Segment Reporting

3 Months Ended

Oct. 31, 2013

Segment Reporting

3. SEGMENT REPORTING

In accordance with the provisions of Topic 280, Segment Reporting to the FASB ASC, the Company operates as one reporting segment, that is, the design, manufacture and marketing of automated test equipment for the semiconductor industry that is used to test system-on-a-chip, digital, analog and mixed signal integrated circuits.

The Company’s net sales to geographic area for the three months ended October 31, 2013 and 2012, along with its long-lived assets at October 31, 2013 and July 31, 2013, are summarized as follows:

	Three Months Ended October 31,
	2013		2012
	(in thousands)
Net sales:
Taiwan	$	12,623	$	12,207
United States		4,434		7,065
Singapore		3,379		2,726
Philippines		3,153		7,614
Malaysia		1,922		4,382
All other countries		7,256		9,194
Total Net Sales	$	32,767	$	43,188

Long-lived assets consist of property and equipment:

	October 31, 2013		July 31, 2013
	(in thousands)
Long-lived assets:
United States	$	15,248	$	14,844
Japan		276		311
Singapore		294		311
Philippines		494		517
All other countries		666		664
Total long-lived assets	$	16,978	$	16,647

Transfer prices on products sold to foreign subsidiaries are intended to produce profit margins that correspond to the subsidiary’s sales and support efforts.