5. CAPITALIZED SOFTWARE COSTS

Capitalized software costs and accumulated amortization at July 31, 2011 and January 31, 2011 were as follows:

	July 31,			January 31,
	2011			2011
	(in thousands)
Capitalized software costs:
Capitalized software development costs	$	1,460		$	1,924
Acquired software technology		-			954
		1,460			2,878
Less accumulated amortization		(835	)		(2,037	)
Capitalized software costs, net	$	625		$	841

Acquired software technology costs relate to technology purchased from the Company's fiscal 2007 acquisition of Bisgen and fiscal 2009 acquisition of FullTilt. In addition to the acquired software technology, the Company has capitalized costs related to translations and localizations of QAD Enterprise Applications.

It is the Company's policy to write off capitalized software development costs once fully amortized. Accordingly, during the first six months of fiscal 2012, $1.6 million of costs and accumulated amortization was removed from the balance sheet. Amortization of capitalized software costs was $0.1 million and $0.3 million for the three and six months ended July 31, 2011, respectively. For the three and six months ended July 31, 2010, amortization of capitalized software costs was $0.7 million and $1.4 million, respectively. Amortization of capitalized software costs is included in “Cost of license fees” in the accompanying Condensed Consolidated Statements of Operations. The estimated remaining amortization expense related to capitalized software costs for the years ended January 31, 2012, 2013 and 2014 is $0.2 million, $0.3 million and $0.1 million, respectively.