Stock-Based Compensation (Tables)

12 Months Ended

Jan. 31, 2013

Stock-Based Compensation [Abstract]

Summary of option activity

The following table sets forth the summary of option activity for the fiscal years ended January 31, 2011, 2012 and 2013:

	Options Available for Grant			Number of Options Outstanding			Weighted Average Exercise Price (Per share)		Weighted Average Grant Date Fair Value (Per share)		Weighted Average Remaining Contractual Term (In years)		Aggregate Intrinsic Value (In  thousands)
Balances as of January 31, 2010		1,997,529			10,212,401		$	2.76				8.65	$	3,524
Granted		(1,680,000	)		1,680,000			3.12	$	0.64
Exercised		0			(62,337	)		1.25						114
Expired		0			—			0.00
Cancelled (1)		0			(18,770	)		1.25
Cancelled		764,642			(764,642	)		3.38
Restricted stock units granted, net of cancellations (2)		(200,000	)		—			0.00
Balances as of January 31, 2011		882,171			11,046,652			2.79				7.21	$	8,772
Granted		(827,500	)		827,500			3.56	$	0.70
Exercised		0			(3,882	)		1.25						9
Expired		0			—			0.00
Cancelled (1)		0			(77,128	)		1.25
Cancelled		3,210,631			(3,210,631	)		3.02
Restricted stock units granted, net of cancellations (2)		705,000			—			0.00
Balances as of January 31, 2012		3,970,302			8,582,511			2.79				6.96	$	8,009
Granted		(2,341,000	)		2,341,000			3.55	$	1.01
Exercised		0			(127,373	)		1.25						311
Expired		0			(155,531	)		1.25
Cancelled (1)		0			(233,742	)		1.25
Cancelled		2,607,854			(2,607,854	)		3.10
Restricted stock units granted, net of cancellations (2)		(125,000	)		—			0.00
Balances as of January 31, 2013		4,112,156			7,799,011		$	3.02				5.75	$	1,091
As of January 31, 2013:
Vested and expected to vest					7,694,053		$	3.01				5.72	$	1,091
Vested and exercisable					4,435,976		$	2.72				3.83	$	1,091

(1) Represents cancelled stock options which are not returned to the available-for-grant stock option pool.

(2) Restricted stock units are granted from the stock option pool. In fiscal 2011, a total of 300,000 units were issued net of 100,000 units that were subsequently cancelled. In fiscal 2012, a total of 45,000 units were issued net of 750,000 units that were subsequently cancelled. In fiscal 2013, a total of 310,000 units were issued net of 185,000 units that were subsequently cancelled. See “Restricted Stock Units” below for further details.

Summary of stock options outstanding

Information regarding the stock options outstanding at January 31, 2013 is summarized as follows:

Exercise Price	Number Outstanding (1)		Weighted Average Remaining Contractual Life (In years)		Weighted Average Exercise Price on Options Outstanding		Number Exercisable (1)		Weighted Average Exercise Price on Options Exercisable
$1.25		872,810		1.09	$	1.25		872,810	$	1.25
$3.00		3,237,844		4.24		3.00		2,650,774		3.00
$3.08		554,999		6.27		3.08		314,926		3.08
$3.19		425,000		7.68		3.19		202,357		3.19
$3.48		1,268,500		9.17		3.48		0		3.48
$3.54		438,192		6.94		3.54		212,201		3.54
$3.58		226,666		7.66		3.58		110,690		3.58
$3.72		775,000		9.03		3.72		72,218		3.72
		7,799,011		5.75	$	3.02		4,435,976	$	2.72

(1) The table shows options without consideration of expected forfeitures.

(2) Total stock options outstanding at January 31, 2013 consist of 4,881,857 time-based options, 1,994,344 performance-based options and 922,810 time-based options granted prior to the Merger which has been assumed by the Company after the Merger.

Assumptions used to estimate of fair value of stock options granted under plans using Black-Scholes option-pricing model

The fair value of each stock option grant under the stock option plans is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

	Fiscal Years Ended January 31,
	2013			2012			2011
Expected life (in years)		4.7			3.0			2.7
Risk-free interest rate		0.7	%		0.5	%		0.7	%
Volatility		32.7	%		28.0	%		30.6	%
Dividend yield		0.0	%		0.0	%		0.0	%
Weighted-average fair value per common share	$	3.60		$	3.56		$	3.14

Summary of Restricted Stock Units activity

The following table sets forth the summary of RSUs’ activity:

	Shares			Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (In years)		Aggregate Intrinsic Value (In thousands)
Balances as of January 31, 2010		1,820,000		$	3.00
Granted		300,000			3.10
Vested		—			0.00
Cancelled		(100,000	)		3.00
Balances as of January 31, 2011		2,020,000			3.01		1.76	$	7,232
Granted		45,000			3.54
Vested		—			0.00
Cancelled		(750,000	)		3.01
Balances as of January 31, 2012		1,315,000			3.04		0.88		4,892
Granted		310,000			3.56
Vested		(995,000	)		3.00
Cancelled		(185,000	)		3.20
Balances as of January 31, 2013		445,000		$	3.42		1.71		1,113
As of January 31, 2013:
Vested and expected-to-vest RSUs		429,978					1.69	$	1,075

Schedule of Stock-based compensation expense

Stock-based compensation expense for the fiscal years ended January 31, 2013, 2012 and 2011 is categorized as follows (in thousands):

	Fiscal Years Ended January 31,
	2013			2012			2011
Cost of revenue—maintenance	$	57		$	63		$	94
Cost of revenue—professional services		48			66			63
Sales and marketing		286			557			541
Research and development		251			(110	)		796
General and administrative		971			819			2,091
Total stock-based compensation expense		1,613			1,395			3,585
Income tax benefit		(614	)		(541	)		(1,393	)
Total stock-based compensation expense, net of tax	$	999		$	854		$	2,192