BUSINESS SEGMENTS

9 Months Ended

Mar. 31, 2017

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 $358 and $660 for the three and nine months ended March 31, 2017, respectively, as compared to $247 and $424, 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 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	2017	$	11,221	$	(153	)	$	8,321	$	141	$	89
	2016	$	10,884	$	358		$	7,429	$	150	$	32
Testing Services	2017		12,204		990			18,814		1,141		1,378
	2016		11,106		469			20,454		1,147		854
Distribution	2017		4,360		235			679		2		-
	2016		3,566		182			664		-		1
Real Estate	2017		115		(20	)		3,229		74		-
	2016		83		(89	)		3,445		78		-
Fabrication *	2017		-		28			-		-
Services	2016		-		-			29		-		-
Corporate &	2017		-		88			464		-		-
Unallocated	2016		-		30			69		-		-
Total Company	2017	$	27,900	$	1,140		$	31,535	$	1,358	$	1,467
	2016	$	25,639	$	950		$	32,090	$	1,375	$	887

The following segment information is unaudited 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	2017	$	4,230	$	169		$	8,321	$	42	$	11
	2016	$	4,468	$	(13	)	$	7,429	$	43	$	13
Testing Services	2017		3,977		200			18,814		376		692
	2016		3,622		109			20,454		370		559
Distribution	2017		1,581		101			679		-		-
	2016		1,232		112			664		-		1
Real Estate	2017		37		(14	)		3,229		24		-
	2016		33		(19	)		3,445		25		-
Fabrication *	2017		-		28			-		-
Services	2016		-		-			29		-		-
Corporate &	2017		-		29			464		-		-
Unallocated	2016		-		134			69		-		-
Total Company	2017	$	9,825	$	485		$	31,535	$	442	$	703
	2016	$	9,355	$	323		$	32,090	$	438	$	573

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