10. STOCK-BASED COMPENSATION

The Company's equity awards consist of stock options, SARs and RSUs. For a description of the Company's stock-based compensation plans, see Note 9 "Stock-Based Compensation" in Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended January 31, 2012. On June 12, 2012, the Company's stockholders approved an amendment to the 2006 Stock Incentive Program to provide for an increase in the number of shares of Class A Common Stock reserved for issuance by 2,000,000 shares.

Stock-Based Compensation

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

	Three Months Ended October 31,				Nine Months Ended October 31,
	2012		2011		2012		2011
	(in thousands)				(in thousands)
Cost of maintenance, subscription and other revenue	$	48	$	47	$	155	$	155
Cost of professional services		124		136		375		435
Sales and marketing		209		230		646		666
Research and development		166		171		516		526
General and administrative		592		644		1,914		1,720
Total stock-based compensation expense	$	1,139	$	1,228	$	3,606	$	3,502

Option/SAR Information

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

	Nine Months Ended October 31,
	2012			2011
Expected life in years (1)		4.61			3.81
Risk free interest rate (2)		0.69	%		1.16	%
Volatility (3)		61	%		66	%
Dividend rate (4)		2.25	%		2.38	%

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(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-vesting 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 October 31, 2012.

The following table summarizes the activity for outstanding stock options and SARs for the fiscal year ended January 31, 2012 and the nine months ended October 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		570			12.90
Exercised		(226	)		8.21
Expired		(219	)		22.37
Forfeited		(23	)		9.50
Outstanding at October 31, 2012		2,973		$	11.07		5.0	$	5,513
Vested and expected to vest at October 31, 2012 (1)		2,905		$	11.08		4.9	$	5,405
Vested and exercisable at October 31, 2012		1,496		$	11.25		3.3	$	3,172

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

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the aggregate difference between the closing stock price of the Company's common stock based on the last trading day as of October 31, 2012 and the exercise price for in-the-money stock options and SARs) that would have been received by the holders if all stock options and SARs had been exercised on October 31, 2012. The total intrinsic value of stock options or SARs exercised in the three and nine months ended October 31, 2012 was $0.1 million and $1.1 million, respectively. The total intrinsic value of stock options or SARs exercised in the three and nine months ended October 31, 2011 was zero and $0.2 million, respectively. The weighted average grant date fair value per share of SARs granted in the three and nine months ended October 31, 2012 was $4.83 and $5.37, respectively. The weighted average grant date fair value per share of SARs granted in the three and nine months ended October 31, 2011 was $4.60 and $4.16, respectively.

The number of SARs exercised includes shares withheld on behalf of employees to satisfy minimum statutory tax withholding requirements. During the three months ended October 31, 2012, the Company withheld 4,000 shares for payment of these taxes at a value of $51,000. During the nine months ended October 31, 2012, the Company withheld 30,000 shares for payment of these taxes at a value of $404,000.

At October 31, 2012, there was approximately $5.9 million of total unrecognized compensation cost related to unvested SARs. This cost is expected to be recognized over a weighted-average period of approximately 2.8 years.

RSU Information

The estimated fair value of RSUs was calculated based on the closing price of the Company's common stock on the date of grant, reduced by the present value of dividends foregone during the vesting period.

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

	RSUs (in thousands)			Weighted Average Grant Date Fair Value

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		201			12.20
Vested (1)		(223	)		9.84
Forfeited		(5	)		10.98
Restricted stock at October 31, 2012		387		$	10.49

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

The Company withholds, at the employee's election, a portion of the vested shares as consideration for the Company's payment of applicable employee income taxes. During the three months ended October 31, 2012, the Company withheld 22,000 shares for payment of these taxes at a value of $276,000. During the nine months ended October 31, 2012, the Company withheld 57,000 shares for payment of these taxes at a value of $710,000.

Total unrecognized compensation cost related to RSUs was approximately $3.2 million as of October 31, 2012. This cost is expected to be recognized over a weighted-average period of approximately 2.9 years.