----

----

| FLORIDA                                                        | 59-2095002                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification no.) |

| Large accelerated filer o           | Accelerated filer o              |
|------------------------------------------|---------------------------------------|
| Non-accelerated filer   o | Smaller reporting company þ |
|                                     |                                  |   |   |   |

----

| PART I — FINANCIAL INFORMATION                                                                                         |
|------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                         |
|                                                                                                                         | Item 1.  Financial Statements  (Unaudited) |
|                                                                                                                         |    Condensed Consolidated Balance Sheets |
|                                                                                                                         |    Condensed Consolidated Statements of Income |
|                                                                                                                         |    Condensed Consolidated Statements of Cash Flows |
|                                                                                                                         |    Notes to the Condensed Consolidated Financial Statements |
|                                                                                                                         | Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|                                                                                                                         | Item 3.  Quantitative and Qualitative Disclosures About Market Risk  |
|                                                                                                                         | Item 4.  Controls and Procedures |
|                                                                                                                         |
| PART II — OTHER INFORMATION                                                                                            |
|                                                                                                                         |
|                                                                                                                         | Item 1.  Legal Proceedings |
|                                                                                                                         | Item 1A.  Risk Factors  |
|                                                                                                                         | Item 4.  Submission of Matters to a Vote of Security Holders |
|                                                                                                                         | Item 6.  Exhibits |
|                                                                                                                         |   |
| SIGNATURES                                                                                                              |
|                                                                                                                         |
| Exhibit 31.1 — Certification of Chief Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002 |
|                                                                                                                         |
| Exhibit 31.2 — Certification of Chief Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002 |
|                                                                                                                         |
| Exhibit 32.1 — Certification of Chief Executive Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002 |
|                                                                                                                         |
| Exhibit 32.2 — Certification of Chief Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002 |
|                                                                                                                         |
|                                                                                                                         |

----

Item 1.

Condensed Consolidated Balance Sheets

|                                                                                                                                                                          |   | September 30, |   |   | March 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-----------|--------|
|   ASSETS                                                                                                                                                            |   | 2009               |   |   | 2009      |   |
| Current assets:                                                                                                                                                               |   |               |   |   |      |   |
|    Cash and cash equivalents                                                                                                                                   |   | $                  | 7,068  |   |      |   | 2,954 |   |
|    Short-term investments                                                                                                                                           |   |               | 4,000  |   |      |   | 3,996 |   |
|    Trade and other accounts receivable, net of allowance for doubtful                                                                                                         |   |               |   |   |      |   |   |   |
|         accounts of $135 at September 30, 2009 and $203 at March 31, 2009                                              |   |               | 5,421  |   |      |   | 5,372 |   |
|                                                                                                                                                                                    |   |               |   |   |      |   |   |   |
|    Income taxes receivable                                                                                                                                     |   |               | 261    |   |      |   | 631 |   |
|    Inventories, net                                                                                                                                            |   |               | 6,306  |   |      |   | 8,013 |   |
|    Deferred income taxes                                                                                                                                            |   |               | 753    |   |      |   | 622 |   |
|    Prepaid expenses and other current assets                                                                                                                   |   |               | 180    |   |      |   | 265 |   |
|      Total current assets                                                                                                                                 |   |               | 23,989 |   |      |   | 21,853 |   |
|                                                                                                                                                                                    |   |               |   |   |      |   |   |   |
| Property, plant and equipment, net of accumulated depreciation of                                                                                                                  |   |               |   |   |      |   |   |   |
|    $10,105 and $9,852, respectively                                                                                                                            |   |               | 2,736  |   |      |   | 3,189 |   |
| Intangible asset, net of accumulated amortization of $207 and $178, respectively                                                                                         |   |               | 375    |   |      |   | 404 |   |
| Deferred income taxes – non-current                                                                                                                                               |   |               | 100    |   |      |   | - |   |
| Other assets                                                                                                                                                                  |   |               | 33     |   |      |   | 33 |   |
|  Total assets                                                                                                                                                                 |   | $                  | 27,233 |   |      |   | 25,479 |   |
|                                                                                                                                                                                    |   |               |   |   |      |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                    |   |               |   |   |      |   |   |   |
| Current liabilities:                                                                                                                                                               |   |               |   |   |      |   |   |   |
|    Trade accounts payable                                                                                                                                                     |   | $                  | 1,351  |   |      |   | 1,309 |   |
|    Unsettled treasury obligation                                                                                                                                              |   |               | -      |   |      |   | 998 |   |
|    Accrued expenses                                                                                                                                                           |   |               | 1,507  |   |      |   | 1,422 |   |
|    Accrued dividends                                                                                                                                                          |   |               | 121    |   |      |   | 121 |   |
|       Total current liabilities                                                                                                                                |   |               | 2,979  |   |      |   | 3,850 |   |
|                                                                                                                                                                                    |   |               |   |   |      |   |   |   |
| Income taxes payable                                                                                                                                                               |   |               | 330    |   |      |   | 111 |   |
| Deferred income taxes                                                                                                                                                              |   |               | -      |   |      |   | 37 |   |
|          Total liabilities                                                                                                                      |   |               | 3,309  |   |      |   | 3,998 |   |
|                                                                                                                                                                                    |   |               |   |   |      |   |   |   |
| Stockholders' equity:                                                                                                                                                              |   |               |   |   |      |   |   |   |
|    Common stock $0.51 par value; 10,000,000 shares authorized,                                                                                                                |   |               |   |   |      |   |   |   |
|      5,913,328 shares issued and 5,891,828 shares outstanding and     5,912,328 shares issued and 5,890,828 outstanding, respectively |   |               | 3,016  |   |      |   | 3,015 |   |
|    Additional paid-in capital                                                                                                                                                 |   |               | 10,233 |   |      |   | 9,982 |   |
|    Retained earnings                                                                                                                                                          |   |               | 10,715 |   |      |   | 8,524 |   |
|    Common stock held in treasury, 21,500 shares at cost                                                                                                                       |   |               | (40    | )      |      |   | (40 | ) |
|       Total stockholders' equity                                                                                                                               |   |               | 23,924 |   |      |   | 21,481 |   |
|          Total liabilities and stockholders' equity                                                                                             |   |  $            | 27,233 |   |      |   | 25,479 |   |

