5. CAPITALIZED SOFTWARE COSTS

Capitalized software costs and accumulated amortization at July 31, 2013 and January 31, 2013 were as follows:

	July 31,			January 31,
	2013			2013
	(in thousands)
Capitalized software costs:
Acquired software technology	$	3,741		$	3,741
Capitalized software development costs (1)		1,114			1,253
		4,855			4,994
Less accumulated amortization		(1,165	)		(814	)
Capitalized software costs, net	$	$ 3,690		$	4,180

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(1) Capitalized software development costs include the impact of foreign currency translation.

Acquired software technology costs relate to technology purchased as a result of the Company's fiscal 2013 acquisitions of DynaSys and CEBOS, 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 2014, $0.2 million of costs and accumulated amortization were removed from the balance sheet. Amortization of capitalized software costs was $0.3 million and $0.6 million for the three and six months ended July 31, 2013, respectively. For the three and six months ended July 31, 2012, amortization of capitalized software costs was $0.1 million and $0.2 million, respectively. Amortization of capitalized software costs is included in "Cost of license fees" in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.

The following table summarizes the estimated amortization expense relating to the Company's capitalized software costs as of July 31, 2013:

Fiscal Years	(in thousands)
2014 remaining	$	573
2015		1,052
2016		905
2017		734
2018		426
Total	$	3,690