Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jul. 31, 2014 | Oct. 07, 2014 | Jan. 25, 2014 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Jul-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'SCMR | ' | ' |
Entity Registrant Name | 'SYCAMORE NETWORKS INC | ' | ' |
Entity Central Index Key | '0001092367 | ' | ' |
Current Fiscal Year End Date | '--07-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 28,882,093 | ' |
Entity Public Float | ' | ' | $12,012,497 |
Consolidated_Statement_of_Oper
Consolidated Statement of Operations (Going Concern Basis) (USD $) | 8 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 23, 2013 |
Revenue | ' |
Cost of revenue | 193 |
Gross loss | -193 |
Operating expenses: | ' |
Research and development | 4,806 |
Sales and marketing | 1,808 |
General and administrative | 3,015 |
Restructuring | 2,946 |
Total operating expenses | 12,575 |
Loss from continuing operations | -12,768 |
Interest and other income, net | 189 |
Loss before income taxes | -12,579 |
Income tax benefit | -4,356 |
Net loss from continuing operations | -8,223 |
Discontinued operations: | ' |
Net loss from discontinued operations, net of tax | -2,373 |
Gain on sale of discontinued operations, net of tax | 7,084 |
Gain from discontinued operations | 4,711 |
Net loss | ($3,512) |
Basic and diluted net gain (loss) per share: | ' |
Continuing operations | ($0.28) |
Discontinued operations | $0.16 |
Net loss per share | ($0.12) |
Basic and diluted weighted average shares outstanding | 28,882 |
Cash distributions paid per common share | $14.31 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Loss (Going Concern Basis) (USD $) | 8 Months Ended |
In Thousands, unless otherwise specified | Mar. 23, 2013 |
Net loss | ($3,512) |
Changes in unrealized loss on investments and other | -273 |
Comprehensive loss | ($3,785) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Going Concern Basis) (USD $) | Total | Common stock | Additional paid-in capital | Accumulated Deficit | Accumulated other comprehensive income (Loss) |
In Thousands | |||||
Beginning Balance at Jul. 31, 2012 | $442,231 | $29 | $1,589,357 | ($1,146,882) | ($273) |
Beginning Balance (in shares) at Jul. 31, 2012 | ' | 28,879 | ' | ' | ' |
Net loss | -3,512 | ' | ' | -3,512 | ' |
Unrealized gain on investments and other | 273 | ' | 3 | ' | 273 |
Issuance of common stock under employee and director stock plans (in shares) | ' | 3 | ' | ' | ' |
Issuance of common stock under employee and director stock plans | 38 | ' | 38 | ' | ' |
Cash distribution | -413,302 | ' | -413,302 | ' | ' |
Share-based compensation expense | 1,275 | ' | 1,275 | ' | ' |
Ending Balance at Mar. 23, 2013 | $27,006 | $29 | $1,177,371 | ($1,150,394) | ' |
Ending Balance (in shares) at Mar. 23, 2013 | ' | 28,882 | ' | ' | ' |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (Going Concern Basis) (USD $) | 8 Months Ended |
In Thousands, unless otherwise specified | Mar. 23, 2013 |
Cash flows from operating activities: | ' |
Net loss | ($3,512) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' |
Gain on sale of discontinued operations | -7,084 |
Tax benefit on sale of discontinued operations | -4,387 |
Depreciation and amortization | 991 |
Share-based compensation | 1,275 |
Adjustments to provision for excess and obsolete inventory | 144 |
Changes in operating assets and liabilities: | ' |
Accounts receivable | -146 |
Inventories | -864 |
Prepaids and other assets | -420 |
Deferred revenue | -2,103 |
Accounts payable | -594 |
Accrued expenses and other liabilities | -3,768 |
Accrued restructuring costs | 296 |
Net cash used in operating activities | -20,172 |
Cash flows from investing activities: | ' |
Purchases of property and equipment | -1 |
Proceeds from sale of discontinued operations | 19,015 |
Proceeds from sales of investments | 196,872 |
Proceeds from maturities of investments | 100,720 |
Net cash provided by investing activities | 316,606 |
Cash flows from financing activities: | ' |
Payment of cash distributions to common stockholders | -413,302 |
Proceeds from issuance of common stock | 38 |
Net cash used in financing activities | -413,264 |
Net decrease in cash and cash equivalents | -116,830 |
Cash and cash equivalents, beginning of period | 136,654 |
Cash and cash equivalents, end of period | 19,824 |
Supplemental cash flow information: | ' |
Cash paid for income taxes | $1,176 |
Description_of_Business
Description of Business | 12 Months Ended | |
Jul. 31, 2014 | ||
Description of Business | ' | |
1 | Description of Business | |
Prior to February 1, 2013, Sycamore Networks, Inc. (the “Company”) developed and marketed Intelligent Bandwidth Management solutions for fixed line and mobile network operators worldwide and provided services associated with such products (the “Intelligent Bandwidth Management Business”), and, prior to November 1, 2012, the Company also developed and marketed a mobile broadband optimization solution (the “IQstream Business”). As used in these Notes to the Consolidated Financial Statements, “Sycamore,” “we,” “us,” or “our” refers collectively to the Company and its subsidiaries. | ||
On October 23, 2012, the Company entered into an Asset Purchase and Sale Agreement (the “Asset Sale Agreement”) with Sunrise Acquisition Corp. (now known as Coriant America Inc.), a portfolio company of Marlin Equity Partners (“Buyer”), pursuant to which Buyer agreed to acquire substantially all of the assets (the “Asset Sale”) primarily related to the Intelligent Bandwidth Management Business, including inventory, fixed assets, accounts receivable, intellectual property rights (other than patents and patent applications), contracts, certain real estate leases, the Company’s subsidiaries in Shanghai, the Netherlands and Japan, and certain shared facilities and assets for $18.75 million in cash, subject to a working capital adjustment, and the assumption by Buyer of certain liabilities. The Company’s stockholders authorized the Asset Sale at a Special Meeting of Stockholders held on January 29, 2013 (the “Special Meeting”), and the Asset Sale was completed on January 31, 2013 (the transfer of the Company’s equity interests in its Shanghai subsidiary, which was subject to the receipt of government approval, occurred on March 25, 2013). Upon the closing of the Asset Sale, Buyer acquired substantially all of the Company’s operating assets relating to the Intelligent Bandwidth Management Business, including the Company’s accounts receivable, inventories and prepaid and other assets, and assumed most of the Company’s remaining current liabilities, including substantially all of the Company’s deferred revenue and accrued warranty obligations. On April 22, 2013, the Company commenced litigation against Buyer and certain of its affiliates with respect to certain amounts due under the Asset Sale Agreement (the “Delaware Litigation”). In connection with such litigation, on May 28, 2013, the Company and such parties reached an agreement pursuant to which (1) the Company agreed to dismiss the Delaware Litigation without prejudice, (2) Buyer paid certain undisputed amounts of $1.69 million owed to the Company and (3) the parties agreed to submit the remaining issues relating to amounts in dispute of $1.45 million to arbitration for resolution by a neutral accountant. The matters in dispute were resolved by the neutral accountant in favor of the Company in the amount of $1.11 million, which included reimbursement for a portion of the fees and expenses paid to the neutral accountant. On March 5, 2014, the Company received the $1.11 million payment from Buyer, and, on March 10, 2014, we dismissed the Delaware Litigation with prejudice. For additional information concerning this matter, see Note 12, “Commitments and Contingencies.” | ||
In conjunction with the approval of the Asset Sale Agreement, the Company’s Board of Directors (the “Board”) also approved the liquidation and dissolution of the Company (the “Dissolution”) pursuant to a Plan of Complete Liquidation and Dissolution (the “Plan of Dissolution”) following the completion of the Asset Sale. The Plan of Dissolution was also approved by the stockholders at the Special Meeting and, following a review of the Company’s strategic alternatives for all of the Company’s assets and available options for providing value to the Company’s stockholders, the Company filed a certificate of dissolution with the Secretary of State of the State of Delaware (the “Certificate of Dissolution”) on March 7, 2013. For additional information regarding the Dissolution, please see the Company’s Definitive Proxy Statement on Schedule 14A filed with the SEC on December 28, 2012 and its Current Report on Form 8-K filed with the SEC on March 8, 2013. | ||
In connection with the filing of the Certificate of Dissolution, on March 7, 2013, the Company closed its stock transfer books and discontinued recording transfers of its common stock, $0.001 par value per share (the “Common Stock”). The Common Stock, and stock certificates evidencing shares of the Common Stock, are no longer assignable or transferable on the Company’s books, other than transfers by will, intestate succession or operation of law. The Company also submitted a request to The NASDAQ Stock Market (“NASDAQ”) to suspend trading of the Common Stock on The NASDAQ Global Select Market effective as of the close of trading on March 7, 2013 and, on March 15, 2013, the Company filed a Form 25 with the SEC to delist its Common Stock, which became effective prior to the opening of trading on March 25, 2013. Since the suspension of trading of the Common Stock on The NASDAQ Global Select Market, shares of our Common Stock held in street name with brokers have been trading in the over-the-counter market on the Pink Sheets, an electronic bulletin board established for unlisted securities. | ||
As a result of the completion of the Asset Sale and the Company’s previously announced halting of further development and marketing in connection with the IQstream Business, the Company no longer has any operating assets or revenue. Since the filing of the Certificate of Dissolution, the Company has been operating in accordance with the Plan of Dissolution, which contemplates an orderly wind down of the Company’s business, including the sale or monetization of the Company’s remaining non-cash assets and the satisfaction or settlement of its liabilities and obligations, including contingent liabilities and claims. As of July 31, 2014, the Company had two remaining employees. | ||
During fiscal 2014, the Company completed the sale of its patent portfolios. On February 28, 2014, the Company completed the sale of its portfolio of 40 patents and two patent applications related to the Intelligent Bandwidth Management Business (the “IBM Patents”) for $2.0 million to Dragon Intellectual Property, LLC. On May 22, 2014, the Company completed the sale of its portfolio of three United States patents, six United States patent applications and certain foreign patents and patent applications related to the IQstream Business (the “IQstream Patents”) for $0.3 million to Citrix Systems, Inc. | ||
The Company is continuing to pursue the sale of its remaining non-cash assets, which primarily consist of (1) approximately 102 acres of undeveloped land located in Tyngsborough, Massachusetts (the “Tyngsborough Land”), (2) certain technology and equipment relating to the IQstream Business and (3) the Company’s investment in Tejas Networks India Private Limited (“Tejas”), a private company in India that provides optical transport solutions to telecommunications carriers. Following the sale of the IQstream Patents, the Company has continued to pursue the sale of certain technology and equipment relating to the IQstream Business; however, the Company does not presently expect to receive any additional material consideration for its remaining IQstream assets. In addition, given the illiquid nature of the Company’s investment in Tejas and certain other factors negatively impacting the value of the Company’s investment in Tejas, the Company does not presently expect to receive any material consideration in connection with any disposition of its Tejas investment. | ||
During the fourth quarter of fiscal 2014, the Company received notice of a potential betterment fee that could be assessed against the Tyngsborough Land in connection with a public sewer project proposed by the Town of Tyngsborough (the “Potential Betterment Assessment”). On October 2, 2014, the sewer commission of the Town of Tyngsborough provided the Company with an estimate of the potential betterment fee relating to the Tyngsborough Land in the amount of approximately $3.47 million. At a Special Town Meeting held on October 8, 2014, the Town of Tyngsborough voted against proceeding with the sewer project. Although the Town of Tyngsborough voted against proceeding with the sewer project at this time, the Company cannot provide any assurance that the Town of Tyngsborough will not pursue a similar project in the future, nor can the Company provide any assurance as to the impact of such a project on the value of the Tyngsborough Land. | ||
On October 10, 2014, the Company entered into a Purchase and Sale Agreement relating to the Tyngsborough Land (the “Purchase Agreement”) with Princeton Tyngsborough Commons, LLC (“Tyngsborough Commons”) for a total purchase price of $2.5 million. Of the total purchase price, $50,000 has been deposited with an escrow agent as a nonrefundable deposit to be credited to the purchase price at closing, and an additional $50,000 will be deposited with the escrow agent on or before December 1, 2014 as a nonrefundable deposit to be credited towards the purchase price. The Purchase Agreement contains customary provisions relating to, among other things, the condition of the title to the Tyngsborough Land, environmental conditions, representations and warranties, obligations of the parties prior to closing and apportionment of taxes. The Company’s representations and warranties and obligations under the Purchase Agreement will survive the closing for a period of six months, and under no circumstances will the Company be liable to Tyngsborough Commons for more than $75,000 in the aggregate for any breaches of such representations and warranties or obligations. If the closing occurs, Tyngsborough Commons will be solely responsible for any and all costs related to the Potential Betterment Assessment. In addition, following the closing, Tyngsborough Commons intends to sell a portion of the Tyngsborough Land to a third party buyer. In no event will the Company be bound by the terms of any agreement with respect to such sale, provided that, in the event Tyngsborough Commons fails to fulfill its obligations under the Purchase Agreement, the Company may in its sole discretion require an assignment to the Company of Tyngsborough Commons’s rights under any such agreement. | ||
