Intangible Assets

12 Months Ended

Oct. 31, 2015

(7)Intangible Assets

Intangible assets consisted of the following as of October 31, 2015 and 2014:



(In thousands)	2015		2014
Intangible assets:
Developed technology	$	7,771	$	7,893
Customer and distributor relationships		375		429
Trademarks and trade names		254		283
Software		247		620
Capitalized software in progress		2,705		2,161
		11,352		11,386
Less: accumulated amortization		(7,047)		(7,011)
	$	4,305	$	4,375

The Company amortizes the intangible assets related to developed technology, patents and trademarks using the straight-line method over the estimated useful lives of the assets, which range from five to ten years. Total amortization expense was $612,000 and $215,000 for the years ended October 31, 2015 and 2014, respectively. Of the total, amortization expense related to software costs of $379,000 and $117,000 is included in cost of equipment, supplies and accessories revenues for the years ended October 31, 2015 and 2014, respectively. Amortization expense classified in cost of equipment, supplies and accessories revenue for the year ended October 31, 2015 includes $266,000 of software development costs that were written off in the 2015 third quarter to fully impair one software product deemed to have no future value as of July 31, 2015.

The Company estimates it will incur the following amortization expense in future fiscal years based on the intangible assets the Company expects to have placed in service at the end of fiscal 2016:



(In thousands)	Amortization
2016	$	371
2017		366
2018		345
2019		289
2020		265
Thereafter		412
	$	2,048

This table does not include estimated amortization expense of $77,000 for patents included in “Developed technology,” not yet placed into service, and capitalized software costs of $2,180,000 for software the Company expects to place into service after fiscal 2016. The Company capitalized software development costs of $740,000 and $694,000 during the years ended October 31, 2015 and 2014, respectively. Upon completion of these development projects, the Company expects to amortize the capitalized software costs over a five year period.