5. CAPITALIZED SOFTWARE COSTS

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

	October 31,			January 31,
	2012			2012
	(in thousands)
Capitalized software costs:
Acquired software technology	$	1,903		$	—
Capitalized software development costs		1,242			1,194
		3,145			1,194
Less accumulated amortization		(710	)		(611	)
Capitalized software costs, net	$	$ 2,435		$	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.

Amortization of capitalized software costs was $0.2 million and $0.4 million for the three and nine months ended October 31, 2012, respectively. For the three and nine months ended October 31, 2011, amortization of capitalized software costs was $0.1 million and $0.5 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 October 31, 2012:

Fiscal Years	(in thousands)
2013 remaining	$	178
2014		694
2015		565
2016		490
2017		381
Thereafter		127
	$	2,435