The Company currently expects to complete the sale on or about December 31, 2014 (unless an earlier date is agreed upon by the Company and Tyngsborough Commons), subject to Tyngsborough Commons’s right, in its sole discretion and subject to the payment of an additional nonrefundable deposit in the amount of $100,000, to extend the closing date to February 27, 2015. The Company is entitled to terminate the Purchase Agreement if the closing does not take place on or before February 27, 2015 (or if the closing does not occur by December 31, 2014, if Tyngsborough Commons has failed to pay the additional deposit). The closing of the sale is subject to certain conditions and obligations of the parties prior to closing, some of which are outside of the Company’s control and, accordingly, there can be no assurance when or if such closing will occur. If the Purchase Agreement is terminated, there can be no assurance of when, if ever, the Company will be able to sell the Tyngsborough Land. The inability to sell the Tyngsborough Land may delay the completion of the Company’s liquidation and related distributions to its stockholders. | ||
On July 29, 2014, the Company paid a liquidating cash distribution to stockholders of $0.24 per share of Common Stock, or $6.93 million in the aggregate. The Board declared this distribution after the Delaware Court of Chancery, on July 2, 2014, granted the Company’s petition for a determination, among other things, that approximately $6.2 million is sufficient to be retained by the Company for anticipated wind down costs and expenses and an additional $6.5 million is sufficient to be retained by the Company for contingent and unknown liabilities and other possible charges and expenses. In accordance with the petition, any portion of these amounts that is not required to cover wind down costs, charges, expenses or liabilities may be distributed from time to time to the Company’s stockholders in the discretion of the Board in accordance with its fiduciary duties. | ||
Until the completion of the Dissolution, the Company will continue to pursue the liquidation to cash of its remaining non-cash assets for possible distribution to our stockholders. There can be no assurance as to the amount of consideration the Company may be able to obtain for these assets or as to any time frame within which a potential sale or other disposition of these assets might occur. Subject to uncertainties inherent in the winding up of the Company’s business, the Company may make one or more additional liquidating distributions following the liquidation to cash of our non-cash assets and after payment of, or provision for, outstanding claims in accordance with Delaware law. However, the Dissolution process and the payment of any distribution to stockholders involve substantial risks and uncertainties. Accordingly, it is not possible to predict the timing or aggregate amount which will ultimately be distributed to stockholders, and no assurance can be given that the distributions will equal or exceed our estimate of net assets presented in the Company’s Consolidated Statement of Net Assets included in this Annual Report on Form 10-K for the year ended July 31, 2014. The Company will continue to analyze its estimates of liquidation expenses on an ongoing basis, and determine whether further distributions of assets to its stockholders are appropriate at such times. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
2 | Summary of Significant Accounting Policies | ||||||||||||||||
The accompanying financial statements reflect the application of certain significant accounting policies as described below. The Company believes these accounting policies are significant because they affect judgments, assumptions and estimates we used in preparing our consolidated financial statements. Changes in these estimates can materially affect our net assets, changes in net assets, results of operations and discontinued operations. | |||||||||||||||||
Basis of Consolidation and Presentation | |||||||||||||||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. As part of the Asset Sale, the Company sold its subsidiaries in Shanghai, the Netherlands and Japan. In conjunction with the Dissolution, the Company merged its Delaware and Massachusetts subsidiaries into Sycamore Networks, Inc. | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. | |||||||||||||||||
The condensed consolidated financial statements for the eight month period ended March 23, 2013 were prepared on the going concern basis of accounting, which contemplates realization of assets and satisfaction of liabilities in the normal course of business. Following the Company’s filing of the Certificate of Dissolution, on March 24, 2013 the Company adopted the liquidation basis of accounting. See “Liquidation Basis of Accounting” below for further information regarding the Company’s adoption of the liquidation basis of accounting. | |||||||||||||||||
Cash Distributions | |||||||||||||||||
On July 29, 2014, the Company paid a liquidating distribution to stockholders of $0.24 per share of Common stock, or $6.93 million in the aggregate. The liquidating distribution decreased net assets in liquidation. The Company paid a total of $413.3 million in cash distributions to stockholders in fiscal 2013. As a result of having an accumulated deficit, the cash distributions were recorded as reductions to additional paid-in capital. | |||||||||||||||||
Liquidation Basis of Accounting | |||||||||||||||||
On March 24, 2013, the beginning of the fiscal month following the filing of the Certificate of Dissolution, the Company began reporting on a liquidation basis of accounting. Under the liquidation basis of accounting, assets are measured to reflect the estimated amount of cash or other consideration expected to be collected in settling or disposing of the assets. Liabilities are measured in accordance with the measurement provisions of Accounting Standard Codification Topics that otherwise apply. Additionally, the Company accrued estimated costs associated with carrying out the Plan of Dissolution. These estimates will be reviewed periodically and adjusted as appropriate. | |||||||||||||||||
The measurement of assets and liabilities represent estimates, based on present facts and circumstances, of the realizable value of the assets and the costs associated with carrying out the Plan of Dissolution. The actual values and costs associated with carrying out the Plan of Dissolution may differ from amounts reflected in the financial statements because of the inherent uncertainty in estimating future events. These differences may be material. In particular, the estimates of costs will vary with the length of time necessary to complete the Dissolution process and to resolve any claims. Accordingly, it is not possible to predict the timing or aggregate size of any amount which may ultimately be distributed to Company stockholders, and no assurance can be given that such distributions, if made, will equal or exceed the estimate of net assets presented in the accompanying Statement of Net Assets. | |||||||||||||||||
Cash Equivalents and Investments | |||||||||||||||||
Cash equivalents are short-term, highly liquid investments with original or remaining maturity dates of three months or less at the date of acquisition. Cash equivalents are carried at cost plus accrued interest, which approximates fair market value. As of July 31, 2014 and 2013, aggregate cash and cash equivalents consisted of (in thousands): | |||||||||||||||||
July 31, 2014: | Amortized | Gross | Gross | Fair Market | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Cash and cash equivalents | $ | 12,241 | $ | — | $ | — | $ | 12,241 | |||||||||
Total | $ | 12,241 | $ | — | $ | — | $ | 12,241 | |||||||||
July 31, 2013: | Amortized | Gross | Gross | Fair Market | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Cash and cash equivalents | $ | 21,041 | $ | — | $ | — | $ | 21,041 | |||||||||
Total | $ | 21,041 | $ | — | $ | — | $ | 21,041 | |||||||||
Revenue Recognition | |||||||||||||||||
Prior to the Asset Sale, the Company sold primarily bundled hardware and software products that function together to deliver the tangible products’ essential functionality (referred to herein collectively as “hardware” products), as well as services related to those hardware products. Services included maintenance arrangements for the products with terms typically of one year, as well as to a lesser extent, professional services and training services. The Company sold a limited amount of stand-alone software products. | |||||||||||||||||
The Company recognized revenue when all of the following criteria were met: | |||||||||||||||||
• | Persuasive evidence of an arrangement existed. Evidence of an arrangement generally consisted of sales contracts or agreements and customer purchase orders; | ||||||||||||||||
• | Delivery occurred. Delivery occurred when title and risk of loss were transferred to the customer or the Company received written evidence of customer acceptance, when applicable, to verify delivery or performance; | ||||||||||||||||
• | Sales price was fixed or determinable. The Company assessed whether the sales price was fixed or determinable based on payment terms and whether the sales price was subject to refund or adjustment; and | ||||||||||||||||
• | Collectability was reasonably assured. Collectability was assessed based on the creditworthiness of the customer as determined by credit checks and the customer’s payment history with the Company. | ||||||||||||||||
Pursuant to the guidance of Accounting Standards Update (“ASU”) No. 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”),, when a sales arrangement contains multiple elements, particularly hardware products and related services, revenue is allocated to each element based on a selling price hierarchy, using a relative selling price allocation approach. The selling price for a deliverable was based on our vendor-specific objective evidence (“VSOE”), if available, third-party evidence (“TPE”) if VSOE was not available, or best estimate of selling price (“BESP”) if neither VSOE nor TPE was available. The Company established VSOE for its services based on the price charged for each service element when sold separately. The Company was typically not able to determine TPE for its hardware products or services because the Company’s various product and service offerings contained a significant level of differentiation and, therefore, comparable pricing of competitors’ products and services with similar functionality could not be obtained. The Company determined BESP for products and services based on an assessment of multiple factors, including, but not limited to, pricing practices, customer classes and distribution channels. We then recognized revenue allocated to each deliverable in accordance with the four criteria identified above. Our multiple element arrangements typically included both products and services, with maintenance being the most common service element. Maintenance services were delivered over the contractual support period which varied in length, but typically was twelve months. In those limited instances where both hardware and stand-alone software products were included in a multiple element arrangement, the hardware and related services and the software and related services were separated and then allocated a pro rata portion of the total transaction value based upon BESP of each of the hardware and software groups, using a relative selling price allocation approach. The hardware group was then accounted for under the ASC Topic 605 guidance described above and the software group was accounted for under the ASC Topic 985 guidance. | |||||||||||||||||
Service revenues included revenue from maintenance, training, and installation services. Revenue from maintenance service contracts was deferred and recognized ratably over the contractual support period. Revenue from training and installation services was recognized as the services were completed or ratably over the service period. | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Upon effectiveness of the Certificate of Dissolution, the Company cancelled all outstanding stock option awards under the Company’s stock plans. During the period when the Company had stock-based compensation programs, the Company accounted for share-based compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. The Company estimated the fair value of share-based options on the date of grant using the Black-Scholes pricing model, which was affected by our stock price as well as assumptions regarding a number of complex and subjective variables. These variables included our expected stock price volatility over the term of the awards, actual and projected employee option exercise behaviors, risk free interest rate and expected dividends. The Company was also required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differed from those estimates. | |||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||
Under the going concern basis of accounting, the Company evaluated the recoverability of long-lived assets whenever events or changes in circumstances indicated that the carrying amount of an asset may not be fully recoverable. This periodic review may have resulted in an adjustment of estimated depreciable lives or asset impairment. When indicators of impairment were present, the carrying values of the asset were evaluated in relation to the operating performance and future undiscounted cash flows of the underlying business. If the future undiscounted cash flows were less than the book value, impairment existed. The impairment was measured as the difference between the book value and the fair value of the underlying asset. Fair values were based on estimates of market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk. | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Under the liquidation basis of accounting, property and equipment are stated at their estimated realizable values. Under the going concern basis of accounting, property and equipment were stated at cost and depreciated over the estimated useful lives of the assets using the straight-line method, based upon the following asset lives: | |||||||||||||||||
Computer and telecommunications equipment | 2 to 3 years | ||||||||||||||||
Computer software | 3 years | ||||||||||||||||
Furniture and office equipment | 5 years | ||||||||||||||||
Leasehold improvements | Shorter of lease term or useful life of asset | ||||||||||||||||
The costs of significant additions and improvements were capitalized and depreciated while expenditures for maintenance and repairs were charged to expense as incurred. Costs related to internal use software were capitalized. Upon retirement or sale of an asset, the cost and related accumulated depreciation of the assets were removed from the accounts and any resulting gain or loss is reflected in the determination of net income or loss. See Note 5. “Property and Equipment.” | |||||||||||||||||
Research and Development and Software Development Costs | |||||||||||||||||
