Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jul. 31, 2015 | Oct. 20, 2015 | Jan. 24, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jul. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SCMR | ||
Entity Registrant Name | SYCAMORE NETWORKS INC | ||
Entity Central Index Key | 1,092,367 | ||
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 | $ 7,329,659 |
Statement of Net Assets (Liquid
Statement of Net Assets (Liquidation Basis) - Liquidation Basis of Accounting - USD ($) shares in Thousands, $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 10,943 | $ 12,241 |
Land | 2,500 | 2,500 |
Other assets | 47 | 47 |
Total assets | 13,490 | 14,788 |
Liabilities and Net Assets | ||
Accrued expenses | 47 | 44 |
Reserve for estimated costs during the Dissolution period | 1,776 | 3,462 |
Other liabilities | 1,587 | 1,786 |
Total liabilities | 3,410 | 5,292 |
Net assets in liquidation | $ 10,080 | $ 9,496 |
Shares outstanding | 28,882 | 28,882 |
Net assets in liquidation per share | $ 0.35 | $ 0.33 |
Statement of Changes in Net Ass
Statement of Changes in Net Assets (Liquidation Basis) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Liquidating distribution | $ 0 | $ (6,932) |
(Increase) decrease in estimated costs during the Dissolution period | 210 | (458) |
Decrease in other liabilities | 281 | 263 |
Increase (decrease) in estimated net realizable value | 90 | 2,990 |
Land | ||
Increase (decrease) in estimated net realizable value | (448) | |
Liquidation Basis of Accounting | ||
Net assets in liquidation, beginning balance | $ 9,496 | 13,637 |
Liquidating distribution | (6,932) | |
(Increase) decrease in estimated costs during the Dissolution period | $ 210 | (458) |
Decrease in other liabilities | 281 | 263 |
Net assets in liquidation, ending balance | $ 10,080 | 9,496 |
Liquidation Basis of Accounting | Land | ||
Increase (decrease) in estimated net realizable value | (448) | |
Liquidation Basis of Accounting | Patents | ||
Increase (decrease) in estimated net realizable value | 2,300 | |
Liquidation Basis of Accounting | Other assets | ||
Increase (decrease) in estimated net realizable value | $ 93 | 27 |
Liquidation Basis of Accounting | Other Receivables | ||
Increase (decrease) in estimated net realizable value | $ 1,107 |
Description of Business
Description of Business | 12 Months Ended |
Jul. 31, 2015 | |
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”). 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. 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, 2015, the Company had one remaining employee. During fiscal year 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. 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 expect to receive any additional material consideration for its remaining IQstream assets. 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”) and (2) the Company’s investment in Tejas Networks India Private Limited, a private company in India that provides optical transport solutions to telecommunications carriers (“Tejas”). In July 2000, the Company made an investment of $2.2 million in Tejas and currently owns approximately 5% of the outstanding equity interests in Tejas. The Company is currently evaluating its available options with respect to its investment in Tejas. The Company believes that it may be possible to realize some value with respect to its investment in Tejas; however, the possible receipt of any such potential value is subject to substantial risks and uncertainties which are outside of the Company’s control, including certain obligations between the stockholders of Tejas, and the Company has determined that it cannot reasonably provide an estimate of the net realizable value of its Tejas investment at this time. Accordingly, the Company has assigned no value to Tejas for the purposes of the Statement of Net Assets included in this Annual Report on Form 10-K for the year ended July 31, 2015 (this “Annual Report”), and there can be no assurance as to when, if ever, the Company will be able to realize any value with respect to its investment in Tejas, which may delay the completion of the Dissolution and related distributions to its stockholders. During the fourth quarter of fiscal year 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 “Betterment Assessment”). At an Annual Town Meeting held on June 2, 2015, the Town of Tyngsborough voted in favor of the public sewer project. On October 14, 2015, the sewer commission of the Town of Tyngsborough provided the Company with an estimate of the Betterment Assessment relating to the Tyngsborough Land in the amount of approximately $2,835,000. The Company understands that the final amount of the betterment fee will be determined and assessed by the Town of Tyngsborough upon completion of the public sewer project; however, the Town of Tyngsborough may elect to assess an estimated betterment fee upon completion of 50% of the public sewer project, which the sewer commission currently estimates may occur during calendar year 2017. The Company can provide no assurance of the timing or amount of the final Betterment Assessment. On October 10, 2014, the Company entered into a Purchase and Sale Agreement, as amended on each of February 24, 2015, March 27, 2015, March 30, 2015, July 30, 2015, September 15, 2015, September 30, 2015 and October 9, 2015, relating to the Tyngsborough Land (as amended, the “Purchase Agreement”) with Princeton Tyngsborough Commons, LLC (“Tyngsborough Commons”) for a total purchase price of $2.5 million. 