Income Taxes	6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	14. INCOME TAXES: We recorded an income tax benefit of $96,000 in the three months ended June 30, 2020, compared to income tax expense of $192,000 in the three months ended June 30, 2019. We recorded income tax expense of $53,000 in the six months ended June 30, 2020, compared to income tax expense of $326,000 in the six months ended June 30, 2019. The income tax benefit in the three months ended June 30, 2020 includes $340,000 in excess tax benefits from employee stock option exercises. Our income tax expense in the six months ended June 30, 2020 reflected an effective tax rate of approximately 2%, compared to an effective tax rate of approximately 25% in the six months ended June 30, 2019. The reduction in effective tax rate in the six months ended June 30, 2020, when compared to the six months ended June 30, 2019, was due to the significant excess tax benefits from employee stock option exercises recognized in the six months ended June 30, 2020, deductions for Foreign Derived Intangible Income ("FDII") and Global Intangible Low-Taxed Income ("GILTI") and foreign tax credits. We were unable to take advantage of the FDII and GILTI deductions and foreign credits in 2019 because we had un-used federal net operating loss carry-forwards. We expect to use our remaining federal net operating loss carry forwards in 2020. We have significant deferred tax assets as a result of temporary differences between taxable income on our tax returns and U.S. GAAP income, R&D tax credit carry forwards and federal and state net operating loss carry forwards. A deferred tax asset generally represents future tax benefits to be received when temporary differences previously reported in our consolidated financial statements become deductible for income tax purposes, when net operating loss carry forwards could be applied against future taxable income, or when tax credit carry forwards are utilized on our tax returns. We assess the realizability of our deferred tax assets and the need for a valuation allowance based on the guidance provided in current financial accounting standards. Significant judgment is required in determining the realizability of our deferred tax assets. The assessment of whether valuation allowances are required considers, among other matters, the nature, frequency and severity of any current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, our experience with loss carry forwards not expiring unused and tax planning alternatives. In analyzing the need for valuation allowances, we first considered our history of cumulative operating results for income tax purposes over the past three years in each of the tax jurisdictions in which we operate, our financial performance in recent quarters, statutory carry-forward periods and tax planning alternatives. In addition, we considered both our near-term and long-term financial outlook. After considering all available evidence (both positive and negative), we concluded that recognition of valuation allowances for substantially all of our U.S. and Singapore based deferred tax assets were not required. The Inland Revenue Authority of Singapore has initiated a routine compliance review of our 2018 income tax return. We presently anticipate that the outcome of this audit will not have a significant impact on our financial position or results of operations.

Income Taxes

6 Months Ended

Jun. 30, 2020

14. INCOME TAXES:

We recorded an income tax benefit of $96,000 in the three months ended June 30, 2020, compared to income tax expense of $192,000 in the three months ended June 30, 2019. We recorded income tax expense of $53,000 in the six months ended June 30, 2020, compared to income tax expense of $326,000 in the six months ended June 30, 2019. The income tax benefit in the three months ended June 30, 2020 includes $340,000 in excess tax benefits from employee stock option exercises. Our income tax expense in the six months ended June 30, 2020 reflected an effective tax rate of approximately 2%, compared to an effective tax rate of approximately 25% in the six months ended June 30, 2019. The reduction in effective tax rate in the six months ended June 30, 2020, when compared to the six months ended June 30, 2019, was due to the significant excess tax benefits from employee stock option exercises recognized in the six months ended June 30, 2020, deductions for Foreign Derived Intangible Income ("FDII") and Global Intangible Low-Taxed Income ("GILTI") and foreign tax credits. We were unable to take advantage of the FDII and GILTI deductions and foreign credits in 2019 because we had un-used federal net operating loss carry-forwards. We expect to use our remaining federal net operating loss carry forwards in 2020.

We have significant deferred tax assets as a result of temporary differences between taxable income on our tax returns and U.S. GAAP income, R&D tax credit carry forwards and federal and state net operating loss carry forwards. A deferred tax asset generally represents future tax benefits to be received when temporary differences previously reported in our consolidated financial statements become deductible for income tax purposes, when net operating loss carry forwards could be applied against future taxable income, or when tax credit carry forwards are utilized on our tax returns. We assess the realizability of our deferred tax assets and the need for a valuation allowance based on the guidance provided in current financial accounting standards.

Significant judgment is required in determining the realizability of our deferred tax assets. The assessment of whether valuation allowances are required considers, among other matters, the nature, frequency and severity of any current and cumulative losses, forecasts of future profitability, the duration of statutory carry-forward periods, our experience with loss carry forwards not expiring unused and tax planning alternatives. In analyzing the need for valuation allowances, we first considered our history of cumulative operating results for income tax purposes over the past three years in each of the tax jurisdictions in which we operate, our financial performance in recent quarters, statutory carry-forward periods and tax planning alternatives. In addition, we considered both our near-term and long-term financial outlook. After considering all available evidence (both positive and negative), we concluded that recognition of valuation allowances for substantially all of our U.S. and Singapore based deferred tax assets were not required.

The Inland Revenue Authority of Singapore has initiated a routine compliance review of our 2018 income tax return. We presently anticipate that the outcome of this audit will not have a significant impact on our financial position or results of operations.