Under the going concern basis of accounting, the Company’s research and development costs were expensed as incurred. Software development costs incurred prior to the establishment of technological feasibility were charged to expense. Technological feasibility was demonstrated by the completion of a working model. Software development costs incurred subsequent to the establishment of technological feasibility were capitalized until the product was available for general release to customers and amortized based on the greater of (i) the ratio that current gross revenue for a product bears to the total of current and anticipated future gross revenue for that product or (ii) the straight-line method over the remaining estimated life of the product. The period between achieving technological feasibility and the general availability of the related products was short and software development costs qualifying for capitalization were not material. Accordingly, the Company did not capitalize any software development costs. | |||||||||||||||||
Income Taxes | |||||||||||||||||
Income taxes are accounted for under the liability method. Under this method, deferred tax assets and liabilities are recorded based on temporary differences between the financial statement amounts and the tax bases of assets and liabilities measured using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company periodically evaluates the realization of its net deferred tax assets and records a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | |||||||||||||||||
We account for uncertain tax positions by prescribing the minimum recognition threshold a tax position must meet before being recognized in the Company’s financial statements. Generally, recognition is limited to situations where, based solely on the technical merits of the tax position, the Company has determined that the tax position is more likely than not to be sustained on audit. | |||||||||||||||||
Concentration of Credit Risks | |||||||||||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and investments. The Company invests its excess cash primarily in deposits with commercial banks, high-quality corporate securities and U.S. government securities. | |||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||
Prior to the Asset Sale, the Company evaluated its outstanding accounts receivable balances on an ongoing basis to determine whether an allowance for doubtful accounts should be recorded. Activity in the Company’s allowance for doubtful accounts is summarized as follows (in thousands): | |||||||||||||||||
July 31, 2013 | |||||||||||||||||
Beginning balance | $ | 42 | |||||||||||||||
Adjustment | (42 | ) | |||||||||||||||
Write off | — | ||||||||||||||||
Ending balance | $ | — | |||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||
Under the going concern basis of accounting, the unrealized gain or loss on investments was included in accumulated other comprehensive loss for all operating periods presented. For foreign subsidiaries where the functional currency was the local currency, assets and liabilities were translated into U.S. dollars at the current exchange rate on the balance sheet date. Revenue and expenses were translated at average rates of exchange prevailing during each period. Translation adjustments for these subsidiaries, which are immaterial for all periods presented, are included in accumulated other comprehensive income (loss). | |||||||||||||||||
Net Loss Per Share | |||||||||||||||||
Under the going concern basis of accounting, basic and diluted net loss per share were computed by dividing the net loss for the period by the weighted average number of common shares outstanding during the period less unvested restricted stock. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): | |||||||||||||||||
Eight Months Ended | |||||||||||||||||
March 23, | |||||||||||||||||
2013 | |||||||||||||||||
Net loss | $ | (3,512 | ) | ||||||||||||||
Denominator: | |||||||||||||||||
Weighted-average shares of common stock outstanding | 28,882 | ||||||||||||||||
Weighted-average shares subject to repurchase | — | ||||||||||||||||
Shares used in per-share calculation—basic | 28,882 | ||||||||||||||||
Weighted-average shares of common stock outstanding | 28,882 | ||||||||||||||||
Weighted common stock equivalents | — | ||||||||||||||||
Shares used in per-share calculation—diluted | 28,882 | ||||||||||||||||
Net loss per share: | |||||||||||||||||
Basic | $ | (0.12 | ) | ||||||||||||||
Diluted | $ | (0.12 | ) | ||||||||||||||
Employee stock options to purchase 9.55 million shares of common stock were not included in the computation of diluted net loss per share for the eight months ended March 23, 2013 because their effect would have been antidilutive. | |||||||||||||||||
Segment Information | |||||||||||||||||
The Company’s chief operating decision maker was its former President and Chief Executive Officer. Decisions regarding resource allocation and assessing performance were made at the Company level, as one segment. The Company has not had any operating revenue since the Asset Sale. Prior to the Asset Sale, for the eight months ended March 23, 2013, the geographical distribution of revenue was as follows: United States – 80%, Korea – 5%, and all other countries – 15%. |
Liquidation_Basis_of_Accountin
Liquidation Basis of Accounting | 12 Months Ended | ||||||||
Jul. 31, 2014 | |||||||||
Liquidation Basis of Accounting | ' | ||||||||
3 | Liquidation Basis of Accounting | ||||||||
Fiscal year 2014 | |||||||||
Net assets in liquidation were $9.5 million and $13.64 million as of July 31, 2014 and July 31, 2013, respectively. | |||||||||
As of July 31, 2014, assets consisted of cash and cash equivalents of $12.24 million, the Tyngsborough Land valued at $2.5 million and other assets of $0.05 million. Based on our current best estimate of the realizable value of the Company’s remaining assets relating to the IQstream Business and the Company’s investment in Tejas, we have assigned values of $0.01 million and $0, respectively, to these assets for purposes of the Statement of Net Assets. | |||||||||
As of July 31, 2014, liabilities consisted of accrued expenses of $0.04 million, our reserve for estimated costs during the Dissolution period of $3.46 million and other liabilities of $1.79 million. For additional information concerning other liabilities, see Note 7. “Income Taxes.” | |||||||||
The Company accrued estimated costs expected to be incurred in carrying out the Plan of Dissolution. Under Delaware law, the Dissolution period will last for a minimum of three years from the filing of the Certificate of Dissolution. The Company was required to make certain estimates and exercise judgment in determining the accrued costs of liquidation as of July 31, 2014 and July 31, 2013. | |||||||||
The table below summarizes the reserve for estimated costs during the Dissolution period as of July 31, 2014 and July 31, 2013 (in thousands): | |||||||||
July 31, 2014 | July 31, 2013 | ||||||||
Compensation | $ | 1,004 | $ | 2,396 | |||||
Professional fees | 1,154 | 2,637 | |||||||
Other expenses associated with wind down activities | 1,010 | 1,970 | |||||||
Insurance | 294 | 1,333 | |||||||
$ | 3,462 | $ | 8,336 | ||||||
On January 31, 2014, all surviving representations and warranties under the Asset Sale Agreement expired without Buyer asserting any indemnification claims against the Company. Accordingly, the Company has not recorded, nor does it expect to record, any liability in connection with those obligations. | |||||||||
Net assets in liquidation decreased $4.14 million during fiscal year 2014. On July 29, 2014, the Company paid a liquidating distribution to stockholders, resulting in a decrease to net assets of $6.93 million. | |||||||||
In addition to the impact of the liquidating distribution, during the twelve months ended July 31, 2014, the Company also adjusted its estimate of the realizable value of assets and its estimated settlement amounts of liabilities, resulting in a net increase to net assets of $2.79 million. The realizable value of assets increased by $2.99 million as a result of the sale of the IBM Patents for $2.0 million, the sale of the IQstream Patents for $0.3 million, the determination by a neutral accountant that certain disputed amounts were for the account of the Company under the Asset Sale Agreement for $1.11 million, and an increase in other assets of $0.03 million, partially offset by a decrease in the realizable value for the Tyngsborough Land of $0.45 million. The Company increased its reserve for estimated costs during the Dissolution period by $0.46 million. The increase was primarily related to additional professional fees of $0.35 million, compensation costs of $0.28 million and insurance costs of $0.13 million expected to be incurred as a result of certain wind down activities taking longer to complete than originally anticipated, including continued compliance with our public company reporting obligations. The increase was offset in part by a reduction in estimated other expenses of $0.3 million associated with wind down activities. The Company also decreased accrued expenses and other liabilities by $0.26 million primarily related to taxes in certain state and foreign jurisdictions. | |||||||||
Fiscal year 2013 | |||||||||
Upon transition to the liquidation basis of accounting on March 24, 2013, the Company recorded the following adjustments to record assets at their estimated realizable values: | |||||||||
Initial adjustment of assets to estimated realizable value | Amount | ||||||||
Write up of assets | $ | 3,393 | |||||||
Write down of assets | (510 | ) | |||||||
$ | 2,883 | ||||||||
The Company’s initial write up of assets related to certain of the Company’s non-cash assets, including intellectual property and other assets relating to the IQstream Business, patents and patent applications related to or used in the Intelligent Bandwidth Management Business, the Tyngsborough Land, our investment in Tejas and certain other fixed assets. | |||||||||
The write down of assets related to certain prepaid expenses and other assets that have no future realizable value. | |||||||||
Upon transition to the liquidation basis of accounting, the Company accrued the following costs expected to be incurred in the Dissolution: | |||||||||
Accrued costs of liquidation | Amount | ||||||||
Restructuring | $ | 3,309 | |||||||
Compensation | 3,539 | ||||||||
Professional fees | 3,672 | ||||||||
Other expenses associated with wind down activities | 2,725 | ||||||||
Insurance | 1,500 | ||||||||
$ | 14,745 | ||||||||
Net assets in liquidation as of March 24, 2013 were $15.14 million. | |||||||||
During the period from March 24, 2013 through July 31, 2013, the Company recorded adjustments to reduce our estimate of the realizable value for the Tyngsborough Land and for our other assets. The reduction in our estimate of realizable value for the Tyngsborough land was the result of the termination of a Restated Purchase and Sale Agreement pursuant to which we had agreed to sell the Tyngsborough Land to a third party. The reduction in our estimate of realizable value for our other assets primarily related to a reduction in the realizable value of our patent portfolio. During fiscal year 2014, the Company sold the IBM and IQstream patent portfolios. | |||||||||
During the period from March 24, 2013 through July 31, 2013, the Company reduced its accrual for estimated costs of liquidation by $1.62 million. The reduction reflected our updated estimate of costs related to compensation, professional fees, other expenses and insurance. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||
Jul. 31, 2014 | |||||
Discontinued Operations | ' | ||||
4 | Discontinued Operations | ||||
On January 31, 2013, the Company completed the Asset Sale for a total purchase price of $18.75 million in cash and the assumption by Buyer of certain related liabilities. The transfer of the equity interests of the Company’s subsidiary in Shanghai occurred on March 25, 2013. | |||||
The financial results of the Intelligent Bandwidth Management Business have been classified as discontinued operations for all periods presented. | |||||
Eight months ended | |||||
March 23, | |||||
2013 | |||||
Revenue | $ | 22,266 | |||
Cost of revenue | 8,802 | ||||
Operating expenses | 14,452 | ||||
Income tax expense | 1,385 | ||||
Net loss from discontinued operations, net of tax | (2,373 | ) | |||
Gain on sale of discontinued operations, net of tax | 7,084 | ||||
Total discontinued operations | $ | 4,711 | |||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |
Jul. 31, 2014 | ||
Property and Equipment | ' | |
5 | Property and Equipment | |
Depreciation expense for the eight months ended March 23, 2013 was $0.93 million. | ||
The Company owns approximately 102 acres of land in Tyngsborough, Massachusetts. This land was recorded at its estimated realizable value of $2.5 million as of July 31, 2014. For additional information concerning this land, see Note 1. “Description of Business.” |
Commitments
Commitments | 12 Months Ended | |
Jul. 31, 2014 | ||
Commitments | ' | |
6 | Commitments | |
Operating Leases | ||
Following the completion of the Asset Sale and the filing of the Certificate of Dissolution, the Company no longer has any material commitments relating to operating leases. Office space was provided to the Company by Buyer pursuant to a transition services agreement during fiscal year 2014. The Company currently leases office space from Regis Management Group LLC in Andover, Massachusetts. The term of the Regis lease is not greater than twelve months. Under the going concern basis of accounting, rent expense under operating leases was $1.12 million for the eight months ended March 23, 2013. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Jul. 31, 2014 | |||||||||
Income Taxes | ' | ||||||||
7 | Income Taxes | ||||||||
Income tax expense for the eight months ended March 23, 2013 was $1.41 million. The tax expense is allocated between components of continuing operations, discontinued operations and gain on sale of discontinued operations in accordance with the provisions of Accounting Standards Codification (“ASC”) 740: | |||||||||
Eight months ended | |||||||||
March 23, | |||||||||
2013 | |||||||||
Tax benefit included in continuing operations | $ | (4,356 | ) | ||||||
Tax expense included in discontinued operations | 1,385 | ||||||||
Tax expense included in gain on sale of discontinued operations | 4,387 | ||||||||
Total tax expense continuing and discontinued operations | $ | 1,416 | |||||||
The approximately $4.35 million of tax benefits from continuing operations for the eight months ended March 23, 2013 are attributable to the intraperiod allocation of losses from continuing operations to income generated from discontinued operations, for which the losses would not have otherwise been benefitted under ASC 740. | |||||||||
The following table presents the components of our provision for income taxes (in thousands): | |||||||||
Eight Months Ended | |||||||||
