Related-Party Transactions

12 Months Ended

Jan. 31, 2013

Related-Party Transactions

14. Related-Party Transactions

The Company considers an entity to be a related party if it owns more than 10% of its total voting stock at the end of the year or if an officer or employee of an entity also serves on the board of directors or if it is a significant shareholder and has material business transactions with the Company.

Starting from the fiscal year 2008, the Company entered into several software license agreements with Cadence Design Systems, Inc. (“Cadence”). A member of the Company’s Board of Directors is also the Chief Executive Officer, President and Director of Cadence. Under these license agreements, the Company committed to pay $5.1 million payable in 17 quarterly payments through June 2011. In April 2011, the Company committed to pay $5.1 million for additional licenses payable in 12 quarterly payments through January 2014. The Company paid $1.8 million, $1.9 million and $0.9 million under these agreements for the years ended January 31, 2013, 2012 and 2011, respectively. Operating lease expenses related to these agreements included in research and development cost were approximately $1.8 million, $1.6 million and $0.6 million for the years ended January 31, 2013, 2012 and 2011, respectively.

In addition to the related party transactions noted above, the Company recognized revenue from sales to Wintech Microelectronics Co., Ltd, or Wintech, the Company’s logistics provider. Wintech, along with an affiliate, is a shareholder of the Company owning approximately 4.6% and 7.4% of the voting stock as of January 31, 2013 and 2012, respectively. The Company recognized revenue from sales to Wintech of approximately $76.5 million, $77.6 million and $85.7 million for the years ended January 31, 2013, 2012 and 2011, respectively. As of January 31, 2013 and 2012, the Company had receivables from Wintech of approximately $8.2 million and $7.8 million, respectively.