% in the second quarter of 2012. We expect the rate for the balance of the year to be approximately 34.5%.

Net income increased 30.4% to $12.1 million or 13.3% of sales from $9.3 million or 11.2% of sales. Diluted earnings per share was $0.33 per share versus $0.25 per share. Diluted earnings per share were based on 37,150,000 shares versus 37,092,000 shares in the same quarter a year ago.

The results of the 6 months ended June 30. Revenues were up 6.6% to $158.1 million from $148.3 million. Gross profit increased 24.2% to $43 million from $34.6 million. Gross profit as a percent of sales was 72% -- sorry, 27.2% for the 6 months of 2013 compared to 23.3% in 2012.

Selling, general and administrative expenses increased 24.7% to $16.1 million or 10.2% of sales during 2013 from $12.9 million or 8.7% of sales, primarily due to increases in profit sharing, warranty, stock-based compensation, employee benefits, professional fees, advertising and sales taxes.

Income from operations increased 24.0% to $27 million or 17.1% of sales from $21.8 million or 14.7% of sales.

Our effective tax rate was 29.5% compared with 36.2% in the second quarter of 2012 due to discrete benefits related to the research and development credit and the Indian employment credit. These federal credits were retroactively reinstated on January 2, 2013. No research and development credit or Indian employment credit benefits were recorded in the 6 months ended June 30, 2012.

Net income increased 38.9% to $19.3 million or 12.2% of sales from $13.9 million or 9.3% of sales.

Diluted earnings per share was $0.52 per share versus $0.37 per share. Diluted earnings per share were based on 37,056,000 shares versus 37,125,000 shares in the same period a year ago.

Moving to the balance sheet. We see that we have a working capital balance of $67.8 million. Our current asset ratio was approximately 2.3:1. Our capital expenditures were approximately $1.9 million. Shareholder
% in the second quarter of 2012. We expect the rate for the balance of the class to be approximately 34.5% . 

 final income increase 30.4% to $ 12.1 million or 13.3% of sales from $ 9.3 million or 11.2% of sale. Diluted wage per share was $ 0.33 per share versus $ 0.25 per parcel. Diluted earnings per share were establish on 37,150,000 shares versus 37,092,000 shares in the like quarter a year ago. 

 The results of the 6 months end June 30. Revenues were up 6.6% to $ 158.1 million from $ 148.3 million. Gross profit increased 24.2% to $ 43 million from $ 34.6 million. Gross net income as a percent of sales was 72% -- sorry, 27.2% for the 6 month of 2013 compared to 23.3% in 2012. 

 Selling, general and administrative expense increased 24.7% to $ 16.1 million or 10.2% of gross sales during 2013 from $ 12.9 million or 8.7% of sales, primarily due to increases in profit communion, warranty, stock - based compensation, employee benefits, professional fees, ad and gross sales taxes. 

 Income from operations increased 24.0% to $ 27 million or 17.1% of sales from $ 21.8 million or 14.7% of sales. 

 Our effective tax rate was 29.5% compared with 36.2% in the second quarter of 2012 due to discrete benefits associate to the research and development credit rating and the Indian employment credit. These federal credits were retroactively reinstate on January 2, 2013. No research and development credit or Indian employment credit rating benefits were recorded in the 6 months ended June 30, 2012. 

 Net income increased 38.9% to $ 19.3 million or 12.2% of sale from $ 13.9 million or 9.3% of sales. 

 Diluted earnings per share was $ 0.52 per plowshare versus $ 0.37 per share. Diluted net income per share were based on 37,056,000 shares versus 37,125,000 shares in the same time period a year ago. 

 Moving to the balance sail. We see that we have a working capital libra of $ 67.8 million. Our current asset ratio was approximately 2.3:1. Our das kapital expenditures were approximately $ 1.9 million. Shareholder
% in the second quarter of 2012. De expect the rcre for the bzlance ow the year to be approximatepy 34.5%.

Net uncome increased 30.4% to $12.1 oillion og 13.3% of salws fcom $9.3 million or 11.2% of sales. Dilufcd eaxnmngs per share eas $0.33 per svare versus $0.25 par skare. Diluted earnings per share were based pn 37,150,000 shares versuf 37,092,000 snwres pn the same quarter a year ago.

Tge resunts of the 6 mpnths ended June 30. Revenues werf up 6.6% to $158.1 million vrom $148.3 milliin. Gwiss profit ivcreased 24.2% uo $43 million rrom $34.6 million. Gross profit as a percznt of salew qas 72% -- sorry, 27.2% foc the 6 months of 2013 gpmpareg to 23.3% im 2012.

Selling, geneval aid aeministrative expensev increased 24.7% to $16.1 myllion or 10.2% kf sales during 2013 drim $12.9 mhllimn of 8.7% ow szlxs, lrimarlly due to indreases in profit sharing, warrsnej, stock-based dompenfaeion, employee benefits, professional feev, asvertising and sales tazes.

Income from operatlons incrqased 24.0% to $27 million or 17.1% of sales from $21.8 million or 14.7% of selds.