March 23, | |||||||||
2013 | |||||||||
Current: | |||||||||
Federal | $ | 79 | |||||||
State | 14 | ||||||||
Foreign | 1,122 | ||||||||
1,215 | |||||||||
Deferred: | |||||||||
Federal | — | ||||||||
State | — | ||||||||
Foreign | 201 | ||||||||
201 | |||||||||
Total tax provision | $ | 1,416 | |||||||
A reconciliation between the statutory federal income tax and the Company’s actual tax provision follows (in thousands): | |||||||||
Eight Months Ended | |||||||||
March 23, | |||||||||
2013 | |||||||||
Statutory federal income tax benefit . | $ | (734 | ) | ||||||
State taxes, net of federal benefit . | 38 | ||||||||
Valuation allowance . | 2,040 | ||||||||
Other . | 72 | ||||||||
Tax provision | $ | 1,416 | |||||||
The components of the Company’s net deferred tax assets at July 31, 2014 and 2013 are as follows (in thousands): | |||||||||
July 31, | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforwards | $ | 298,426 | $ | 302,503 | |||||
Credit carryforwards | 21,301 | 21,520 | |||||||
Restructuring and related accruals | 3,502 | 3,554 | |||||||
Capital loss carryforwards | 672 | 1,181 | |||||||
Depreciation | 971 | 977 | |||||||
Other, net | 695 | 695 | |||||||
Total net deferred tax assets | 325,567 | 330,430 | |||||||
Valuation allowance | (325,567 | ) | (330,430 | ) | |||||
Net deferred tax assets | $ | — | $ | — | |||||
Substantially all of the loss before income taxes as shown in the Consolidated Statement of Operations for the eight months ended March 23, 2013 was derived in the United States. Certain foreign wholly owned subsidiary companies were compensated on a cost plus basis resulting in the recognition of foreign taxable income and tax expense. | |||||||||
The Company did not record a current tax benefit for the net operating losses due to the Company’s substantial losses. | |||||||||
The Company is currently open to audit under statutes of limitation by the Internal Revenue Service, various foreign jurisdictions, and state jurisdictions for the fiscal years ended July 31, 2008 through July 31, 2014. However, limited adjustments can be made to federal and state tax returns in earlier years in order to reduce net operating loss carryforwards. | |||||||||
As of July 31, 2014, the Company had federal and state net operating loss (“NOL”) carryforwards of approximately $856.46 million and $34.9 million, respectively. The federal and state net operating loss carryforwards will expire at various dates through 2034. The Company also has federal and state research and development credit carryforwards of approximately $11.31 million and $9.98 million, respectively, which begin to expire in 2020 and 2015, respectively. | |||||||||
The occurrence of ownership changes, as defined in Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), is not controlled by the Company, and could significantly limit the amount of net operating loss carryforwards and research and development credits that can be utilized annually to offset future taxable income. The Company completed an updated Section 382 study through July 31, 2011 and the results of this study showed that no ownership change within the meaning of the Code had occurred through July 31, 2011 that would limit the annual utilization of available tax attributes. | |||||||||
The Company has evaluated the positive and negative evidence bearing upon the realization of its deferred tax assets and has established a valuation allowance of $325.56 million and $330.43 million as of July 31, 2014 and July 31, 2013, respectively, for such assets, which are comprised principally of net operating loss carryforwards, research and development credits and stock based compensation. | |||||||||
Included in the net operating loss carryforwards are stock option deductions of approximately $125.0 million. The benefits of these stock option deductions approximate $47.8 million. As of July 31, 2014, the Company had net operating loss carryforwards of approximately $7.1 million related to the exercise of stock options subsequent to the adoption of fair value accounting. This amount represents the excess benefit and has not been included in the gross deferred tax asset reflected for net operating losses. | |||||||||
As of July 31, 2014, the total amount of unrecognized tax benefit is $1.79 million. If recognized, the entire amount would impact the Company’s effective tax rate. | |||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Beginning balance . | $ | 1,742 | $ | 1,673 | |||||
Increase for current year . | 83 | 99 | |||||||
Reductions related to expiration of statute of limitations . | (39 | ) | (30 | ) | |||||
Ending balance | $ | 1,786 | $ | 1,742 | |||||
As of July 31, 2014 and July 31, 2013, the total amount of accrued interest and penalties related to uncertain tax positions is $0.6 million and $0.53 million, respectively. The Company accounts for interest and penalties related to uncertain tax positions as part of its provision for federal, international, and state income taxes. This liability is subject to change, perhaps materially. It is reasonably possible this liability will be reduced between $0.2 million and $0.4 million in fiscal year 2015. |
Common_Stock
Common Stock | 12 Months Ended | |
Jul. 31, 2014 | ||
Common Stock | ' | |
8 | Common Stock | |
Prior to the Dissolution, the Company was authorized to issue up to 250,000,000 shares of the Common Stock. The holders of the Common Stock are entitled to one vote for each share held. In connection with the filing of the Certificate of Dissolution, effective as of 5:00 p.m. Eastern Time on March 7, 2013, the Company closed its stock transfer books and discontinued recording transfers of the Common Stock. The Common Stock, and stock certificates evidencing the shares of Common Stock, are no longer assignable or transferable on the Company’s books, other than transfers by will, intestate succession or operation of law, and represent only the right to receive distributions in connection with the Dissolution, if any. The Board will determine, in its sole discretion and in accordance with the Plan of Dissolution and applicable law, the timing, amount and kind of all distributions to be made to stockholders. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||
Jul. 31, 2014 | |||||
Share-Based Compensation | ' | ||||
9 | Share-Based Compensation | ||||
The Company previously had outstanding equity awards issued under several equity compensation plans, including the 1999 Stock Incentive Plan, the 2009 Stock Incentive Plan, the 2009 Non-employee Director Stock Option Plan and the 1999 Non-employee Director Stock Option Plan. Upon effectiveness of the Dissolution, the Company terminated its equity compensation plans and all outstanding stock-based awards under the plans were cancelled. | |||||
Prior to the termination of the equity compensation plans, the Company estimated the fair value of stock options using the Black-Scholes valuation model. Key input assumptions used to estimate the fair value of stock options included the exercise price of the award, the expected option term, the expected volatility of the Company’s stock over the option’s expected term, the risk-free interest rate over the option’s expected term, and the Company’s expected annual dividend yield. The Company did not grant any stock options during the eight months ended March 23, 2013. | |||||
The following table presents share-based compensation expense included in the Company’s consolidated statements of operations for the eight months ended March 23, 2013 (in thousands): | |||||
Eight Months Ended | |||||
March 23, | |||||
2013 | |||||
Cost of product revenue | $ | — | |||
Cost of service revenue | — | ||||
Research and development | 312 | ||||
Sales and marketing | 126 | ||||
General and administrative | 312 | ||||
Discontinued operations | 525 | ||||
Share-based compensation expense | $ | 1,275 | |||
Stock Option Activity | |||||
As a result of the termination of the Company’s equity compensation plans and cancellation of all unexercised option awards issued thereunder upon the effectiveness of the Dissolution, there were no stock options outstanding or exercisable at July 31, 2014. | |||||
The intrinsic value of stock options exercised, calculated as the difference between the market value of the shares on the exercise date and the exercise price of the option, was $5 thousand for fiscal year 2013. | |||||
The total cash received from employees as a result of employee stock option exercises during fiscal year 2013 was $38 thousand. |
Restructuring_Charges
Restructuring Charges | 12 Months Ended | ||||||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||||||
Restructuring Charges | ' | ||||||||||||||||||||
10 | Restructuring Charges | ||||||||||||||||||||
During the first quarter of fiscal 2013, the Company implemented cost-reduction actions associated with the IQstream Business, including workforce reductions and other cost containment measures. The Company recorded a workforce reduction restructuring charge of $1.58 million primarily related to employee separation packages, which included severance pay, benefits continuation and outplacement costs. The Company also recorded a restructuring charge of $0.41 million related to certain purchase commitments for the IQstream Business that have no future benefit. | |||||||||||||||||||||
During the second quarter of fiscal 2013, the Company halted further development and marketing of the IQstream Business. The Company took further cost reduction actions associated with the IQstream Business and recorded a workforce reduction restructuring charge of $0.26 million primarily related to employee separation packages and change of control agreements, which included severance pay, benefits continuation and outplacement costs. | |||||||||||||||||||||
During the third quarter of fiscal 2013, the Company continued its cost reduction actions associated with the IQstream Business and terminated all of its remaining IQstream employees. The Company also implemented certain cost reduction actions with respect to its general and administrative functions. In connection with these actions, the Company recorded a workforce reduction restructuring charge of $4.0 million primarily related to employee separation packages, which included severance pay, benefits continuation and outplacement costs. | |||||||||||||||||||||
The Company completed its cash restructuring payments in fiscal year 2013. A roll-forward of the restructuring accrual since July 31, 2012 is summarized below (in thousands): | |||||||||||||||||||||
Accrual | Additions | Adjustments | Payments | Accrual | |||||||||||||||||
Balance at | Balance at | ||||||||||||||||||||
July 31, | July 31, 2013 | ||||||||||||||||||||
2012 | |||||||||||||||||||||
Workforce reduction | $ | — | $ | 5,844 | $ | (94 | ) | $ | 5,750 | $ | — | ||||||||||
Contract termination costs | — | 411 | (67 | ) | 344 | — | |||||||||||||||
Total | $ | — | $ | 6,255 | $ | (161 | ) | $ | 6,094 | $ | — | ||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
11 | Fair Value Measurements | ||||||||||||||||
The fair value measurement rules establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||
Level 1 | Quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset and liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | ||||||||||||||||
Level 2 | Observable inputs other than Level 1 prices, 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. | ||||||||||||||||
Assets and liabilities of the Company measured at fair value on a recurring basis as of July 31, 2014, are summarized as follows (in thousands): | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Description | July 31, 2014 | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets | Observable Inputs | Unobservable Inputs | |||||||||||||||
for Identical | (Level 2) | (Level 3) | |||||||||||||||
Assets (Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and Cash Equivalents | $ | 12,241 | $ | 12,241 | $ | — | $ | — | |||||||||
Total assets | $ | 12,241 | $ | 12,241 | $ | — | $ | — | |||||||||
Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents of $12.24 million consisting of money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. | |||||||||||||||||
Assets and liabilities of the Company measured at fair value on a recurring basis as of July 31, 2013, are summarized as follows (in thousands): | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Description | July 31, 2013 | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets | Observable Inputs | Unobservable Inputs | |||||||||||||||
for Identical | (Level 2) | (Level 3) | |||||||||||||||
Assets (Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and Cash Equivalents | $ | 21,041 | $ | 21,041 | $ | — | $ | — | |||||||||
Total assets | $ | 21,041 | $ | 21,041 | $ | — | $ | — | |||||||||
Cash and Cash Equivalents | |||||||||||||||||
Cash and cash equivalents of $21.0 million consisting of money market funds are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |
Jul. 31, 2014 | ||
Commitments and Contingencies | ' | |
12 | Commitments and Contingencies | |
Litigation | ||
On April 22, 2013, the Company filed a complaint in the Complex Commercial Litigation Division of the Superior Court of the State of Delaware against Buyer, Marlin Executive Fund III, L.P. and Marlin Equity III, L.P. (collectively with Buyer, the “Marlin Parties”) in connection with the Asset Sale (“The Delaware Litigation”). The complaint asserted claims for breach of contract against the Marlin Parties and for declaratory judgment against Buyer for certain amounts due to the Company under the Asset Sale Agreement and certain agreements related thereto. | ||
The complaint sought (1) judgment in favor of the Company in the amount of $0.89 million, together with interest accrued, with respect to reimbursement for the Company’s operation of Sycamore Networks (Shanghai) Co. Ltd. (“Sycamore Shanghai”) for the benefit of Buyer during the period from the Asset Sale until the receipt of regulatory approval for the transfer of Sycamore Shanghai to Buyer, (2) declaratory judgment that cash in the amount of $0.35 million remaining in the accounts of subsidiaries of the Company transferred to Buyer in the Asset Sale are excluded assets under the terms of the Asset Sale Agreement and, accordingly, belong to the Company and (3) declaratory judgment that Buyer’s assertion that a $1.11 million decrease in the calculation of net working capital is necessary was untimely because it was made after the expiration of the forty-five day time period set forth in the Asset Sale Agreement. | ||
In connection with such litigation, on May 28, 2013, the Company, Buyer and the Marlin Parties reached an agreement pursuant to which (1) the Company agreed to dismiss the pending litigation without prejudice, (2) Buyer paid certain undisputed amounts of $1.69 million owed to the Company and (3) the parties agreed to submit the remaining issues relating to amounts in dispute of $1.45 million to arbitration for resolution by a neutral accountant. The matters in dispute were resolved by the neutral accountant in favor of the Company in the amount of $1.11 million, which included reimbursement for a portion of the fees and expenses paid to the neutral accountant. On March 5, 2014, the Company received the $1.11 million payment from Buyer and, on March 10, 2014, we dismissed the Delaware Litigation with prejudice. | ||