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 until February 29, 2016, 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. In the event that Tyngsborough Commons defaults on its obligation to complete the transaction, the Company will retain the entire amount of the deposits, which totaled $350,000 as of October 9, 2015. If the closing occurs, Tyngsborough Commons will be solely responsible for any and all costs related to the 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’ rights under any such agreement. On March 26, 2015, Franklin Equities, LLC and FE Potash 100, LLC, abutters of the Tyngsborough Land, filed a complaint in the Land Court Department of the Trial Court of the Commonwealth of Massachusetts against the Company and Charles McAnsin Associates, A Limited Partnership. On October 5, 2015, the Company, Tyngsborough Commons, the Plaintiffs and certain other parties named therein entered into a Settlement Agreement with respect to the Tyngsborough Litigation and certain other litigation to which the Company was not a party providing for, among other things: (i) the filing of a motion to stay the Tyngsborough Litigation upon the parties’ entry into the Settlement Agreement; and (ii) in connection with the closing of the sale of the Tyngsborough Land to Tyngsborough Commons (or its permitted assigns), (A) the filing of a stipulation of dismissal, with prejudice, of the Tyngsborough Litigation, upon the payment by the Company and Tyngsborough Commons to the Plaintiffs of an aggregate amount of $125,000 (the Company and Tyngsborough Commons separately agreed that the Company is only required to pay $50,000 of such settlement amount), (B) the termination of the Reciprocal Easement Agreement, dated as of November 23, 1998, by and between predecessors-in-title of the Plaintiffs and the Company as owners of certain real property (including, in the case of the Company and its predecessor-in-title, several lots constituting the Tyngsborough Land) and (C) the entry into a new easement agreement between the Company and the Plaintiffs pursuant to which each party granted the other certain rights of use and access with respect to the Tyngsborough Land. The executed stipulation of dismissal and termination of and new easement agreement have been, and the settlement funds will be, deposited with an escrow agent for filing with the registry of deeds and payment to the Plaintiffs, as applicable, in connection with the closing of the sale of the Tyngsborough Land. The Settlement Agreement also provides that if the closing does not occur on or before December 31, 2015 (or such later date as the parties to the Settlement Agreement agree in writing), the parties will not have any further obligations under the Settlement Agreement, the escrowed documents will be returned to the appropriate parties and the Plaintiffs may re-start the Tyngsborough Litigation. For additional information concerning this matter, see “Part I, Item 3, Legal Proceedings.” The Company currently expects to complete the sale of the Tyngsborough Land on or about December 4, 2015 (unless an earlier date is agreed upon by the Company and Tyngsborough Commons) and the Company is entitled to terminate the Purchase Agreement if the closing does not take place on or before December 4, 2015. The closing of the sale remains 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 as to when or if such closing will occur. If the Purchase Agreement is terminated, there can be no assurance as to 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 that, among other things, the amount set forth in the petition to be retained by the Company for anticipated wind-down costs and expenses and for contingent and unknown liabilities and other possible charges and expenses is sufficient to be retained pursuant to Section 280(c) of the General Corporation Law of the State of Delaware. In accordance with the petition, any portion of the retained amount 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. Under the Delaware General Corporation Law (the “DGCL”), the Dissolution period and the Company’s corporate existence will continue until at least March 7, 2016, three years from the filing of the Certificate of Dissolution, or such longer period as the Court of Chancery directs to, among other things, enable the Company to dispose and convey its properties, discharge its liabilities and distribute to its stockholders any remaining assets. 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 its 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-down of the Company’s business, the Company may make one or more additional liquidating distributions following the liquidation to cash of its remaining 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 of the completion of the Dissolution, the timing of any further distributions to stockholders or the aggregate amount of any such distributions, and no assurance can be given that the distributions will equal or exceed the estimate of net assets presented in the Company’s Statement of Net Assets included in this Annual Report. 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 Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2015 | |
