| (Mark One) |                                                                                     |
|------------|------------------------------------------------------------------------------------------|
| x          | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|       |                                                                                     |
|       | For the quarterly period ended March 31, 2012                                       |
| OR    |
| o          | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

| Delaware                                                                           | 38-1799862                           |
|------------------------------------------------------------------------------------|--------------------------------------|
| (State or Other Jurisdiction of                                                    | (I.R.S. Employer Identification No.) |
| Incorporation or Organization)                                                     |                                 |
|                                                                               |                                 |
| 2525 Shader Rd., Orlando, Florida                                                  | 32804                                |
| (Address of principal executive offices)                                           | (Zip Code)                           |
|                                                                               |
| (407) 298-2000                                                                     |
| (Registrant’s telephone number, including area code)                         |
|                                                                               |                                 |
|                                                                               |                                 |
| (Former name, former address, and former fiscal year if changed since last report) |

| Class                        |   | Outstanding at May 14, 2012 |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|
| Common Stock, $0.01 par value                                                                                                                   |   |  2,599,866             |

----

| PART I.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Financial Statements (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Condensed Consolidated Balance Sheets:                                                                                                                              | 1      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |        – As of March 31, 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |        – As of December 31, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Condensed Consolidated Statements of Operations:                                                                                                                    | 3      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |        – Three months ended March 31, 2012 and 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Condensed Consolidated Statements of Comprehensive (Loss) Income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 4      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |        – Three months ended March 31, 2012 and 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Condensed Consolidated Statement of Stockholders’ Equity:                                                                                                     | 5      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  – Three months ended March 31, 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Condensed Consolidated Statements of Cash Flows:                                                                                                                    | 6      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |       – Three months ended March 31, 2012 and 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Notes to Condensed Consolidated Financial Statements:                                                                                                               | 7      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Management’s Discussion and Analysis of Financial Condition and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Results of Operations                                                                                                                                                                   | 13     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Quantitative and Qualitative Disclosures About Market Risk                                                                                                          | 18     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Controls and Procedures                                                                                                                                             | 19     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| PART II.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Legal Proceedings                                                                                                                                                   | 20     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Item 1A.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Risk Factors                                                                                                                                                        | 20     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                         | 20     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Defaults Upon Senior Securities                                                                                                                                     | 20     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Mine Safety Disclosures                                                                                                                                             | 20     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Item 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Other Information                                                                                                                                                   | 20     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Item 6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Exhibits                                                                                                                                                            | 21     |
| SIGNATURES                                                                                                                          |  22                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | March 31, |    |   | December 31, |     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|--------|--------------|----------|
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2012      |    |   |         | 2011 (A) |   |
| Current Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |      |    |   |         |     |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $         | 13,392  |   |         | $        | 13,709 |   |
| Accounts receivable, less allowances of $116 and $131, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |      | 3,807   |   |         |     | 4,309 |   |
| Inventories, net (Note C)                                                                                                                     |   |      | 5,840   |   |         |     | 5,676 |   |
| Deferred income taxes                                                                                                                         |   |      | 960     |   |         |     | 960 |   |
| Prepaid expenses and other current assets                                                                                                     |   |      | 279     |   |         |     | 292 |   |
| Total Current Assets                                                                                                                                         |   |      | 24,278  |   |         |     | 24,946 |   |
| Property, Plant and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |      |    |   |         |     |   |   |
| Land                                                                                                                                          |   |      | 640     |   |         |     | 640 |   |
| Buildings and improvements                                                                                                                    |   |      | 3,652   |   |         |     | 3,620 |   |
| Machinery and equipment                                                                                                                       |   |      | 15,263  |   |         |     | 15,001 |   |
| Gross property, plant and equipment                                                                                                           |   |      | 19,555  |   |         |     | 19,261 |   |
| Less:  accumulated depreciation                                                                                                     |   |      | (14,891 | )      |         |     | (14,731 | ) |
| Net property, plant, and equipment                                                                                                            |   |      | 4,664   |   |         |     | 4,530 |   |
| Deferred income taxes, net                                                                                                     |   |      | 2,651   |   |         |     | 2,385 |   |
| Other assets, net                                                                                                              |   |      | 552     |   |         |     | 560 |   |
| Total Assets                                                                                                                                                 |   | $         | 32,145  |   |         | $        | 32,421 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |      |    |   |         |     |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | March 31, |    |   | December 31, |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|--------|--------------|----------|
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2012      |    |   |         | 2011 (A) |   |
| Current Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |      |    |   |         |     |   |
| Note payable to bank (Note D)                                                                                                                                      |   | $         | 2,956   |   |         | $        | 3,026 |   |
| Accounts payable                                                                                                                                                   |   |      | 2,392   |   |         |     | 1,755 |   |
| Accrued compensation and commissions expense                                                                                                                       |   |      | 1,098   |   |         |     | 1,102 |   |
| Other accrued expenses                                                                                                                                             |   |      | 291     |   |         |     | 545 |   |
| Current maturities of long-term debt (Note D)                                                                                                                      |   |      | 316     |   |         |     | 400 |   |
| Total Current Liabilities                                                                                                                                                         |   |      | 7,053   |   |         |     | 6,828 |   |
| Long-term debt, net of current portion (Note D)                                                                                                     |   |      | — |   |         |     | — |   |
| Total Liabilities                                                                                                                                                                 |   |      | 7,053   |   |         |     | 6,828 |   |
| Commitments and Contingencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |      |    |   |         |     |   |   |
| Stockholders’ Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |      |    |   |         |     |   |   |
| Common stock, $0.01 par value - 10,000,000 shares authorized; 2,635,320 shares issued and 2,599,866 shares outstanding at March 31, 2012, and 2,628,188 shares issued and 2,592,734 shares outstanding at December 31, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |      | 26      |   |         |     | 26 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |      | 27,745  |   |         |     | 27,656 |   |
| Accumulated deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |      | (2,392  | )      |         |     | (1,799 | ) |
| Treasury stock; 35,454 shares held in treasury at cost at March 31, 2012 and December 31, 2011                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |      | (315    | )      |         |     | (315 | ) |
| Accumulated other comprehensive income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |      | 28      |   |         |     | 25 |   |
| Total Stockholders' Equity (Note J)                                                                                                                                               |   |      | 25,092  |   |         |     | 25,593 |   |
| Total Liabilities and Stockholders' Equity                                                                                                                                        |   | $         | 32,145  |   |         | $        | 32,421 |   |

