----

----

| 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 |
|                                     |                                  |   |   |   |

The aggregate number of shares of the Registrant’s Common Stock, $.51 par value, outstanding on February 4, 2010, was 5,920,002. 

----

| 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.  Unregistered Sales of Equity Securities and Use of Proceeds |
|                                                                                                                         | Item 6.  Exhibits |
|                                                                                                                         |   |
| 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       |
|                                                                                                                         |
|                                                                                                                         |

SIGNATURES

----

|                                                                                                                                                                          | December 31, |   |   | March 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------|--------|-----------|--------|
|   ASSETS                                                                                                                                                            | 2009         |   |   | 2009      |   |
| Current assets:                                                                                                                                                               |         |   |   |      |   |
|    Cash and cash equivalents                                                                                                                                   | $            | 11,117 |   |      |   | 2,954 |   |
|    Short-term investments                                                                                                                                           |         | 1,000  |   |      |   | 3,996 |   |
|    Trade and other accounts receivable, net of allowance for doubtful                                                                                                         |         |   |   |      |   |   |   |
|         accounts of $135 at December 31, 2009 and $203 at March 31, 2009                                               |         | 4,725  |   |      |   | 5,372 |   |
|    Income taxes receivable                                                                                                                                     |         | 597    |   |      |   | 631 |   |
|    Inventories, net                                                                                                                                            |         | 6,243  |   |      |   | 8,013 |   |
|    Deferred income taxes                                                                                                                                            |         | 692    |   |      |   | 622 |   |
|    Prepaid expenses and other current assets                                                                                                                   |         | 295    |   |      |   | 265 |   |
|      Total current assets                                                                                                                                 |         | 24,669 |   |      |   | 21,853 |   |
|                                                                                                                                                                                    |         |   |   |      |   |   |   |
| Property, plant and equipment, net of accumulated depreciation of                                                                                                                  |         |   |   |      |   |   |   |
|    $10,314 and $9,852, respectively                                                                                                                            |         | 2,695  |   |      |   | 3,189 |   |
| Intangible asset, net of accumulated amortization of $222 and $178, respectively                                                                                         |         | 360    |   |      |   | 404 |   |
| Deferred income taxes – non-current                                                                                                                                               |         | 94     |   |      |   | - |   |
| Other assets                                                                                                                                                                  |         | 33     |   |      |   | 33 |   |
|  Total assets                                                                                                                                                                 | $            | 27,851 |   |      |   | 25,479 |   |
|                                                                                                                                                                                    |         |   |   |      |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                    |         |   |   |      |   |   |   |
| Current liabilities:                                                                                                                                                               |         |   |   |      |   |   |   |
|    Trade accounts payable                                                                                                                                                     | $            | 1,383  |   |      |   | 1,309 |   |
|    Unsettled treasury obligation                                                                                                                                              |         | -      |   |      |   | 998 |   |
|    Accrued expenses                                                                                                                                                           |         | 1,503  |   |      |   | 1,422 |   |
|    Accrued dividends                                                                                                                                                          |         | 121    |   |      |   | 121 |   |
|       Total current liabilities                                                                                                                                |         | 3,007  |   |      |   | 3,850 |   |
|                                                                                                                                                                                    |         |   |   |      |   |   |   |
| Income taxes payable                                                                                                                                                               |         | 418    |   |      |   | 111 |   |
| Deferred income taxes                                                                                                                                                              |         | -      |   |      |   | 37 |   |
|          Total liabilities                                                                                                                      |         | 3,425  |   |      |   | 3,998 |   |
|                                                                                                                                                                                    |         |   |   |      |   |   |   |
| Stockholders' equity:                                                                                                                                                              |         |   |   |      |   |   |   |
|    Common stock $0.51 par value; 10,000,000 shares authorized,                                                                                                                |         |   |   |      |   |   |   |
|      5,945,787 shares issued and 5,920,002 shares outstanding and     5,912,328 shares issued and 5,890,828 outstanding, respectively |         | 3,030  |   |      |   | 3,015 |   |
|    Additional paid-in capital                                                                                                                                                 |         | 10,375 |   |      |   | 9,982 |   |
|    Retained earnings                                                                                                                                                          |         | 11,077 |   |      |   | 8,524 |   |
|    Common stock held in treasury, 25,785 and 21,500 shares, respectively, at cost                                                                                             |         | (56    | )      |      |   | (40 | ) |
|       Total stockholders' equity                                                                                                                               |         | 24,426 |   |      |   | 21,481 |   |
|          Total liabilities and stockholders' equity                                                                                             |  $      | 27,851 |   |      |   | 25,479 |   |

