Related-Party Transactions

3 Months Ended

Apr. 30, 2015

Related Party Transactions [Abstract]

Related-Party Transactions

13. 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 Company’s board of directors or if it is a significant shareholder and has material business transactions with the Company.

In fiscal year 2015, the Company added additional software license commitments to its existing software license agreement 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 commitments, the Company committed to pay an aggregate amount of $7.5 million payable through January 2017. The Company paid $0.8 million and $0.5 million under these agreements for the three months ended April 30, 2015 and 2014, respectively. License expenses related to these agreements included in research and development cost were approximately $0.7 million and $0.4 million for the three months ended April 30, 2015 and 2014, respectively.

In addition to the related party transactions noted above, the Company recognized revenue from sales to 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 is no longer a significant shareholder of the Company. The Company recognized revenue from sales to Wintech of approximately $45.2 million and $28.2 million for the three months ended April 30, 2015 and 2014, respectively. As of April 30, 2015 and January 31, 2015, the Company had receivables from Wintech of approximately $16.7 million and $12.1 million, respectively.