| (A)   | The Condensed Consolidated Balance Sheet as of December 31, 2011, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Three MonthsEnded March 31, |      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2012                        |      |   | 2011 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                        |      |   |   |   |
| REVENUES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                           | 7,174     |   |   | $ | 9,020 |   |
| Cost and expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                        |      |   |   |   |   |   |
| Manufacturing cost of sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                        | 5,577     |   |   |   | 6,078 |   |
| Engineering, selling and administrative                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                        | 2,398     |   |   |   | 2,559 |   |
| Total Cost and Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                        | 7,975     |   |   |   | 8,637 |   |
| OPERATING INCOME (LOSS)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                        | (801      | ) |   |   | 383 |   |
| Other income (expense):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                        |      |   |   |   |   |   |
| Interest (expense)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                        | (27       | ) |   |   | (12 | ) |
| Other income (expense)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                        | (31       | ) |   |   | 9 |   |
|    Total Other Income (Expense)                                                                                              |   |                        | (58       | ) |   |   | (3 | ) |
| INCOME (LOSS) BEFORE INCOME TAXES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                        | (859      | ) |   |   | 380 |   |
| Income tax benefit (provision)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                        | 266       |   |   |   | (139 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                        |      |   |   |   |   |   |
| NET INCOME (LOSS)                                                                                                                           |   | $                           | (593      | ) |   | $ | 241 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                        |      |   |   |   |   |   |
| Weighted average number of shares used in basic and diluted net income (loss) per common share calculation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                        | 2,595,242 |   |   |   | 2,481,149 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                        |      |   |   |   |   |   |
| BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                           | (0.23     | ) |   | $ | 0.10 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Three MonthsEnded March 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2012                        |   |   | 2011 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                        |   |   |   |   |
| NET INCOME (LOSS)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                           | (593   | ) |   | $ | 241 |   |
| Other comprehensive income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                        |   |   |   |   |   |   |
| Unrealized gain on available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                        | 3      |   |   |   | 18 |   |
| Deferred gain on swap liability on hedge contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                        | --     |   |   |   | 5 |   |
| COMPREHENSIVE INCOME (LOSS)                                                                                              |   | $                           | (590   | ) |   | $ | 264 |   |

