STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Jul. 31, 2012

STOCK-BASED COMPENSATION [Abstract]

Allocation of Stock-based Compensation Expense

The following table sets forth reported stock-based compensation expense for the three and six months ended July 31, 2012 and 2011:

	Three Months Ended July 31,				Six Months Ended July 31,
	2012		2011		2012		2011
	(in thousands)				(in thousands)
Cost of maintenance, subscription and other revenue	$	60	$	59	$	108	$	111
Cost of professional services		139		170		250		295
Sales and marketing		249		227		436		437
Research and development		197		188		350		355
General and administrative		783		518		1,323		1,076
Total stock-based compensation expense	$	1,428	$	1,162	$	2,467	$	2,274

Weighted Average Assumptions Used to Value SARs

The weighted average assumptions used to value SARs granted in the six months ended July 31, 2012 and 2011 are shown in the following table:

	Six Months Ended July 31,
	2012	2011
Expected life in years (1)	4.62	3.81
Risk free interest rate (2)	0.69%	1.17%
Volatility (3)	61%	66%
Dividend rate (4)	2.25%	2.38%

(1) The expected life of SARs granted under the stock-based compensation plans is based on historical vested stock option and SAR exercise and post-vest forfeiture patterns and includes an estimate of the expected term for stock options and SARs that were fully vested and outstanding.

(2) The risk-free interest rate is based on the U.S. Treasury yield for a term consistent with the expected life of SARs in effect at the time of grant.

(3) The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of the Company's common stock for a period equivalent to the expected life of the SARs, which it believes is representative of the expected volatility over the expected life of the SARs.

(4) The Company expects to continue paying quarterly dividends at the same rate as the three months ending on July 31, 2012.

Summary of Activity for Outstanding Stock Options and SARs

The following table summarizes the activity for outstanding stock options and SARs for the fiscal year ended January 31, 2012 and the six months ended July 31, 2012:

	Stock Options/ SARs (in thousands)			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Outstanding at January 31, 2011		2,653		$	11.33
Granted		502			10.28
Exercised		(164	)		8.08
Expired		(46	)		14.28
Forfeited		(74	)		9.26
Outstanding at January 31, 2012		2,871		$	11.34
Granted		564			12.90
Exercised		(196	)		8.21
Expired		(216	)		22.52
Forfeited		(19	)		9.54
Outstanding at July 31, 2012		3,004		$	11.04		5.2	$	9,308
Vested and expected to vest at July 31, 2012 (1)		2,924		$	11.05		5.2	$	9,054
Vested and exercisable at July 31, 2012		1,410		$	11.33		3.4	$	4,360

(1) The expected-to-vest SARs are the result of applying the pre-vesting forfeiture rate assumptions to total outstanding SARs.

Summary of Activity for RSUs

The following table summarizes the activity for RSUs for the fiscal year ended January 31, 2012 and the six months ended July 31, 2012:

	RSUs			Weighted Average Grant Date Fair Value
	(in thousands)
Restricted stock at January 31, 2011		435		$	10.02
Granted		174			9.32
Vested (1)		(178	)		11.02
Forfeited		(17	)		9.35
Restricted stock at January 31, 2012		414		$	9.32
Granted		198			12.20
Vested (1)		(161	)		10.00
Forfeited		(3	)		10.46
Restricted stock at July 31, 2012		448		$	10.34

(1) The number of RSUs vested includes shares withheld on behalf of employees to satisfy statutory tax withholding requirements.