BUSINESS SEGMENTS

9 Months Ended

Mar. 31, 2013

Notes to Financial Statements

BUSINESS SEGMENTS (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)

The Company operates in five 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, the fabrication segment (which provides fabrication services in Indonesia for the oil and gas industry) 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 $257 and $655 for the three and nine months ended March 31, 2013, respectively, as compared to $65 and $418 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 five segments. The following segment information table includes segment operating (loss) / income after including the Corporate expenses allocated to the segments, which gets eliminated in the consolidation.

The following segment information is unaudited for the nine months ended March 31, 2013: 

Business Segment Information:
	Nine months			Operating					Depr.
	Ended	Net		(Loss)			Total		and		Capital
	Mar. 31,	Revenue		Income			Assets		Amort.		Expenditures
Manufacturing	2013	$	11,157	$	(733	)	$	9,770	$	124	$	27
	2012		9,983		(570	)		12,047		158		10
Testing Services	2013		11,085		(23)			17,902		1,671		1,339
	2012		9,247		(1,465	)		19,119		1,692		1,364
Distribution	2013		916		119			333		2		1
	2012		702		51			382		3		--
Real Estate	2013		96		(177	)		4,051		82		--
	2012		125		(70	)		4,297		58		1
Fabrication	2013		373		(604	)		269		--		--
Services	2012		2,883		(955	)		952		130		27
Corporate &	2013		--		(64)			131		--		--
Unallocated	2012		--		(451	)		68		--		--
Total Company	2013	$	23,627	$	(1,482	)	$	32,456	$	1,879	$	1,367
	2012	$	22,940	$	(3,460	)	$	36,865	$	2,041	$	1,402

The following segment information is unaudited for the three months ended March 31, 2013:

Business Segment Information:
	Three months			Operating					Depr.
	Ended	Net		(Loss)			Total		and		Capital
	Mar. 31,	Revenue		Income			Assets		Amort.		Expenditures
Manufacturing	2013	$	2,786	$	(302	)	$	9,770	$	34	$	8
	2012		3,969		10			12,047		50		2
Testing Services	2013		3,407		(93	)		17,902		551		594
	2012		3,141		(323	)		19,119		567		247
Distribution	2013		232		35			333		--		--
	2012		299		42			382		1		--
Real Estate	2013		33		(56	)		4,051		28		--
	2012		30		(55	)		4,297		20		1
Fabrication	2013		71		(146	)		269		--		--
Services	2012		83		(490	)		952		38		20
Corporate &	2013		-		(72	)		131		--		--
Unallocated	2012		-		(117	)		68		--		--
Total Company	2013	$	6,529	$	(634	)	$	32,456	$	613	$	602
	2012	$	7,522	$	(933	)	$	36,865	$	676	$	270