----

| Three Months Ended December 31,                                                    |   | Nine months Ended December 31, |
|------------------------------------------------------------------------------------|--------|--------------------------------|
|                                                                               |   | 2009                           |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Revenue:                                                                           |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial                                                            |   | $                              | 3,525 |   |   |   | 3,932 |   |   |   | 10,569 |   |   |   | 15,021 |   |
|    Military                                                         |   |                           | 3,978 |   |   |   | 3,774 |   |   |   | 16,087 |   |   |   | 10,459 |   |
|    Royalty                                                               |   |                           | 85 |   |   |   | 115 |   |   |   | 258 |   |   |   | 269 |   |
|       Total revenue                                       |   |                           | 7,588 |   |   |   | 7,821 |   |   |   | 26,914 |   |   |   | 25,749 |   |
| Cost of sales                                                            |   |                           | 4,832 |   |   |   | 5,270 |   |   |   | 16,202 |   |   |   | 17,140 |   |
|          Gross profit                 |   |                           | 2,756 |   |   |   | 2,551 |   |   |   | 10,712 |   |   |   | 8,609 |   |
|                                                                               |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                                                |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Selling and marketing                                                 |   |                           | 582 |   |   |   | 701 |   |   |   | 1,862 |   |   |   | 2,212 |   |
|    General and administrative                                            |   |                           | 919 |   |   |   | 1,103 |   |   |   | 2,917 |   |   |   | 3,673 |   |
|    Research and development                                         |   |                           | 565 |   |   |   | 586 |   |   |   | 1,896 |   |   |   | 1,716 |   |
|       Total operating expenses                       |   |                           | 2,066 |   |   |   | 2,390 |   |   |   | 6,675 |   |   |   | 7,601 |   |
|           Income from operations |   |                           | 690 |   |   |   | 161 |   |   |   | 4,037 |   |   |   | 1,008 |   |
|                                                                               |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                                            |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Other income, net                                                     |   |                           | - |   |   |   | 165 |   |   |   | 5 |   |   |   | 545 |   |
|    Interest expense                                                      |   |                           | - |   |   |   | (6 | ) |   |   | - |   |   |   | (10 | ) |
|           Other income, net      |   |                           | - |   |   |   | 159 |   |   |   | 5 |   |   |   | 535 |   |
| Income  before income taxes                                              |   |                           | 690 |   |   |   | 320 |   |   |   | 4,042 |   |   |   | 1,543 |   |
| Income tax expense                                                                 |   |                           | 208 |   |   |   | 65 |   |   |   | 1,128 |   |   |   | 292 |   |
|    Net income                                                            |   | $                              | 482 |   |   |   | 255 |   |   |   | 2,914 |   |   |   | 1,251 |   |
|                                                                               |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings  per share - basic                                              |   | $                              | 0.08 |   |   |   | 0.04 |   |   |   | 0.49 |   |   |   | 0.21 |   |
|                                                                               |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings  per share - diluted                                            |   | $                              | 0.08 |   |   |   | 0.04 |   |   |   | 0.48 |   |   |   | 0.21 |   |
|                                                                               |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares outstanding - basic                                                         |   |                           | 5,896,728 |   |   |   | 5,890,828 |   |   |   | 5,892,903 |   |   |   | 5,890,828 |   |
|                                                                               |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares outstanding - diluted                                                       |   |                           | 6,022,855 |   |   |   | 5,897,310 |   |   |   | 5,975,212 |   |   |   | 5,902,647 |   |