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 financial statements. Changes in these estimates can materially affect our net assets and changes in net assets. Basis of Consolidation and Presentation 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. Actual results could differ from these estimates. 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 use of the liquidation basis of accounting. Cash Distributions The Company did not pay any cash distributions to stockholders in fiscal year 2015. The Company paid $6.93 million in a cash distribution to stockholders in fiscal year 2014. As a result of having an accumulated deficit, the cash distribution was recorded as a reduction 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 are 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 of the completion of the Dissolution, the timing of any further distributions to stockholders or the aggregate amount of any such distributions, 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, 2015 and 2014, aggregate cash and cash equivalents consisted of (in thousands): July 31, 2015: Amortized Cost Gross Gains Gross Losses Fair Market Value Cash and cash equivalents $ 10,943 $ — $ — $ 10,943 Total $ 10,943 $ — $ — $ 10,943 July 31, 2014: Amortized Cost Gross Gains Gross Losses Fair Market Value Cash and cash equivalents $ 12,241 $ — $ — $ 12,241 Total $ 12,241 $ — $ — $ 12,241 |
Liquidation Basis of Accounting
Liquidation Basis of Accounting | 12 Months Ended |
Jul. 31, 2015 | |
Liquidation Basis of Accounting | 3. Liquidation Basis of Accounting Fiscal Year 2015 Net assets in liquidation were $10.08 million and $9.5 million as of July 31, 2015 and July 31, 2014, respectively. As of July 31, 2015, assets consisted of cash and cash equivalents of $10.94 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, we have assigned a value of $0 to these assets for purposes of the Statement of Net Assets. In addition, due to the uncertainty surrounding our ability to liquidate our Tejas investment, we have determined that we cannot reasonably provide an estimate of the net realizable value of our Tejas investment at this time and, accordingly, have assigned no value to the Tejas investment for purposes of the Statement of Net Assets. As of July 31, 2015, liabilities consisted of accrued expenses of $0.05 million, our reserve for estimated costs during the Dissolution period of $1.77 million and other liabilities of $1.59 million. For additional information concerning other liabilities, see Note 6. “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 (or March 7, 2016). The Company was required to make certain estimates and exercise judgment in determining the accrued costs of liquidation as of July 31, 2015 and July 31, 2014. The table below summarizes the reserve for estimated costs during the Dissolution period as of July 31, 2015 and July 31, 2014 (in thousands) and assumes that the Dissolution period ends on March 7, 2016: July 31, 2015 July 31, 2014 Compensation $ 376 $ 1,004 Professional fees 568 1,154 Other expenses associated with wind-down activities 646 1,010 Insurance 186 294 $ 1,776 $ 3,462 Net assets in liquidation increased $0.58 million during fiscal year 2015. During the year ended July 31, 2015, the Company 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 $0.58 million. The realizable value of assets increased by $0.09 million as a result of an increase in other assets primarily related to a miscellaneous receivable. The Company decreased its reserve for estimated costs during the Dissolution period by $0.21 million. The decrease was primarily related to lower professional fees of $0.15 million and other expenses of $0.08 million. The decrease was offset in part by an increase in compensation costs of $0.02 million. The Company also decreased accrued expenses and other liabilities by $0.28 million primarily related to taxes in certain state and foreign jurisdictions. Fiscal Year 2014 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. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jul. 31, 2015 | |
Property and Equipment | 4. Property and Equipment 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, 2015. For additional information concerning this land, see Note 1. “Description of Business.” |
Commitments
Commitments | 12 Months Ended |
Jul. 31, 2015 | |
Commitments | 5. Commitments Operating Leases The Company leases office space from Regis Management Group LLC in Andover, Massachusetts. The term of the Regis lease is not greater than twelve months. |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2015 | |
