BUSINESS SEGMENTS

12 Months Ended

Jun. 30, 2014

Notes to Financial Statements

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

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), the distribution of various products from other manufacturers in Singapore and Southeast Asia, and the real estate segment in China.

The real estate segment recorded other income of $202 for fiscal year 2014 and $259 for fiscal year 2013, based on the average exchange rate for the twelve months ended June 30, 2014 and 2013, respectively, published by the Monetary Authority of Singapore. Due to the nature of the investment, the amount was classified as a loan receivables based on ASC Topic 310-10-25 Receivables, hence the investment income was also classified under other income, which is not part of the below table.

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 were made on the basis of the primary purpose for which the equipment was acquired.

All inter-segment sales were sales from the manufacturing segment to the testing and distribution segment. Total inter-segment sales were $591 in fiscal year 2014 and $794 in fiscal year 2013.  Corporate assets mainly consisted of cash and prepaid expenses. Corporate expenses mainly consisted of salaries, insurance, professional expenses and directors' fees.

Business Segment Information
	Year			Operating					Depr.
	Ended	Net		(Loss)			Total		and			Capital
	June 30,	Revenue		Income			Assets		Amort.			Expenditures
Manufacturing	2014	$	15,715	$	(761	)	$	10,761	$	162		$	340
	2013		15,254		(1,089	)		13,867		158			46
Testing Services	2014		18,017		984			19,367		2,023			2,749
	2013		15,029		383			17,268		2,222			1,788
Distribution	2014		2,353		232			465		-			-
	2013		1,355		173			514		2			1
Real Estate	2014		177		(93	)		3,788		109			1
	2013		132		(206	)		4,173		109			3
Fabrication	2014		-		-			77		-			-
Services*	2013		389		(686	)		127		-			-
Corporate &	2014		-		(364	)		132			-		-
Unallocated	2013		-		(59	)		95			-		-
Total Company	2014	$	36,262	$	(2	)	$	34,590	$	2,294		$	3,090
	2013	$	32,159	$	(1,484	)	$	36,044	$	2,491		$	1,838

* Discontinued operations

The operating loss of $1,484 for the year ended June 30, 2013 includes operating loss of $686 from fabrication services (discontinued operations). The operating loss of fabrication services includes corporate expenses allocation of $63, which is considered as income in the corporate segment for the purpose of the above segment information.