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| x                                               |      | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934  |
|-------------------------------------------------|--------------------------|------------------------------------------------------------------------------------------|
|                                            |                     |                                                                                     |
| For the quarterly period ended January 31, 2010 |
|                                            |
| OR                                              |
|                                            |
| o                                               |                     | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |

| Delaware                        | 94-2710559                      |
|---------------------------------|---------------------------------|
| (State or other jurisdiction of | (I.R.S. Employer Identification |
| incorporation or organization)  | Number)                         |

| Large accelerated filer o  | Accelerated filer o  | Non-accelerated filer o             | Smaller reporting company x |
|--------------------------------------|--------------------------------|-----------------------------------------------|-----------------------------|
|                                 |                           | (Do not check if a smaller reporting company) |                        |

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-  Adoption of certain provisions of Accounting Standards Codification (ASC) 815 - “Derivatives and Hedging — Contracts in Entity’s Own Equity”, which became effective for us on May 1, 2009.  The anti-dilution price protection features in the Company’s outstanding common stock warrants require these common stock warrants to be accounted for as liabilities and measured at fair value. The restated financial statements reflect the reclassification of the Company’s common stock warrants from stockholders’ equity to a common stock warrant liability, and accounts for changes in the fair value of the common stock warrant liability in the statement of operations.   
-  Accounting for contingent consideration in business combinations in accordance with ASC 805 “Business Combinations” (“ASC 805”), was not properly applied in accounting for the Company’s June 30, 2009 acquisition of AXS-One Inc. The Company calculated the fair value of contingent consideration related to net license revenue on a quarterly basis and recorded any change in the calculated amount as adjustments in the statement of operations. 

- Part I — Item 1 — Financial Statements  
- Part I — Item 2 — Management’s Discussion and Analysis of Financial Condition and Results of Operations  
- Part I — Item 4 — Controls and Procedures  
-  Part II — Item 1A — Risk Factors 

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| PART I.        |                                                                                       | FINANCIAL INFORMATION                                                                       | 3      |
|----------------|--------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|--------|
|           |                                                                                       |                                                                                        |   |
| Item 1.        |                                                                                       | Financial Statements                                                                        | 3      |
|           |                                                                                       |                                                                                        |   |
|           |                 | Unaudited Condensed Consolidated Balance Sheets as of January 31, 2010 and                  | 3      |
|           |                                                                                       | April 30, 2009                                                                              |   |
|           |                                                                                       |                                                                                        |   |
|           |                                                                                       | Unaudited Condensed Consolidated Statements of Operations for the three and nine            | 4      |
|           |                                                                                       | months ended January 31, 2010 and 2009                                                      |   |
|           |                                                                                       |                                                                                        |   |
|           |                                                                                       | Unaudited Condensed Consolidated Statements of Cash Flows for the nine months               | 5      |
|           |                                                                                       | ended January 31, 2010 and 2009                                                             |   |
|           |                                                                                       |                                                                                        |   |
|           |                                                                                       | Notes to Unaudited Condensed Consolidated Financial Statements                              | 6      |
|           |                                                                                       |                                                                                        |   |
| Item 2.        |                                                                                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 19     |
|           |                                                                                       |                                                                                        |   |
| Item 3.        |                                                                                       | Quantitative and Qualitative Disclosures about Market Risk                                  | 26     |
|           |                                                                                       |                                                                                        |   |
| Item 4.        |                                                                                       | Controls and Procedures                                                                     | 26     |
|           |                                                                                       |                                                                                        |   |
| PART II.       |                                                                                       | OTHER INFORMATION                                                                           | 28     |
|           |                                                                                       |                                                                                        |   |
| Item 1.        |                                                                                       | Legal Proceedings                                                                           | 28     |
|           |                                                                                       |                                                                                        |   |
| Item 6.        |                                                                                       | Exhibits                                                                                    | 29     |
|           |                                                                                       |                                                                                        |   |
| SIGNATURE      | 30                                                                                         |
|           |                                                                                       |                                                                                        |   |
| CERTIFICATIONS |                                                                                       |

----

|                                                                                  |                     | January 31,             |                                   | April 30, |
|---------------------------------------------------------------------------------------|--------------------------|-------------------------|----------------------------------------|-----------|
|                                                                                  |      | 2010                    |                    | 2009      |
|                                                                                  |                     | (As Restated)See Note 2 |                                   |      |   |   |
| ASSETS                                                                                |                     |                    |                                   |      |   |   |   |   |
| Current assets:                                                                       |                     |                    |                                   |      |   |   |   |   |
|        Cash and cash equivalents                        |                     | $                       | 2,316                                  |      |   | $ | 6,147 |   |
|        Accounts receivable, net                         |                     |                    | 8,668                                  |      |   |   | 4,501 |   |
|        Prepaid expenses and other current assets        |                     |                    | 1,297                                  |      |   |   | 717 |   |
|        Total current assets                             |                     |                    | 12,281                                 |      |   |   | 11,365 |   |
|                                                                                  |
| Property and equipment, net                                                           |                     |                    | 400                                    |      |   |   | 472 |   |
| Goodwill                                                                              |                     |                    | 17,010                                 |      |   |   | 6,425 |   |
| Intangibles, net                                                                      |                     |                    | 9,736                                  |      |   |   | 2,720 |   |
| Other assets, net                                                                     |                     |                    | 296                                    |      |   |   | 99 |   |
|        Total assets                                     |                     | $                       | 39,723                                 |      |   | $ | 21,081 |   |
|                                                                                  |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                  |                     |                    |                                   |      |   |   |   |   |
| Current liabilities:                                                                  |                     |                    |                                   |      |   |   |   |   |
|        Accounts payable                                 |                     | $                       | 738                                    |      |   | $ | 685 |   |
|        Current portion of long term debt                |                     |                    | 1,854                                  |      |   |   | 1,663 |   |
|        Accrued compensation and related expenses        |                     |                    | 1,647                                  |      |   |   | 1,178 |   |
|        Common stock warrant liability                   |                     |                    | 968                                    |      |   |   | — |   |
|        Other accrued liabilities                        |                     |                    | 4,407                                  |      |   |   | 905 |   |
|        Deferred revenue                                 |                     |                    | 11,958                                 |      |   |   | 5,617 |   |
|        Total current liabilities                        |                     |                    | 21,572                                 |      |   |   | 10,048 |   |
|                                                                                  |
| Long term debt, net                                                                   |                     |                    | 252                                    |      |   |   | 837 |   |
| Other long term liabilities                                                           |                     |                    | 1,436                                  |      |   |   | 893 |   |
|                                                                                  |
| Commitments and contingencies                                                         |                     |                    | —                                |      |   |   | — |   |
|                                                                                  |
| Stockholders’ equity:                                                           |                     |                    |                                   |      |   |   |   |   |
|        Common stock                                     |                     |                    | 10                                     |      |   |   | 7 |   |
|        Additional paid-in capital                       |                     |                    | 78,809                                 |      |   |   | 69,941 |   |
|        Accumulated other comprehensive income (loss)    |                     |                    | 245                                    |      |   |   | (113 | ) |
|        Accumulated deficit                              |                     |                    |       (62,601 | )         |   |   |       (60,532 | ) |
|        Total stockholders’ equity                 |                     |                    | 16,463                                 |      |   |   | 9,303 |   |
|        Total liabilities and stockholders’ equity |                     | $                       | 39,723                                 |      |   | $ | 21,081 |   |
|                                                                                  |

