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INCOME TAXES
 6 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES
The calculation of the effective tax rate is as follows (in thousands):
 
Three months ended March 31,
 
Six months ended March 31,
 
2017
 
2016
 
2017
 
2016
Income (loss) before income taxes
$
(2,174
)
 
$
6,294

 
$
(3,914
)
 
$
4,788

 
 
 
 
 
 
 
 
Income tax provision (benefit)
(1,345
)
 
727

 
(2,786
)
 
(320
)
 
 
 
 
 
 
 
 
Net income (loss)
$
(829
)
 
$
5,567

 
$
(1,128
)
 
$
5,108

 
 
 
 
 
 
 
 
Effective tax rate
62
%
 
12
%
 
71
%
 
(7
)%
 
We recorded an income tax benefit of $1.3 million in the second quarter of Fiscal 2017, compared to an income tax provision of $0.7 million in the second quarter of Fiscal 2016.  The effective tax rate for the second quarter of Fiscal 2017 was 62% compared to an effective tax rate of 12% in the second quarter of Fiscal 2016. The effective tax rates for the second quarter of Fiscal 2017 and 2016 were favorably impacted by the lower tax rate in the United Kingdom, the relative amounts of income/loss recognized in various jurisdictions, as well as the utilization of net operating loss carryforwards in Canada that are fully reserved with a valuation allowance. 

We recorded an income tax benefit of $2.8 million for the six months ended March 31, 2017, compared to an income tax benefit of $0.3 million for the six months ended March 31, 2016.  The effective tax rate was 71% for the six months ended March 31, 2017 compared to a 7% benefit for the six months ended March 31, 2016. The effective tax rates for the six months ended March 31, 2017 and 2016 were favorably impacted by the lower tax rate in the United Kingdom, the relative amounts of income/loss recognized in various jurisdictions, as well as the utilization of net operating loss carryforwards in Canada that are fully reserved with a valuation allowance. A discrete item related to the closing of an IRS audit recorded in the first quarter of Fiscal 2017 also favorably impacted the effective tax rate due to the release of a $0.3 million FIN 48 reserve relating to the Research and Development Tax Credit (R&D Tax Credit). Additionally, the effective tax rate for the six months ended March 31, 2016 was favorably impacted by a $0.8 million discrete item recorded in the first quarter of Fiscal 2016 related to the retroactive reinstatement of the R&D Tax Credit.