Guarantees | ||
During fiscal year 2014, the Company’s guarantees requiring disclosure consist of its indemnification obligations as set forth in the Asset Sale Agreement, indemnification for other claims and indemnification for officers and directors. | ||
In connection with the closing of the Asset Sale and as set forth in the Asset Sale Agreement, the Company agreed to indemnify Buyer and certain of its related parties for any damages arising out of any breach of any of our representations or warranties or failure to perform any of our covenants or agreements in the Asset Sale Agreement, our failure to fully or timely pay, satisfy or perform any retained liabilities or our failure to pay any taxes associated with the assets and subsidiaries being sold for periods prior to the closing date of the Asset Sale, including any capital gain or corporate income taxes resulting from the transfer of our China subsidiary. The Company’s aggregate indemnification liability for breaches of representations or warranties was limited to $2.81 million. On January 31, 2014, all surviving representations and warranties under the Asset Sale Agreement expired without Buyer asserting any indemnification claims against the Company. Accordingly, the Company has not recorded, nor does it expect to record, any liability in connection with those obligations. | ||
Prior to the Asset Sale and the Dissolution, in the normal course of business, the Company also agreed to indemnify other parties, including customers, lessors and parties to other transactions with the Company with respect to certain matters. Historically, payments made by the Company under these agreements had not had a material impact on the Company’s operating results or financial position. Furthermore, most of these obligations were assumed by Buyer in connection with the Asset Sale. Accordingly, the Company has not recorded a liability for these agreements as of July 31, 2014 or July 31, 2013, as the Company believes the exposure for any related payments is not material. | ||
We have entered into our standard form of indemnification agreement with each of our directors and executive officers, which is in addition to the indemnification provided for in our amended and restated certificate of incorporation, as amended. The Plan of Dissolution also provides that we continue to indemnify our directors and executive officers in accordance with such agreements and our amended and restated certificate of incorporation, as amended. The indemnification agreements, among other things, provide for indemnification of our directors and executive officers for a number of expenses, including attorneys’ fees and other related expenses, as well as certain judgments, fines, penalties and settlement amounts incurred by any such person in any action, suit or proceeding, including any action by or in the right of the Company, arising out of such person’s service as a director or executive officer of the Company or any other company or enterprise to which the person provided services at our request. The Company did not incur any expense under these arrangements during fiscal year 2014 or fiscal year 2013. Due to the Company’s inability to estimate liabilities in connection with these agreements, if and when they might be incurred, the Company has not recorded any liability for these agreements as of July 31, 2014 or July 31, 2013. During the Dissolution period, we intend to continue to indemnify each of our current and former directors and executive officers to the extent permitted under Delaware law, our amended and restated certificate of incorporation, as amended, and the indemnification agreements. The Company has also continued to maintain directors’ and officers’ insurance coverage since the filing of the Certificate of Dissolution, and intends to maintain such coverage through the end of the Dissolution period. |
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Jul. 31, 2014 | ||
Subsequent Events | ' | |
13 | Subsequent Events | |
On October 10, 2014, the Company entered into the Purchase Agreement with Tyngsborough Commons for a total purchase price of $2.5 million. Of the total purchase price, $50,000 has been deposited with an escrow agent as a nonrefundable deposit to be credited to the purchase price at closing, and an additional $50,000 will be deposited with the escrow agent on or before December 1, 2014 as a nonrefundable deposit to be credited towards the purchase price. The Purchase Agreement contains customary provisions relating to, among other things, the condition of the title to the Property, environmental conditions, representations and warranties, obligations of the parties prior to closing and apportionment of taxes. The Company’s representations and warranties and obligations under the Purchase Agreement will survive the closing for a period of six months, and under no circumstances will the Company be liable to Tyngsborough Commons for more than $75,000 in the aggregate for any breaches of such representations and warranties or obligations. | ||
If the closing occurs, Tyngsborough Commons will be solely responsible for any and all costs related to the Potential Betterment Assessment. In addition, following the closing, Tyngsborough Commons intends to sell a portion of the Tyngsborough Land to a third party buyer. In no event will the Company be bound by the terms of any agreement with respect to such sale, provided that, in the event Tyngsborough Commons fails to fulfill its obligations under the Purchase Agreement, the Company may in its sole discretion require an assignment to the Company of Tyngsborough Commons’s rights under any such agreement. | ||
The Company currently expects to complete the sale on or about December 31, 2014 (unless an earlier date is agreed upon by the Company and Tyngsborough Commons), subject to Tyngsborough Commons’s right, in its sole discretion and subject to the payment of an additional nonrefundable deposit in the amount of $100,000, to extend the closing date to February 27, 2015. The Company is entitled to terminate the Purchase Agreement if the closing does not take place on or before February 27, 2015 (or if the closing does not occur by December 31, 2014, if Tyngsborough Commons has failed to pay the additional deposit). The closing of the sale is subject to certain conditions and obligations of the parties prior to closing, some of which are outside of the Company’s control and, accordingly, there can be no assurance when or if such closing will occur. If the Purchase Agreement is terminated, there can be no assurance of when, if ever, the Company will be able to sell the Tyngsborough Land. The inability to see the Tyngsborough Land may delay the completion of the Company’s liquidation and related distributions to its stockholders. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||
Basis of Consolidation and Presentation | ' | ||||||||||||||||
Basis of Consolidation and Presentation | |||||||||||||||||
The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. As part of the Asset Sale, the Company sold its subsidiaries in Shanghai, the Netherlands and Japan. In conjunction with the Dissolution, the Company merged its Delaware and Massachusetts subsidiaries into Sycamore Networks, Inc. | |||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. | |||||||||||||||||
The condensed consolidated financial statements for the eight month period ended March 23, 2013 were prepared on the going concern basis of accounting, which contemplates realization of assets and satisfaction of liabilities in the normal course of business. Following the Company’s filing of the Certificate of Dissolution, on March 24, 2013 the Company adopted the liquidation basis of accounting. See “Liquidation Basis of Accounting” below for further information regarding the Company’s adoption of the liquidation basis of accounting. | |||||||||||||||||
Cash Distributions | ' | ||||||||||||||||
Cash Distributions | |||||||||||||||||
On July 29, 2014, the Company paid a liquidating distribution to stockholders of $0.24 per share of Common stock, or $6.93 million in the aggregate. The liquidating distribution decreased net assets in liquidation. The Company paid a total of $413.3 million in cash distributions to stockholders in fiscal 2013. As a result of having an accumulated deficit, the cash distributions were recorded as reductions to additional paid-in capital. | |||||||||||||||||
Liquidation Basis of Accounting | ' | ||||||||||||||||
Liquidation Basis of Accounting | |||||||||||||||||
On March 24, 2013, the beginning of the fiscal month following the filing of the Certificate of Dissolution, the Company began reporting on a liquidation basis of accounting. Under the liquidation basis of accounting, assets are measured to reflect the estimated amount of cash or other consideration expected to be collected in settling or disposing of the assets. Liabilities are measured in accordance with the measurement provisions of Accounting Standard Codification Topics that otherwise apply. Additionally, the Company accrued estimated costs associated with carrying out the Plan of Dissolution. These estimates will be reviewed periodically and adjusted as appropriate. | |||||||||||||||||
The measurement of assets and liabilities represent estimates, based on present facts and circumstances, of the realizable value of the assets and the costs associated with carrying out the Plan of Dissolution. The actual values and costs associated with carrying out the Plan of Dissolution may differ from amounts reflected in the financial statements because of the inherent uncertainty in estimating future events. These differences may be material. In particular, the estimates of costs will vary with the length of time necessary to complete the Dissolution process and to resolve any claims. Accordingly, it is not possible to predict the timing or aggregate size of any amount which may ultimately be distributed to Company stockholders, and no assurance can be given that such distributions, if made, will equal or exceed the estimate of net assets presented in the accompanying Statement of Net Assets. | |||||||||||||||||
Cash Equivalents and Investments | ' | ||||||||||||||||
Cash Equivalents and Investments | |||||||||||||||||
Cash equivalents are short-term, highly liquid investments with original or remaining maturity dates of three months or less at the date of acquisition. Cash equivalents are carried at cost plus accrued interest, which approximates fair market value. As of July 31, 2014 and 2013, aggregate cash and cash equivalents consisted of (in thousands): | |||||||||||||||||
July 31, 2014: | Amortized | Gross | Gross | Fair Market | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Cash and cash equivalents | $ | 12,241 | $ | — | $ | — | $ | 12,241 | |||||||||
Total | $ | 12,241 | $ | — | $ | — | $ | 12,241 | |||||||||
July 31, 2013: | Amortized | Gross | Gross | Fair Market | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Cash and cash equivalents | $ | 21,041 | $ | — | $ | — | $ | 21,041 | |||||||||
Total | $ | 21,041 | $ | — | $ | — | $ | 21,041 | |||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
Prior to the Asset Sale, the Company sold primarily bundled hardware and software products that function together to deliver the tangible products’ essential functionality (referred to herein collectively as “hardware” products), as well as services related to those hardware products. Services included maintenance arrangements for the products with terms typically of one year, as well as to a lesser extent, professional services and training services. The Company sold a limited amount of stand-alone software products. | |||||||||||||||||
The Company recognized revenue when all of the following criteria were met: | |||||||||||||||||
• | Persuasive evidence of an arrangement existed. Evidence of an arrangement generally consisted of sales contracts or agreements and customer purchase orders; | ||||||||||||||||
• | Delivery occurred. Delivery occurred when title and risk of loss were transferred to the customer or the Company received written evidence of customer acceptance, when applicable, to verify delivery or performance; | ||||||||||||||||
• | Sales price was fixed or determinable. The Company assessed whether the sales price was fixed or determinable based on payment terms and whether the sales price was subject to refund or adjustment; and | ||||||||||||||||
• | Collectability was reasonably assured. Collectability was assessed based on the creditworthiness of the customer as determined by credit checks and the customer’s payment history with the Company. | ||||||||||||||||
Pursuant to the guidance of Accounting Standards Update (“ASU”) No. 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements (“ASU 2009-13”),, when a sales arrangement contains multiple elements, particularly hardware products and related services, revenue is allocated to each element based on a selling price hierarchy, using a relative selling price allocation approach. The selling price for a deliverable was based on our vendor-specific objective evidence (“VSOE”), if available, third-party evidence (“TPE”) if VSOE was not available, or best estimate of selling price (“BESP”) if neither VSOE nor TPE was available. The Company established VSOE for its services based on the price charged for each service element when sold separately. The Company was typically not able to determine TPE for its hardware products or services because the Company’s various product and service offerings contained a significant level of differentiation and, therefore, comparable pricing of competitors’ products and services with similar functionality could not be obtained. The Company determined BESP for products and services based on an assessment of multiple factors, including, but not limited to, pricing practices, customer classes and distribution channels. We then recognized revenue allocated to each deliverable in accordance with the four criteria identified above. Our multiple element arrangements typically included both products and services, with maintenance being the most common service element. Maintenance services were delivered over the contractual support period which varied in length, but typically was twelve months. In those limited instances where both hardware and stand-alone software products were included in a multiple element arrangement, the hardware and related services and the software and related services were separated and then allocated a pro rata portion of the total transaction value based upon BESP of each of the hardware and software groups, using a relative selling price allocation approach. The hardware group was then accounted for under the ASC Topic 605 guidance described above and the software group was accounted for under the ASC Topic 985 guidance. | |||||||||||||||||
