BUSINESS SEGMENTS

9 Months Ended

Mar. 31, 2018

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 $85 and $766 for the three and nine months ended March 31, 2018, respectively, as compared to $20 and $302, respectively, for the same periods 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 unaudited for the nine months ended March 31:

Business Segment Information:
	Nine months			Operating					Depr.
	Ended	Net		Income /			Total		and		Capital
	Mar. 31	Revenue		(Loss)			Assets		Amort.		Expenditures
Manufacturing	2018	$	11,862	$	188		$	7,035	$	86	$	63
	2017	$	11,221	$	(153	)	$	8,321	$	141	$	89
Testing Services	2018		14,454		1,281			24,790		1,432		1,987
	2017		12,204		990			18,814		1,141		1,378
Distribution	2018		5,175		337			631		-		-
	2017		4,360		235			679		2		-
Real Estate	2018		110		(38	)		3,732		76		-
	2017		115		(20	)		3,229		74		-
Fabrication	2018		-		-			28		-		-
Services*	2017		-		-			28		-		-
Corporate &	2018		-		(289	)		172		-		-
Unallocated	2017		-		88			464		-		-
Total	2018	$	31,601	$	1,479		$	36,388	$	1,594	$	2,050
	2017	$	27,900	$	1,140		$	31,535	$	1,358	$	1,467

The following segment information is unaudited for the three months ended March 31:

Business Segment Information:
	Three months			Operating					Depr.
	Ended	Net		Income /			Total		and		Capital
	Mar. 31	Revenue		(Loss)			Assets		Amort.		Expenditures
Manufacturing	2018	$	3,124	$	(105	)	$	7,035	$	30	$	26
	2017	$	4,230	$	169		$	8,321	$	42	$	11
Testing Services	2018		4,913		428			24,790		519		517
	2017		3,977		200			18,814		376		692
Distribution	2018		2,033		117			631		-		-
	2017		1,581		101			679		-		-
Real Estate	2018		34		(18	)		3,732		26		-
	2017		37		(14	)		3,229		24		-
Fabrication	2018		-		-			28		-		-
Services*	2017		-		-			28		-		-
Corporate &	2018		-		(188	)		172		-		-
Unallocated	2017		-		29			464		-		-
Total	2018	$	10,104	$	234		$	36,388	$	575	$	543
	2017	$	9,825	$	485		$	31,535	$	442	$	703

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