----

Condensed Consolidated Statements of Income

|                                                                                                                                ThreeMonths Ended September 30,  |   | Six Months Ended September 30,                                  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2009                                                                                                                                                                                                                                 |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Revenue:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                                                                                                                                                                                                                    | 3,679 |   |   |   | 5,526 |   |   |   | 7,044 |   |   |   | 11,088 |   |
|    Military                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                                                                                                 | 5,901 |   |   |   | 3,697 |   |   |   | 12,109 |   |   |   | 6,685 |   |
|    Royalty                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                 | 47 |   |   |   | 74 |   |   |   | 173 |   |   |   | 155 |   |
|       Total revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                 | 9,627 |   |   |   | 9,297 |   |   |   | 19,326 |   |   |   | 17,928 |   |
| Cost of sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                 | 5,721 |   |   |   | 5,773 |   |   |   | 11,370 |   |   |   | 11,870 |   |
|          Gross profit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                                                 | 3,906 |   |   |   | 3,524 |   |   |   | 7,956 |   |   |   | 6,058 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Selling and marketing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                                                 | 608 |   |   |   | 824 |   |   |   | 1,280 |   |   |   | 1,511 |   |
|    General and administrative                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                 | 994 |   |   |   | 1,323 |   |   |   | 1,998 |   |   |   | 2,570 |   |
|    Research and development                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                                                                                                 | 658 |   |   |   | 593 |   |   |   | 1,331 |   |   |   | 1,130 |   |
|       Total operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                 | 2,260 |   |   |   | 2,740 |   |   |   | 4,609 |   |   |   | 5,211 |   |
|           Income from operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                                                 | 1,646 |   |   |   | 784 |   |   |   | 3,347 |   |   |   | 847 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Other income, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                                                                                                                                                                 | 2 |   |   |   | 362 |   |   |   | 5 |   |   |   | 380 |   |
|    Interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                 | - |   |   |   | (4 | ) |   |   | - |   |   |   | (4 | ) |
|           Other income (expense), net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                                                                                                                                                                                 | 2 |   |   |   | 358 |   |   |   | 5 |   |   |   | 376 |   |
| Income  before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                                                                                                                                                                 | 1,648 |   |   |   | 1,142 |   |   |   | 3,352 |   |   |   | 1,223 |   |
| Income tax expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                                                                                                                                                                                                 | 431 |   |   |   | 204 |   |   |   | 920 |   |   |   | 227 |   |
|    Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                                                                                                                                                                                                                    | 1,217 |   |   |   | 938 |   |   |   | 2,432 |   |   |   | 996 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings  per share - basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $                                                                                                                                                                                                                                    | 0.20 |   |   |   | 0.16 |   |   |   | 0.41 |   |   |   | 0.17 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings  per share - diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                                                                                                                                                                                                                    | 0.20 |   |   |   | 0.16 |   |   |   | 0.40 |   |   |   | 0.17 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares outstanding - basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                                                                                                                                                                 | 5,891,828 |   |   |   | 5,890,828 |   |   |   | 5,891,828 |   |   |   | 5,890,828 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares outstanding - diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                                                                                                                                                                                                 | 5,985,691 |   |   |   | 5,899,593 |   |   |   | 5,944,280 |   |   |   | 5,901,197 |   |

