BUSINESS SEGMENTS

9 Months Ended

Mar. 31, 2019

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 based on 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 $15 and $416 for the three and nine months ended March 31, 2019, as compared to $587 and $681 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 un-audited for the three and nine months ended March 31, 2019 and March 31, 2018:

Business Segment Information:

	Nine months			Operating					Depr.
	Ended	Net		Income /			Total		and		Capital
	Mar. 31	Revenue		(Loss)			Assets		Amort.		Expenditures
Manufacturing	2019	$	10,086	$	175		$	9,205	$	88	$	40
	2018	$	11,862	$	188		$	7,035	$	86	$	63
Testing Services	2019		12,819		(134	)		22,842		1,647		2,535
	2018		14,454		1,281			24,790		1,432		1,987
Distribution	2019		5,587		492			780		-		-
	2018		5,175		337			631		-		-
Real Estate	2019		81		(30	)		3,914		42		-
	2018		110		(38	)		3,732		76		-
Fabrication *	2019		-		-			26		-		-
Services	2018		-		-			28		-		-
Corporate &	2019		-		(30	)		233		-		-
Unallocated	2018		-		(289	)		172		-		-
Total	2019	$	28,573	$	473		$	37,000	$	1,777	$	2,575
	2018	$	31,601	$	1,479		$	36,388	$	1,594	$	2,050

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

Business Segment Information:

	Three months			Operating					Depr.
	Ended	Net		Income /			Total		and		Capital
	Mar. 31	Revenue		(Loss)			Assets		Amort.		Expenditures
Manufacturing	2019	$	3,097	$	(8	)	$	9,205	$	30	$	39
	2018	$	3,124	$	(105	)	$	7,035	$	30	$	26
Testing Services	2019		3,989		(17	)		22,842		588		239
	2018		4,913		428			24,790		519		429
Distribution	2019		1,727		150			780		-		-
	2018		2,033		117			631		-		-
Real Estate	2019		25		(13	)		3,914		14		-
	2018		34		(18	)		3,732		26		-
Fabrication *	2019		-		-			26		-		-
Services	2018		-		-			28		-		-
Corporate &	2019		-		11			233		-		-
Unallocated	2018		-		(188	)		172		-		-
Total	2019	$	8,838	$	123		$	37,000	$	632	$	278
	2018	$	10,104	$	234		$	36,388	$	575	$	455

 * Fabrication services is a discontinued operation.