----

|                                                                                                                                               Ninemonths Ended December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2009                                       2008  |   |   |   |   |   |   |   |
| Cash flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |
|    Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $ |      2,914 |   |   |                                         1,251 |   |   |   |   |   |   |   |   |   |   |
| Adjustments to reconcile net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| to net cash provided by operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |
|    Accretion of interest on short-term investments and other receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (8 | )  |   |   | (46) |   |   |   |   |   |   |   |   |   |
|    Bad debt expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | - |   |   |                                            125 |   |   |   |   |   |   |   |   |   |   |   |   |
|    Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 732 |   |   |                                            850 |   |   |   |   |   |   |   |   |   |   |   |   |
|    Amortization of intangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 44 |   |   |                                             44 |   |   |   |   |   |   |   |   |   |   |   |   |
|    Stock compensation expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 368 |   |   |                                            311 |   |   |   |   |   |   |   |   |   |   |   |   |
|    Deferred income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | (201) |   |   |   | 750 |   |   |   |   |   |   |   |   |   |   |
|    Loss on disposal of equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 143 |   |   |                                              42 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Changes in operating assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|    Trade and other accounts receivable, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 647 |   |   |                                        1,708 |   |   |   |   |   |   |   |   |   |   |   |
|    Inventories, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 1,770 |   |   |                                         (341) |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Other receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | - |   |   |                                           (34) |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Prepaid expenses and other current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (30) |   |   |   | (193) |   |   |   |   |   |   |   |   |   |   |   |   |
|    Other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | - |   |   |                                              8 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Trade accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 74 |   |   |                                      (1,286) |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 81 |   |   |                                         (321) |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Income taxes receivable and income taxes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 341 |   |   |                                         (457) |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Net cash provided by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 6,875 |   |   |                                        2,411 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Maturities of short-term investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 6,000 |   |   |                                         3,500 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Purchase of short-term investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | (3,994) |   |   |   | (5,960) |   |   |   |   |   |   |   |   |   |   |   |   |
|    Purchases of property and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | (381) |   |   |   | (597) |   |   |   |   |   |   |   |   |   |   |   |   |
|         Net cash provided by (used in) investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 1,625 |   |   |                                       (3,057) |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Proceeds from exercise of stock options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 2 |   |   |                                                - |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Tax benefit of restricted stock vesting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 38 |   |   |                                                - |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Purchase of treasury stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (16) |   |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Cash dividends paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (361) |   |   |   | (355) |   |   |   |   |   |   |   |   |   |   |   |   |
|         Net cash used in financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (337) |   |   |   | (355) |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 8,163 |   |   |                                       (1,001) |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 2,954 |   |   |                                        2,132 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |                    $          11,117                                              $1,131 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                            |   | Three months ended December 31, |   |   | Nine months ended December 31, |   |
|-----------------------------------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                                                            |   |                            |   |   |                           |   |   |   |   |   |   |   |
|                                                            |   | 2009                            |   |   | 2008                           |   |   | 2009 |   |   | 2008 |   |
| Reconciliation of undistributed earnings:                       |   |                            |   |   |                           |   |   |   |   |   |   |   |
|   Net income available to common shareholders    |   | $                               | 482    |   |                           |   | 255 |   |   |   | 2,914 |   |   |   | 1,251 |   |
|   Less dividends on common stock                      |   |                            | 119    |   |                           |   | 118 |   |   |   | 357 |   |   |   | 237 |   |
|   Less dividends on unvested participating securities |   |                            | 1      |   |                           |   | - |   |   |   | 4 |   |   |   | - |   |
|   Undistributed earnings (1)                          |   | $                               | 362    |   |                           |   | 137 |   |   |   | 2,553 |   |   |   | 1,014 |   |