----

Condensed Consolidated Statements of Cash Flows

|                        |                                  |   |
|--------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|--------|
|                                                                                                                                 |   Six Months Ended September 30, |   |   |
|                                                                                                                                 |                                  |   |   |                 2009 |   |   |   |    2008 |   |   |   |
| Cash flows from operating activities:                                                                                                |                                  |   |   |   |   |   |   |   |   |   |   |
|    Net income                                                                                                         |                                  |   |  $ |                    2,432 |   |   |   |             996 |   |   |   |
| Adjustments to reconcile net income                                                                                                  |                                  |   |   |
|       to net cash provided by operating activities:                                                         |                                  |   |   |
|    Accretion of interest on short-term investments and other receivable                                          |                                  |   |   | (8 | ) |   |   | (30 | )  |   |
|    Bad debt expense                                                                                                   |                                  |   |   | - |   |   |   | 16 |   |   |
|    Depreciation                                                                                                       |                                  |   |   | 523 |   |   |   | 584 |   |   |
|    Accretion of interest on note receivable                                                                           |                                  |   |   | - |   |   |   | (23 | ) |   |
|    Amortization of intangible assets                                                                                  |                                  |   |   | 29 |   |   |   | 29 |   |   |
|    Stock compensation expense                                                                                              |                                  |   |   | 250 |   |   |   | 210 |   |   |
|    Deferred income taxes                                                                                                   |                                  |   |   | (268 | ) |   |   | 751 |   |   |
|    Loss on disposal of equipment                                                                                      |                                  |   |   | 143 |   |   |   | 26 |   |   |
|                                                                                                                                 |                                  |   |   |   |   |
| Changes in operating assets and liabilities:                                                                                         |                                  |   |   |   |   |
|    Trade and other accounts receivable, net                                                                                |                                  |   |   | (49 | ) |   |   | 1,350 |   |
|    Inventories, net                                                                                                   |                                  |   |   |              1,707 |   |   |   | (127 | )  |
|    Prepaid expenses and other current assets                                                                               |                                  |   |   | 85 |   |   |   | 38 |   |
|    Other assets                                                                                                            |                                  |   |   | - |   |   |   | 8 |   |
|    Trade accounts payable                                                                                             |                                  |   |   | 42 |   |   |   | (496 | )  |
|    Accrued expenses                                                                                                   |                                  |   |   | 85 |   |   |   | (404 | )  |
|    Income taxes receivable and income taxes payable                                                                   |                                  |   |   | 589 |   |   |   | (524 | )  |
|         Net cash provided by operating activities                                                 |                                  |   |   | 5,560 |   |   |   | 2,404 |   |
| Cash flows from investing activities:                                                                                                |                                  |   |   |   |   |   |   |   |   |
|    Maturities of short-term investments                                                                     |                                  |   |   | 3,000 |   |   |   | 1,500 |   |
|    Purchase of short-term investments                                                                                 |                                  |   |   | (3,994 | )  |   |   | (3,967 | )  |
|    Purchases of property and equipment                                                                           |                                  |   |   | (213 | )  |   |   | (325 | )  |
|         Net cash used in investing activities                                           |                                  |   |   | (1,207 | )  |   |   | (2,792 | ) |
| Cash flows from financing activities:                                                                                           |                                  |   |   |   |   |   |   |   |   |
|   Proceeds from exercise of stock options                                                                                  |                                  |   |   | 2 |   |   |   | - |   |
|    Cash dividends paid                                                                                                |                                  |   |   | (241 | ) |   |   | (237 | )  |
|         Net cash used in financing activities                                      |                                  |   |   | (239 | )  |   |   | (237 | )  |
| Net increase (decrease) in cash and cash equivalents                                                                       |                                  |   |   |              4,114 |   |   |   | (625 | ) |
| Cash and cash equivalents at beginning of period                                                                                     |                                  |   |   | 2,954 |   |   |   | 2,132 |   |
| Cash and cash equivalents at end of period                                                                                      |                                  |   | $ | 7,068 |   |   |   | 1,507 |   |

