BUSINESS SEGMENTS

6 Months Ended

Dec. 31, 2017

Notes to Financial Statements

BUSINESS SEGMENTS

In fiscal year 2018, 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 $587 and $681 for the three and six months ended December 31, 2017, respectively, as compared to $20 and $302, 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 period referenced below:

Business Segment Information:                           

	Six months Ended Dec. 31		Net Revenue		Operating Income / (Loss)			Total Assets		Depr. and Amort.		Capital Expenditures
Manufacturing		2017	$	8,738	$	293		$	8,837	$	56	$	37
		2016	$	6,991	$	(322	)	$	8,114	$	99	$	78
Testing Services		2017		9,541		853			23,591		913		1,558
		2016		8,227		790			18,325		765		686
Distribution		2017		3,142		220			621		—		—
		2016		2,779		134			651		2		—
Real Estate		2017		76		(19	)		3,624		50		—
		2016		78		(6	)		3,147		50		—
Fabrication Services *		2017		—		—			28		—		—
		2016		—		—			29		—		—
Corporate & Unallocated		2017		—		(102	)		88		—		—
		2016		—		59			430		—		—
Total		2017	$	21,497	$	1,245		$	36,789	$	1,019	$	1,595
		2016	$	18,075	$	655		$	30,696	$	916	$	764

The following segment information is unaudited for the period referenced below:

Business Segment Information:                           

	Three months Ended Dec. 31		Net Revenue		Operating Income / (Loss)			Total Assets		Depr. and Amort.		Capital Expenditures
Manufacturing		2017	$	3,973	$	107		$	8,837	$	28	$	2
		2016	$	3,320	$	(229	)	$	8,114	$	49	$	67
Testing Services		2017		4,936		517			23,591		466		976
		2016		4,070		388			18,325		377		336
Distribution		2017		1,606		119			621		—		—
		2016		1,675		100			651		1		—
Real Estate		2017		37		(9	)		3,624		25		—
		2016		39		(8	)		3,147		25		—
Fabrication Services *		2017		—		—			28		—		—
		2016		—		—			29		—		—
Corporate & Unallocated		2017		—		(36	)		88		—		—
		2016		—		27			430		—		—
Total		2017	$	10,552	$	698		$	36,789	$	519	$	1,066
		2016	$	9,104	$	278		$	30,696	$	452	$	403

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