|                                                                                            |   | Three months ended December 31, |   |   | Nine months ended December 31, |   |
|-------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                                                                                            |   |                            |   |   |                           |   |   |   |   |   |   |   |
|                                                                                            |   | 2009                            |   |   | 2008                           |   |   | 2009 |   |   | 2008 |   |
| Basic earnings per share computation:                                                           |   |                            |   |   |                           |   |   |   |   |   |   |   |
|   Net income available to common shareholders                                    |   | $                               | 482    |   |                           |   | 255 |   |   |   | 2,914 |   |   |   | 1,251 |   |
|   Less: dividends equivalents on unvested participating securities                    |   |                            | 1      |   |                           |   |    - |   |   |   | 4 |   |   |   | - |   |
|   Less: undistributed earnings allocated to unvested participating securities(1) |   |                            | 5      |   |                           |   | - |   |   |   | 34 |   |   |   | - |   |
|   Undistributed earnings allocated to common sharelholders                            |   | $                               | 476    |   |                           |   | 255 |   |   |   | 2,876 |   |   |   | 1,251 |   |

|         EPS Denominator                              |   |   |      |   |   |   |      |   |   |   |      |   |
|-----------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|
|   Weighted average shares outstanding for basic earnings per share  |   | $      | 5,896,728 |   |   |   | 5,890,828 |   |   |   | 5,892,903 |   |   |   | 5,890,828 |   |
|   Basic earnings per common share                                             |   |   | 0.08      |   |   |   | 0.04      |   |   |   | 0.49      |   |   |   | 0.21 |   |

|                                                                        |   | Three months ended December 31, |      |   |   | Nine months ended December 31, |
|-----------------------------------------------------------------------------|--------|---------------------------------|-----------|--------|--------|--------------------------------|
|                                                                        |   | 2009                            |      |   | 2008   |                           |   |   | 2009 |   | 2008 |
| Diluted earnings per common share computation (1)                           |   |                            |      |   |   |                           |   |   |   |   |   |
| Net income available to common shareholders                                 |   | $                               | 482       |   |   |                           | 255 |   |   |   |   | 2,914 |   |   |   | 1,251 |   |   |
| Less: dividend equivalents on unvested participating securities             |   |                            | 1         |   |   |                           | - |   |   |   |   | 4 |   |   |   | - |   |   |
| Less: undistributed earnings allocated to unvested participating securities |   |                            | 5         |   |   |                           | - |   |   |   |   | 34 |   |   |   | - |   |   |
| Undistributed earnings allocated to common shareholders                     |   | $                               | 476       |   |   |                           | 255 |   |   |   |   | 2,876 |   |   |   | 1,251 |   |   |
| EPS Denominator:                                                            |   |                            |      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding for basic earnings per share            |   |                            | 5,896,728 |   |   |                           | 5,890,828 |   |   |   |   | 5,892,903 |   |   |   | 5,890,828 |   |   |
| Dilutive common shares issuable upon exercise of stock options (2)          |   |                            | 77,644    |   |   |                           | 6,482 |   |   |   |   | 41,254 |   |   |   | 11,819 |   |   |
| Dilutive unvested common shares associated with restricted stock awards     |   |                            | 48,483    |   |   |                           | - |   |   |   |   | 41,055 |   |   |   | - |   |   |
| Weighted average shares outstanding - diluted                               |   |                            | 6,022,855 |   |   |                           | 5,897,310 |   |   |   |   | 5,975,212 |   |   |   | 5,902,647 |   |   |
|                                                                        |   |                            |      |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per common share                                           |   | $                               | 0.08      |   |   |                           | 0.04 |   |   |   |   | 0.48 |   |   |   | 0.21 |   |   |

| December 31, 2009 |   | March 31, 2009 |
|-------------------|--------|----------------|
|              |   |           |   |
| Raw materials     |   | $              | 4,135 |   |   |   | 5,084 |   |
| Work-in-process   |   |           | 417 |   |   |   | 766 |   |
| Finished goods    |   |           | 1,691 |   |   |   | 2,163 |   |
| Total             |   | $              | 6,243 |   |   |   | 8,013 |   |

