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19. BUSINESS SEGMENTS
12 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
BUSINESS SEGMENTS

In fiscal year 2017, 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 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 sales were sales from the manufacturing segment to the testing and distribution segment. Total inter-segment sales were $725 in fiscal year 2017 and $1,086 in fiscal year 2016. 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

   2017   $15,289   $75   $8,229   $186   $99 
    2016   $14,510   $260   $7,944   $202   $79 
                               
Testing Services

   2017    16,586    1,112    20,871    1,550    2,186 
    2016    15,280    1,010    19,849    1,531    1,574 
                               
Distribution

   2017    6,511    345    617    2    —   
    2016    4,542    224    662    2    4 
                               
Real Estate   2017    152    (38)   3,511    98    —   
    2016    122    (100)   3,306    103    —   
                               
Fabrication Services*


   2017    —      —      29    —      —   
    2016    —      —      30    —      —   
                               
Corporate &  Unallocated

   2017    —      (5)   241    —     —   
    2016    —      66    428    —     —   
                               
Total Company

   2017   $38,538   $1,489   $33,498   $1,836   $2,285 
    2016   $34,454   $1,460   $32,219   $1,838   $1,657 

 

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