The following table summarizes the restricted stock unit activity

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The following table summarizes the restricted stock unit activity Powered By Docstoc
					   The following table summarizes the restricted stock unit activity as of and for the years ended January 31, 2009,
2008 and 2007:

                                                                                                   Year ended January 31,
                                                                         2009                               2008                             2006
                                                                                 Weighted                         Weighted                          Weighted
                                                                                  average                          average                           average
                                                                                 grant date                       grant date                        grant date
                                                               Shares            fair value          Shares       fair value        Shares          fair value
Nonvested at beginning of period ...                           230,508          $        8.99           240,676    $     8.61      102,000 $             8.01
Awarded..........................................              519,814                   7.30           129,214          8.27      181,000               8.85
Vested .............................................          (287,648)                  6.40          (124,050)         7.70      (35,657)              8.08
Forfeited/expired/cancelled.............                        (4,000)                  6.93           (15,332)         7.32       (6,667)              8.77
Nonvested at end of period .............                       458,674          $        8.72           230,508    $     8.99      240,676 $             8.61

    As of January 31, 2009, 2008 and 2007, the unrecognized stock-based compensation related to the unvested
restricted stock units was $1.5 million, $1.2 million, and $1.7 million respectively. This cost will be recognized over
an estimated weighted average amortization period of 1.8.

Employee Stock Purchase Plan

    In September 1996, SeaChange’s Board of Directors adopted and the stockholders approved an employee stock
purchase plan (the “ESPP”), effective January 1, 1997 as amended July 16, 2008, which provides for the issuance of
a maximum of 2.2 million shares of common stock to participating employees who meet eligibility requirements.
Employees who would immediately after the purchase own 5% or more of the total combined voting power or value
of SeaChange’s stock and directors who are not employees of SeaChange may not participate in the ESPP. The
purchase price of the stock is 85% of the lesser of the average market price of the common stock on the first or last
business day of each six-month plan period. In the most recent period under the ESPP ended November 30, 2008,
employees purchased an aggregate of 115,872 shares at a discounted price of $6.63 per share. During the fiscal
years ended January 31, 2009, 2008 and 2007, 236,707, 236,553 and 250,082 shares of common stock, respectively,
were issued under the Stock Purchase Plan. The cash received from employees as a result of the ESPP during fiscal
2009, 2008 and 2007 was $1.6 million, $1.6 million, and $1.4 million, respectively. As of January 31, 2009, there
were 488,444 shares available for future grant.

14. Income Taxes

     The components of income (loss) before income taxes are as follows:

                                                                                                                   Year ended January 31,
                                                                                                         2009               2008              2007
                                                                                                                       (in thousands)
    Domestic ..................................................................................    $        2,840 $        (13,191) $         (11,454)
    Foreign ....................................................................................            8,479           17,106                313
                                                                                                   $       11,319 $          3,915 $          (11,141)




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