STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Oct. 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 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

Weighted Average Assumptions Used to Value SARs

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.

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 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.

Summary of Activity for RSUs

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.