Income Taxes | 6. Income Taxes The components of the Company’s net deferred tax assets at July 31, 2015 and 2014 are as follows (in thousands): July 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 298,924 $ 298,426 Credit carryforwards 21,301 21,301 Restructuring and related accruals 3,502 3,502 Capital loss carryforwards 672 672 Depreciation 971 971 Other, net 695 695 Total net deferred tax assets 326,065 325,567 Valuation allowance (326,065 ) (325,567 ) Net deferred tax assets $ — $ — 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, 2009 through July 31, 2015. 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, 2015, the Company had federal and state net operating loss (“NOL”) carryforwards of approximately $857.76 million and $36.2 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 $11.32 million and $9.98 million, respectively, which begin to expire in 2020 and 2016, 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 not, however, conducted a Section 382 study for any periods after July 31, 2011 and, accordingly, the Company cannot provide any assurance that an ownership change within the meaning of the Code has not occurred since that date. 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 $326.06 million and $325.56 million as of July 31, 2015 and July 31, 2014, 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, 2015, 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, 2015, the total amount of unrecognized tax benefit is $1.59 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): 2015 2014 Beginning balance $ 1,786 $ 1,742 Increase for current year 82 83 Reductions related to expiration of statute of limitations (281 ) (39 ) Ending balance $ 1,587 $ 1,786 As of July 31, 2015 and July 31, 2014, the total amount of accrued interest and penalties related to uncertain tax positions is $0.6 million. 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 $0.5 million and $0.7 million in fiscal year 2016. |
Common Stock
Common Stock | 12 Months Ended |
Jul. 31, 2015 | |
Common Stock | 7. 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. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jul. 31, 2015 | |
Fair Value Measurements | 8. 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, 2015, are summarized as follows (in thousands): Fair Value Measurements at Reporting Date Using Description July 31, 2015 Quoted Prices in Significant Other Significant Unobservable Assets Cash and Cash Equivalents $ 10,943 $ 10,943 $ — $ — Total assets $ 10,943 $ 10,943 $ — $ — Cash and Cash Equivalents Cash and cash equivalents of $10.94 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, 2014, are summarized as follows (in thousands): Fair Value Measurements at Reporting Date Using Description July 31, 2014 Quoted Prices in Significant Other Significant Unobservable 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2015 | |
Commitments and Contingencies | 9. Commitments and Contingencies Litigation On March 26, 2015, the Plaintiffs filed a Complaint in the Land Court Department of the Trial Court of the Commonwealth of Massachusetts against the Company and Charles McAnsin Associates, A Limited Partnership. The Complaint asserts that pursuant to the Easement Agreement, by and between predecessors-in-title of the Plaintiffs and the Company as owners of certain real property (including, in the case of the Company and its predecessor-in-title, several lots constituting the Tyngsborough Land), the parties thereto agreed to give each other easements for vehicular access over a certain road. The Complaint further asserts that by an amendment to the Easement Agreement, dated as of October 30, 2000, the parties removed all but one lot owned by the Company’s predecessor-in-title from within the purview of the Easement Agreement, and that consequently the Company has the right to the use of only a portion of the road and with respect to the single lot only. The Complaint states a claim to quiet title, and seeks relief in the form of: (1) a declaration that the Company has the right as appurtenant to the single lot to use the road for access to that lot; (2) a declaration that the Company has no appurtenant right to use the disputed section of the road for any purpose; (3) a declaration that the Company’s only right to use the disputed section of the road is the right appurtenant to the single lot; (4) a declaration that a development proposed on the Tyngsborough Land would not have access over the disputed section of the road; and (5) an award of the Plaintiffs’ costs. On April 16, 2015, the Company filed a special motion to dismiss the Complaint. On May 8, 2015, the Land Court Department of the Trial Court of the Commonwealth of Massachusetts heard oral argument on the motion to dismiss and, after argument, took the matter under advisement. No decision has been rendered in the matter. On October 5, 2015, the Company, Tyngsborough Commons, the Plaintiffs and certain other parties named therein entered into the Settlement Agreement providing for, among other things: (i) the filing of a motion to stay the Tyngsborough Litigation upon the parties’ entry into the Settlement Agreement; and (ii) in connection with the closing of the sale of the Tyngsborough Land to Tyngsborough Commons (or its permitted assigns), (A) the filing of a stipulation of dismissal, with prejudice, of the Tyngsborough Litigation, upon the payment by the Company and Tyngsborough Commons to the Plaintiffs of an