INCOME TAXES

9 Months Ended

Dec. 31, 2011

INCOME TAXES [Abstract]

INCOME TAXES

NOTE 14. INCOME TAXES

During the three months ended December 31, 2011 and 2010, our income tax provision was $1.7 million, based on an effective tax rate of 37%, and $2.0 million, based on an effective tax rate of 35%, respectively.  The increase in the effective tax rate during the three months ended December 31, 2011, as compared to the three months ended December 31, 2010, was primarily due to tax benefits resulting from the retroactive extension of the federal research and development tax credit during the three months ended December 31, 2010, partially offset by an expense recognized during the three months ended December 31, 2010 as a result of a decrease in California deferred tax assets due to a change in tax law impacting California apportionment.

During the nine months ended December 31, 2011 and 2010, our income tax provision was $4.9 million, based on an effective tax rate of 37%, and $6.7 million, based on an effective tax rate of 38%, respectively.  The decrease in the effective tax rate during the nine months ended December 31, 2011, as compared to the nine months ended December 31, 2010, was primarily due to lower state tax expenses resulting from the change in California to a single factor apportionment.

We did not have any unrecognized tax benefits as of December 31, 2011 or December 31, 2010.  During the three and nine months ended December 31, 2011 and 2010, we did not recognize any interest or penalties related to unrecognized tax benefits.