5. CAPITALIZED SOFTWARE COSTS

Capitalized software costs and accumulated amortization at January 31, 2013 and January 31, 2012 were as follows:

	January 31,			January 31,
	2013			2012
	(in thousands)
Capitalized software costs:
Acquired software technology (1)	$	3,741		$	—
Capitalized software development costs (1)		1,253			1,194
		4,994			1,194
Less accumulated amortization		(814	)		(611	)
Capitalized software costs, net	$	$ 4,180		$	583

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(1)

Acquired software technology and capitalized software development costs include the impact of foreign currency translation.

Acquired software technology costs relate to technology purchased from the Company's fiscal 2013 acquisitions of DynaSys and CEBOS, as described in Note 3 "Business Combinations" within these Notes to 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 for fiscal 2013, 2012 and 2011 was $0.6 million, $0.5 million and $2.1 million, respectively. Amortization of capitalized software costs is included in "Cost of license fees" in the accompanying 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 January 31, 2013:

Fiscal Years	(in thousands)
2014	$	1,052
2015		1,016
2016		869
2017		817
2018		426
	$	4,180