Service revenues included revenue from maintenance, training, and installation services. Revenue from maintenance service contracts was deferred and recognized ratably over the contractual support period. Revenue from training and installation services was recognized as the services were completed or ratably over the service period. | |||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Upon effectiveness of the Certificate of Dissolution, the Company cancelled all outstanding stock option awards under the Company’s stock plans. During the period when the Company had stock-based compensation programs, the Company accounted for share-based compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. The Company estimated the fair value of share-based options on the date of grant using the Black-Scholes pricing model, which was affected by our stock price as well as assumptions regarding a number of complex and subjective variables. These variables included our expected stock price volatility over the term of the awards, actual and projected employee option exercise behaviors, risk free interest rate and expected dividends. The Company was also required to estimate forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differed from those estimates. | |||||||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||
Under the going concern basis of accounting, the Company evaluated the recoverability of long-lived assets whenever events or changes in circumstances indicated that the carrying amount of an asset may not be fully recoverable. This periodic review may have resulted in an adjustment of estimated depreciable lives or asset impairment. When indicators of impairment were present, the carrying values of the asset were evaluated in relation to the operating performance and future undiscounted cash flows of the underlying business. If the future undiscounted cash flows were less than the book value, impairment existed. The impairment was measured as the difference between the book value and the fair value of the underlying asset. Fair values were based on estimates of market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk. | |||||||||||||||||
Property and Equipment | ' | ||||||||||||||||
Property and Equipment | |||||||||||||||||
Under the liquidation basis of accounting, property and equipment are stated at their estimated realizable values. Under the going concern basis of accounting, property and equipment were stated at cost and depreciated over the estimated useful lives of the assets using the straight-line method, based upon the following asset lives: | |||||||||||||||||
Computer and telecommunications equipment | 2 to 3 years | ||||||||||||||||
Computer software | 3 years | ||||||||||||||||
Furniture and office equipment | 5 years | ||||||||||||||||
Leasehold improvements | Shorter of lease term or useful life of asset | ||||||||||||||||
The costs of significant additions and improvements were capitalized and depreciated while expenditures for maintenance and repairs were charged to expense as incurred. Costs related to internal use software were capitalized. Upon retirement or sale of an asset, the cost and related accumulated depreciation of the assets were removed from the accounts and any resulting gain or loss is reflected in the determination of net income or loss. See Note 5. “Property and Equipment.” | |||||||||||||||||
Research and Development and Software Development Costs | ' | ||||||||||||||||
Research and Development and Software Development Costs | |||||||||||||||||
Under the going concern basis of accounting, the Company’s research and development costs were expensed as incurred. Software development costs incurred prior to the establishment of technological feasibility were charged to expense. Technological feasibility was demonstrated by the completion of a working model. Software development costs incurred subsequent to the establishment of technological feasibility were capitalized until the product was available for general release to customers and amortized based on the greater of (i) the ratio that current gross revenue for a product bears to the total of current and anticipated future gross revenue for that product or (ii) the straight-line method over the remaining estimated life of the product. The period between achieving technological feasibility and the general availability of the related products was short and software development costs qualifying for capitalization were not material. Accordingly, the Company did not capitalize any software development costs. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
Income taxes are accounted for under the liability method. Under this method, deferred tax assets and liabilities are recorded based on temporary differences between the financial statement amounts and the tax bases of assets and liabilities measured using enacted tax rates in effect for the year in which the differences are expected to reverse. The Company periodically evaluates the realization of its net deferred tax assets and records a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. | |||||||||||||||||
We account for uncertain tax positions by prescribing the minimum recognition threshold a tax position must meet before being recognized in the Company’s financial statements. Generally, recognition is limited to situations where, based solely on the technical merits of the tax position, the Company has determined that the tax position is more likely than not to be sustained on audit. | |||||||||||||||||
Concentration of Credit Risks | ' | ||||||||||||||||
Concentration of Credit Risks | |||||||||||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash equivalents and investments. The Company invests its excess cash primarily in deposits with commercial banks, high-quality corporate securities and U.S. government securities. | |||||||||||||||||
Allowance for Doubtful Accounts | ' | ||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||
Prior to the Asset Sale, the Company evaluated its outstanding accounts receivable balances on an ongoing basis to determine whether an allowance for doubtful accounts should be recorded. Activity in the Company’s allowance for doubtful accounts is summarized as follows (in thousands): | |||||||||||||||||
July 31, 2013 | |||||||||||||||||
Beginning balance | $ | 42 | |||||||||||||||
Adjustment | (42 | ) | |||||||||||||||
Write off | — | ||||||||||||||||
Ending balance | $ | — | |||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||
Under the going concern basis of accounting, the unrealized gain or loss on investments was included in accumulated other comprehensive loss for all operating periods presented. For foreign subsidiaries where the functional currency was the local currency, assets and liabilities were translated into U.S. dollars at the current exchange rate on the balance sheet date. Revenue and expenses were translated at average rates of exchange prevailing during each period. Translation adjustments for these subsidiaries, which are immaterial for all periods presented, are included in accumulated other comprehensive income (loss). | |||||||||||||||||
Net Loss Per Share | ' | ||||||||||||||||
Net Loss Per Share | |||||||||||||||||
Under the going concern basis of accounting, basic and diluted net loss per share were computed by dividing the net loss for the period by the weighted average number of common shares outstanding during the period less unvested restricted stock. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): | |||||||||||||||||
Eight Months Ended | |||||||||||||||||
March 23, | |||||||||||||||||
2013 | |||||||||||||||||
Net loss | $ | (3,512 | ) | ||||||||||||||
Denominator: | |||||||||||||||||
Weighted-average shares of common stock outstanding | 28,882 | ||||||||||||||||
Weighted-average shares subject to repurchase | — | ||||||||||||||||
Shares used in per-share calculation—basic | 28,882 | ||||||||||||||||
Weighted-average shares of common stock outstanding | 28,882 | ||||||||||||||||
Weighted common stock equivalents | — | ||||||||||||||||
Shares used in per-share calculation—diluted | 28,882 | ||||||||||||||||
Net loss per share: | |||||||||||||||||
Basic | $ | (0.12 | ) | ||||||||||||||
Diluted | $ | (0.12 | ) | ||||||||||||||
Employee stock options to purchase 9.55 million shares of common stock were not included in the computation of diluted net loss per share for the eight months ended March 23, 2013 because their effect would have been antidilutive. | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
Segment Information | |||||||||||||||||
The Company’s chief operating decision maker was its former President and Chief Executive Officer. Decisions regarding resource allocation and assessing performance were made at the Company level, as one segment. The Company has not had any operating revenue since the Asset Sale. Prior to the Asset Sale, for the eight months ended March 23, 2013, the geographical distribution of revenue was as follows: United States – 80%, Korea – 5%, and all other countries – 15%. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||
Aggregate Cash and Cash Equivalents, Short and Long Term Investments | ' | ||||||||||||||||
As of July 31, 2014 and 2013, aggregate cash and cash equivalents consisted of (in thousands): | |||||||||||||||||
July 31, 2014: | Amortized | Gross | Gross | Fair Market | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Cash and cash equivalents | $ | 12,241 | $ | — | $ | — | $ | 12,241 | |||||||||
Total | $ | 12,241 | $ | — | $ | — | $ | 12,241 | |||||||||
July 31, 2013: | Amortized | Gross | Gross | Fair Market | |||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Cash and cash equivalents | $ | 21,041 | $ | — | $ | — | $ | 21,041 | |||||||||
Total | $ | 21,041 | $ | — | $ | — | $ | 21,041 | |||||||||
Estimated Useful Lives of Assets | ' | ||||||||||||||||
Under the going concern basis of accounting, property and equipment were stated at cost and depreciated over the estimated useful lives of the assets using the straight-line method, based upon the following asset lives: | |||||||||||||||||
Computer and telecommunications equipment | 2 to 3 years | ||||||||||||||||
Computer software | 3 years | ||||||||||||||||
Furniture and office equipment | 5 years | ||||||||||||||||
Leasehold improvements | Shorter of lease term or useful life of asset | ||||||||||||||||
Summary of Allowance for Doubtful Accounts | ' | ||||||||||||||||
Activity in the Company’s allowance for doubtful accounts is summarized as follows (in thousands): | |||||||||||||||||
July 31, 2013 | |||||||||||||||||
Beginning balance | $ | 42 | |||||||||||||||
Adjustment | (42 | ) | |||||||||||||||
Write off | — | ||||||||||||||||
Ending balance | $ | — | |||||||||||||||
Computation of Basic and Diluted Net Loss Per Share | ' | ||||||||||||||||
The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): | |||||||||||||||||
Eight Months Ended | |||||||||||||||||
March 23, | |||||||||||||||||
2013 | |||||||||||||||||
Net loss | $ | (3,512 | ) | ||||||||||||||
Denominator: | |||||||||||||||||
Weighted-average shares of common stock outstanding | 28,882 | ||||||||||||||||
Weighted-average shares subject to repurchase | — | ||||||||||||||||
Shares used in per-share calculation—basic | 28,882 | ||||||||||||||||
Weighted-average shares of common stock outstanding | 28,882 | ||||||||||||||||
Weighted common stock equivalents | — | ||||||||||||||||
Shares used in per-share calculation—diluted | 28,882 | ||||||||||||||||
Net loss per share: | |||||||||||||||||
Basic | $ | (0.12 | ) | ||||||||||||||
Diluted | $ | (0.12 | ) | ||||||||||||||
Liquidation_Basis_of_Accountin1
Liquidation Basis of Accounting (Tables) | 12 Months Ended | ||||||||
Jul. 31, 2014 | |||||||||
Reserve for Estimated Costs | ' | ||||||||
The table below summarizes the reserve for estimated costs during the Dissolution period as of July 31, 2014 and July 31, 2013 (in thousands): | |||||||||
July 31, 2014 | July 31, 2013 | ||||||||
Compensation | $ | 1,004 | $ | 2,396 | |||||
Professional fees | 1,154 | 2,637 | |||||||
Other expenses associated with wind down activities | 1,010 | 1,970 | |||||||
Insurance | 294 | 1,333 | |||||||
$ | 3,462 | $ | 8,336 | ||||||
Adjustments to Record Assets at Their Estimated Net Realizable Values | ' | ||||||||
Upon transition to the liquidation basis of accounting on March 24, 2013, the Company recorded the following adjustments to record assets at their estimated realizable values: | |||||||||
Initial adjustment of assets to estimated realizable value | Amount | ||||||||
Write up of assets | $ | 3,393 | |||||||
Write down of assets | (510 | ) | |||||||
$ | 2,883 | ||||||||
Accrued Costs Expected to be Incurred in Liquidation | ' | ||||||||
Upon transition to the liquidation basis of accounting, the Company accrued the following costs expected to be incurred in the Dissolution: | |||||||||
Accrued costs of liquidation | Amount | ||||||||
Restructuring | $ | 3,309 | |||||||
Compensation | 3,539 | ||||||||
Professional fees | 3,672 | ||||||||
Other expenses associated with wind down activities | 2,725 | ||||||||
Insurance | 1,500 | ||||||||
$ | 14,745 | ||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||
Jul. 31, 2014 | |||||
Financial Results of Discontinued Operation | ' | ||||
The financial results of the Intelligent Bandwidth Management Business have been classified as discontinued operations for all periods presented. | |||||
Eight months ended | |||||
March 23, | |||||
2013 | |||||
Revenue | $ | 22,266 | |||
Cost of revenue | 8,802 | ||||
Operating expenses | 14,452 | ||||
Income tax expense | 1,385 | ||||
Net loss from discontinued operations, net of tax | (2,373 | ) | |||
Gain on sale of discontinued operations, net of tax | 7,084 | ||||
Total discontinued operations | $ | 4,711 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Jul. 31, 2014 | |||||||||
Components of Provision for Income Taxes | ' | ||||||||
The tax expense is allocated between components of continuing operations, discontinued operations and gain on sale of discontinued operations in accordance with the provisions of Accounting Standards Codification (“ASC”) 740: | |||||||||
Eight months ended | |||||||||
March 23, | |||||||||
2013 | |||||||||
Tax benefit included in continuing operations | $ | (4,356 | ) | ||||||
Tax expense included in discontinued operations | 1,385 | ||||||||
Tax expense included in gain on sale of discontinued operations | 4,387 | ||||||||
Total tax expense continuing and discontinued operations | $ | 1,416 | |||||||
Reconciliation of the Company's Statutory Federal Income Tax and the Company's Actual Tax Provision | ' | ||||||||
A reconciliation between the statutory federal income tax and the Company’s actual tax provision follows (in thousands): | |||||||||
Eight Months Ended | |||||||||
