10. STOCK-BASED COMPENSATION

The Company’s equity awards consist of SARs and RSUs. For a description of the Company’s stock-based compensation plans, see Note 5 “Stock-Based Compensation” in Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended January 31, 2015.

Stock-Based Compensation

The following table sets forth reported stock-based compensation expense for the three months ended April 30, 2015 and 2014:

	Three Months Ended April 30,
	2015		2014
	(in thousands)
Cost of subscription	$	12	$	8
Cost of maintenance and other revenue		46		29
Cost of professional services		119		87
Sales and marketing		261		127
Research and development		148		92
General and administrative		720		533
Total stock-based compensation expense	$	1,306	$	876

SAR Information

The weighted average assumptions used to value SARs granted in the three months ended April 30, 2015 and 2014 are shown in the following table:

	Three Months Ended April 30,
	2015⁽⁵⁾		2014
Expected life in years ⁽¹⁾		—		3.75
Risk free interest rate ⁽²⁾		—		1.14	%
Volatility ⁽³⁾		—		49	%
Dividend rate ⁽⁴⁾		—		2.44	%

⁽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 three months ending on April 30, 2015.

⁽⁵⁾	There were no SARs granted during the three months ended April 30, 2015.

The following table summarizes the activity for outstanding SARs for the three months ended April 30, 2015:

	SARs (in thousands)			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Outstanding at January 31, 2015		2,499		$	12.69
Granted		—			—
Exercised		(118	)		11.00
Expired		(10	)		14.76
Forfeited		—			—
Outstanding at April 30, 2015		2,371		$	12.76		5.0	$	26,123
Vested and expected to vest at April 30, 2015 ⁽¹⁾		2,359		$	12.77		5.0	$	25,978
Vested and exercisable at April 30, 2015		1,198		$	10.48		4.0	$	15,866

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

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the aggregate difference between the closing stock price of the Company’s common stock based on the last trading day as of April 30, 2015, and the exercise price for in-the-money SARs) that would have been received by the holders if all SARs had been exercised on April 30, 2015. The total intrinsic value of SARs exercised in the three months ended April 30, 2015 was $1.5 million.

The number of SARs exercised includes shares withheld on behalf of employees to satisfy minimum statutory tax withholding requirements. During the quarter ended April 30, 2015, the Company withheld 15,600 shares for payment of these taxes at a value of $0.4 million.

At April 30, 2015, there was approximately $4.8 million of total unrecognized compensation cost related to unvested SARs. This cost is expected to be recognized over a weighted-average period of approximately 2.4 years.

RSU Information

The estimated fair value of RSUs was calculated based on the closing price of the Company’s common stock on the date of grant, reduced by the present value of dividends foregone during the vesting period.

The following table summarizes the activity for RSUs for the three months ended April 30, 2015:

	RSUs			Weighted Average Grant Date Fair Value
	(in thousands)

Restricted stock at January 31, 2015		503		$	16.27
Granted		60			21.93
Released ⁽¹⁾		(2	)		13.09
Forfeited		(5	)		16.79
Restricted stock at April 30, 2015		556		$	16.88

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

The Company withholds, at the employee’s election, a portion of the released shares as consideration for the Company’s payment of applicable employee income taxes. During the three months ended April 30, 2015, the Company withheld 600 shares for payment of these taxes at a value of $14,000.

Total unrecognized compensation cost related to RSUs was approximately $6.7 million as of April 30, 2015. This cost is expected to be recognized over a weighted-average period of approximately 2.6 years.