----

|                                                                                                        |                     | Three Months Ended      |                            | Nine Months Ended |
|-------------------------------------------------------------------------------------------------------------|--------------------------|-------------------------|---------------------------------|-------------------|
|                                                                                                        |                     | January 31,             |                            | January 31,       |
|                                                                                                        |      | 2010                    |             | 2009              |      | 2010 |      | 2009 |
|                                                                                                        |                     | (As Restated)See Note 2 |                            |              |   |   |   | (As Restated)See Note 2 |   |   |   |   |
| Revenues:                                                                                              |                     |                    |                            |              |   |   |   |   |   |   |   |   |
|        Software licenses                                                      |                     | $                       | 3,354                           |              |   | $ | 1,737 |   |   | $ | 6,169 |   |   | $ | 5,286 |   |
|        Services                                                               |                     |                    | 4,228                           |              |   |   | 2,753 |   |   |   | 11,075 |   |   |   | 8,869 |   |
|        Migration solutions                                                    |                     |                    | 1,040                           |              |   |   | 718 |   |   |   | 2,976 |   |   |   | 1,881 |   |
|               Total revenues               |                     |                    | 8,622                           |              |   |   | 5,208 |   |   |   | 20,220 |   |   |   | 16,036 |   |
|                                                                                                        |
| Cost of Revenues:                                                                                           |                     |                    |                            |              |   |   |   |   |   |   |   |   |   |   |   |   |
|        Software licenses                                                      |                     |                    | 140                             |              |   |   | 33 |   |   |   | 229 |   |   |   | 172 |   |
|        Services                                                               |                     |                    | 1,020                           |              |   |   | 239 |   |   |   | 2,212 |   |   |   | 787 |   |
|        Migration solutions                                                    |                     |                    | 625                             |              |   |   | 315 |   |   |   | 1,414 |   |   |   | 833 |   |
|               Total cost of revenues       |                     |                    | 1,785                           |              |   |   | 587 |   |   |   | 3,855 |   |   |   | 1,792 |   |
| Gross profit                                                                                                |                     |                    | 6,837                           |              |   |   | 4,621 |   |   |   | 16,365 |   |   |   | 14,244 |   |
|                                                                                                        |
| Operating Expenses:                                                                                         |                     |                    |                            |              |   |   |   |   |   |   |   |   |   |   |   |   |
|        Product development                                                    |                     |                    | 1,749                           |              |   |   | 631 |   |   |   | 4,901 |   |   |   | 2,062 |   |
|        Selling, general and administrative                                    |                     |                    | 3,878                           |              |   |   | 2,712 |   |   |   | 13,822 |   |   |   | 9,434 |   |
|        Change in fair value of contingent consideration                       |                     |                    | (858                            | )                 |   |   | — |   |   |   | (858 | ) |   |   | — |   |
|               Total operating expenses     |                     |                    | 4,769                           |              |   |   | 3,343 |   |   |   | 17,865 |   |   |   |      11,496 |   |
|        Income (loss) from operations                                          |                     |                    | 2,068                           |              |   |   | 1,278 |   |   |   | (1,500 | ) |   |   | 2,748 |   |
| Other income (expense):                                                                                     |                     |                    |                            |              |   |   |   |   |   |   |   |   |   |   |   |   |
|        Gain from change in fair value of common stock warrant liability  |                     |                    | 43                              |              |   |   | — |   |   |   | 102 |   |   |   | — |   |
|        Other, net                                                             |                     |                    | (92                             | )            |   |   | (40 | ) |   |   | (87 | ) |   |   | (206 | ) |
|               Total other income (expense) |                     |                    | (49                             | )                 |   |   | (40 | ) |   |   | 15 |   |   |   | (206 | ) |
|        Income (loss) before income taxes                                      |                     |                    | 2,019                           |              |   |   | 1,238 |   |   |   | (1,485 | ) |   |   | 2,542 |   |
| Provision for income taxes                                                                                  |                     |                    | 56                              |              |   |   | 153 |   |   |   | 122 |   |   |   | 341 |   |
|        Net income (loss)                                                      |                     | $                       | 1,963                           |              |   | $ |      1,085 |   |   | $ |      (1,607 | ) |   | $ | 2,201 |   |
|                                                                                                        |
| Net income (loss) per share:                                                                                |                     |                    |                            |              |   |   |   |   |   |   |   |   |   |   |   |   |
|        Basic                                                                  |                     | $                       | 0.19                            |              |   | $ | 0.16 |   |   | $ | (0.17 | ) |   | $ | 0.32 |   |
|        Dilutive                                                               |                     | $                       | 0.19                            |              |   | $ | 0.15 |   |   | $ | (0.17 | ) |   | $ | 0.29 |   |
|                                                                                                        |
| Shares used in computing net income (loss) per share:                                                       |                     |                    |                            |              |   |   |   |   |   |   |   |   |   |   |   |   |
|        Basic                                                                  |                     |                    |      10,123 |              |   |   | 6,981 |   |   |   | 9,536 |   |   |   | 6,981 |   |
|        Dilutive                                                               |                     |                    | 10,601                          |              |   |   | 7,334 |   |   |   | 9,536 |   |   |   | 7,592 |   |

