Commitments and Contingencies

9 Months Ended

Oct. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

13. Commitments and Contingencies

In August 2015, the Company entered into an amendment to the lease agreement for its headquarters located in Santa Clara, California to extend the term to May 2020, among other things. The Company leases its principal facilities and has time-based software licenses under operating leases. Net operating lease expenses for the three months ended October 31, 2015 and 2014 were approximately $1.6 million and $1.5 million, respectively. Net operating lease expenses for the nine months ended October 31, 2015 and 2014 were approximately $5.2 million and $4.3 million, respectively. Future annual minimum payments under these operating leases with initial lease terms in excess of one year are as follows:

	As of
	October 31, 2015
Fiscal Year	(in thousands)
2016	$	2,106
2017		5,678
2018		2,016
2019		1,461
2020		1,536
Total future annual minimum lease payments	$	12,797

Contract Manufacturer Commitments

The Company’s components and products are procured and built by independent contract manufacturers based on sales forecasts. These forecasts include estimates of future demand, historical trends, analysis of sales and marketing activities, and adjustment of overall market conditions. The Company regularly issues purchase orders to independent contract manufacturers which are cancelable only upon the agreement between the Company and the third-party. As of October 31, 2015 and January 31, 2015, total manufacturing purchase commitments were approximately $23.4 million and $27.5 million, respectively.

Indemnification

The Company, from time to time, in the normal course of business, indemnifies certain vendors with whom it enters into contractual relationships. The Company has agreed to hold the other party harmless against third-party claims in connection with the Company’s products. The Company also indemnifies certain customers against third party claims related to certain intellectual property matters. It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the unique facts and circumstances that are likely to be involved in each particular claim. The Company has not made payments under these obligations and no liabilities have been recorded for these obligations on the condensed consolidated balance sheets as of October 31, 2015 and January 31, 2015, respectively.