aggregate amount of $125,000 (the Company and Tyngsborough Commons separately agreed that the Company is only required to pay $50,000 of such settlement amount), (B) the termination of the Reciprocal Easement Agreement, dated as of November 23, 1998, by and between predecessors-in-title of the Plaintiffs and the Company as owners of certain real property (including, in the case of the Company and its predecessor-in-title, several lots constituting the Tyngsborough Land) and (C) the entry into a new easement agreement between the Company and the Plaintiffs pursuant to which each party granted the other certain rights of use and access with respect to the Tyngsborough Land. The executed stipulation of dismissal and termination of and new easement agreement have been, and the settlement funds will be, deposited with an escrow agent for filing with the registry of deeds and payment to the Plaintiffs, as applicable, in connection with the closing of the sale of the Tyngsborough Land. The Settlement Agreement also provides that if the closing does not occur on or before December 31, 2015 (or such later date as the parties to the Settlement Agreement agree in writing), the parties will not have any further obligations under the Settlement Agreement, the escrowed documents will be returned to the appropriate parties and the Plaintiffs may re-start the Tyngsborough Litigation. Guarantees During fiscal year 2015, the Company’s guarantees requiring disclosure consist of its indemnification obligations for officers and directors and for other claims. Prior to the Asset Sale and the Dissolution, in the normal course of business, the Company 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, 2015 or July 31, 2014, as the Company believes the exposure for any related payments is not material. We entered into our standard form of indemnification agreement with each of our current and former 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 such 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 such 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 2015 or fiscal year 2014. 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, 2015 or July 31, 2014. 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. Other Matters The Company’s 401(k) plan is currently the subject of a scheduled investigation by the U.S. Department of Labor. The Company has been cooperating with, and is in the process of providing the information requested by, the U.S. Department of Labor. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jul. 31, 2015 | |
Subsequent Events | 10. Subsequent Events On October 5, 2015, the Company, Tyngsborough Commons, the Plaintiffs and certain other parties named therein entered into the Settlement Agreement providing for, among other things: (i) the filing of a motion to stay the Tyngsborough Litigation upon the parties’ entry into the Settlement Agreement; and (ii) in connection with the closing of the sale of the Tyngsborough Land to Tyngsborough Commons (or its permitted assigns), (A) the filing of a stipulation of dismissal, with prejudice, of the Tyngsborough Litigation, upon the payment by the Company and Tyngsborough Commons to the Plaintiffs of an aggregate amount of $125,000 (the Company and Tyngsborough Commons separately agreed that the Company is only required to pay $50,000 of such settlement amount), (B) the termination of the Reciprocal Easement Agreement, dated as of November 23, 1998, by and between predecessors-in-title of the Plaintiffs and the Company as owners of certain real property (including, in the case of the Company and its predecessor-in-title, several lots constituting the Tyngsborough Land) and (C) the entry into a new easement agreement between the Company and the Plaintiffs pursuant to which each party granted the other certain rights of use and access with respect to the Tyngsborough Land. The executed stipulation of dismissal and termination of and new easement agreement have been, and the settlement funds will be, deposited with an escrow agent for filing with the registry of deeds and payment to the Plaintiffs, as applicable, in connection with the closing of the sale of the Tyngsborough Land. The Settlement Agreement also provides that if the closing does not occur on or before December 31, 2015 (or such later date as the parties to the Settlement Agreement agree in writing), the parties will not have any further obligations under the Settlement Agreement, the escrowed documents will be returned to the appropriate parties and the Plaintiffs may re-start the Tyngsborough Litigation. On September 15, 2015 and September 30, 2015, the Company entered into amendments to the Purchase Agreement to extend the time period for closing. On October 9, 2015, in connection with the entry into the Settlement Agreement, the Company and Tyngsborough Commons entered into a Seventh Amendment to Purchase and Sale Agreement providing for, among other things: (i) an extension of the closing date to December 4, 2015; (ii) acceleration of the expiration of the Company’s representations and warranties and obligations under the Purchase Agreement to February 29, 2016; and (iii) the ability of Tyngsborough Commons to assign its rights under the Purchase Agreement to a third party buyer of a portion of the Tyngsborough Land with the Company’s consent, provided that certain conditions are met. The terms of the Purchase Agreement, as amended, provide that in the event that Tyngsborough Commons defaults on its obligation to complete the transaction, the Company will retain the entire amount of the deposits, which totaled $350,000 as of October 9, 2015. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2015 | |
