DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN

9 Months Ended

Mar. 31, 2013

Notes to Financial Statements

DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN (IN THOUSANDS, EXCEPT EARNINGS PER SHARE AND NUMBER OF SHARES)

The Company’s Shanghai operation, as a component of the Testing segment, suffered continued operating losses and the cash flow was minimal. In January 2010, the Company established a restructuring plan to close the Testing operation in Shanghai, China. Based on the restructuring plan and in accordance with ASC Topic 205-20 Presentation of Financial Statement Discontinued Operations the Company presented the operation results from Shanghai as a discontinued operation as the Company believed that no continued cash flow would be generated by the disposed component (Shanghai subsidiary) and that the Company would have no significant continuing involvement in the operation of the discontinued component. In accordance with the restructuring plan, before moving out of Shanghai the Company will be required to pay the outstanding balance of accounts payable of RMB 237, or approximately $38 based on the exchange rate as on March 31, 2013 published by the Monetary Authority of Singapore.

The Company anticipates that it may incur additional costs and expenses in winding down the business of the subsidiary through which the China facility was operated.

Loss from discontinued operations was as follows:

	Nine Months Ended					Three Months Ended
	Mar. 31,		Mar. 31,			Mar. 31,		Mar 31,
	2013		2012			2013		2012
	Unaudited		Unaudited			Unaudited		Unaudited
REVENUE	$	—	$	—		$	—	$	—
COST OF SALES		—		—			—		—
GROSS LOSS		—		—			—		—
OPERATING EXPENSES
General and administrative		—		2			—		—
Total		—		2			—		—
LOSS FROM DISCONTINUED OPERATION		—		(2	)		—		—
OTHER INCOME		—		—			—		—
LOSS FROM DISCONTINUED OPERATIONS	$	—	$	(2	)	$	—	$	—

The Company does not provide a separate cash flow statement for the discontinued operation, as the impact of this discontinued operation was immaterial.