Related-Party Transactions

9 Months Ended

Oct. 31, 2013

Related Party Transactions [Abstract]

Related-Party Transactions

12. Related-Party Transactions

The Company considers an entity to be a related party if it owns more than 10% of the Company’s total voting stock at the end of each reporting period 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 a Director of Cadence. Under these license agreements, the Company committed to pay an aggregate amount of $10.2 million payable through January 2014. The Company paid $0.4 million in license fees in each of the three months ended October 31, 2013 and 2012. The Company paid $1.3 million in license fees in each of the nine months ended October 31, 2013 and 2012. Operating lease expenses related to these agreements included in research and development cost were approximately $0.4 million in each of the three months ended October 31, 2013 and 2012. Operating lease expenses related to these agreements included in research and development cost were approximately $1.3 million in each of the nine months ended October 31, 2013 and 2012.

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, owned approximately 4.6% of the Company’s voting stock as of January 31, 2013, but has sold such stock and is no longer a significant shareholder of the Company. The Company recognized revenue from sales to Wintech of approximately $27.7 million and $21.4 million for the three months ended October 31, 2013 and 2012, respectively. The Company recognized revenue from sales to Wintech of approximately $63.3 million and $60.8 million for the nine months ended October 31, 2013 and 2012, respectively. As of October 31, 2013 and January 31, 2013, the Company had receivables from Wintech of approximately $11.5 million and $8.2 million, respectively.