5. CAPITALIZED SOFTWARE COSTS

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

	July 31, 2012			January 31, 2012
	(in thousands)
Capitalized software costs:
Acquired software technology	$	1,800		$	—
Capitalized software development costs		1,081			1,194
		2,881			1,194
Less accumulated amortization		(547	)		(611	)
Capitalized software costs, net	$	2,334		$	583

Acquired software technology costs relate to technology purchased from the Company's second quarter fiscal 2013 acquisition of DynaSys, as described in Note 4 "Business Combinations" within these Notes to Condensed Consolidated Financial Statements. 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 2013, $0.3 million of costs and accumulated amortization was removed from the balance sheet. Amortization of capitalized software costs was $0.1 million and $0.2 million for the three and six months ended July 31, 2012, respectively. For the three and six months ended July 31, 2011, amortization of capitalized software costs was $0.1 million and $0.3 million, respectively. Amortization of capitalized software costs is included in "Cost of license fees" in the accompanying Condensed Consolidated Statements of Income and Comprehensive Income.

The following table summarizes the estimated amortization expense relating to the Company's capitalized software costs as of July 31, 2012:

Fiscal Years	(in thousands)
2013 remaining	$	343
2014		618
2015		489
2016		404
2017		360
Thereafter		120
	$	2,334