3. CAPITALIZED SOFTWARE COSTS

Capitalized software costs and accumulated amortization at January 31, 2012 and 2011 were as follows:

	January 31,
	2012			2011
	(in thousands)
Capitalized software costs:
Capitalized software development costs	$	1,194		$	1,924
Acquired software technology		-			954
		1,194			2,878
Less accumulated amortization		(611	)		(2,037	)
Capitalized software costs, net	$	583		$	841

Capitalized software development costs relate to translations and localizations of QAD Enterprise Applications. Acquired software technology costs relate to technology purchased from the Company's fiscal 2007 acquisition of Bisgen and fiscal 2009 acquisition of FullTilt.

It is the Company's policy to write-off capitalized software development costs once fully amortized. Accordingly, during fiscal 2012, approximately $2.0 million of costs and accumulated amortization was removed from the balance sheet.

Amortization of capitalized software costs for fiscal 2012, 2011 and 2010 was $0.5 million, $2.1 million and $3.8 million, respectively. Amortization of capitalized software costs is included in “Cost of license fees” in the accompanying Consolidated Statements of Income. The estimated remaining amortization expense related to capitalized software costs for the years ended January 31, 2013, 2014 and 2015 is $0.3 million, $0.2 million and $0.1 million, respectively.