----

|                                                                                                                                                               |      | Nine Months Ended January 31, |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|-------------------------------|
|                                                                                                                                                               |                     | 2010                          |      | 2009 |
|                                                                                                                                                               |                     | (As Restated)See Note 2       |   |   |   |   |
| Cash flows from operating activities:                                                                                                                              |                     |                          |   |   |   |   |   |   |
|        Net income (loss)                                                                                                             |                     | $                             |              (1,607 | ) |   | $ | 2,201 |   |
|        Reconciliation of net income (loss) to net cash provided by (used in) operating                                               |                     |                          |   |   |   |   |   |   |
|        activities:                                                                                                                   |                     |                          |   |   |   |   |   |   |
|               Depreciation                                                                        |                     |                          | 176 |   |   |   | 135 |   |
|               Loss on disposal of equipment                                                       |                     |                          | — |   |   |   | 2 |   |
|               Amortization of intangible assets                                                   |                     |                          | 1,861 |   |   |   | 539 |   |
|               Amortization of discount on notes payable                                           |                     |                          | 25 |   |   |   | 35 |   |
|               Stock based compensation expense                                                    |                     |                          | 471 |   |   |   | 448 |   |
|               Change in fair value of contingent consideration                                    |                     |                          | (858 | ) |   |   | — |   |
|               Gain from change in fair value of common stock warrant liability                    |                     |                          | (102 | ) |   |   | — |   |
|               Changes in operating assets and liabilities:                                        |                     |                          |   |   |   |   |   |   |
|                      Accounts receivable                       |                     |                          | (3,457 | ) |   |   | (121 | ) |
|                      Prepaid expenses and other current assets |                     |                          | (122 | ) |   |   | (144 | ) |
|                      Other long term assets                    |                     |                          | 20 |   |   |   | — |   |
|                      Accounts payable                          |                     |                          | (1,337 | ) |   |   | (202 | ) |
|                      Accrued compensation and related expenses |                     |                          | (26 | ) |   |   | (543 | ) |
|                      Other accrued liabilities                 |                     |                          | (2,161 | ) |   |   | 186 |   |
|                      Accrued acquisition costs                 |                     |                          | (46 | ) |   |   | — |   |
|                      Deferred revenue                          |                     |                          | 4,178 |   |   |   | (566 | ) |
|                      Other long term liabilities               |                     |                          | (216 | ) |   |   | 23 |   |
| Net cash provided by (used in) operating activities                                                                                                                |                     |                          | (3,201 | ) |   |   | 1,993 |   |
|                                                                                                                                                               |
| Cash flows from investing activities:                                                                                                                              |                     |                          |   |   |   |   |   |   |
|        Acquisition, net of cash acquired                                                                                             |                     |                          | 37 |   |   |   | (491 | ) |
|        Purchases of property and equipment                                                                                           |                     |                          | (34 | ) |   |   | (165 | ) |
|        Payments on acquisition obligations                                                                                           |                     |                          | — |   |   |   | (110 | ) |
| Net cash provided by (used in) investing activities                                                                                                                |                     |                          | 3 |   |   |   | (766 | ) |
|                                                                                                                                                               |
| Cash flows from financing activities:                                                                                                                              |                     |                          |   |   |   |   |   |   |
|        Proceeds from issuance of common stock                                                                                        |                     |                          | 9 |   |   |   | 1 |   |
|        Payments on revolver                                                                                                          |                     |                          | — |   |   |   |              (1,000 | ) |
|        Borrowings on revolving line of credit                                                                                        |                     |                          | 350 |   |   |   | 1,000 |   |
|        Principal payments under debt obligations                                                                                     |                     |                          | (1,175 | ) |   |   | (22 | ) |
| Net cash used in financing activities                                                                                                                              |                     |                          | (816 | ) |   |   | (21 | ) |
| Effect of exchange rate changes on cash                                                                                                                            |                     |                          | 183 |   |   |   | (396 | ) |
| Net increase (decrease) in cash and cash equivalents                                                                                                               |                     |                          | (3,831 | ) |   |   | 810 |   |
| Cash and cash equivalents, beginning of period                                                                                                                     |                     |                          | 6,147 |   |   |   | 2,692 |   |
| Cash and cash equivalents, end of period                                                                                                                           |                     | $                             | 2,316 |   |   | $ | 3,502 |   |
| Supplemental cash flow information:                                                                                                                                |                     |                          |   |   |   |   |   |   |
|        Cash paid during the period for:                                                                                              |                     |                          |   |   |   |   |   |   |
|               Interest                                                                            |                     | $                             | 93 |   |   | $ | 66 |   |
|               Taxes                                                                               |                     | $                             | 22 |   |   | $ | 130 |   |
|                                                                                                                                                               |
| Supplemental non-cash financing activities:                                                                                                                        |                     |                          |   |   |   |   |   |   |
|        Common stock issued in conjunction with acquisition                                                                           |                     | $                             | 3 |   |   | $ | 52 |   |

