CAPITALIZED SOFTWARE COSTS

Capitalized software costs and accumulated amortization at

April 30, 2017

and

January 31, 2017

were as follows:

	April 30, 201 7			January 31, 201 7
	(in thousands)
Capitalized software costs:
Acquired software technology	$	3,458		$	3,458
Capitalized software development costs		732			748
		4,190			4,206
Less accumulated amortization		(3,549	)		(3,474	)
Capitalized software costs, net	$	641		$	732

Acquired software technology costs relate to technology purchased as a result of the Company

’s fiscal

2013

acquisitions of DynaSys and CEBOS. 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

three

months of fiscal

2018,

approximately

$0.2

million of costs and accumulated amortization were removed from the balance sheet.

Amortization of cap

italized software costs was

$0.2

million for each of the

three

months ended

April 30, 2017

and

2016.

Amortization of capitalized software costs is included in “Cost of license fees” in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Loss.

The following table summarizes the estimated amortization expense relating to the Company

’s capitalized software costs as of

April 30, 2017:

Fiscal Years	(in thousands)
201 8 remaining	$	443
201 9		123
20 20		70
202 1		5
	$	641