NOTE 16.

INCOME TAXES

During the three months ended December 31, 2015 and 2014, our income tax provision was $3.5 million, based on an effective tax rate of 31%, and $3.3 million, based on an effective tax rate of 35%, respectively. The dollar increase in the income tax provision during the third quarter of fiscal 2016, as compared to the same period last year, was primarily attributable to higher pre-tax income, partially offset by the retroactive reinstatement of federal research and developement tax credits. The effective tax rate during the three months ended December 31, 2015, as compared to the same period last year, was impacted by an increase in the federal tax benefit for qualified production activities and the retroactive reinstatement of federal research and developement tax credits.

During the nine months ended December 31, 2015 and 2014, our income tax provision was $12.0 million, based on an effective tax rate of 34%, and $9.5 million, based on an effective tax rate of 36%, respectively. The dollar increase in the income tax provision during the nine months ended December 31, 2015, as compared to the same period last year, was primarily attributable to higher pre-tax income. The effective tax rate during the nine months ended December 31, 2015, as compared to the same period last year, was impacted by an increase in the federal tax benefit for qualified production activities and the retroactive reinstatement of federal research and developement tax credits.

We did not have any unrecognized tax benefits as of December 31, 2015 and March 31, 2015. During the three and nine months ended December 31, 2015 and 2014, we did not recognize any interest or penalties related to unrecognized tax benefits.