Maintenance Contracts

3 Months Ended

Jul. 31, 2011

Maintenance Contracts

Maintenance Contracts

9.     Maintenance Contracts

The Company offers maintenance contracts to its customers at the time they enter into a product license agreement and renew those contracts at the customers' option, generally annually thereafter. These maintenance contracts are priced as a percentage of the value of the related license agreement. The specific terms and conditions of these initial maintenance contracts and subsequent renewals vary depending upon the product licensed and the country in which the Company does business. Generally, maintenance contracts provide the customer with unspecified product maintenance updates and customer support services. Revenue from maintenance contracts is initially deferred and then recognized ratably over the term of the agreements.

Changes in the Company's deferred maintenance revenue were as follows (in thousands):

	Three Months Ended
	July 31,
	2011	2010
Deferred maintenance revenue beginning balance	$8,420	$9,642
Deferred maintenance revenue recognized during period	(3,867)	(4,686)
Deferred maintenance revenue of new maintenance contracts	2,814	2,949
Deferred maintenance revenue ending balance	$7,367	$7,905

Of the deferred maintenance revenue at July 31, 2011 and April 30, 2011, $0.4 million and $0.5 million, respectively, is long-term and is included in other long-term liabilities.