A flipped-classroom approach was implemented in a Circuits I class for electrical and computer engineering majors to lower its high attrition and failure rate. Students were asked to watch online lectures and then come to class prepared to work problems in small groups of four. The attitude, retention, and performance of students in the flipped group in Spring 2013 were compared to those for the traditionally taught group in Fall 2012. The Fall 2012 lectures were recorded, so that each group saw the same lectures. Student retention and test performance was significantly higher in the flipped course. In Fall 2012, 56% of the initially enrolled students received a C or better. In Spring 2013, this improved to 83%. The first exam scores were significantly better in Spring 2013, and this helped with student success. The authors believe that it was the alignment of online lectures, face-to-face student/teacher and peer/peer interactions, combined with the active learning component of the flipped classroom that led to these improvements.