----

Notes to the Condensed Consolidated Financial Statements

|                                                            | Three months ended September 30,  | Six months ended September 30,  |   |
|-----------------------------------------------------------------|----------------------------------------|--------------------------------------|--------|
|                                                            |                                   |                                 |   |   |   |   |   |   |   |   |
|                                                            |                                   |                                 | 2009   |   | 2008 |   |               2009 |   |      2008 |   |
| Reconciliation of undistributed earnings:                       |                                   |                                 |   |   |   |   |   |   |   |   |
|   Net income available to common shareholders    |                                   | $                                    | 1,217  |   | 938 |   | 2,432 |   | 996 |   |
|   Less dividends on common stock                      |                                   |                                 | 118    |   | 118 |   | 237 |   | 237 |   |
|   Less dividends on unvested participating securities |                                   |                                 | 2      |   | - |   | 4 |   | - |   |
|   Undistributed earnings (1)                          |                                   | $                               | 1,097  |   | 820 |   | 2,191 |   | 759 |   |

|                                Three months ended September 30, | Six months ended September 30, |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|
|                                                                                                                                                                                                                  |                           |   |  2009 |   |   |                        2008 |      2009 |                      2008  |   |   |
| Basic earnings per share computation:                                                                                                                                                                                 |                           |   |   |   |   |   |   |   |   |   |   |
| Net income available to common shareholders                                                                                                                                                                           |                           | $ | 1,217 |   | 938 |   |   2,432 |   | 996 |   |   |
| Less: dividend equivalents on unvested participating securities                                                                                                                                                       |                           |   | 2 |   | - |   | 4  |   | - |   |   |
| Less: undistributed earnings allocated to unvested participating securities (1)                                                                                                                                       |                           |   | 20 |   | - |   | 39  |   | - |   |   |
| Undistributed earnings allocated to common shareholders                                                                                                                                                               |                           | $  | 1,195 |   | 938 |   | 2,389  |   | 996 |   |   |
|                  EPS Denominator:                                                                                                |                           |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding for basic earnings per share                                                                                                                                                      |                           |   | 5,891,828 |   | 5,890,828 |   | 5,891,828  |   | 5,890,828 |   |   |
| Basic earnings per common share                                                                                                                                                                                       |                           | $ | 0.20 |   | 0.16 |   |   0.41 |   | 0.17 |     |   |

|                                                                        |   |      Three months ended   September 30, |   |          Six months ended       September 30, |   |
|-----------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------|--------|
|                                                                        |   |  2009                                                       |   | 2008                                                                                                           |   | 2009 |   | 2008 |   |
|                                                                        |   |                                                             |   |                                                                                                           |   |   |   |   |   |
| Diluted earnings per common share computation (1)                           |   |                                                             |   |                                                                                                           |   |   |   |   |   |
| Net income available to common shareholders                                 | $      | 1,217                                                            |   | 938                                                                                                            |   | 2,432 |   | 996 |   |
| Less: dividend equivalents on unvested participating securities             |   | 2                                                                |   | -                                                                                                              |   | 4 |   | - |   |
| Less: undistributed earnings allocated to unvested participating securities |   | 20                                                               |   | -                                                                                                              |   | 39 |   | - |   |
| Undistributed earnings allocated to common shareholders                     | $      | 1,195                                                            |   | 938                                                                                                            |   | 2,389 |   | 996 |   |
| EPS Denominator:                                                            |   |                                                             |   |                                                                                                           |   |   |   |   |   |
| Weighted average shares outstanding for basic earnings per share            |   | 5,891,828                                                        |   | 5,890,828                                                                                                      |   | 5,891,828 |   | 5,890,828 |   |
| Dilutive common shares issuable upon exercise of stock options (2)          |   | 49,643                                                           |   | 8,765                                                                                                          |   | 17,271 |   | 10,369 |   |
| Dilutive unvested common shares associated with restricted stock awards     |   | 44,220                                                           |   | -                                                                                                              |   | 35,181 |   | - |   |
| Weighted average shares outstanding - diluted                               |   | 5,985,691                                                        |   | 5,899,593                                                                                                      |   | 5,944,280 |   | 5,901,197 |   |
|                                                                        |   |                                                             |   |                                                                                                           |   |   |   |   |   |
| Diluted earnings per common share                                           | $      | 0.20                                                             |   | 0.16                                                                                                           |   | 0.40 |   | 0.17 |   |