Basis of Consolidation and Presentation | Basis of Consolidation and Presentation 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. Actual results could differ from these estimates. 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 use of the liquidation basis of accounting. |
Cash Distributions | Cash Distributions The Company did not pay any cash distributions to stockholders in fiscal year 2015. The Company paid $6.93 million in a cash distribution to stockholders in fiscal year 2014. As a result of having an accumulated deficit, the cash distribution was recorded as a reduction 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 are 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 of the completion of the Dissolution, the timing of any further distributions to stockholders or the aggregate amount of any such distributions, 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, 2015 and 2014, aggregate cash and cash equivalents consisted of (in thousands): July 31, 2015: Amortized Cost Gross Gains Gross Losses Fair Market Value Cash and cash equivalents $ 10,943 $ — $ — $ 10,943 Total $ 10,943 $ — $ — $ 10,943 July 31, 2014: Amortized Cost Gross Gains Gross Losses Fair Market Value Cash and cash equivalents $ 12,241 $ — $ — $ 12,241 Total $ 12,241 $ — $ — $ 12,241 |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Aggregate Cash and Cash Equivalents, Short and Long Term Investments | As of July 31, 2015 and 2014, aggregate cash and cash equivalents consisted of (in thousands): July 31, 2015: Amortized Cost Gross Gains Gross Losses Fair Market Value Cash and cash equivalents $ 10,943 $ — $ — $ 10,943 Total $ 10,943 $ — $ — $ 10,943 July 31, 2014: Amortized Cost Gross Gains Gross Losses Fair Market Value Cash and cash equivalents $ 12,241 $ — $ — $ 12,241 Total $ 12,241 $ — $ — $ 12,241 |
Liquidation Basis of Accounti16
Liquidation Basis of Accounting (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Reserve for Estimated Costs | The table below summarizes the reserve for estimated costs during the Dissolution period as of July 31, 2015 and July 31, 2014 (in thousands) and assumes that the Dissolution period ends on March 7, 2016: July 31, 2015 July 31, 2014 Compensation $ 376 $ 1,004 Professional fees 568 1,154 Other expenses associated with wind-down activities 646 1,010 Insurance 186 294 $ 1,776 $ 3,462 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
Net Deferred Tax Assets | The components of the Company’s net deferred tax assets at July 31, 2015 and 2014 are as follows (in thousands): July 31, 2015 2014 Deferred tax assets: Net operating loss carryforwards $ 298,924 $ 298,426 Credit carryforwards 21,301 21,301 Restructuring and related accruals 3,502 3,502 Capital loss carryforwards 672 672 Depreciation 971 971 Other, net 695 695 Total net deferred tax assets 326,065 325,567 Valuation allowance (326,065 ) (325,567 ) 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): 2015 2014 Beginning balance $ 1,786 $ 1,742 Increase for current year 82 83 Reductions related to expiration of statute of limitations (281 ) (39 ) Ending balance $ 1,587 $ 1,786 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jul. 31, 2015 | |
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, 2015, are summarized as follows (in thousands): Fair Value Measurements at Reporting Date Using Description July 31, 2015 Quoted Prices in Significant Other Significant Unobservable Assets Cash and Cash Equivalents $ 10,943 $ 10,943 $ — $ — Total assets $ 10,943 $ 10,943 $ — $ — 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 Unobservable Assets Cash and Cash Equivalents $ 12,241 $ 12,241 $ — $ — Total assets $ 12,241 $ 12,241 $ — $ — |
Description of Business - Addit
Description of Business - Additional Information (Detail) | Oct. 09, 2015USD ($) | Oct. 05, 2015USD ($) | May. 22, 2014USD ($)Patent | Feb. 28, 2014USD ($)Patent | Jan. 31, 2013USD ($) | Jul. 31, 2000USD ($) | Jul. 31, 2015USD ($)aEmployee | Jul. 31, 2014USD ($)$ / shares | Oct. 14, 2015USD ($) | Oct. 10, 2014USD ($) | Mar. 07, 2013$ / shares |
Entity Information [Line Items] | |||||||||||
Sale of shared facilities and assets, value | $ 18,750,000 | ||||||||||
Common stock, par value | $ / shares | $ 0.001 | ||||||||||
Number of employees | Employee | 1 | ||||||||||
Liquidating cash distribution, per share | $ / shares | $ 0.24 | ||||||||||
Liquidating distribution | $ 0 | $ 6,932,000 | |||||||||
Tejas | |||||||||||
Entity Information [Line Items] | |||||||||||
Payment to acquire business | $ 2,200,000 | ||||||||||
Business acquisition, approximate ownership percentage acquired | 5.00% | ||||||||||
Tyngsborough Massachusetts | |||||||||||
Entity Information [Line Items] | |||||||||||
