CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

3 Months Ended

Apr. 30, 2017

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

NOTE 4 — CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

The Company considers all liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents. Short-term investments as of April 30 and January 31, 2017 consisted solely of certificates of deposit purchased from the Bank of America (the “Bank”) with weighted average original maturities of 198 days and 185 days, respectively (the “CDs”). The Company has the intent and ability to hold these securities until they mature, and they are carried at cost plus accrued interest which approximates fair value. The total carrying value amounts as of April 30 and January 31, 2017 included accrued interest of $1.1 million and $0.8 million, respectively. Interest income is recorded when earned and is included in other income, net. As of April 30 and January 31, 2017, the weighted average annual interest rates of the Company’s short-term investment CDs were 1.17% and 1.13%, respectively.

The Company has cash on deposit in excess of federally insured limits at the Bank, has purchased CDs from the Bank, and has liquid mutual fund investments through an arrangement with the Bank. Management does not believe that maintaining substantially all such assets with the Bank represents a material concentration risk.