|  September 30, 2009 |   | March 31, 2009 |
|--------------------------|--------|----------------|
|                     |   |           |   |
| Raw materials            |   |           | $ | 4,543 |   |   |   | 5,084 |   |
| Work-in-process          |   |           |   | 605 |   |   |   | 766 |   |
| Finished goods           |   |           |   | 1,158 |   |   |   | 2,163 |   |
| Total                    |   |           | $ | 6,306 |   |   |   | 8,013 |   |
|                     |   |           |   |

|                                |   |               Three months ended                   September 30, |    |  Six months ended    September 30, |    |
|-------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------------------------------------------------------|---------|
|                                |   |                                                                                                                                                                                                                        |    |                                                   |    |   |   |   |   |   |
|                                |   |  2009                                                                                                                                                                                                                  |    |  2008                                             |    |  2009 |   |  2008 |   |   |
| Beginning balance                   |   | 162                                                                                                                                                                                                                         |    | 137                                                    |    | 164 |   | 137 |   |   |
|     Warranty expense |   | 153                                                                                                                                                                                                                         |    | 32                                                     |    | 195 |   | 59 |   |   |
|     Warranty claims  |   |  (75                                                                                                                                                                                                                   | )  |  (32                                              | )  | (119 | )  |  (59 | )  |   |
| Ending balance                      |   | 240                                                                                                                                                                                                                         |    | 137                                                    |    | 240 |   | 137 |   |   |

| If Funded Debt/EBITDA Ratio Is:  | The LIBOR Spread (basis points) will be: |
|----------------------------------|------------------------------------------|
|                             |                                     |
| < 1.50:1.00                   | 210                                      |
| ≥ 1.50:1.00 < 2.00:1.00 | 240                                      |
| ≥ 2.00:1.00                | 270                                      |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  Three months endedSeptember 30, | Six months endedSeptember 30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|-------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                  |                          |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                  |  2009                    |   |  2008 |   |  2009 |   |  2008 |   |
| Beginning balance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                  | 206                           |   | 13 |   | 127 |   | 12 |   |
| Additions based on tax                                                                           positions related to the current year |                                  | 1                             |   | 1 |   | 1 |   | 2 |   |
| Additions for tax positions of prior years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                  | 139                           |   |  - |   | 218 |   | - |   |
| Ending balance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                  | 346                           |   | 14 |   | 346 |   | 14 |   |

|                                            |   |                                                          |   |                                                          |   | Aggregate                                                                                                      |   | Weighted                                                         |   | Weighted                                                      |   |
|-------------------------------------------------|--------|---------------------------------------------------------------|--------|---------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|
|                                            |   | Shares                                                        |   |                                                          |   | intrinsic                                                                                                      |   | average                                                          |   | average                                                       |   |
|                                            |   |  available                                               |   | Options                                                       |   | value                                                                                                          |   | exercise                                                         |   | remaining                                                     |   |
|                                            |   |  for grant                                               |   | outstanding                                                   |   | (in thousands)                                                                                                 |   | price                                                            |   | contractual life                                              |   |
| Balance as of March 31, 2009          |   | 332,750                                                       |   |  955,586                                                 |   |          $        1            |   | $ 4.44                                                           |   | 8.09                                                          |   |
|    Options expired               |   | 14,299                                                        |   |     (14,299)                    |   |                   -       |   |           9.92      |   |     -                                     |   |
|    Options granted               |   |           - |   |           - |   |                   -       |   |        -                      |   |        -    |   |
|    Options canceled         |   | 29,058                                                        |   |     (29,058)                    |   |                   -       |   |           3.54 |   |     -                                          |   |
|    Options exercised             |   |           -           |   |     (1,000)                     |   |                    2 |   |           1.63      |   |     -                                          |   |
| Balance as of September 30, 2009           |   | 376,107                                                       |   |  911,229                                                 |   | $   464                                                                                         |   | $ 4.39                                                           |   | 7.46                                                          |   |
| Exercisable as of September 30, 2009  |   |                                                          |   | 470,646                                                       |   | $   69                                                                                               |   | $ 6.20                                                           |   | 6.22                                                          |   |
| _________________                          |   |                                                          |   |                                                          |   |                                                                                                           |   |                                                             |   |                                                          |   |

