Restricted Stock

6 Months Ended

Jun. 30, 2011

Note 5 - Restricted Stock

A summary of restricted stock granted, vested, forfeited and unvested outstanding as of, and changes made during, the six and three months ended June 30, 2011, is presented below (in thousands):

	Restricted Shares			Weighted Average Grant Price
Unvested restricted shares outstanding, January 1, 2011		689		$	2.13
Granted		169			2.18
Vested		(92	)		1.69
Forfeited		(38	)		2.52
Unvested restricted shares outstanding, June 30, 2011		728		$	2.18

Restricted stock shares granted and compensation expense is allocated as follows for the six and three months ended June 30, 2011 and 2010 (in thousands):

	Six Months Ended June 30,				Three Months Ended June 30,
	2011		2010		2011		2010
Restricted stock shares granted		169		360		69		332
Global managed services	$	18	$	11	$	8	$	5
Sales and marketing		9		2		7		1
General and administrative		56		92		24		50
	$	83	$	105	$	39	$	56

The remaining unrecognized stock-based compensation expense for restricted stock at June 30, 2011 was $1,305,000, of which $462,000, representing 183,000 shares, will only be expensed upon a “change in control” and the remaining $843,000 will be amortized over a weighted average period of 7.4 years.

There was no income tax benefit recognized for stock-based compensation for the six and three months ended June 30, 2011 and 2010, respectively.  No compensation costs were capitalized as part of the cost of an asset.