----

|                              |   | Shares of Common Stock Outstanding |      |   | Common Stock |   |   | Additional Paid-In Capital |   |   | Accumulated Deficit |   |   | Accumulated Other ComprehensiveIncome |   |   | Treasury Stock |   |   | Total  |   |
|-----------------------------------|--------|------------------------------------|-----------|--------|--------------|--------|--------|----------------------------|--------|--------|---------------------|--------|--------|---------------------------------------|--------|--------|----------------|--------|--------|--------|--------|
| Balance at December 31, 2011      |   |                               | 2,592,734 |   |         | $      | 26     |                       |   | $      | 27,656              |   |   | $                                     | (1,799 | )      |           | $      | 25     |   |   | $ | (315 | ) |   | $ | 25,593 |   |
| Net loss for period               |   |                               | --        |   |         |   | --     |                       |   |   | --                  |   |   |                                  | (593   | )      |           |   | --     |   |   |   | -- |   |   |   | (593 | ) |
| Other comprehensive income        |   |                               | --        |   |         |   | --     |                       |   |   | --                  |   |   |                                  | --     |   |           |   | 3      |   |   |   | -- |   |   |   | 3 |   |
| Stock-based compensation (Note E) |   |                               | 7,132     |   |         |   | --     |                       |   |   | 89                  |   |   |                                  | --     |   |           |   | --     |   |   |   | -- |   |   |   | 89 |   |
| Balance at March 31, 2012         |   |                               | 2,599,866 |   |         | $      | 26     |                       |   | $      | 27,745              |   |   | $                                     | (2,392 | )      |           | $      | 28     |   |   | $ | (315 | ) |   | $ | 25,092 |   |

----

|                                                                                                  |   | Three Months EndedMarch 31, |   |
|------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                                                       |   | 2012                        |   |   | 2011 |   |
|                                                                                                       |   |                        |   |   |   |   |
| OPERATING ACTIVITIES                                                                                       |   |                        |   |   |   |   |
| Net income (loss)                                                                                          |   | $                           | (593   | ) |   | $ | 241 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:                          |   |                        |   |   |   |   |   |   |
| Depreciation                                                                                               |   |                        | 160    |   |   |   | 168 |   |
| Amortization of finite-lived intangible assets                                                             |   |                        | 21     |   |   |   | 36 |   |
| Stock-based compensation                                                                                   |   |                        | 89     |   |   |   | 34 |   |
| Deferred income taxes                                                                                      |   |                        | (266   | ) |   |   | 93 |   |
| Changes in operating assets and liabilities:                                                               |   |                        |   |   |   |   |   |   |
|    Decrease in accounts receivable                                                          |   |                        | 502    |   |   |   | 981 |   |
|    Increase in inventories                                                                  |   |                        | (164   | ) |   |   | (338 | ) |
|    (Increase) Decrease in trade accounts payable, accrued liabilities and other liabilities |   |                        | 382    |   |   |   | (54 | ) |
|    Increase in other current assets                                                         |   |                        | --     |   |   |   | (18 | ) |
| Net cash provided by operating activities                                                                  |   |                        | 131    |   |   |   | 1,143 |   |
|                                                                                                       |   |                        |   |   |   |   |   |   |
| INVESTING ACTIVITIES                                                                                       |   |                        |   |   |   |   |   |   |
| Capital expenditures                                                                                       |   |                        | (294   | ) |   |   | (569 | ) |
| Net cash used in investing activities                                                                      |   |                        | (294   | ) |   |   | (569 | ) |
|                                                                                                       |   |                        |   |   |   |   |   |   |
| FINANCING ACTIVITIES                                                                                       |   |                        |   |   |   |   |   |   |
| Net repayments on note payable to bank                                                                     |   |                        | (70    | ) |   |   | -- |   |
| Proceeds from issuance of common stock                                                                     |   |                        | --     |   |   |   | 6,562 |   |
| Payment of expenses related to the public offering                                                         |   |                        | --     |   |   |   | (158 | ) |
| Principal payments on long-term debt                                                                       |   |                        | (84    | ) |   |   | (73 | ) |
| Net cash provided by (used in) financing activities                                                        |   |                        | (154   | ) |   |   | 6,331 |   |
|                                                                                                       |   |                        |   |   |   |   |   |   |
| Increase (decrease) in cash and cash equivalents                                                           |   |                        | (317   | ) |   |   | 6,905 |   |
| Cash and cash equivalents at beginning of period                                                           |   |                        | 13,709 |   |   |   | 4,147 |   |
| Cash and cash equivalents at end of period                                                                 |   | $                           | 13,392 |   |   | $ | 11,052 |   |
|                                                                                                       |   |                        |   |   |   |   |   |   |
|   Supplemental Disclosure:                                                                       |   |                        |   |   |   |   |   |   |
|                                                                                                       |   |                        |   |   |   |   |   |   |
|       Cash paid for income taxes                                             |   | $                           | 5      |   |   | $ | 35 |   |
|       Cash paid for interest                                                 |   | $                           | 32     |   |   | $ | 9 |   |

