DISCONTINUED OPERATION AND CORRESPONDING RESTRUCTURING PLAN

3 Months Ended

Sep. 30, 2015

Notes to Financial Statements

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

The Company’s Indonesia operation and the Indonesia operation’s immediate holding company, which comprise the fabrication services segment, suffered continued operating losses in the past six fiscal years, and the cash flow was minimal for the past six years.  The Company established a restructuring plan to close the fabrication services operation, and in accordance with ASC Topic 205-20, Presentation of Financial Statement Discontinued Operations (“ASC Topic 250-20”), the Company presented the operation results from fabrication services as a discontinued operation, as the Company believed that no continued cash flow would be generated by the discontinued component and that the Company would have no significant continuing involvement in the operations of the discontinued component. In accordance with the restructuring plan, the Company is negotiating with its suppliers to settle the outstanding balance of accounts payable of $60 and there is no accounts receivable since all the amounts due have been collected. The Company’s fabrication operation in Indonesia is in the process of winding down the operations.

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, 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 discontinued component (Shanghai subsidiary) and that the Company would have no significant continuing involvement in the operations of the discontinued component. The Shanghai operation has no outstanding accounts payable and no accounts receivable.

The discontinued operations in Shanghai and in Indonesia did not incur general and administrative expenses for the three months ended September 30, 2015, and incurred general and administrative expenses and selling expenses of $4 for the same period in the last fiscal year. The Company anticipates that it may incur additional costs and expenses at the time of winding down the business of the subsidiary through which the facilities operated.

Loss / income from discontinued operations for the three months ended September 30, 2015 and 2014 were as follows:

	Three Months Ended September 30,
	2015			2014
Revenue	$	-		$	-
Cost of sales		-			-
Gross margin		-			-
Operating expenses
General and administrative		-			-
Selling		-			-
Impairment loss of property, plant and equipment		-			-
Total		-			-
Income from discontinued operation		-			-
Other (charges) / income		(10	)		26
Net (loss) / income from discontinued operation		(10	)		26
Less: net (income) / loss attributable to the non-controlling interest		(5	)		12
(Loss) / income from discontinued operation, net of tax	$	(5	)		14

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