Related-Party Transactions

9 Months Ended

Oct. 31, 2017

Related Party Transactions [Abstract]

Related-Party Transactions

16. 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.

The Company enters into software license agreements with Cadence Design Systems, Inc. (“Cadence”) from time to time. The Chief Executive Officer of Cadence, who is also the President and a Director of Cadence, was a member of the Company’s Board of Directors until June 7, 2017. In March 2017, the Company entered into a noncancelable software license agreement with Cadence. Under this agreement, the Company committed to pay an aggregate amount of $10.3 million through January 2020. The Company paid $1.7 million and $0.8 million to Cadence for the three months ended October 31, 2017 and 2016, respectively. The Company paid $2.7 million and $2.1 million to Cadence for the nine months ended October 31, 2017 and 2016, respectively. License expenses related to these agreements included in research and development expense were approximately $0.8 million for the three months ended October 31, 2017 and 2016, respectively. License expenses related to these agreements included in research and development expense were approximately $2.4 million and $2.2 million for the nine months ended October 31, 2017 and 2016, respectively.