Commitments and Contingencies

9 Months Ended

Oct. 31, 2013

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

10. Commitments and Contingencies

The Company leases its principal facilities and time-based software licenses under operating agreements with various expiration dates through April 2018. In March 2013, the Company entered into a lease agreement for approximately 35,000 square feet for its new Santa Clara, California headquarters. The lease has an initial five-year term and terminates in April 2018. The monthly basic rent obligation for this facility initially will be approximately $44,550, increasing annually to approximately $65,400 in 2017. The average monthly basic rent expense over the term of the lease will be approximately $59,800. Net operating lease expenses for the three months ended October 31, 2013 and 2012 were approximately $1.2 million and $1.1 million, respectively. Net operating lease expenses for the nine months ended October 31, 2013 and 2012 were approximately $3.6 million and $3.2 million, respectively. Future annual minimum lease payments under these operating leases with initial lease terms in excess of one year are as follows:

	As of
	October 31, 2013
Fiscal Year	(in thousands)
2014	$	1,144
2015		1,702
2016		1,670
2017		1,492
2018		1,386
	$	7,394

Contract Manufacturer Commitments

The Company’s components and products are procured and built by independent contract manufacturers based on sales forecasts. These forecasts include estimates of future demand, historical trends, analysis of sales and marketing activities, and adjustment of overall market conditions. The Company regularly issues purchase orders to independent contract manufacturers which are cancelable only upon the agreement between the Company and the third-party. As of October 31, 2013 and January 31, 2013, total manufacturing purchase commitments were approximately $12.4 million and $15.1 million, respectively.

Indemnification

The Company, from time to time, in the normal course of business, indemnifies certain vendors with whom it enters into contractual relationships. The Company has agreed to hold the other party harmless against third-party claims in connection with the Company’s future products. The Company also indemnifies certain customers against third party claims related to certain intellectual property matters. It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances that are likely to be involved in each particular claim. The Company has not made payments under these obligations and no liabilities have been recorded for these obligations on the condensed consolidated balance sheets as of October 31, 2013 and January 31, 2013.