STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Oct. 31, 2014

The following table sets forth reported stock-based compensation expense for the three and nine months ended October 31, 2014 and 2013:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2014		2013		2014		2013
	(in thousands)				(in thousands)
Cost of maintenance, subscription and other revenue	$	51	$	58	$	150	$	161
Cost of professional services		121		124		364		388
Sales and marketing		203		236		587		687
Research and development		132		160		400		512
General and administrative		702		642		2,293		1,966
Total stock-based compensation expense	$	1,209	$	1,220	$	3,794	$	3,714

The weighted average assumptions used to value SARs granted in the nine months ended October 31, 2014 and 2013 are shown in the following table:

⁽¹⁾	The expected life of SARs granted under the stock-based compensation plans is based on historical vested SAR exercise and post-vest forfeiture patterns and includes an estimate of the expected term for 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 nine months ending on October 31, 2014.

The following table summarizes the activity for outstanding SARs for the nine months ended October 31, 2014:

	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, 2014		2,842		$	11.19
Granted		387			21.61
Exercised		(603	)		11.65
Expired		(20	)		12.92
Forfeited		(49	)		12.36
Outstanding at October 31, 2014		2,557		$	12.62		5.3	$	21,964
Vested and expected to vest at October 31, 2014 ⁽¹⁾		2,538		$	12.62		5.3	$	21,786
Vested and exercisable October 31, 2014		1,303		$	10.51		4.2	$	13,735

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

The following table summarizes the activity for RSUs for the nine months ended October 31, 2014:

	RSUs			Weighted Average Grant Date Fair Value
	(in thousands)

Restricted stock at January 31, 2014		430		$	11.02
Granted		285			21.25
Released ⁽¹⁾		(167	)		11.91
Forfeited		(42	)		13.73
Restricted stock at October 31, 2014		506		$	16.27

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