5.	CAPITALIZED SOFTWARE COSTS

Capitalized software costs and accumulated amortization at

July 31, 2018

and

January 31, 2018

were as follows:

	July 31, 201 8			January 31, 201 8
	(in thousands)
Capitalized software costs:
Capitalized software development costs	$	1,787		$	1,516
Acquired software technology		135			-
		1,922			1,516
Less accumulated amortization		(517	)		(526	)
Capitalized software costs, net	$	1,405		$	990

The Company’s capitalized software development costs relate to translations and localizations of QAD Enterprise Applications. Acquired software technology costs relate to acquired technology purchased during the

second

quarter fiscal

2019

It is the Company’s policy to write off capitalized software development costs once fully amortized. Accordingly, during the

first

six

months of fiscal

2019,

approximately

$0.3

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

Amortization of capitalized software costs was

$0.1

million and

$0.3

million for the

three

and

six

months ended

July 31, 2018

and

$0.2

million and

$0.4

million for the

three

and

six

months ended

July 31 2017.

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

The following table summarizes the estimated amortization expense relating to the Company’s capitalized software costs as of

July 31, 2018:

Fiscal Years	(in thousands)
2019 remaining	$	312
2020		580
2021		395
2022		78
Thereafter		40
	$	1,405