STOCK-BASED COMPENSATION

3 Months Ended

Apr. 30, 2016

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, 2016.

Stock-Based Compensation

The following table sets forth reported stock-based compensation expense for the three months ended April 30, 2016 and 2015:

	Three Months Ended April 30,
	2016		2015
	(in thousands)
Cost of subscription	$	19	$	12
Cost of maintenance and other revenue		61		46
Cost of professional services		155		119
Sales and marketing		261		261
Research and development		227		148
General and administrative		831		720
Total stock-based compensation expense	$	1,554	$	1,306

SAR Information

The following table summarizes the activity for outstanding SARs for the three months ended April 30, 2016:

	SARs (in thousands)			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Outstanding at January 31, 2016		2,596		$	14.74
Granted		—			—
Exercised		(20	)		10.44
Expired		—			—
Forfeited		(6	)		12.16
Outstanding at April 30, 2016		2,570		$	14.78		4.6	$	14,640
Vested and expected to vest at April 30, 2016 ⁽¹⁾		2,566		$	14.78		4.6	$	14,616
Vested and exercisable at April 30, 2016		1,503		$	11.52		3.6	$	11,773

(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, 2016, 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, 2016. The total intrinsic value of SARs exercised in the three months ended April 30, 2016 was $0.2 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, 2016, the Company withheld 3,400 shares for payment of these taxes at a value of $69,000.

At April 30, 2016, there was approximately $5.0 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, 2016:

	RSUs			Weighted Average Grant Date Fair Value
	(in thousands)

Restricted stock at January 31, 2016		617		$	20.91
Granted		—			—
Released ⁽¹⁾		(45	)		20.41
Forfeited		(16	)		21.15
Restricted stock at April 30, 2016		556		$	20.94

(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, 2016, the Company withheld 16,000 shares for payment of these taxes at a value of $0.3 million.

Total unrecognized compensation cost related to RSUs was approximately $8.2 million as of April 30, 2016. This cost is expected to be recognized over a weighted-average period of approximately 2.6 years.