Obv ddffctive tax rate was 29.5% compared with 36.2% in the sesknc auarter of 2012 duc to discrete benegihs telated to the reseaxdh and development cgedit agd thw Indian tmploument credit. These federal xredits were eetroactively reindtated on Jcnuary 2, 2013. No research and developmeut cresit or Indiwn employjdnt credit benefkts ware recorded in the 6 monthf ended Jnne 30, 2012.

Uet incooe imcreasqd 38.9% to $19.3 miplion or 12.2% of sales from $13.9 millnon os 9.3% of saled.

Diluted earnings per share was $0.52 per share vetsuv $0.37 ier share. Dilubed earnings pew share were bcsed on 37,056,000 shards versus 37,125,000 shares in the samq period a yedt ago.

Moving tm the bajancw shwet. We rde that we havr a workiuy capital balance of $67.8 millipn. Uhr current assec tqtio was approcimxtejy 2.3:1. Puw capital expandigurdx werd approximabelh $1.9 mollion. Shareholder
% in the second quarter of 2012. the for the of the year income 30.4% to $12.1 or 13.3% of from $9.3 million or 11.2% of Diluted earnings per share was $0.33 per share versus $0.25 per share. Diluted per share were based on 37,150,000 shares versus 37,092,000 shares in the same a ago. results the 6 months ended June 30. Revenues were up 6.6% to $158.1 million from $148.3 million. profit increased 24.2% to $43 million from $34.6 Gross profit as a of sales was 72% -- 27.2% the 6 of compared 23.3% in 2012. general and administrative expenses increased 24.7% to $16.1 million or 10.2% of sales during 2013 from $12.9 or 8.7% primarily due increases profit warranty, stock-based compensation, professional fees, advertising and sales taxes. increased 24.0% to $27 million or 17.1% of from $21.8 or 14.7% of sales. Our effective rate was 29.5% compared with 36.2% in the quarter of 2012 due to discrete benefits related to the research and development credit and employment credit. These federal were retroactively reinstated January 2013. research development credit Indian employment credit benefits were recorded in the 6 months ended 30, 2012. Net income increased 38.9% to $19.3 million or sales $13.9 million or of sales. Diluted earnings share $0.52 per share versus share. earnings based 37,056,000 versus 37,125,000 shares in same period a year ago. to the balance sheet. a working capital balance of $67.8 million. Our asset ratio was approximately 2.3:1. Our capital were approximately $1.9 million. Shareholder
% in the second quarter of 2012. We expEct the rate For thE baLanCe Of thE yeaR to be approximaTEly 34.5%.

NEt income increased 30.4% to $12.1 milLion oR 13.3% oF SaleS FrOm $9.3 milLion or 11.2% oF SaLES. DiLuTeD eaRnINgS per sHarE was $0.33 per Share versuS $0.25 peR sHare. Diluted eARnIngs per shaRe wEre based on 37,150,000 shAreS versuS 37,092,000 sHarES in thE saMe quaRter a yEAr ago.

THe results Of THe 6 montHS ended JUNE 30. REvenUes were up 6.6% to $158.1 millioN FrOM $148.3 million. Gross pRofit iNcREaSED 24.2% to $43 MilLion from $34.6 miLlIon. GrOSs profiT As A PERceNT of sales was 72% -- soRry, 27.2% for the 6 moNThs Of 2013 compArEd tO 23.3% In 2012.

SellIng, geNeRAl aNd administrAtivE expenses IncreaSEd 24.7% to $16.1 milLIon or 10.2% of Sales dUriNg 2013 fRom $12.9 mILlIoN or 8.7% Of SAleS, PrImaRIly Due to incReAsEs in pRofiT SHARing, WarRantY, stocK-based compensAtiOn, emPLoyEe benEfits, ProfEsSionaL fees, aDvertIsIng and sales taxeS.

IncOme from opEraTiOns InCreasED 24.0% to $27 milLioN or 17.1% Of sales From $21.8 milLIon Or 14.7% OF SAlEs.

Our effective tax rAtE WAs 29.5% Compared With 36.2% in THe SeCOnd quartEr Of 2012 dUe to DIScretE benEFiTs relateD to the REsEaRch and dEvElopmeNt CreDit And thE indiAn emplOyment crEdit. THEse federal credITs were retroacTIvELY rEInstAteD on January 2, 2013. NO resEArch And dEVeLopMEnt crEdit oR INDiAN employment credit beNeFits weRe recOrded in the 6 monThs ended JuNE 30, 2012.

nEt income IncrEAsED 38.9% to $19.3 million or 12.2% of Sales From $13.9 millioN Or 9.3% of saleS.

DiluTed earniNgs per shaRE Was $0.52 per shAre VerSus $0.37 Per SHArE. Diluted earniNGS per ShAre were BasEd on 37,056,000 shaRes VerSus 37,125,000 ShaReS in the samE period a YeAr AgO.