----

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|              |                           | Number of Warrants |                           |           |                           |             |                           |                      |   |
|-------------------|--------------------------------|--------------------|--------------------------------|----------------|--------------------------------|------------------|--------------------------------|---------------------------|--------|
|              |                           | Outstanding at     |                           |           |                           | Expiration of    |                           | Fair Value of Warrants at |
| Issuance Date     |                           | January 31, 2010   |                           | Exercise Price |                           | Warrants         |                           | January 31, 2010          |
|              |       |               |       |           |       |             |       | (in thousands)            |
| November 20, 2006 |                           | 80,000             |                           | $1.35          |                           | October 31, 2012 |                           |                      | $131   |
| November 20, 2006 |                           | 270,000            |                           | $1.60          |                           | October 31, 2012 |                           |                      | $395   |
| November 20, 2006 |                           | 200,000            |                           | $1.90          |                           | October 31, 2012 |                           |                      | $255   |
| April 24, 2009    |                           | 190,182            |                           | $2.75          |                           | April 24, 2014   |                           |                      | $187   |

----

| Consolidated Balance Sheet     | January 31, 2010 |                           | January 31, 2010 |
|--------------------------------|------------------|--------------------------------|------------------|
| (in thousands)                 | (As previously   |       | (As restated)    |
|                           | reported)        |                           |             |
| Goodwill                       | $                | 16,152                         |             |   | $ | 17,010 |   |
| Total assets                   |             | 38,865                         |             |   |   | 39,723 |   |
|                           |
| Current liabilities:           |             |                           |             |   |   |   |   |
| Common stock warrant liability |             | -                              |             |   |   | 968 |   |
| Total current liabilities      |             | 20,604                         |             |   |   | 21,572 |   |
|                           |
| Stockholders' equity:          |             |                           |             |   |   |   |   |
| Additional paid-in-capital     |             | 79,418                         |             |   |   | 78,809 |   |
| Accumulated deficit            |             | (63,100                        | )                |   |   | (62,601 | ) |
| Total stockholders' equity     |             | 16,573                         |             |   |   | 16,463 |   |

| Consolidated Statements of Operations                            | Three Months Ended |                           | Nine Months Ended |
|------------------------------------------------------------------|--------------------|--------------------------------|-------------------|
| (in thousands)                                                   | January 31, 2010   |                           | January 31, 2010  |
|                                                             | (As previously     |                           |              |   |   |   | (As previously |   |   |   |   |
|                                                             | reported)          |       | (As restated)     |       | reported) |       | (As restated) |
| Change in fair value of contingent consideration                 | $                  | -                              |              | $ | (858 | ) |   | $ | - |   |   | $ | (858 | ) |
| Total operating expenses                                         |               | 5,627                          |              |   | 4,769 |   |   |   | 18,723 |   |   |   | 17,865 |   |
| Income (loss) from operations                                    |               | 1,210                          |              |   | 2,068 |   |   |   | (2,358 | ) |   |   | (1,500 | ) |
| Gain from change in fair value of common stock warrant liability |               | -                              |              |   | 43 |   |   |   | - |   |   |   | 102 |   |
| Net Income (loss)                                                |               | 1,062                          |              |   | 1,963 |   |   |   | (2,567 | ) |   |   | (1,607 | ) |
| Net income (loss) per share, basic                               |               | 0.10                           |              |   | 0.19 |   |   |   | (0.27 | ) |   |   | (0.17 | ) |
| Net income (loss) per share, dilutive                            |               | 0.10                           |              |   | 0.19 |   |   |   | (0.27 | ) |   |   | (0.17 | ) |

| Consolidated Statement of Cash Flows                                                                  | Nine Months Ended |
|-------------------------------------------------------------------------------------------------------|-------------------|
| (in thousands)                                                                                        | January 31, 2010  |
|                                                                                                  | (As previously    |   |   |   |   |
|                                                                                                  | reported)         |   | (As restated) |
| Cash flows from operating activities:                                                                 |              |   |   |       |   |   |   |
|        Net loss                                                         | $                 | (2,567 | ) |   | $ | (1,607 | ) |
|        Change in fair value of contingent consideration                 |              | - |   |   |   | (858 | ) |
|        Gain from change in fair value of common stock warrant liability |              | - |   |   |   | (102 | ) |
| Net cash used in operating activities                                                                 |              | (3,201 | ) |   |   | (3,201 | ) |

----

| Current assets                                                 |      | $      | 236                            |
|----------------------------------------------------------------|--------------------------|--------|--------------------------------|
| Long term assets                                               |                     |   | 22                             |
| Goodwill                                                       |                     |   | 780                            |
| Intangibles                                                    |                     |   | 1,335                          |
|        Total assets              |                     | $      |      2,373 |
|                                                           |
| Current Liabilities                                            |                     | $      | 1,099                          |
| Long term liabilities                                          |                     |   | 646                            |
|        Total liabilities assumed |                     | $      | 1,745                          |
|                                                           |                     |   |                           |
|        Total consideration       |                     | $      | 628                            |
|                                                           |

----

| Consideration                                                                                           |      |   |                                  |   |
|---------------------------------------------------------------------------------------------------------|--------------------------|--------|---------------------------------------|--------|
| Equity instruments (2,642,600 common shares of Unify)                                                   |                     | $      | 8,853                                 |   |
| Contingent consideration arrangement                                                                    |                     |   | 2,732                                 |   |
| Fair value of total consideration                                                                       |                     | $      | 11,585                                |   |
|                                                                                                    |
| Recognized amounts of identifiable assets acquired and liabilities assumed                              |                     |   |                                  |   |
| Financial assets                                                                                        |                     | $      | 117                                   |   |
| Accounts receivable                                                                                     |                     |   | 591                                   |   |
| Other assets                                                                                            |                     |   | 679                                   |   |
| Property, plant and equipment                                                                           |                     |   | 132                                   |   |
| Identifiable intangible assets                                                                          |                     |   | 8,685                                 |   |
| Financial liabilities                                                                                   |                     |   | (5,616                                | )      |
| Deferred revenue                                                                                        |                     |   | (2,493                                | )      |
| Total identifiable net assets                                                                           |                     | $      | 2,095                                 |   |
| Goodwill                                                                                                |                     |   | 10,348                                |   |
| Change in fair value of contingent consideration                                                        |                     |   | (858                                  | )      |
|                                                                                                    |                     | $      |       11,585 |   |
|                                                                                                    |
| Acquisition related costs (included in selling, general and administrative expense in Unify's statement |                     |   |                                  |   |
| of operations for the nine months ended January 31, 2010)                                               |                     | $      | 611                                   |   |
|                                                                                                    |

