Notes to Financial Statements

BUSINESS SEGMENTS

In fiscal year 2017, 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 record other income for the first quarter of fiscal 2017 and first quarter of fiscal year 2016, based on the average exchange rate for the respective periods 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 revenue was from the manufacturing segment to the testing and distribution segments. Total inter-segment revenue was $283 for the three months ending September 30, 2016, as compared to $115 for the same period 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 three months ended September 30, 2016 and September 30, 2015:

 Business Segment Information:

	Three Months Ended Sept. 30,		Net Revenue		Operating Income / Loss			Total Assets		Depr. and Amort.		Capital Expenditures
Manufacturing		2016	$	3,671	$	(93	)	$	7,716	$	50	$	11
		2015		3,140		242			5,618		54		17
Testing Services		2016		4,157		402			19,219		388		350
		2015		3,783		78			20,495		403		237
Distribution		2016		1,104		34			695		1		—
		2015		975		19			749		—		—
Real Estate		2016		39		2			3,304		25		—
		2015		32		(24	)		3,530		27		—
Fabrication		2016		—		—			30		—		—
Services *		2015		—		—			26		—		—
Corporate &		2016		—		32			567		—		—
Unallocated		2015		—		(16	)		62		—		—
Total Company		2016	$	8,971		377			31,531		464		361
		2015	$	7,930	$	299		$	30,480	$	484	$	254

* Fabrication Services is a discontinued operation (Note 18).