|                          |   | Three months endedSeptember 30, |   | Six months endedSeptember 30, |   |
|-------------------------------|--------|---------------------------------|--------|-------------------------------|--------|
|                          |   |                            |   |                          |   |   |   |   |   |
|                          |   |  2009                      |   |  2008                    |   |  2009 |   |  2008 |   |
| Expected dividend yield  |   |  N/A                       |   |  N/A                     |   |  N/A |   |  2.25% |   |
| Risk free interest rate  |   |  N/A                       |   |  N/A                     |   |  N/A |   |  3.15% |   |
| Expected volatility      |   |  N/A                       |   |  N/A                     |   |  N/A |   |  80.51% |   |
| Expected life            |   |  N/A                       |   |  N/A                     |   |  N/A |   |  7.38 years |   |

|                                             |   |    |   | Weighted-average |   |
|--------------------------------------------------|--------|---------|--------|------------------|--------|
|                                             |   |    |   | Grant-Date       |   |
|                                             |   | Shares  |   | Fair Value       |   |
| Non-vested balance at March 31, 2009             |   | 106,999 |   | $ 1.75           |   |
|    Restricted stock granted       |   | -       |   |             |   |
|    Restricted stock vested        |   | -       |   |             |   |
|    Restricted stock forfeited     |   | -       |   |             |   |
| Non-vested balance as of September 30, 2009 |   | 106,999 |   | $ 1.75           |   |

Item 2. 

| If Funded Debt/EBITDA Ratio Is:  | The LIBOR Spread (basis points) will be: |
|----------------------------------|------------------------------------------|
|                             |                                     |
| < 1.50:1.00                   | 210                                      |
| ≥ 1.50:1.00 < 2.00:1.00 | 240                                      |
| ≥ 2.00:1.00                | 270                                      |

Item 3. 

Item 4.  Controls and Procedures

Item 1. 

Item 1A. 

Item 4.  

|                        |  Shares Voted FOR |  Shares WITHHELD |
|-----------------------------|------------------------|-----------------------|
|  Owen Farren           | 5,042,341              |  216,453         |
|  Raymond B. Wood  | 5,045,441              |  213,353         |
|  Gerry Chastelet       | 4,813,483              |  445,311         |
|  Patrick M. Murphy     | 5,014,877              |  243,917         |
|  David F. Walker       | 5,045,798              |  212,996         |
|  Raymond V. Malpocher  | 5,014,510              |  244,284         |
|  N. John Simmons, Jr.  | 5,045,699              |  213,095         |

|   |   |
|--------|--------|

| Shares Voted FOR | Shares WITHHELD | Shares ABSTAINED |
|------------------|-----------------|------------------|
| 5,070,227        | 177,746         | 10,822           |

Item 6.

|   | Exhibit 31.1 — Certification of the CEO pursuant to Rule 13a-14(a) or Rule 15(d)-14(a).                                                                                                                                                                                             |   |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |
|   | Exhibit 31.2 — Certification of the CFO pursuant to Rule 13a-14(a) or Rule 15(d)-14(a).                                                                                                                                                                                             |   |
|   |
|   | Exhibit 32.1 — Certification pursuant to 18 U.S.C. §1350 as adopted pursuant to Section 906 of the                       Sarbanes-Oxley Act of 2002.        |   |
|   |
|   | Exhibit 32.2 — Certification pursuant to 18 U.S.C. §1350 as adopted pursuant to Section 906 of the                       Sarbanes-Oxley Act of 2002.   |   |

----

|                   | TECHNOLOGY RESEARCH CORPORATION                                                                                                                                                                                                                                                   |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   |                                                                                                                                                                                                                                                                              |
| November 6, 2009       | By:       /s/ Owen Farren                                                                                                                                                                                                                      |
|                   |              Owen Farren                                                                                                                                                                                         |
|                   |              President and Chief Executive Officer                                                                                                                                                                    |
|                   |              (Principal Executive Officer)                                                                                                                                                                            |
|                   |
|                   |
| November 6, 2009  | By:       /s/ Thomas. G. Archbold                                    |
|                   |              Thomas G. Archbold                                                                                                                                                                                  |
|                   |              Chief Financial Officer                                                                                                                                                                                  |
|                   |              (Principal Financial and Accounting Officer)                                                                                                                                                             |

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