----

| (in thousands, except per share amounts)                    |      | Revenue |             | Net loss |      | Net loss per share              |
|-------------------------------------------------------------|--------------------------|---------|---------------------------------|----------|--------------------------|---------------------------------|
| Actual from July 1, 2009 to January 31, 2010                |                     | $       | 6,038                           |     | $                        | (573                            | ) |   | $ | (0.06 | ) |
| Supplemental pro forma from May 1, 2009 to January 31, 2010 |                     | $       | 21,729                          |     | $                        | (3,157                          | ) |   | $ | (0.32 | ) |
| Supplemental pro forma from May 1, 2008 to January 31, 2009 |                     | $       |      25,565 |     | $                        |      (4,814 | ) |   | $ |                      (0.69 | ) |

|                                |                     | Three Months Ended |                     | Nine Months Ended |
|-------------------------------------|--------------------------|--------------------|--------------------------|-------------------|
|                                |                     | January 31,        |                     | January 31,       |
|                                |      | 2010               |      | 2009              |      | 2010 |      | 2009 |
| Cost of Sales                       |                     | $                  | 5                        |              | $ | 3 |   | $ | 13 |   | $ | 10 |
| Product Development                 |                     |               | 31                       |              |   | 22 |   |   | 90 |   |   | 65 |
| Selling, General and Administrative |                     |               | 112                      |              |   | 132 |   |   | 368 |   |   | 373 |
| Total Equity-Based Compensation     |                     | $                  | 148                      |              | $ | 157 |   | $ | 471 |   | $ | 448 |
|                                |

| Fiscal Year Ending April 30,               |      | Amount |
|--------------------------------------------|--------------------------|--------|
| Remainder of 2010                          |                     | $      | 154 |
| 2011                                       |                     |   | 606 |
| 2012                                       |                     |   | 504 |
| 2013                                       |                     |   | 202 |
| 2014                                       |                     |   | 10 |
|        Total |                     | $      |      1,476 |
|                                       |

----

|                                                     |                                           |                           |           |                           |                                      |                           | Weighted                                  |      |   |                                         |
|----------------------------------------------------------|------------------------------------------------|--------------------------------|----------------|--------------------------------|-------------------------------------------|--------------------------------|-------------------------------------------|-----------|--------|----------------------------------------------|
|                                                     |                                           |                           |           | Weighted                       |                                      | average remaining              |                                      | Aggregate |
|                                                     |                                           |                           |           | average                        |                                      | contractual                    |                                      | intrinsic |
|                                                     | Shares                                         |       | exercise price |       | term (in years)                           |       | value (1)                                 |
| Outstanding at April 30, 2009                            | 1,075,804                                      |                           |           | $                              | 3.93                                      |                           | 7.22                                      |      | $      | 496,992                                      |
|        Granted             | 655,300                                        |                           |           | $                              | 2.82                                      |                           |                                      |      |   |                                         |
|        Exercised           | (5,911                                         | )                              |           | $                              | 1.47                                      |                           |                                      |      |   |                                         |
|        Canceled or expired | (89,675                                        | )                              |           | $                              |        6.57 |                           |                                      |      |   |                                         |
| Outstanding at January 31, 2010                          |        1,635,518 |                           |           | $                              | 3.55                                      |                           |        7.29 |      | $      |        781,275 |
|                                                     |
| Exercisable at January 31, 2010                          | 781,437                                        |                           |           | $                              | 3.17                                      |                           | 6.17                                      |      | $      | 509,424                                      |

| (1) |       | Aggregate intrinsic value is defined as the difference between the current market value and the exercise price and is estimated using the closing price of the Company’s common stock on the last trading day of the periods ended as of the dates indicated. |
|-----|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                     |                                          |                           |   | Weighted     |
|----------------------------------------------------------|-----------------------------------------------|--------------------------------|--------|--------------|
|                                                     |                                          |                           |   | average fair |
|                                                     | Shares                                        |       | value  |
| Nonvested at April 30, 2009                              | 460,464                                       |                           |   | $            | 3.50 |
|        Granted             | 655,300                                       |                           |   | $            | 1.49 |
|        Vested              |        (208,469 | )                              |   | $            |        2.56 |
|        Canceled or expired | (53,214                                       | )                              |   | $            | 2.56 |
| Nonvested at January 31, 2010                            | 854,081                                       |                           |   | $            | 2.19 |
|                                                     |