Ownership of land | a | 102 | ||||||||||
Sale of facilities and assets, value | $ 2,500,000 | ||||||||||
Maximum amount payable on breaches of such representations and warranties or obligations | $ 75,000 | ||||||||||
Expected date to complete sale | Dec. 4, 2015 | ||||||||||
Tyngsborough Massachusetts | Termination of Restated Purchase and Sale Agreement with Tyngsborough Commons, LLC | |||||||||||
Entity Information [Line Items] | |||||||||||
Ownership of land | a | 102 | ||||||||||
IBM Patents | |||||||||||
Entity Information [Line Items] | |||||||||||
Patent sale agreement, number of patents | Patent | 40 | ||||||||||
Patent sale agreement, number of patent applications | Patent | 2 | ||||||||||
Amount received from sale of patents | $ 2,000,000 | ||||||||||
IQstream Patents | |||||||||||
Entity Information [Line Items] | |||||||||||
Patent sale agreement, number of patents | Patent | 3 | ||||||||||
Patent sale agreement, number of patent applications | Patent | 6 | ||||||||||
Amount received from sale of patents | $ 300,000 | ||||||||||
Subsequent Event | Tyngsborough Land | |||||||||||
Entity Information [Line Items] | |||||||||||
Estimated potential betterment fee relating to Tyngsborough Land | $ 2,835,000 | ||||||||||
Project completion percentage | 50.00% | ||||||||||
Subsequent Event | Complaint | Settled Litigation | |||||||||||
Entity Information [Line Items] | |||||||||||
Litigation settlement amount | $ 125,000 | ||||||||||
Subsequent Event | Complaint | Settled Litigation | Sycamore Networks Incorporation | |||||||||||
Entity Information [Line Items] | |||||||||||
Litigation settlement amount | $ 50,000 | ||||||||||
Subsequent Event | Tyngsborough Massachusetts | |||||||||||
Entity Information [Line Items] | |||||||||||
Deposit held in escrow | $ 350,000 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Liquidating distribution | $ 0 | $ 6,932 |
Aggregate Cash and Cash Equival
Aggregate Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 10,943 | $ 12,241 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 10,943 | 12,241 |
Cash and cash equivalents | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 10,943 | 12,241 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | $ 10,943 | $ 12,241 |
Liquidation Basis of Accounti22
Liquidation Basis of Accounting - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Statutory Accounting Practices [Line Items] | |||
Increase in net assets | $ 580 | $ 2,790 | |
(Increase) decrease in estimated costs during the Dissolution period | 210 | (458) | |
Increase (decrease) in estimated net realizable value | 90 | 2,990 | |
Decrease in other liabilities | 281 | 263 | |
Liquidating distribution | 0 | 6,932 | |
Asset Sale Agreement | |||
Statutory Accounting Practices [Line Items] | |||
Increase (decrease) in estimated net realizable value | 1,110 | ||
Professional fees | |||
Statutory Accounting Practices [Line Items] | |||
(Increase) decrease in estimated costs during the Dissolution period | 150 | (350) | |
Compensation | |||
Statutory Accounting Practices [Line Items] | |||
(Increase) decrease in estimated costs during the Dissolution period | (20) | (280) | |
Insurance | |||
Statutory Accounting Practices [Line Items] | |||
(Increase) decrease in estimated costs during the Dissolution period | (130) | ||
Other expenses associated with wind-down activities | |||
Statutory Accounting Practices [Line Items] | |||
(Increase) decrease in estimated costs during the Dissolution period | 80 | 300 | |
Other assets | |||
Statutory Accounting Practices [Line Items] | |||
Increase (decrease) in estimated net realizable value | 27 | ||
Land | |||
Statutory Accounting Practices [Line Items] | |||
Increase (decrease) in estimated net realizable value | (448) | ||
IQstream Patents | |||
Statutory Accounting Practices [Line Items] | |||
Net assets in liquidation | 0 | ||
Increase (decrease) in estimated net realizable value | 300 | ||
IBM Patents | |||
Statutory Accounting Practices [Line Items] | |||
Increase (decrease) in estimated net realizable value | 2,000 | ||
Liquidation Basis of Accounting | |||
Statutory Accounting Practices [Line Items] | |||
Net assets in liquidation | 10,080 | 9,496 | $ 13,637 |
Cash and cash equivalents | 10,943 | 12,241 | |
Land | 2,500 | 2,500 | |
Other assets | 47 | 47 | |
Accrued expenses | 47 | 44 | |
Reserve for estimated costs during the Dissolution period | 1,776 | 3,462 | |
Other liabilities | 1,587 | 1,786 | |
Increase (decrease) of net assets | 580 | (4,140) | |
(Increase) decrease in estimated costs during the Dissolution period | 210 | (458) | |
Decrease in other liabilities | $ 281 | 263 | |
Liquidating distribution | 6,932 | ||
Liquidation Basis of Accounting | Professional fees | |||
Statutory Accounting Practices [Line Items] | |||
Reserve for estimated costs during the Dissolution period | $ 568 | 1,154 | |
Liquidation Basis of Accounting | Compensation | |||
Statutory Accounting Practices [Line Items] | |||
Reserve for estimated costs during the Dissolution period | 376 | 1,004 | |
Liquidation Basis of Accounting | Insurance | |||
Statutory Accounting Practices [Line Items] | |||
Reserve for estimated costs during the Dissolution period | 186 | 294 | |
