BUSINESS SEGMENTS

3 Months Ended

Sep. 30, 2018

Notes to Financial Statements

BUSINESS SEGMENTS

In fiscal year 2019, 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 $285 for the three months ended September 30, 2018, as compared to $95 for the same period 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 un-audited for the three months ended September 30, 2018 and September 30, 2017:

 Business Segment Information:

	Three Months									Depr.
	Ended		Net		Operating			Total		And		Capital
	Sept. 30,		Revenue		Income / (Loss)			Assets		Amort.		Expenditures
Manufacturing		2018	$	3,637		107			8,566		29		1
		2017	$	4,765		186			8,194		28		35
Testing Services		2018		4,437		(138	)		24,200		512		1,213
		2017		4,605		336			22,129		447		494
Distribution		2018		1,944		172			656		—		—
		2017		1,536		101			573		—		—
Real Estate		2018		27		(12	)		3,441		14		—
		2017		39		(10	)		3,568		25		—
Fabrication Services *		2018		—		—			25		—		—
		2017		—		—			28		—		—
Corporate & Unallocated		2018		—		(6	)		151		—		—
		2017		—		(66	)		214		—
Total Company		2018	$	10,045		123			37,039		555		1,214
		2017	$	10,945		547			34,706		500		529

* Fabrication Services is a discontinued operation.