4.	CAPITALIZED SOFTWARE COSTS

Capitalized software costs and accumulated amortization at July 31, 2014 and January 31, 2014 were as follows:

		July 31, 2014			January 31, 2014
	(in thousands)
Capitalized software costs:
Acquired software technology		$	3,577		$	3,577
Capitalized software development costs (1)			1,208			1,183
			4,785			4,760
Less accumulated amortization			(1,912	)		(1,445	)
Capitalized software costs, net		$	2,873		$	3,315

(1)

Capitalized software development costs include the impact of foreign currency translation.

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.

Amortization of capitalized software costs was $0.6 million for each of the six months ended July 31, 2014 and 2013. Amortization of capitalized software costs is included in "Cost of license fees" in the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income.

The following table summarizes the estimated amortization expense relating to the Company's capitalized software costs as of July 31, 2014:

Fiscal Years	(in thousands)
2015 remaining	$	570
2016		1,020
2017		839
2018		444
	$	2,873