----

|                                                                                 |   | Gross    |                                        |         |                           |                                        |                           | Net         |   |                                        |
|--------------------------------------------------------------------------------------|--------|----------|---------------------------------------------|--------------|--------------------------------|---------------------------------------------|--------------------------------|-------------|--------|---------------------------------------------|
|                                                                                 |   | carrying |                                        | Accumulated  |                           | carrying                                    |                           | Estimated   |
| January 31, 2010 (as restated)                                                       |   | amount   |                    | amortization |       | amount                                      |       | useful life |
| Infinite Lives:                                                                      |   |     |                                        |         |                           |                                        |                           |        |   |                                        |   |   |
|        Goodwill                                        |   | $        | 17,010                                      |         | $                              | —                                     |                           |        | $      | 17,010                                      |   | — |
| Finite Lives:                                                                        |   |     |                                        |         |                           |                                        |                           |        |   |                                        |   |   |
|        Customer-related                                |   |     | 3,836                                       |         |                           | (1,108                                      | )                              |        |   | 2,728                                       |   | 4 to 10 years |
|        Technology-based                                |   |     | 7,650                                       |         |                           | (1,924                                      | )                              |        |   | 5,726                                       |   | 3 to 6 years |
|        Trademarks                                      |   |     | 1,500                                       |         |                           | (378                                        | )                              |        |   | 1,122                                       |   | 4 to 5 years |
|        Trade name                                      |   |     | 192                                         |         |                           | (131                                        | )                              |        |   | 61                                          |   | 1 to 3 years |
|        Backlog                                         |   |     | 90                                          |         |                           | (90                                         | )                              |        |   | -                                           |   | 0.5 years |
|        Non-compete                                     |   |     | 97                                          |         |                           | (24                                         | )                              |        |   | 73                                          |   | 3 to 5 years |
|        Consulting agreement                            |   |     | 126                                         |         |                           | (100                                        | )                              |        |   | 26                                          |   |        1 to 1.3 years |
|               Total |   | $        |        30,501 |         | $                              |        (3,755 | )                              |        | $      |        26,746 |   |   |
|                                                                                 |
|                                                                                 |   | Gross    |                                        |         |                           |                                        |                           | Net         |   |                                        |
|                                                                                 |   | carrying |                                        | Accumulated  |                           | carrying                                    |                           | Estimated   |
| April 30, 2009                                                                       |   | amount   |                                        | amortization |                           | amount                                      |                           | useful life |
| Infinite Lives:                                                                      |   |     |                                        |         |                           |                                        |                           |        |   |                                        |   |   |
|        Goodwill                                        |   | $        | 6,425                                       |         | $                              | —                                     |                           |        | $      | 6,425                                       |   | — |
| Finite Lives:                                                                        |   |     |                                        |         |                           |                                        |                           |        |   |                                        |   |   |
|        Customer-related                                |   |     | 1,536                                       |         |                           | (742                                        | )                              |        |   | 794                                         |   | 4 to 5 years |
|        Technology-based                                |   |     | 2,395                                       |         |                           | (827                                        | )                              |        |   | 1,568                                       |   | 3 to 4 years |
|        Trademarks                                      |   |     | 300                                         |         |                           | (181                                        | )                              |        |   | 119                                         |   | 4 years |
|        Trade name                                      |   |     | 180                                         |         |                           | (107                                        | )                              |        |   | 73                                          |   | 1 to 3 years |
|        Non-compete                                     |   |     | 85                                          |         |                           | (7                                          | )                              |        |   | 78                                          |   | 3 to 3.3 years |
|        Consulting agreement                            |   |     | 110                                         |         |                           | (22                                         | )                              |        |   | 88                                          |   | 1 to 1.3 years |
|               Total |   | $        | 11,031                                      |         | $                              | (1,886                                      | )                              |        | $      | 9,145                                       |   |   |
|                                                                            |

| Fiscal Year Ending April 30,               |       | Amount |
|--------------------------------------------|--------------------------------|--------|
| Remainder of 2010                          |                           | $      | 638 |
| 2011                                       |                           |   | 2,366 |
| 2012                                       |                           |   | 1,856 |
| 2013                                       |                           |   | 1,330 |
| 2014                                       |                           |   | 1,327 |
| 2015                                       |                           |   | 1,119 |
| Thereafter                                 |                           |   | 1,100 |
|        Total |                           | $      | 9,736 |
|                                       |

- Increased Market Presence and Opportunities: The addition of the acquired companies should increase the combined company’s market presence and opportunities for growth in sales and earnings. 

----

    - Enhanced Product Mix: The complementary nature of the Company’s products with its acquisitions should benefit current customers and provide the combined company with the ability to access new customers.  
    - Operating Efficiencies: The combination of the Company with its acquisitions provides the opportunity for potential economies of scale and cost savings. 

      - Level 1 – Quoted prices in active markets for identical assets and liabilities.  Level 1 is generally considered the most reliable measurement of fair value under ASC 820.  
      - Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.  
      - Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. 

----

|                           | Fair Value       |                     | Fair value measurement using |
|--------------------------------|------------------|--------------------------|------------------------------|
|                           | January 31, 2010 |      | Level 1                      |      | Level 2 |      | Level 3 |
| Common stock warrant liability | $                | 968                      |                         | $ | — |   | $ | — |   | $ | 968 |

| (in thousands)                                         | Common Stock Warrants                                              |
|--------------------------------------------------------|--------------------------------------------------------------------|
| Balance at October 31, 2009                            |             | $ |      1,011 |   |             |
| Issuance of liability from common stock warrants       |                                                               |   | — |   |   |
| Change in fair value of common stock warrant liability |                                                               |   | (43 | ) |   |
| Balance at January 31, 2010                            |                                                               | $ | 968 |   |   |
|                                                   |                                                               |   |   |   |   |

|                                                                              | January 31, |       | April 30, |
|-----------------------------------------------------------------------------------|-------------|--------------------------------|-----------|
|                                                                              | 2010        |                           | 2009      |
| Convertible notes payable to ComVest Capital LLC, interest rate of 5%, payable in |        |                           |      |   |   |   |   |
| installments through September 30, 2010. These notes include certain negative     |        |                           |      |   |   |   |   |
| covenants and the Company is in compliance with such covenants.                   | $           | 698                            |      |   | $ | 1,400 |   |
|                                                                              |
| Note Payable, interest rate of 5%, payable in installments through April 2011.    |        | 742                            |      |   |   | 1,032 |   |
|                                                                              |
| Note Payable, interest rate of 5%, payable in installments through May 2011.      |        | 250                            |      |   |   | — |   |
|                                                                              |
| ComVest Capital LLC credit facility, interest rate 5.5%, payable November 2010.   |        | 350                            |      |   |   | — |   |
|                                                                              |
| Note Payable, payable in installments through December 2011.                      |        | 5                              |      |   |   | — |   |
|                                                                              |
| Capital leases payable, payable in monthly installments through September 2011.   |        | 65                             |      |   |   | 97 |   |
|                                                                              |        | 2,110                          |      |   |   | 2,529 |   |
| Less discount on notes payable, net                                               |        | (4                             | )         |   |   | (29 | ) |
| Less current portion                                                              |        | (1,854                         | )         |   |   | (1,663 | ) |
| Total long term debt, net                                                         | $           | 252                            |      |   | $ | 837 |   |
|                                                                         |        |                           |      |   |   |   |   |

