CAPITALIZED SOFTWARE COSTS

Capitalized software costs and accumulated amortization at

October 31, 2017

and

January 31, 2017

were as follows:

	October 31, 2017			January 31, 2017
	(in thousands)
Capitalized software costs:
Acquired software technology	$	1,466		$	3,458
Capitalized software development costs		1,324			748
		2,790			4,206
Less accumulated amortization		(1,834	)		(3,474	)
Capitalized software costs, net	$	956		$	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

nine

months of fiscal

2018,

approximately

$2.2

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

Amortization of capitalized software costs was $

0.6

million and

$0.7

million for the

nine

months ended

October 31, 2017

and

2016

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

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

’s capitalized software costs as of

October 31, 2017:

Fiscal Years	(in thousands)
2018 remaining	$	190
2019		347
2020		294
2021		125
	$	956