19. BUSINESS SEGMENTS

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

BUSINESS SEGMENTS

In fiscal year 2018, 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 (assembly of 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 $1,127 in fiscal year 2018 and $725 in fiscal year 2017. 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
		2018	$	15,978	$	548		$	8,549	$	115	$143
		2017	$	15,289	$	75		$	8,229	$	186	$99
Testing Services
		2018		19,391		1,522			23,480		1,997	2,166
		2017		16,586		1,112			20,871		1,550	2,186
Distribution
		2018		6,853		475			789		—	-
		2017		6,511		345			617		2	-
Real Estate
		2018		139		(56	)		3,521		102	-
		2017		152		(38	)		3,511		98	-
Fabrication Services*
		2018		—		—			27		—	-
		2017		—		—			29		—	-
Corporate & Unallocated
		2018		—		(301	)		108		—	-
		2017		—		(5	)		241		—	-
Total Company
		2018	$	42,361	$	2,188		$	36,474	$	2,214	$2,309
		2017	$	38,538	$	1,489		$	33,498	$	1,836	$2,285

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