----

|                                                      | Three Months Ended |                           |        | Nine Months Ended              |
|-----------------------------------------------------------|--------------------|--------------------------------|-------------|--------------------------------|
|                                                      | January 31,        |                           | January 31, |
|                                                      | 2010               |       | 2009        |       | 2010 |       | 2009 |
| Deferred maintenance revenue beginning balance            | $                  | 8,323                          |        |                           | $ | 4,813 |   |   | $ | 5,473 |   |   | $ | 6,130 |   |
| Deferred maintenance revenue recognized during period     |               | (3,826                         | )           |                           |   | (2,724 | ) |   |   | (9,968 | ) |   |   | (8,469 | ) |
| Deferred maintenance revenue of new maintenance contracts |               | 5,387                          |        |                           |   | 3,784 |   |   |   | 14,379 |   |   |   | 8,212 |   |
| Deferred maintenance revenue ending balance               | $                  | 9,884                          |        |                           | $ | 5,873 |   |   | $ | 9,884 |   |   | $ | 5,873 |   |
|                                                 |

----

|                                                         | Three Months Ended |                                        | Nine Months Ended |
|--------------------------------------------------------------|--------------------|---------------------------------------------|-------------------|
| (in thousands, except per share amounts)                     | January 31,        |                                        | January 31,       |
|                                                         | 2010               |                    | 2009              |       | 2010 |       | 2009 |
|                                                         | As Restated        |                                        |              |   | As Restated |   |   |
| Net income (loss)                                            | $                  | 1,963                                       |              | $ | 1,085 |   | $ | (1,607 | ) |   | $ | 2,201 |
|                                                         |
| Weighted average shares of common stock outstanding, basic   |               | 10,123                                      |              |   | 6,981 |   |   | 9,536 |   |   |   | 6,981 |
| Effect of dilutive securities                                |               | 478                                         |              |   | 353 |   |   | - |   |   |   | 611 |
| Weighted average shares of common stock outstanding, diluted |               |        10,601 |              |   |        7,334 |   |   |        9,536 |   |   |   |        7,592 |
|                                                         |
| Earnings (loss) per share of common stock:                   |               |                                        |              |   |   |   |   |   |   |   |   |   |
|        Basic                   | $                  | 0.19                                        |              | $ | 0.16 |   | $ | (0.17 | ) |   | $ | 0.32 |
|        Diluted                 | $                  | 0.19                                        |              | $ | 0.15 |   | $ | (0.17 | ) |   | $ | 0.29 |

----

|                                                                                                  | Three Months Ended |                                       | Nine Months Ended |
|-------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------|-------------------|
|                                                                                                  | January 31,        |                                       | January 31,       |
|                                                                                                  | 2010               |                   | 2009              |       | 2010 |       | 2009 |
| Total Revenues:                                                                                       |               |                                       |              |   |   |   |   |   |   |   |   |
|        Database and Development Products                                | $                  | 4,361                                      |              | $ | 4,490 |   | $ | 11,207 |   | $ | 14,155 |
|        Integrated Content Archiving Solutions                           |               | 3,221                                      |              |   | - |   |   | 6,038 |   |   | - |
|        Modernization and Migration Solutions                            |               | 1,040                                      |              |   | 718 |   |   | 2,975 |   |   | 1,881 |
|               Total Revenues         | $                  | 8,622                                      |              | $ | 5,208 |   | $ | 20,220 |   | $ | 16,036 |
|                                                                                                  |
| Cost of Revenue:                                                                                      |               |                                       |              |   |   |   |   |   |   |   |   |
|        Database and Development Products                                | $                  | 326                                        |              | $ | 272 |   | $ | 853 |   | $ | 959 |
|        Integrated Content Archiving Solutions                           |               | 834                                        |              |   | - |   |   | 1,588 |   |   | - |
|        Modernization and Migration Solutions                            |               | 625                                        |              |   | 315 |   |   | 1,414 |   |   | 833 |
|               Total Cost of Revenues | $                  | 1,785                                      |              | $ | 587 |   | $ | 3,855 |   | $ | 1,792 |
|                                                                                                  |
| Gross Profit:                                                                                         |               |                                       |              |   |   |   |   |   |   |   |   |
|        Database and Development Products                                | $                  | 4,035                                      |              | $ | 4,218 |   | $ | 10,354 |   | $ | 13,196 |
|        Integrated Content Archiving Solutions                           |               | 2,387                                      |              |   | - |   |   | 4,450 |   |   | - |
|        Modernization and Migration Solutions                            |               | 415                                        |              |   | 403 |   |   | 1,561 |   |   | 1,048 |
|               Total Gross Profit     | $                  |        6,837 |              | $ |        4,621 |   | $ |        16,365 |   | $ |        14,244 |

----

-  To correct errors in the accounting for certain warrants.  Specifically, we previously classified as equity instruments warrants that should have been classified as derivative liability instruments based on the terms of the warrants and the applicable accounting guidance.   
-  To correct an error in the application of ASC 805. The Company had calculated the fair value of contingent consideration related to net license revenue on a quarterly basis and recorded any change in the calculated amount as an adjustment to goodwill. However, in accordance with ASC 805 such changes in the fair value should have been recorded as adjustments in the statement of operations. 

