Share-Based Compensation

3 Months Ended

Mar. 31, 2012

Share-based Compensation [Abstract]

Share-based Compensation [Text Block]

Share-Based Compensation

The Company has a stock-based compensation program that provides the Board of Directors broad discretion in creating equity incentives for employees, officers, directors and consultants. This program includes stock purchase rights, stock bonuses, restricted stock, restricted stock units, performance awards, performance units and deferred compensation awards.

Annual stock-based incentive programs ("Performance Programs") have been approved for executive officers and certain other members of our management team for years 2007 through 2011 that provide for contingently issuable performance share awards or restricted stock units upon achievement of defined performance threshold goals.

In August 2012, the Board approved a stock-based incentive program for 2012 ("2012 Performance Program"). The 2012 Performance Program provides for the issuance of contingently issuable performance share awards under the 2005 Incentive Plan to executive officers and certain other members of our management team if we are able to achieve a defined adjusted EBITDA performance threshold goal in 2012. A partial pro-rata issuance of performance share awards will be made if we achieve a minimum adjusted EBITDA performance threshold. The 2012 Performance Program initially provides for the issuance of up to approximately $18.4 million of targeted value of contingently issuable performance share awards. The performance share awards will vest 50% on the date in 2013 that the Company issues its 2012 audited financial statements with one-half of the remaining 50% vesting on each of the next two anniversaries of the initial vest date. Our performance against the defined performance threshold goal will be evaluated on a quarterly basis throughout 2012 and share-based compensation will be recognized over the requisite service periods that run from the date of board approval through February 2015. Because the 2012 Performance Program was not yet approved during the three months endedMarch 31, 2012, the Company has not yet recorded any associated share-based compensation expense.

The Company has recognized stock-based compensation as follows (in thousands):

	Three Months Ended
	March 31,
	2012		2011
Cost of maintenance services	$	172	$	167
Cost of consulting services	458		664
Product development	456		692
Sales and marketing	713		1,441
General and administrative	1,090		2,609
Total stock-based compensation expense	$	2,889	$	5,573