Share-based compensation

6 Months Ended

Jun. 30, 2011

Share-based compensation [Abstract]

Share-based compensation

3. Share-based compensation

     The Company maintains incentive share-based plans to provide long-term incentives to its key employees, officers, directors and consultants. The Company issues or has issued three types of share-based awards under its incentive share-based plans: stock options, restricted stock units and stock appreciation rights. The discretionary issuance of share-based awards generally contains vesting provisions ranging from one to four years.

     In February 2011, the Company increased the number of shares available for issuance by 900,000 to 4,568,000 under an evergreen provision in the Company’s 2007 equity incentive plan. As of June 30, 2011, 650,428 shares remained available for issuance under this plan. At June 30, 2011, 1,613,769 stock options were outstanding with a weighted average exercise price of $11.32, 1,152,563 restricted stock units were outstanding and 859,469 stock appreciation rights were outstanding. The Company granted 108,000 shares of restricted stock units with a weighted average grant date fair value of $17.98 during the three months ended June 30, 2011. The Company did not grant any stock options or stock appreciation rights during the three months ended June 30, 2011. The Company granted 324,800 shares of restricted stock units with a weighted average grant date fair value of $13.60 and 191,000 shares of stock appreciation rights with a weighted average grant date fair value of $5.12 during the six months ended June 30, 2011. The Company did not grant any stock options for the six months ended June 30, 2011. At June 30, 2011, there was an estimated $14.0 million of total unrecognized compensation costs related to share-based compensation arrangements. These costs will be recognized over a weighted average period of 1.8 years.

     Share-based compensation expense is allocated to expense categories on the unaudited condensed consolidated statements of operations. The following table summarizes share-based compensation expense for the three and six months ended June 30, 2011 and 2010.

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2011		2010		2011		2010
Share-based compensation:
Cost of revenue:
License and implementation	$	278	$	285	$	612	$	518
Total included in cost of revenue		278		285		612		518
Operating expenses:
Selling, general and administrative		932		1,258		2,004		2,054
Research and development		395		449		745		839
Total included in operating expenses		1,327		1,707		2,749		2,893
Total share-based compensation expense	$	1,605	$	1,992	$	3,361	$	3,411