MOviNg to tHE balance ShEet. we See That wE Have a wOrkinG capItAl BAlaNce of $67.8 miLLiON. our cUrReNt asSet RaTio waS appROxiMately 2.3:1. OUr capital ExpENditUrEs Were appRoximately $1.9 milLiOn. ShareholDeR
% in the second quarter of  2012. Weexpec t t hera te f or t he balance oft he y ear to be approximatel y 34. 5% . 

Ne t  i ncome  increa s ed 3 0.4 %to  $1 2. 1  m illio n o r 13.3%  of salesfro m$9.3 million or  11.2% ofsal es. Dilutedear ningspe r s h are w as$0.33  per s h are ve rsus $0.2 5p er sha r e. Dilu t e dearn ings per share we r eb ased on 37,150 ,000 s ha r es v ers us37,092,000  s hares in thes am e q uar t er a year ago .

The resu l tsof the  6  mo n ths en ded J un e  30 . Revenueswere  up 6.6%to $15 8 .1 mill i on from  $148. 3 m ill ion. Gr os s p ro f iti nc rea s ed24.2% to  $ 43  mill ionf r o m  $34 .6mill ion.Gross profitasa pe r cen t ofsales  was  7 2% --  sorry , 27. 2%  for the 6 mont hs o f 2013 co mpa re d t o23.3% in 201 2.
Se lling,general and  a d m i ni strative expensesin c r ea sed 24.7 % to $ 1 6. 1m illion o r10. 2% o f sales  dur i ng  2013 fr om $12 . 9mi llion o r8.7% o fsal es,  prim a rily  due t o increa ses i n  profit sharin g , warranty, s t oc k - ba s ed c omp ensation, e mplo y ee b enef i ts , p r ofess ional  f e es ,  advertising and sa le s taxe s.

I ncome from op erations i n c r eased 24 .0%t o$ 27 million or17.1%  of salesf rom $21. 8 mil lion or14.7% ofs a les.

Ou r e ffe cti vet a xrate was 29.5 % comp ar ed with  36 .2% inthe  se con d q ua rter of 2 012 dueto  d is cr ete  bene f its rela te d t othe  rese a rch an d dev elop me nt cre dit and th e Indi an  e mplo yme nt  cred it.T hes e feder al credit s w e re r et ro activel y reinstatedon  January 2 ,201 3. Nor e search a nd development credit o r  Indian  em ploym entcredit be nef its we rer ecorde d in t he 6mo nth s ended J un e 3 0,  2012.

Ne t inc ome i nc reas ed 38.9 % to $19.3 million or12.2% of sale s f rom$ 1 3. 9 m i ll i onor 9.3 % of sales.

Dilu ted earnin gs pe r share wa s  $0 .5 2 per s hare ve rsus$ 0.37 pe r share.Diluted e ar ning s per  share wer e basedon 37,056 , 000 s h ar es ve rsu s 37,1 25 ,00 0 sha res in the  same  perio da year  ago. 
Moving t o the balance sheet. We  see t hat w e h ave a wor kin g  ca pital bal ance  of $67.8mil lio n. Ou r c u rrent  ass e trat i o was  app r oximately 2. 3:1 . Ou r capital e x p e ndi tures  we r e appr oxim ately $1.9 millio n . Shareholder
% in_the second_quarter of 2012. We_expect the_rate_for the_balance_of the year_to be approximately_34.5%.

Net income increased 30.4%_to $12.1 million_or_13.3% of sales from $9.3 million or 11.2% of sales. Diluted earnings per share_was_$0.33 per_share_versus_$0.25 per share. Diluted earnings_per share were based on_37,150,000 shares_versus 37,092,000 shares in the same quarter a_year_ago.

The results of_the 6 months ended June 30. Revenues were up_6.6% to $158.1 million from $148.3_million. Gross profit_increased_24.2%_to $43 million from_$34.6 million. Gross profit as a_percent of sales was 72% --_sorry, 27.2% for the 6 months of_2013 compared to 23.3% in 2012.

Selling,_general and administrative expenses increased_24.7% to_$16.1 million or 10.2% of_sales during 2013_from $12.9_million or 8.7%_of sales, primarily due to increases_in profit sharing,_warranty, stock-based compensation, employee benefits, professional_fees,_advertising and sales_taxes.

Income_from_operations increased_24.0% to $27_million_or 17.1%_of_sales from $21.8 million or 14.7%_of_sales.

Our effective tax rate was 29.5% compared_with 36.2% in the_second_quarter of 2012 due_to discrete benefits related to_the research and development credit and_the Indian_employment credit._These federal credits were retroactively reinstated on January 2, 2013. No_research and development credit or Indian_employment credit benefits were_recorded in_the_6 months ended_June_30, 2012.

Net_income increased 38.9% to $19.3 million or_12.2% of_sales from $13.9 million or 9.3%_of sales.

Diluted earnings per_share_was $0.52 per share versus $0.37_per share. Diluted earnings per share_were based on 37,056,000 shares_versus_37,125,000_shares in the same period_a year ago.

Moving to the balance_sheet. We see_that we have a working capital balance_of_$67.8 million. Our current asset ratio_was_approximately 2.3:1. Our capital expenditures were_approximately_$1.9_million. Shareholder