INCOME TAXES

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE E – INCOME TAXES

Our effective income tax rates include federal and state income taxes. For the quarter ended March 31, 2012 our effective tax rate was 36%. For the quarter ended March 31, 2013, we recorded a tax benefit at a rate of 63%. The effective tax rate for the quarter ended March 31, 2013 was impacted by the American Taxpayer Relief Act of 2012, which was signed into law on January 2, 2013 and retroactively reinstated the research tax credit. Although the reinstatement of this tax credit is retroactive to January 1, 2012, the enactment of this legislation in 2013 precluded us from recording the benefit in 2012. As a result, our income tax provision was reduced by approximately $32,000 in the first quarter of 2013 to recognize the 2012 benefit of this tax credit that would have otherwise been recorded in 2012.