BUSINESS SEGMENTS

3 Months Ended

Sep. 30, 2017

Notes to Financial Statements

BUSINESS SEGMENTS

In fiscal year 2018, 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 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 $95 for the three months ending September 30, 2017, as compared to $283 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, 2017 and September 30, 2016:

 Business Segment Information:

	Three Months  Ended  Sept. 30,	Net  Revenue		Operating Income / (Loss)			Total  Assets		Depr.  And  Amort.		Capital Expenditures
Manufacturing	2017	$	4,765		186			8,194		28		35
	2016	$	3,671		(93	)		7,716		50		11
Testing Services	2017		4,605		336			22,129		447		494
	2016		4,157		402			19,219		388		350
Distribution	2017		1,536		101			573		-		-
	2016		1,104		34			695		1		-
Real Estate	2017		39		(10	)		3,568		25		-
	2016		39		2			3,304		25		-
Fabrication	2017		-		-			28		-		-
Services *	2016		-		-			30		-		-
Corporate &	2017		-		(66	)		214		-		-
Unallocated	2016		-		32			567		-		-
Total Company	2017	$	10,945		547			34,706		500		529
	2016	$	8,971		377			31,531		464		361

* Fabrication Services is a discontinued operation (Note 19).