March 23, | |||||||||
2013 | |||||||||
Statutory federal income tax benefit . | $ | (734 | ) | ||||||
State taxes, net of federal benefit . | 38 | ||||||||
Valuation allowance . | 2,040 | ||||||||
Other . | 72 | ||||||||
Tax provision | $ | 1,416 | |||||||
Net Deferred Tax Assets | ' | ||||||||
The components of the Company’s net deferred tax assets at July 31, 2014 and 2013 are as follows (in thousands): | |||||||||
July 31, | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforwards | $ | 298,426 | $ | 302,503 | |||||
Credit carryforwards | 21,301 | 21,520 | |||||||
Restructuring and related accruals | 3,502 | 3,554 | |||||||
Capital loss carryforwards | 672 | 1,181 | |||||||
Depreciation | 971 | 977 | |||||||
Other, net | 695 | 695 | |||||||
Total net deferred tax assets | 325,567 | 330,430 | |||||||
Valuation allowance | (325,567 | ) | (330,430 | ) | |||||
Net deferred tax assets | $ | — | $ | — | |||||
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits | ' | ||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Beginning balance . | $ | 1,742 | $ | 1,673 | |||||
Increase for current year . | 83 | 99 | |||||||
Reductions related to expiration of statute of limitations . | (39 | ) | (30 | ) | |||||
Ending balance | $ | 1,786 | $ | 1,742 | |||||
Provision For Income Taxes | ' | ||||||||
Components of Provision for Income Taxes | ' | ||||||||
The following table presents the components of our provision for income taxes (in thousands): | |||||||||
Eight Months Ended | |||||||||
March 23, | |||||||||
2013 | |||||||||
Current: | |||||||||
Federal | $ | 79 | |||||||
State | 14 | ||||||||
Foreign | 1,122 | ||||||||
1,215 | |||||||||
Deferred: | |||||||||
Federal | — | ||||||||
State | — | ||||||||
Foreign | 201 | ||||||||
201 | |||||||||
Total tax provision | $ | 1,416 | |||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||
Jul. 31, 2014 | |||||
Share-Based Compensation Expense | ' | ||||
The following table presents share-based compensation expense included in the Company’s consolidated statements of operations for the eight months ended March 23, 2013 (in thousands): | |||||
Eight Months Ended | |||||
March 23, | |||||
2013 | |||||
Cost of product revenue | $ | — | |||
Cost of service revenue | — | ||||
Research and development | 312 | ||||
Sales and marketing | 126 | ||||
General and administrative | 312 | ||||
Discontinued operations | 525 | ||||
Share-based compensation expense | $ | 1,275 | |||
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 12 Months Ended | ||||||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||||||
Roll-forward of Restructuring Accrual | ' | ||||||||||||||||||||
The Company completed its cash restructuring payments in fiscal year 2013. A roll-forward of the restructuring accrual since July 31, 2012 is summarized below (in thousands): | |||||||||||||||||||||
Accrual | Additions | Adjustments | Payments | Accrual | |||||||||||||||||
Balance at | Balance at | ||||||||||||||||||||
July 31, | July 31, 2013 | ||||||||||||||||||||
2012 | |||||||||||||||||||||
Workforce reduction | $ | — | $ | 5,844 | $ | (94 | ) | $ | 5,750 | $ | — | ||||||||||
Contract termination costs | — | 411 | (67 | ) | 344 | — | |||||||||||||||
Total | $ | — | $ | 6,255 | $ | (161 | ) | $ | 6,094 | $ | — | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||
Assets and Liabilities Fair Value Measurements on Recurring Basis | ' | ||||||||||||||||
Assets and liabilities of the Company measured at fair value on a recurring basis as of July 31, 2014, are summarized as follows (in thousands): | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Description | July 31, 2014 | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets | Observable Inputs | Unobservable Inputs | |||||||||||||||
for Identical | (Level 2) | (Level 3) | |||||||||||||||
Assets (Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and Cash Equivalents | $ | 12,241 | $ | 12,241 | $ | — | $ | — | |||||||||
Total assets | $ | 12,241 | $ | 12,241 | $ | — | $ | — | |||||||||
Assets and liabilities of the Company measured at fair value on a recurring basis as of July 31, 2013, are summarized as follows (in thousands): | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Description | July 31, 2013 | Quoted Prices in | Significant Other | Significant | |||||||||||||
Active Markets | Observable Inputs | Unobservable Inputs | |||||||||||||||
for Identical | (Level 2) | (Level 3) | |||||||||||||||
Assets (Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Cash and Cash Equivalents | $ | 21,041 | $ | 21,041 | $ | — | $ | — | |||||||||
Total assets | $ | 21,041 | $ | 21,041 | $ | — | $ | — | |||||||||
Consolidated_Statement_of_Net_
Consolidated Statement of Net Assets (Liquidation Basis) (Detail) (USD $) | Mar. 24, 2013 | Mar. 23, 2013 | Jul. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Mar. 24, 2013 | Mar. 23, 2013 |
In Thousands, except Per Share data, unless otherwise specified | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | |||
Assets | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | $19,824 | $136,654 | $12,241 | $21,041 | ' | ' |
Land | ' | ' | ' | 2,500 | 2,948 | ' | ' |
Other assets | ' | ' | ' | 47 | 100 | ' | ' |
Total assets | ' | ' | ' | 14,788 | 24,089 | ' | ' |
Liabilities and Net Assets | ' | ' | ' | ' | ' | ' | ' |
Accrued expenses | 14,745 | ' | ' | 44 | 133 | ' | ' |
Reserve for estimated costs during the Dissolution period | ' | ' | ' | 3,462 | 8,336 | ' | ' |
Other liabilities | ' | ' | ' | 1,786 | 1,983 | ' | ' |
Total liabilities | ' | ' | ' | 5,292 | 10,452 | ' | ' |
Net assets in liquidation | ' | ' | ' | $9,496 | $13,637 | $15,140 | $15,144 |
Shares outstanding | ' | ' | ' | 28,882 | 28,882 | ' | ' |
Net assets in liquidation per share | ' | ' | ' | $0.33 | $0.47 | ' | ' |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Net Assets (Liquidation Basis) (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 4 Months Ended | 12 Months Ended | 4 Months Ended | 12 Months Ended | 4 Months Ended | 12 Months Ended | 4 Months Ended | 12 Months Ended | 4 Months Ended | |||||||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Mar. 23, 2013 | Jul. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 29, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Mar. 23, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2013 |
Other Assets | Land | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | ||||
Forfeited Deposit [Member] | Accounting Standards Update 2013-07 | Patents | Other Liabilities | Other Assets | Other Assets | Property, Plant and Equipment | Property, Plant and Equipment | Other Receivables | Assets | ||||||||||
Liability | Land | Land | Accounting Standards Update 2013-07 | ||||||||||||||||
Effects of adopting the liquidation basis of accounting as of March 24, 2013: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial adjustment of assets (liabilities) to estimated net realizable (settlement) value | ' | ' | ' | ' | ' | ' | $2,883 | ' | ' | ' | ($14,745) | ' | ' | ' | ' | ' | ' | ' | $2,883 |
Net assets in liquidation, beginning balance | ' | ' | ' | ' | ' | ' | 15,144 | 13,637 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidating distribution | ' | ' | ' | ' | ' | -6,930 | ' | -6,932 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in estimated net realizable value on asset | 2,990 | ' | ' | 27 | -448 | ' | ' | ' | ' | ' | ' | 2,300 | ' | -2,700 | 27 | -552 | -448 | 1,107 | ' |
Decrease in liabilities | 263 | ' | ' | ' | ' | ' | ' | ' | ' | 125 | ' | ' | 263 | ' | ' | ' | ' | ' | ' |
(Increase) decrease in estimated costs during the Dissolution period | -458 | ' | ' | ' | ' | ' | 1,620 | -458 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net assets in liquidation, ending balance | ' | ' | ' | ' | ' | ' | 13,637 | 9,496 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders' equity as of March 23, 2013 | ' | $27,006 | $442,231 | ' | ' | ' | ' | ' | $27,006 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Description_of_Business_Additi
Description of Business - Additional Information (Detail) (USD $) | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||
Jan. 31, 2013 | Mar. 07, 2013 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 29, 2014 | Jul. 31, 2014 | Jul. 29, 2014 | Jul. 02, 2014 | Oct. 02, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | 22-May-14 | 22-May-14 | Mar. 05, 2014 | Feb. 27, 2014 | 28-May-13 | 28-May-13 | Oct. 10, 2014 | Oct. 10, 2014 | Jan. 31, 2013 | |
Tyngsborough Massachusetts | Tyngsborough Massachusetts | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Subsequent Event | Patent Sale Agreement with Dragon Intellectual Property, LLC | Patent Sale Agreement with Dragon Intellectual Property, LLC | Patent Sale Agreement with Citrix Systems, Inc. | Patent Sale Agreement with Citrix Systems, Inc. | Asset Sale Agreement | Asset Sale Agreement | Asset Sale Agreement | Asset Sale Agreement | Asset Sale Agreement | Asset Sale Agreement | Asset Sale Agreement | |||
acre | Termination of Restated Purchase and Sale Agreement with Tyngsborough Commons, LLC | Tyngsborough Massachusetts | Patent | Patent | Subsequent Event | Subsequent Event | Assets (the "Asset Sale") primarily related to the Intelligent Bandwidth Management Business | |||||||||||||
acre | Tyngsborough Massachusetts | Tyngsborough Massachusetts | ||||||||||||||||||
Entity Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of facilities and assets, value | $18,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18,750,000 |
Total dispute amount under asset sale agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,450,000 | ' | ' | ' |
Amount received from total dispute amount under asset sale agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,110,000 | ' | ' | ' | ' | ' |
Total amount awarded to company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,110,000 | ' | ' | ' | ' | ' | ' |
Undisputed amounts paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,690,000 | ' | ' | ' | ' |
Common stock, par value | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Patent sale agreement, number of patents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40 | ' | 3 | ' | ' | ' | ' | ' | ' | ' |
Patent sale agreement, number of patent applications | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | 6 | ' | ' | ' | ' | ' | ' | ' |
Amount received from sale of patents | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership of land | ' | ' | 102 | 102 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated potential betterment fee relating to Tyngsborough Land | ' | ' | ' | ' | ' | ' | ' | ' | 3,470,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of facilities and assets, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000 | ' |
Nonrefundable deposit to escrow agent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' |
Future escrow deposit on or before December 1, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | ' | ' |
Maximum amount payable on breaches of such representations and warranties or obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' |
Expected date to complete sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-14 | ' | ' |
Additional deposit payment for extension to complete sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' |
Purchase Agreement expected period of extension to complete sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27-Feb-15 | ' | ' |
Liquidating cash distribution, per share | ' | ' | ' | ' | ' | ' | $0.24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidating cash distribution | ' | ' | ' | ' | 6,930,000 | 6,932,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anticipated wind down costs and expenses | ' | ' | ' | ' | ' | ' | ' | 6,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent and unknown liabilities and other possible charges and expenses | ' | ' | ' | ' | ' | ' | ' | $6,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 8 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 8 Months Ended | |||
In Thousands, except Share data in Millions, unless otherwise specified | Mar. 23, 2013 | Jul. 31, 2014 | Jul. 29, 2014 | Jul. 31, 2014 | Jul. 29, 2014 | Mar. 23, 2013 | Mar. 23, 2013 | Mar. 23, 2013 |
Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Revenue | Revenue | Revenue | |||
Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | ||||||
United States | Korea | All Other Countries | ||||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidating distribution, per share | ' | ' | ' | ' | $0.24 | ' | ' | ' |
Liquidating distribution | ' | ' | $6,930 | $6,932 | ' | ' | ' | ' |
Cash distribution to stockholders | $413,302 | $413,300 | ' | ' | ' | ' | ' | ' |
Options to purchase, shares | 9.55 | ' | ' | ' | ' | ' | ' | ' |
Percentage of Company revenue | ' | ' | ' | ' | ' | 80.00% | 5.00% | 15.00% |
Aggregate_Cash_and_Cash_Equiva
Aggregate Cash and Cash Equivalents (Detail) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $12,241 | $21,041 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | ' | ' |
Fair Market Value | 12,241 | 21,041 |
Cash and cash equivalents | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 12,241 | 21,041 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | ' | ' |
Fair Market Value | $12,241 | $21,041 |
Estimated_Useful_Lives_of_Asse
Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Jul. 31, 2014 | |
Computer And Telecommunications Equipment | Minimum | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Property Plant and Equipment Useful Life | '2 years |
Computer And Telecommunications Equipment | Maximum | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Property Plant and Equipment Useful Life | '3 years |
Computer Software | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Property Plant and Equipment Useful Life | '3 years |
Furniture And Office Equipment | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Property Plant and Equipment Useful Life | '5 years |
Leasehold Improvements | ' |
Property Plant and Equipment Estimated Useful Lives [Line Items] | ' |
Leasehold improvements | 'Shorter of lease term or useful life of asset |
Summary_of_Allowance_for_Doubt
Summary of Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jul. 31, 2013 |
Allowance for Sales Return and Doubtful Accounts [Line Items] | ' |
Beginning balance | $42 |
Adjustment | -42 |
Write off | ' |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Net Loss Per Share - Additional Information (Detail) (USD $) | 8 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 23, 2013 |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ' |
Net loss | ($3,512) |
Denominator: | ' |
Weighted-average shares of common stock outstanding | 28,882 |
Weighted-average shares subject to repurchase | ' |
Shares used in per-share calculation-basic | 28,882 |
Weighted-average shares of common stock outstanding | 28,882 |
Weighted common stock equivalents | ' |
Shares used in per-share calculation-diluted | 28,882 |
Net loss per share: | ' |
Basic | ($0.12) |
Diluted | ($0.12) |