|                                |   | Three months ended December 31, |   |   | Nine months ended December 31, |   |
|-------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                                |   |                            |   |   |                           |   |   |   |   |   |   |   |
|                                |   | 2009                            |   |   | 2008                           |   |   | 2009 |   |   | 2008 |   |
|                                |   |                            |   |   |                           |   |   |   |   |   |   |   |
| Beginning Balance         |   | $                               | 240    |   |                           |   | 137 |   |   |   | 164 |   |   |   | 137 |   |
|   Accruals for warrenties |   |                            | 37     |   |                           |   | 53 |   |   |   | 232 |   |   |   | 112 |   |
|   Settlements made        |   |                            | (38)   |   |                           |   | (26) |   |   |   | (157) |   |   |   | (85) |   |
| Ending Balance                      |   | $                               | 239    |   |                           |   | 164 |   |   |   | 239 |   |   |   | 164 |   |

| 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 endedDecember 31, | Nine months endedDecember 31, |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|-------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                           |                          |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2009                           |                          |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Beginning balance                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                              | 346                           |   |   |   | 14 |   |   |   | 127 |   |   |   | 12 |   |
| Additions based on tax positions                                                                     related to the current year |   |                           | -                             |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Additions for tax positions of prior years                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                           | 88                            |   |   |   | 138 |   |   |   | 307 |   |   |   | 140 |   |
| Ending balance                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                              | 434                           |   |   |   | 152 |   |   |   | 434 |   |   |   | 152 |   |

|                                           |   |      |     |   |        |   |    | 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 December 31, 2009           |   |      | 376,107  |   |        |   | 911,229 |           |   | $      | 637      |   |   | $                | 4.39   |   |   |   | 7.21 |   |
| Exercisable as of December 31, 2009  |   |      |     |   |        |   | 541,988 |           |   | $      | 234      |   |   | $                | 5.65   |   |   |   | 6.35 |   |
| _________________                         |   |      |     |   |        |   |    |           |   |   |     |   |   |             |   |   |   |   |   |   |

|                          |   | Three months endedDecember 31, |   | Nine months endedDecember 31, |   |
|-------------------------------|--------|--------------------------------|--------|-------------------------------|--------|
|                          |   |                           |   |                          |   |   |   |   |   |
|                          |   |  2009                     |   |  2008                    |   |  2009 |   |  2008 |   |
| Expected dividend yield  |   |  N/A                      |   |  3.23%                   |   |  N/A |   |  3.05% |   |
| Risk free interest rate  |   |  N/A                      |   |  1.92%                   |   |  N/A |   |  2.14% |   |
| Expected volatility      |   |  N/A                      |   |  75.60%                  |   |  N/A |   |  76.48% |   |
| Expected life            |   |  N/A                      |   |  8.00 yrs                |   |  N/A |   |  7.89 yrs |   |

|                                            |   |   |    |   | Weighted-average |   |
|-------------------------------------------------|--------|--------|---------|--------|------------------|--------|
|                                            |   |   |    |   | Grant-Date       |   |
|                                            |   | Shares |    |   | Fair Value       |   |
| Non-vested balance at March 31, 2009            |   |   | 106,999 |   |             | $      | 1.75 |   |
|    Restricted stock granted      |   |   | -       |   |             |   |   |   |
|    Restricted stock vested       |   |   | (28,174 | )      |             |   | 1.70 |   |
|    Restricted stock forfeited    |   |   | -       |   |             |   |   |   |
| Non-vested balance as of December 31, 2009 |   |   | 78,825  |   |             | $      | 1.76 |   |

| 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                                      |

|   | 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                                                                                                                                                                                                                                                   |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   |                                                                                                                                                                                                                                                                              |
| February 4, 2010       | By:       /s/ Owen Farren                                                                                                                                                                                                                      |
|                   |              Owen Farren                                                                                                                                                                                         |
|                   |              President and Chief Executive Officer                                                                                                                                                                    |
|                   |              (Principal Executive Officer)                                                                                                                                                                            |
|                   |
|                   |
| February 4, 2010  | By:       /s/ Thomas. G. Archbold                                    |
|                   |              Thomas G. Archbold                                                                                                                                                                                  |
|                   |              Chief Financial Officer                                                                                                                                                                                  |
|                   |              (Principal Financial and Accounting Officer)                                                                                                                                                             |

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