----

----

----

|                                                                                                        |               | Three Months Ended                         |   |                           | Nine Months Ended |                                       |
|-------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------|--------|--------------------------------|-------------------|--------------------------------------------|
|                                                                                                        |               | January 31,                                |   |                           | January 31,       |                                       |
|                                                                                                        |     | 2010                                       |   |       | 2009              |                                       |       | 2010 |   |       | 2009 |   |
|                                                                                                        |               | As Restated                                |   |                           |              |                                       |   | As Restated |   |   |   |   |
| Revenues:                                                                                                   |               |                                       |   |                           |              |                                       |   |   |   |   |   |   |   |   |   |   |
|        Software licenses                                                      |               | 38.9                                       |   | %                              |              | 33.3                                       |   | % |   | 30.5 |   | % |   | 33.0 |   | % |
|        Services                                                               |               | 49.0                                       |   | %                              |              | 52.9                                       |   | % |   | 54.8 |   | % |   | 55.3 |   | % |
|        Migration solutions                                                    |               | 12.1                                       |   | %                              |              | 13.8                                       |   | % |   | 14.7 |   | % |   | 11.7 |   | % |
|               Total revenues               |               |        100.0 |   | %                              |              |        100.0 |   | % |   |        100.0 |   | % |   |        100.0 |   | % |
|                                                                                                        |
| Cost of Revenues:                                                                                           |               |                                       |   |                           |              |                                       |   |   |   |   |   |   |   |   |   |   |
|        Software licenses                                                      |               | 1.6                                        |   | %                              |              | 0.6                                        |   | % |   | 1.1 |   | % |   | 1.1 |   | % |
|        Services                                                               |               | 11.8                                       |   | %                              |              | 4.6                                        |   | % |   | 10.9 |   | % |   | 4.9 |   | % |
|        Migration solutions                                                    |               | 7.2                                        |   | %                              |              | 6.0                                        |   | % |   | 7.0 |   | % |   | 5.2 |   | % |
|               Total cost of revenues       |               | 20.6                                       |   | %                              |              | 11.2                                       |   | % |   | 19.0 |   | % |   | 11.2 |   | % |
|                                                                                                        |
| Gross profit                                                                                                |               | 79.4                                       |   | %                              |              | 88.8                                       |   | % |   | 81.0 |   | % |   | 88.8 |   | % |
|                                                                                                        |
| Operating Expenses:                                                                                         |               |                                       |   |                           |              |                                       |   |   |   |   |   |   |   |   |   |   |
|        Product development                                                    |               | 20.3                                       |   | %                              |              | 12.1                                       |   | % |   | 24.2 |   | % |   | 12.9 |   | % |
|        Selling, general and administrative                                    |               | 45.0                                       |   | %                              |              | 52.1                                       |   | % |   | 68.4 |   | % |   | 58.8 |   | % |
|        Change in fair value of contingent consideration                       |               | (10.0                                      | )      | %                              |              | —                                    |   |   |   | (4.2 | ) | % |   | — |   |   |
|               Total operating expenses     |               | 55.3                                       |   | %                              |              | 64.2                                       |   | % |   | 88.4 |   | % |   | 71.7 |   | % |
|        Income (loss) from operations                                          |               | 24.1                                       |   | %                              |              | 24.6                                       |   | % |   | (7.4 | ) | % |   | 17.1 |   | % |
| Other income (expense):                                                                                     |               |                                       |   |                           |              |                                       |   |   |   |   |   |   |   |   |   |   |
|        Gain from change in fair value of common stock warrant liability       |               | 0.5                                        |   | %                              |              | —                                    |   |   |   | 0.5 |   | % |   | — |   |   |
|        Other, net                                                             |               | (1.1                                       | )      | %                              |              | (0.8                                       | ) | % |   | (0.4 | ) | % |   | (1.3 | ) | % |
|               Total other income (expense) |               |  (0.6                                 | )      | %                              |              | (0.8                                       | ) | % |   | 0.1 |   | % |   | (1.3 | ) | % |
|        Income (loss) before income taxes                                      |               | 23.5                                       |   | %                              |              | 23.8                                       |   | % |   | (7.3 | ) | % |   | 15.8 |   | % |
| Provision for income taxes                                                                                  |               | 0.7                                        |   | %                              |              | 2.9                                        |   | % |   | 0.6 |   | % |   | 2.1 |   | % |
|        Net income (loss)                                                      |               | 22.8                                       |   | %                              |              | 20.9                                       |   | % |   | (7.9 | ) | % |   | 13.7 |   | % |
|                                                                                                        |

----

----

----

|                               |                           | Payments Due by Period |
|------------------------------------|--------------------------------|------------------------|
|                               |       |                   |   |       | 1 year |       | 2-3 |       | 4-5 |       | After 5 |
| Contractual Obligations            |                           | Total                  |   | or less |   | years |   | years |   | years |
| Notes payable                      |                           | $                      | 2,045 |   | $ | 1,811 |   | $ | 234 |   |   | — |   |   | — |
| Estimated interest expense         |                           |                   | 33 |   |   | 32 |   |   | 1 |   |   | — |   |   | — |
| Other liabilities                  |                           |                   | 404 |   |   | 317 |   |   | — |   |   | 87 |   |   | — |
| Capital leases                     |                           |                   | 65 |   |   | 43 |   |   | 22 |   |   | — |   |   | — |
| Operating leases                   |                           |                   | 4,748 |   |   | 1,428 |   |   | 2,597 |   |   | 723 |   |   | — |
| Total contractual cash obligations |                           | $                      |      7,295 |   | $ |      3,631 |   | $ |      2,854 |   | $ |      810 |   | $ |      — |
|                               |

----

----

----

----

|   |       | Exhibits                                                                                                                                   |
|--------|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1   |                           | Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002.                                              |
|   |                           |                                                                                                                                       |
| 31.2   |                           | Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002.                                              |
|   |                           |                                                                                                                                       |
| 32.1   |                           | Certification of Chief Executive Officer under 18 U.S.C Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|   |                           |                                                                                                                                  |
| 32.2   |                           | Certification of Chief Financial Officer under 18 U.S.C Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

----

| Date: March 8, 2011 | Unify Corporation                            |
|---------------------|----------------------------------------------|
|                | (Registrant)                                 |
|                |                                         |
|                | By:                                          |
|                |                                         |
|                | /s/ STEVEN D. BONHAM                         |
|                | Steven D. Bonham                             |
|                | Chief Financial Officer                      |
|                | (Principal Financial and Accounting Officer) |

----