Capitalized Software Development Costs

12 Months Ended

Oct. 31, 2011

Deferred Costs, Capitalized, Prepaid, and Other Assets

Other Assets Disclosure [Text Block]

4. Capitalized Software Development Costs

As of October 31, 2011 and 2010, the Company had $7,454,000 and $5,431,000 of capitalized software development costs, and $2,812,000 and $2,096,000 of accumulated amortization related to such costs, resulting in a net asset of $4,642,000 and $3,335,000, respectively. The average amortization period of the Company’s capitalized software development costs was 3.2 years as of October 31, 2011. Amortization related to capitalized software development projects was $716,000 and $468,000 in fiscal years 2011 and 2010, respectively. Beginning in fiscal year 2012, future amortization expense for capitalized software development costs where amortization has commenced, is estimated to approximate $870,000, $777,000, $626,000, $539,000, and $240,000, for the next five fiscal years, respectively. As of October 31, 2011, the Company had $1,605,000 of capitalized software development costs relating to projects in development which are not yet subject to amortization.