Liquidation_Basis_of_Accountin2
Liquidation Basis of Accounting - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 4 Months Ended | 12 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Jul. 31, 2014 | Mar. 24, 2013 | Mar. 23, 2013 | Jul. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 29, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Mar. 24, 2013 | Mar. 23, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | |
Asset Sale Agreement | Professional fees | Compensation | Insurance | Other expenses associated with wind down activities | Other Assets | Land | IQstream Patents | IBM Patent | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | Liquidation Basis of Accounting | |||||
Professional fees | Professional fees | Compensation | Compensation | Insurance | Insurance | Other expenses associated with wind down activities | Other expenses associated with wind down activities | Other Assets | Other Assets | IQstream Patents | Investment in Tejas | |||||||||||||||||||
Statutory Accounting Practices [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net assets in liquidation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13,637,000 | $9,496,000 | $15,140,000 | $15,144,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,000 | $0 |
Cash and cash equivalents | ' | ' | 19,824,000 | 136,654,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,041,000 | 12,241,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,948,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 47,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expenses | ' | 14,745,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 133,000 | 44,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reserve for estimated costs during the Dissolution period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,336,000 | 3,462,000 | ' | ' | 1,154,000 | 2,637,000 | 1,004,000 | 2,396,000 | 294,000 | 1,333,000 | 1,010,000 | 1,970,000 | ' | ' | ' | ' |
Other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,983,000 | 1,786,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in estimated net realizable value of assets and liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,140,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidating distribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,930,000 | ' | 6,932,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in net assets | 2,790,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in estimated net realizable value on asset | 2,990,000 | ' | ' | ' | 1,110,000 | ' | ' | ' | ' | 27,000 | -448,000 | 300,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,700,000 | 27,000 | ' | ' |
(Increase) decrease in estimated costs during the Dissolution period | -458,000 | ' | ' | ' | ' | -350,000 | -280,000 | -130,000 | 300,000 | ' | ' | ' | ' | ' | 1,620,000 | -458,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in other liabilities | $263,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reserve_for_Estimated_Costs_De
Reserve for Estimated Costs (Detail) (Liquidation Basis of Accounting, USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Expenses [Line Items] | ' | ' |
Reserve for estimated costs during the Dissolution period | $3,462 | $8,336 |
Compensation | ' | ' |
Accrued Expenses [Line Items] | ' | ' |
Reserve for estimated costs during the Dissolution period | 1,004 | 2,396 |
Professional fees | ' | ' |
Accrued Expenses [Line Items] | ' | ' |
Reserve for estimated costs during the Dissolution period | 1,154 | 2,637 |
Other expenses associated with wind down activities | ' | ' |
Accrued Expenses [Line Items] | ' | ' |
Reserve for estimated costs during the Dissolution period | 1,010 | 1,970 |
Insurance | ' | ' |
Accrued Expenses [Line Items] | ' | ' |
Reserve for estimated costs during the Dissolution period | $294 | $1,333 |
Initial_Adjustment_of_Assets_t
Initial Adjustment of Assets to Estimated Net Realizable Value (Detail) (Liquidation Basis of Accounting, USD $) | 4 Months Ended |
In Thousands, unless otherwise specified | Jul. 31, 2013 |
Adjustments For Change In Accounting Principle [Line Items] | ' |
Initial adjustment of assets to estimated net realizable value | $2,883 |
Adjustments To Fair Value | ' |
Adjustments For Change In Accounting Principle [Line Items] | ' |
Initial adjustment of assets to estimated net realizable value | 3,393 |
Asset Write Down | ' |
Adjustments For Change In Accounting Principle [Line Items] | ' |
Initial adjustment of assets to estimated net realizable value | ($510) |
Accrued_Costs_Expected_to_be_I
Accrued Costs Expected to be Incurred in Liquidation (Detail) (USD $) | Mar. 24, 2013 | Jul. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued Expenses [Line Items] | ' | ' |
Restructuring | $3,309 | ' |
Compensation | 3,539 | ' |
Professional fees | 3,672 | ' |
Other expenses associated with wind down activities | 2,725 | ' |
Insurance | 1,500 | ' |
Accrued expenses | $14,745 | ' |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2013 |
Discontinued Operations [Line Items] | ' |
Sale of facilities and assets, value | $18.75 |
Financial_Results_of_Discontin
Financial Results of Discontinued Operation (Detail) (USD $) | 8 Months Ended |
In Thousands, unless otherwise specified | Mar. 23, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Revenue | $22,266 |
Cost of revenue | 8,802 |
Operating expenses | 14,452 |
Income tax expense | 1,385 |
Net income (loss) from discontinued operations, net of tax | -2,373 |
Gain on sale of discontinued operations, net of tax | 7,084 |
Total discontinued operations | $4,711 |
Property_Plant_and_Equipment_A
Property Plant and Equipment - Additional Information (Detail) (USD $) | 8 Months Ended | ||
In Millions, unless otherwise specified | Mar. 23, 2013 | Jul. 31, 2014 | Jul. 31, 2014 |
Tyngsborough Massachusetts | Tyngsborough Massachusetts | ||
acre | Land | ||
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation expense | $0.93 | ' | ' |
Ownership of land | ' | 102 | ' |
Property Plant and Equipment | ' | ' | $2.50 |
Commitments_Additional_Informa
Commitments - Additional Information (Detail) (USD $) | 8 Months Ended |
In Millions, unless otherwise specified | Mar. 23, 2013 |
Commitments [Line Items] | ' |
Rent expense under operating leases | $1.12 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 8 Months Ended | 12 Months Ended | ||
Mar. 23, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' |
Income tax expense | $1,416,000 | ' | ' | ' |
Tax benefit included in continuing operations | 4,356,000 | ' | ' | ' |
Deferred tax assets, valuation allowance | ' | 325,567,000 | 330,430,000 | ' |
Net operating loss carry forwards, stock option deductions | ' | 125,000,000 | ' | ' |
Benefits of stock option deductions | ' | 47,800,000 | ' | ' |
Net operating loss carry forwards related to exercise of stock option | ' | 7,100,000 | ' | ' |
Total unrecognized tax benefit | ' | 1,786,000 | 1,742,000 | 1,673,000 |
Unrecognized tax benefit uncertain tax position | ' | 600,000 | 530,000 | ' |
Unrecognized tax benefit, reasonable possible change in liability, fiscal year 2015, minimum | ' | -200,000 | ' | ' |
Unrecognized tax benefit, reasonable possible change in liability, fiscal year 2015, maximum | ' | -400,000 | ' | ' |
Federal | ' | ' | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' |
Net operating loss carry forwards | ' | 856,460,000 | ' | ' |
Operating Loss Carry forwards Expiration Year | ' | '2034 | ' | ' |
Research and development credit carry forwards | ' | 11,310,000 | ' | ' |
Research and Development Credit Carry forwards Expiration Year | ' | '2020 | ' | ' |
State and Local Jurisdiction | ' | ' | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' |
Net operating loss carry forwards | ' | 34,900,000 | ' | ' |
Operating Loss Carry forwards Expiration Year | ' | '2034 | ' | ' |
Research and development credit carry forwards | ' | $9,980,000 | ' | ' |
Research and Development Credit Carry forwards Expiration Year | ' | '2015 | ' | ' |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 8 Months Ended |
In Thousands, unless otherwise specified | Mar. 23, 2013 |
Schedule Of Income Taxes [Line Items] | ' |
Tax benefit included in continuing operations | ($4,356) |
Tax expense included in discontinued operations | 1,385 |
Tax expense included in gain on sale of discontinued operations | 4,387 |
Tax provision | $1,416 |
Components_of_Provision_for_In
Components of Provision for Income Taxes (Detail) (USD $) | 8 Months Ended |
In Thousands, unless otherwise specified | Mar. 23, 2013 |
Current: | ' |
Federal | $79 |
State | 14 |
Foreign | 1,122 |
Total current provision (benefit) | 1,215 |
Deferred: | ' |
Federal | ' |
State | ' |
Foreign | 201 |
Total deferred provision (benefit) | 201 |
Tax provision | $1,416 |
Reconciliation_of_Statutory_Fe
Reconciliation of Statutory Federal Income Tax and Actual Tax Provision (Detail) (USD $) | 8 Months Ended |
In Thousands, unless otherwise specified | Mar. 23, 2013 |
Income Tax Reconciliation [Line Items] | ' |
Statutory federal income tax benefit | ($734) |
State taxes, net of federal benefit | 38 |
Valuation allowance | 2,040 |
Other | 72 |
Tax provision | $1,416 |
Net_Deferred_Tax_Assets_Detail
Net Deferred Tax Assets (Detail) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Net operating loss carryforwards | $298,426 | $302,503 |
Credit carryforwards | 21,301 | 21,520 |
Restructuring and related accruals | 3,502 | 3,554 |
Capital loss carryforwards | 672 | 1,181 |
Depreciation | 971 | 977 |
Other, net | 695 | 695 |
Total net deferred tax assets | 325,567 | 330,430 |
Valuation allowance | -325,567 | -330,430 |
Net deferred tax assets | ' | ' |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 |
Schedule Of Income Taxes [Line Items] | ' | ' |
Beginning balance | $1,742 | $1,673 |
Increase for current year | 83 | 99 |
Reductions related to expiration of statute of limitations | -39 | -30 |
Ending balance | $1,786 | $1,742 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) | 0 Months Ended | |
Mar. 07, 2013 | Mar. 07, 2013 | |
Class of Stock [Line Items] | ' | ' |
Common stock, shares authorized | ' | 250,000,000 |
Common stock, voting rights | 'One vote for each share held | ' |
ShareBased_Compensation_Expens
Share-Based Compensation Expense (Detail) (USD $) | 8 Months Ended |
In Thousands, unless otherwise specified | Mar. 23, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' |
Share-based compensation expense | $1,275 |
Research and development | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' |
Share-based compensation expense | 312 |
Sales and marketing | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' |
Share-based compensation expense | 126 |
General and administrative | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' |
Share-based compensation expense | 312 |
Discontinued operations | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' |
Share-based compensation expense | $525 |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Jul. 31, 2013 | Jul. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock options outstanding | ' | 0 |
Stock options Exercisable | ' | 0 |
Intrinsic value of stock options exercised | $5 | ' |
Total cash received from employees as a result of employee stock option exercises | $38 | ' |
Restructuring_Charges_Addition
Restructuring Charges - Additional Information (Detail) (USD $) | 8 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 23, 2013 | Jul. 31, 2013 | Apr. 27, 2013 | Jan. 26, 2013 | Oct. 27, 2012 | Jul. 31, 2013 | Oct. 27, 2012 | Jul. 31, 2013 |
Workforce reduction | Workforce reduction | Workforce reduction | Workforce reduction | Contract termination costs | Contract termination costs | |||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charges | $2,946 | $6,255 | $4,000 | $260 | $1,580 | $5,844 | $410 | $411 |
Rollforward_of_Restructuring_A
Roll-forward of Restructuring Accrual (Detail) (USD $) | 8 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 23, 2013 | Jul. 31, 2013 | Mar. 24, 2013 | Apr. 27, 2013 | Jan. 26, 2013 | Oct. 27, 2012 | Jul. 31, 2013 | Oct. 27, 2012 | Jul. 31, 2013 |
Workforce reduction | Workforce reduction | Workforce reduction | Workforce reduction | Contract termination costs | Contract termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual Balance, Beginning | ' | ' | $3,309 | ' | ' | ' | ' | ' | ' |
Additions | 2,946 | 6,255 | ' | 4,000 | 260 | 1,580 | 5,844 | 410 | 411 |
Adjustments | ' | -161 | ' | ' | ' | ' | -94 | ' | -67 |
Payments | ' | 6,094 | ' | ' | ' | ' | 5,750 | ' | 344 |
Accrual Balance, Ending | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets_and_Liabilities_Fair_Va
Assets and Liabilities Fair Value Measurements on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and Cash Equivalents | $12,241 | $21,041 |
Total assets | 12,241 | 21,041 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets | ' | ' |
Cash and Cash Equivalents | 12,241 | 21,041 |
Total assets | $12,241 | $21,041 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (Fair Value, Measurements, Recurring, USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash Equivalents | $12,241 | $21,041 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash Equivalents | $12,241 | $21,041 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Jul. 31, 2014 | Mar. 05, 2014 | Feb. 27, 2014 | 28-May-13 | 28-May-13 |
Asset Sale Agreement | Asset Sale Agreement | Asset Sale Agreement | Asset Sale Agreement | ||
Commitment And Contingencies [Line Items] | ' | ' | ' | ' | ' |
Damages sought by the plaintiff | $0.89 | ' | ' | ' | ' |
Cash amount to be excluded from assets Sale under the terms of the agreement | 0.35 | ' | ' | ' | ' |
Decrease in the calculation of net working capital | 1.11 | ' | ' | ' | ' |
Asset purchase and sale agreement expiration period | '45 days | ' | ' | ' | ' |
Collection from Marlin Parties with respect to subsidiary in Sycamore Shanghai's operation and working capital | ' | ' | ' | 1.69 | ' |
Total dispute amount under asset sale agreement | ' | ' | ' | ' | 1.45 |
Amount received from total dispute amount under asset sale agreement | ' | ' | 1.11 | ' | ' |
Total amount awarded to company | ' | 1.11 | ' | ' | ' |
Asset sale agreement, maximum indemnification liability | $2.81 | ' | ' | ' | ' |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, Tyngsborough Massachusetts, Asset Sale Agreement, USD $) | 0 Months Ended | |
Oct. 10, 2014 | Oct. 10, 2014 | |
Subsequent Event | Tyngsborough Massachusetts | Asset Sale Agreement | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Sale of facilities and assets, value | ' | $2,500,000 |
Nonrefundable deposit to escrow agent | 50,000 | ' |
Future escrow deposit on or before December 1, 2014 | 50,000 | ' |
Minimum amount payable on breaches of such representations and warranties or obligations | ' | 75,000 |
Expected date to complete sale | 31-Dec-14 | ' |
Additional deposit payment for extension to complete sale | $100,000 | ' |
Purchase Agreement expected period of extension to complete sale | 27-Feb-15 | ' |