INCOME TAXES

The calculation of the effective tax rate is as follows (in thousands):



	Three months ended March 31,						Six months ended March 31,
	2019			2018			2019			2018
Income (loss) before income taxes	$	1,363		$	(5,090	)	$	(1,571	)	$	(11,823	)

Income tax expense (benefit)	405			(1,760		)	166			(2,831		)

Net income (loss)	$	958		$	(3,330	)	$	(1,737	)	$	(8,992	)

Effective tax rate	30		%	35		%	(11		)%	24		%

On December 22, 2017, the Tax Cuts and Jobs Act was signed into law, which lowered the corporate tax rate from 35% to 21% effective January 1, 2018. As a result, the U.S. federal statutory rate for Fiscal 2019 is 21%, compared to the blended statutory rate of 24.5% effective for Fiscal 2018. The effective tax rate of 30% for the second quarter of Fiscal 2019 and the effective tax rate of 35% in the second quarter of Fiscal 2018 was negatively impacted by foreign tax losses that are reserved with a valuation allowance.

For the six months ended March 31, 2019, the effective tax rate of a negative 11% was negatively impacted by foreign tax losses that are reserved with a valuation allowance. The effective tax rate of 24% for the six months ended March 31, 2018 was similarly impacted by foreign tax losses reserved with a valuation allowance, as well as $0.8 million of tax expense related to the re-measurement of U.S. deferred tax assets as a result of tax reform.