NOTE 16.

INCOME TAXES

During the three months ended June 30, 2016 and 2015, our income tax provision was $3.8 million, based on an effective tax rate of 36%, and $4.0 million, based on an effective tax rate of 36%, respectively. The change in the income tax provision during the first quarter of fiscal 2017, as compared to the same period last year, was impacted by a lower pre-tax income and a lower effective tax rate. The effective tax rate during the three months ended June 30, 2016, as compared to the same period last year, was reduced by the retroactive reinstatement of the federal research credit during the quarter ended December 31, 2015, partially offset by a decrease in the federal benefit for qualified production activities.

We did not have any unrecognized tax benefits as of June 30, 2016 and March 31, 2016. During the three months ended June 30, 2016 and 2015, we did not recognize any interest or penalties related to unrecognized tax benefits.