BUSINESS SEGMENTS

6 Months Ended

Dec. 31, 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 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 $20 and $302 for the three and six months ended December 31, 2016, respectively, as compared to $29 and $144, 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 unaudited for the six months ended December 31:

Business Segment Information:

	Six months Dec. 31		Net Revenue		Operating Income/ (Loss)			Total Assets		Depr and Amort.		Capital Expenditures
Manufacturing		2016	$	6,991	$	(322	)	$	8,114	$	99	$	78
		2015	$	6,416	$	371		$	5,870	$	107		19
Testing Services		2016		8,227		790			18,325		765		686
		2015		7,484		360			20,285		777		295
Distribution		2016		2,779		134			651		2		—
		2015		2,334		70			803		—		—
Real Estate		2016		78		(6	)		3,147		50		—
		2015		50		(70	)		3,424		53		—
Fabrication Services*		2016		—		—			29		—		—
		2015		—		—			28		—		—
Corporate & Unallocated		2016		—		59			430		—		—
		2015		—		(104	)		80		—		—
Total Company		2016	$	18,075	$	655		$	30,696	$	916	$	764
		2015	$	16,284	$	627		$	30,490	$	937	$	314

The following segment information is unaudited for the three months ended December 31:

Business Segment Information:

	Three months Ended		Net		Operating Income/			Total		Depr and		Capital
	Dec. 31		Revenue		(Loss)			Assets		Amort.		Expenditures
Manufacturing		2016	$	3,320	$	(229	)	$	8,144	$	49		67
		2015	$	3,276	$	129		$	5,870	$	53	$	2
Testing Services		2016		4,070		388			18,325		377		336
		2015		3,701		282			20,285		374		58
Distribution		2016		1,675		100			651		1		—
		2015		1,359		51			803		—		—
Real Estate		2016		39		(8	)		3,147		25		—
		2015		18		(46	)		3,424		26		—
Fabrication Services*		2016		—		—			29		—		—
		2015		—		—			28		—		—
Corporate & Unallocated		2016		—		27			430		—		—
		2015		—		(88	)		80		—		—
Total Company		2016	$	9,104	$	278		$	30,696	$	452	$	403
		2015	$	8,354	$	328		$	30,490	$	453	$	60

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