----

| A.   | Subsidiaries of the Registrant |
|----------------|--------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Owned By LGL |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|
| M-tron Industries, Inc.                                                                                                                                                                                           |   |         | 100.0  | % |
|         M-tron Industries, Ltd.                                                                                                                                           |   |         | 99.9   | % |
|         Piezo Technology, Inc.                                                                                                                                            |   |         | 100.0  | % |
|                 Piezo Technology India Private Ltd.                                                                               |   |         | 99.0   | % |
| Lynch Systems, Inc.                                                                                                                                                                                          |   |         | 100.0  | % |

| B.   | Basis of Presentation |
|----------------|-----------------------|

----

| C.   | Inventories |
|----------------|-------------|

|              |   | March 31,2012  |   |   | December 31,2011 |   |
|------------------------|--------|----------------|--------|--------|------------------|--------|
|                   |   | (in thousands) |   |
| Raw materials, net     |   | $              | 2,809  |   |             | $      | 2,864 |   |
| Work in process, net   |   |           | 1,598  |   |             |   | 1,384 |   |
| Finished goods, net    |   |           | 1,433  |   |             |   | 1,428 |   |
| Total Inventories, net |   | $              | 5,840  |   |             | $      | 5,676 |   |

| D.   | Notes Payable to Banks and Long-Term Debt |
|----------------|-------------------------------------------|

|                                                                                                                                                                                                                      |   | March 31, 2012 |   |   | December 31,2011 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|------------------|--------|
| Notes Payable:                                                                                                                                                                                                            |   | (in thousands) |   |
| MtronPTI revolving loan with J.P. Morgan Chase Bank, N.A. (“Chase”) at the greater of Chase’s prime rate or the one-month LIBOR rate plus 2.50% per annum (3.25% at March 31, 2012), due June 30, 2013. |   | $              | 2,956  |   |             | $      | 3,026 |   |
|                                                                                                                                                                                                                      |   |           |   |   |             |   |   |   |
| Long-Term Debt:                                                                                                                                                                                                           |   |           |   |   |             |   |   |   |
| MtronPTI term loan with Chase due January 31, 2013. The note bears interest at a fixed rate of 5.00%                                                                                                                 |   |           | 316    |   |             |   | 400 |   |
|                                                                                                                                                                                                                      |   |           |   |   |             |   |   |   |
| Less: Current maturities                                                                                                                                                                                                  |   |           | 316    |   |             |   | 400 |   |
| Long-Term Debt                                                                                                                                                                                                            |   | $              | --     |   |             | $      | -- |   |

----

| E.   | Stock-Based Compensation |
|----------------|--------------------------|

----

| F.   | Earnings (Loss) Per Share |
|----------------|---------------------------|

| G.   | Fair Value Measurements |
|----------------|-------------------------|

----

|                     |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |   | March 31,2012 |   |
|--------------------------|--------|---------------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|------------------------------------------|--------|--------|---------------|--------|
|                     |   | (in thousands)                                                |   |
| Equity securities        |   | $                                                             | 43     |   |                                         | $      | --     |                                     |   | $      | --            |   |   | $ | 43 |   |
| U.S. Treasury securities |   | $                                                             | 10,587 |   |                                         | $      | --     |                                     |   | $      | --            |   |   | $ | 10,587 |   |

|                     |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |   | December 31, 2011 |   |
|--------------------------|--------|---------------------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|------------------------------------------|--------|--------|-------------------|--------|
|                     |   | (in thousands)                                                |   |
| Equity securities        |   | $                                                             | 40     |   |                                         | $      | --     |                                     |   | $      | --                |   |   | $ | 40 |   |
| U.S. Treasury securities |   | $                                                             | 10,087 |   |                                         | $      | --     |                                     |   | $      | --                |   |   | $ | 10,087 |   |

