BUSINESS SEGMENTS

3 Months Ended

Sep. 30, 2015

Notes to Financial Statements

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

In fiscal year 2016, 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 real estate segment did not record other income for the first quarter of fiscal 2016, as compared to other income of $51, for the first quarter of fiscal year 2015, based on the average exchange rate for the respective periods published by the Monetary Authority of Singapore. Due to the short-term nature of the investment, the amount was classified as a loan receivable 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 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 $115 for the three months ending September 30, 2015, as compared to $45 for the same period 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 months ended September 30, 2015 and September 30, 2014:

Business Segment Information:

	Three Months  Ended  Sept. 30,		Net  Revenue		Operating  Income / (Loss)			Total  Assets		Depr.  And  Amort.		Capital  Expenditures
Manufacturing		2015	$	3,140	$	242		$	5,618	$	54	$	17
		2014		3,047		(618	)		10,437		27		17
Testing Services		2015		3,783		78			20,495		403		237
		2014		4,618		576			18,471		569		444
Distribution		2015		975		19			749		—		—
		2014		385		(36	)		494		—		6
Real Estate		2015		32		(24	)		3,530		27		—
		2014		43		(48	)		3,807		27		—
Fabrication		2015		—		—			26		—		—
Services *		2014		—		—			51		—		—
Corporate &		2015		—		(16	)		62		—		—
Unallocated		2014		—		(8	)		75		—		—
Total Company		2015	$	7,930	$	299		$	30,480	$	484	$	254
		2014	$	8,093	$	(134	)	$	33,335	$	623	$	467

* Fabrication Services is a discontinued operation (Note 18).