Liquidation Basis of Accounting | Other expenses associated with wind-down activities | |||
Statutory Accounting Practices [Line Items] | |||
Reserve for estimated costs during the Dissolution period | $ 646 | 1,010 | |
Liquidation Basis of Accounting | Land | |||
Statutory Accounting Practices [Line Items] | |||
Increase (decrease) in estimated net realizable value | $ (448) |
Reserve for Estimated Costs (De
Reserve for Estimated Costs (Detail) - Liquidation Basis of Accounting - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Accrued Expenses [Line Items] | ||
Reserve for estimated costs during the Dissolution period | $ 1,776 | $ 3,462 |
Compensation | ||
Accrued Expenses [Line Items] | ||
Reserve for estimated costs during the Dissolution period | 376 | 1,004 |
Professional fees | ||
Accrued Expenses [Line Items] | ||
Reserve for estimated costs during the Dissolution period | 568 | 1,154 |
Other expenses associated with wind-down activities | ||
Accrued Expenses [Line Items] | ||
Reserve for estimated costs during the Dissolution period | 646 | 1,010 |
Insurance | ||
Accrued Expenses [Line Items] | ||
Reserve for estimated costs during the Dissolution period | $ 186 | $ 294 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - Tyngsborough Massachusetts $ in Millions | Jul. 31, 2015USD ($)a |
Property, Plant and Equipment [Line Items] | |
Ownership of land | a | 102 |
Land | |
Property, Plant and Equipment [Line Items] | |
Property Plant and Equipment | $ 2.5 |
Net Deferred Tax Assets (Detail
Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 298,924 | $ 298,426 |
Credit carryforwards | 21,301 | 21,301 |
Restructuring and related accruals | 3,502 | 3,502 |
Capital loss carryforwards | 672 | 672 |
Depreciation | 971 | 971 |
Other, net | 695 | 695 |
Total net deferred tax assets | 326,065 | 325,567 |
Valuation allowance | (326,065) | (325,567) |
Net deferred tax assets | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Schedule Of Income Taxes [Line Items] | |||
Deferred tax assets, valuation allowance | $ 326,065 | $ 325,567 | |
Net operating loss carry forwards, stock option deductions | 125,000 | ||
Benefits of stock option deductions | 47,800 | ||
Net operating loss carry forwards related to exercise of stock option | 7,100 | ||
Total unrecognized tax benefit | 1,587 | 1,786 | $ 1,742 |
Unrecognized tax benefit uncertain tax position | 600 | $ 600 | |
Minimum | |||
Schedule Of Income Taxes [Line Items] | |||
Unrecognized tax benefit, reasonably possible liability reduction | 500 | ||
Maximum | |||
Schedule Of Income Taxes [Line Items] | |||
Unrecognized tax benefit, reasonably possible liability reduction | 700 | ||
Federal | |||
Schedule Of Income Taxes [Line Items] | |||
Net operating loss carry forwards | $ 857,760 | ||
Operating Loss Carry forwards Expiration Year | 2,034 | ||
Research and development credit carry forwards | $ 11,320 | ||
Research and Development Credit Carry forwards Expiration Year | 2,020 | ||
State and Local Jurisdiction | |||
Schedule Of Income Taxes [Line Items] | |||
Net operating loss carry forwards | $ 36,200 | ||
Operating Loss Carry forwards Expiration Year | 2,034 | ||
Research and development credit carry forwards | $ 9,980 | ||
Research and Development Credit Carry forwards Expiration Year | 2,016 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Schedule Of Income Taxes [Line Items] | ||
Beginning balance | $ 1,786 | $ 1,742 |
Increase for current year | 82 | 83 |
Reductions related to expiration of statute of limitations | (281) | (39) |
Ending balance | $ 1,587 | $ 1,786 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) | Mar. 07, 2013shares |
Class of Stock [Line Items] | |
Common stock, shares authorized | 250,000,000 |
Common stock, voting rights | One vote for each share held |
Assets and Liabilities Fair Val
Assets and Liabilities Fair Value Measurements on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Assets | ||
Cash and Cash Equivalents | $ 10,943 | $ 12,241 |
Total assets | 10,943 | 12,241 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Cash and Cash Equivalents | 10,943 | 12,241 |
Total assets | $ 10,943 | $ 12,241 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jul. 31, 2015 | Jul. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | $ 10,943 | $ 12,241 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | $ 10,943 | $ 12,241 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Subsequent Event - Complaint - Settled Litigation | Oct. 05, 2015USD ($) |
Commitment And Contingencies [Line Items] | |
Litigation settlement amount | $ 125,000 |
Sycamore Networks Incorporation | |
Commitment And Contingencies [Line Items] | |
Litigation settlement amount | $ 50,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event - USD ($) | Oct. 09, 2015 | Oct. 05, 2015 |
Tyngsborough Massachusetts | ||
Subsequent Event [Line Items] | ||
Deposit held in escrow | $ 350,000 | |
Complaint | Settled Litigation | ||
Subsequent Event [Line Items] | ||
Litigation settlement amount | $ 125,000 | |
Complaint | Settled Litigation | Sycamore Networks Incorporation | ||
Subsequent Event [Line Items] | ||
Litigation settlement amount | $ 50,000 |