Share-Based Compensation

6 Months Ended

Jun. 30, 2011

Share-based Compensation [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [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 February 2011, the Board approved a stock-based incentive program for 2011 ("2011 Performance Program"). The 2011 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 2011. A partial pro-rata issuance of performance share awards will be made if we achieve a minimum adjusted EBITDA performance threshold. The 2011 Performance Program initially provides for the issuance of up to approximately 0.7 million of targeted contingently issuable performance share awards. The performance share awards, if any, will be issued after approval by our compensation committee following the issuance of our 2011 audited financial results in early 2012 and will vest 50% upon the date of issuance 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 2011 and share-based compensation will be recognized over the requisite service period that runs from January 28, 2011 (the date of board approval) through January 2014. Although all necessary service and performance conditions have not been met through June 30, 2011, based on the six months ended June 30, 2011 results and the outlook for the remainder of 2011, management has determined that it is probable the Company will achieve its minimum adjusted EBITDA performance threshold.

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Cost of maintenance services	$	174	$	163	$	341	$	277
Cost of consulting services	519		330		1,183		778
Product development	544		173		1,236		506
Sales and marketing	1,419		884		2,860		1,750
General and administrative	1,826		1,742		4,435		3,258
Total stock-based compensation expense	$	4,482	$	3,292	$	10,055	$	6,569