BUSINESS SEGMENTS

6 Months Ended

Dec. 31, 2018

Notes to Financial Statements

BUSINESS SEGMENTS

In fiscal year 2019, 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 $116 and $401 for the three and six months ended December 31, 2018, as compared to $587 and $681for 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 and six months ended December 31, 2018 and December 31, 2017:

Business Segment Information:
	Six months				Operating					Depr.
	Ended		Net		Income /			Total		and		Capital
	Dec. 31		Revenue		(Loss)			Assets		Amort.		Expenditures
Manufacturing
		2018	$	6,989	$	183		$	8,835	$	58	$	1
		2017	$	8,738	$	293		$	8,837	$	56	$	37
Testing Services
		2018		8,830		(117	)		23,750		1,059		2,296
		2017		9,541		853			23,591		913		1,558
Distribution
		2018		3,860		342			759		-		-
		2017		3,142		220			621		-		-
Real Estate
		2018		56		(17	)		3,449		28		-
		2017		76		(19	)		3,624		50		-
Fabrication Services *
		2018		-		-			26		-		-
		2017		-		-			28		-		-
Corporate & Unallocated
		2018		-		(41	)		76		-		-
		2017		-		(102	)		88		-		-
Total		2018	$	19,735	$	350		$	36,895	$	1,145	$	2,297
		2017	$	21,497	$	1,245		$	36,789	$	1,019	$	1,595

The following segment information is unaudited for the period referenced below:

Business Segment Information:
	Three months				Operating					Depr.
	Ended		Net		Income /			Total		and		Capital
	Dec. 31		Revenue		(Loss)			Assets		Amort.		Expenditures
Manufacturing
		2018	$	3,352	$	76		$	8,835	$	29	$	-
		2017	$	3,973	$	107		$	8,837	$	28	$	2
Testing Services
		2018		4,393		21			23,750		547		1,083
		2017		4,936		517			23,591		466		1,064
Distribution
		2018		1,916		170			759		-		-
		2017		1,606		119			621		-		-
Real Estate
		2018		29		(5	)		3,449		14		-
		2017		37		(9	)		3,624		25		-
Fabrication Services *
		2018		-		-			26		-		-
		2017		-		-			28		-		-
Corporate & Unallocated
		2018		-		(35	)		76		-		-
		2017		-		(36	)		88		-		-
Total		2018	$	9,690	$	227		$	36,895	$	590	$	1,083
		2017	$	10,552	$	698		$	36,789	$	519	$	1,066

* Fabrication services is a discontinued operation.