| H.   | Foreign Revenues |
|----------------|------------------|

|                                                 |   | Three Months EndedMarch 31, |   |
|------------------------------------------------------|--------|-----------------------------|--------|
| Foreign Revenues:                                    |   | 2012                        |   |   | 2011 |   |
|                                                 |   | (in thousands)              |   |
| Malaysia                                             |   | $                           | 1,079  |   |   | $ | 1,613 |   |
| China                                                |   |                        | 934    |   |   |   | 1,277 |   |
| Thailand                                             |   |                        | 359    |   |   |   | 294 |   |
| All other foreign countries                          |   |                        | 950    |   |   |   | 1,663 |   |
|      Total foreign revenues |   | $                           | 3,322  |   |   | $ | 4,847 |   |

| I.   | Commitments and Contingencies |
|----------------|-------------------------------|

----

| J.   | Stockholders’ Equity |
|----------------|----------------------------|

| K.   | Related Party Transactions |
|----------------|----------------------------|

| L.   | New Accounting Standards |
|----------------|--------------------------|

| M.   | Subsequent Events |
|----------------|-------------------|

----

|   | Consolidated Revenues and Gross Margin |
|--------|----------------------------------------|

----

|   | Operating Income (Loss) |
|--------|-------------------------|

|   | Interest expense |
|--------|------------------|

|   | Net Income (Loss) |
|--------|-------------------|

----

----

| ‒   | Persuasive evidence that an arrangement exists; |
|---------------------|-------------------------------------------------|

| ‒   | Delivery has occurred; |
|---------------------|------------------------|

| ‒   | The seller’s price to the buyer is fixed and determinable; and |
|---------------------|----------------------------------------------------------------------|

| ‒   | Collectability is reasonably assured. |
|---------------------|---------------------------------------|

----

| ‒   | Seller’s price to the buyer is  fixed or determinable at the date of sale; |
|---------------------|--------------------------------------------------------------------------------------------|

| ‒   | Buyer has paid the seller, or the buyer is obligated to pay the seller and the obligation is not contingent on resale of the product; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ‒   | Buyer’s obligation to the seller would not be changed in the event of theft or physical destruction or damage of the product; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ‒   | Buyer acquiring the product for resale has economic substance apart from that provided by the seller; |
|---------------------|-------------------------------------------------------------------------------------------------------|

| ‒   | Seller does not have obligations for future performance; and |
|---------------------|--------------------------------------------------------------|

| ‒   | The amount of future returns can be reasonably estimated. |
|---------------------|-----------------------------------------------------------|

----

----

----

----

| Exhibit No. |  Description                                                                                                                                   |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                |
| 10.1        | Assignment of Deposit agreement, dated May 15, 2012, by and among M-tron Industries, Inc., Piezo Technology, Inc. and J.P. Morgan Chase Bank, N.A.* |
| 31.1        | Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*                                        |
| 31.2        | Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*                                        |
| 32.1        | Certification of the Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                        |
| 32.2        | Certification of the Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*                                        |
| 101.INS     | XBRL Instance Document**                                                                                                                            |
| 101.SCH     | XBRL Taxonomy Extension Schema Document**                                                                                                           |
| 101.CAL     | XBRL Taxonomy Extension Calculation Linkbase Document**                                                                                             |
| 101.DEF     | XBRL Taxonomy Extension Definition Linkbase Document**                                                                                              |
| 101.LAB     | XBRL Taxonomy Extension Label Linkbase Document**                                                                                                   |
| 101.PRE     | XBRL Taxonomy Extension Presentation Linkbase Document**                                                                                            |

|   | * Filed herewith  |
|--------|------------------------|

|   | ** Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed as part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                  |   | THE LGL GROUP, INC. |
|-------------------------------------------------------------------------------------------------------|--------|---------------------|
|                                                                                                  |   |                |
|                                                                                                  |   |                |
| Date:              May 15, 2012 |   | By:                 | /s/ Gregory P. Anderson |
|                                                                                                  |   |                | Gregory P. Anderson |
|                                                                                                  |   |                | President and Chief Executive Officer(Principal Executive Officer) |
|                                                                                                  |   |                |   |
|                                                                                                  |   |                |   |
| Date:              May 15, 2012 |   | By:                 | /s/ R. LaDuane Clifton |
|                                                                                                  |   |                | R. LaDuane Clifton |
|                                                                                                  |   |                | Chief Accounting Officer(Principal Financial Officer) |

----