Table:
|  |  | For the Year Ended December 31, |  |  |
| --- | --- | --- | --- | --- |
|  | 2018 | 2017 | Change | % Change |
|  |  | (In millions, except percentages) |  |  |
| Revenues | $82.3 | $50.5 | $31.8 | 63% |
| Cost of revenues | 15.3 | 6.0 | 9.3 | 155% |
| Gross profit | 67.0 | 44.5 | 22.5 | 51% |
| Gross margin | 81% | 88% |  |  |
| Operating expenses: |  |  |  |  |
| Selling, general and administrative | 32.2 | 28.6 | 3.6 | 13% |
| Research and development | 2.1 | 1.5 | 0.6 | 40% |
| Total operating expenses | 34.3 | 30.1 | 4.2 | 14% |
| Other income (expense) | (4.0) | 2.2 | (6.2) | (282)% |
| Income before income taxes | 28.7 | 16.6 | 12.1 | 73% |
| Income tax provision (benefit) | 8.0 | (6.2) | 14.2 | (229)% |
| Net income | $20.7 | $22.8 | $(2.1) | (9)% |
Paragraphs:
Year ended December 31, 2018 compared with the year ended December 31, 2017:
Revenue in 2018 is derived from multiple license agreements that we entered into with third-parties following negotiations pursuant to our patent licensing and enforcement program. The revenue increase is primarily due to licensing revenues, as further described in "Item 1. Business" - "Licensing and Enforcement - Current Activities, Post 2013".
Cost of revenues includes contingent legal fees directly associated with our licensing and enforcement programs. Cost of revenues increased largely in proportion to increase in revenues.
Selling, general and administrative expenses ("SG&A") consisted primarily of legal fees incurred in operations and employee headcount related expenses. These comprise approximately 74% of total SG&A expense. Litigation expenses increased $4.2 million to $16.5 million in 2018 compared to 2017 and are primarily due to the timing of various outstanding litigation actions. See "Item 3. Legal Proceedings". Employee headcount related expenses increased $1.8 million to $7.2 million in 2018 compared to 2017, and is primarily due to incentive bonuses earned during the year. The balance of SG&A expenses include consulting, other professional services, facilities and other administrative fees and expenses.
Research and Development expenses ("R&D") are primarily from our Finjan Mobile security business and increased by $0.6 million to $2.1 million in 2018 compared to 2017, as we continue to position this business for future growth.
Other income (expense) is primarily due to changes in the fair value of the warrant liability of $3.4 million in 2018 versus a benefit of $2.2 million in 2017, and interest expense of $0.6 million in 2018, net.
We recognized an income tax expense of $8.1 million on pre-tax income of $28.7 million in 2018 as compared to a benefit from the reduction in the valuation allowance of $6.2 million in 2017.
Question:
What are the respective income tax expense and pre-tax income in 2018?
Answer: $8.1 million, $28.7 million