Restricted Stock

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Note 5 - Restricted Stock

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

	Restricted Shares	Weighted Average Grant Price
Unvested restricted shares outstanding, January 1, 2011	689	$      2.13
Granted	299	2.15
Vested	(94)	1.68
Forfeited	(90)	2.52
Unvested restricted shares outstanding, September 30, 2011	804	$      2.15

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

	Nine Months Ended September 30,		Three Months Ended September 30,
	2011	2010	2011	2010
Restricted stock shares granted	299	532	130	172
Global managed services	$        23	$        16	$          5	$        5
Sales and marketing	16	17	7	5
General and administrative	83	228	27	136
	$ 122	$ 251	$ 39	$ 146

The remaining unrecognized stock-based compensation expense for restricted stock at September 30, 2011 was $1,409,000, of which $330,000, representing 130,000 shares, will only be expensed upon a "change in control" and the remaining $1,079,000 will be amortized over a weighted average period of 7.7 years.

The tax benefit recognized for stock-based compensation for the nine and three months ended September 30, 2011 was diminimus. There was no tax benefit recognized for stock-based compensation for the nine and three months ended September 30, 2010. No compensation costs were capitalized as part of the cost of an asset.