Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Apr. 30, 2016 | May. 31, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | INFOBLOX INC | |
Entity Central Index Key | 1,223,862 | |
Current Fiscal Year End Date | --07-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 56,901,643 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2016 | Jul. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 110,827 | $ 103,124 |
Short-term investments | 166,346 | 227,712 |
Accounts receivable, net | 50,582 | 45,881 |
Inventory | 6,498 | 8,588 |
Prepaid expenses and other current assets | 14,628 | 10,459 |
Total current assets | 348,881 | 395,764 |
Property and equipment, net | 23,731 | 23,225 |
Restricted cash | 10,019 | 3,515 |
Intangible assets, net | 21,088 | 1,923 |
Goodwill | 58,965 | 33,293 |
Other assets | 1,517 | 1,547 |
TOTAL ASSETS | 464,201 | 459,267 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 23,327 | 19,136 |
Accrued compensation | 19,042 | 22,931 |
Deferred revenue, net | 114,724 | 95,130 |
Total current liabilities | 157,093 | 137,197 |
Deferred revenue, net | 51,906 | 41,717 |
Other liabilities | 10,591 | 5,201 |
TOTAL LIABILITIES | $ 219,590 | $ 184,115 |
Commitments and contingencies (Note 5) | ||
STOCKHOLDERS’ EQUITY: | ||
Convertible preferred stock, $0.0001 par value per share—5,000 shares authorized; no shares issued or outstanding | $ 0 | $ 0 |
Common stock, $0.0001 par value per share—100,000 shares authorized; 56,855 shares and 58,836 shares issued and outstanding as of April 30, 2016 and July 31, 2015 | 6 | 6 |
Additional paid-in capital | 454,676 | 438,725 |
Accumulated other comprehensive loss | (38) | (37) |
Accumulated deficit | (210,033) | (163,542) |
TOTAL STOCKHOLDERS’ EQUITY | 244,611 | 275,152 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 464,201 | $ 459,267 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 30, 2016 | Jul. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Convertible preferred stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Convertible preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 56,855,000 | 58,836,000 |
Common stock, shares outstanding | 56,855,000 | 58,836,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Net revenue: | ||||
Products and licenses | $ 37,771 | $ 40,737 | $ 140,144 | $ 110,162 |
Services | 44,191 | 37,366 | 131,839 | 108,964 |
Total net revenue | 81,962 | 78,103 | 271,983 | 219,126 |
Cost of revenue: | ||||
Products and licenses | 9,046 | 9,069 | 29,252 | 25,323 |
Services | 10,176 | 8,257 | 27,993 | 23,215 |
Total cost of revenue | 19,222 | 17,326 | 57,245 | 48,538 |
Gross profit | 62,740 | 60,777 | 214,738 | 170,588 |
Operating expenses: | ||||
Research and development | 17,300 | 16,709 | 52,594 | 46,783 |
Sales and marketing | 42,506 | 39,536 | 135,788 | 117,779 |
General and administrative | 10,956 | 9,740 | 32,562 | 27,055 |
Total operating expenses | 70,762 | 65,985 | 220,944 | 191,617 |
Loss from operations | (8,022) | (5,208) | (6,206) | (21,029) |
Other income (expense), net | 309 | 206 | 571 | (574) |
Loss before provision for (benefit from) income taxes | (7,713) | (5,002) | (5,635) | (21,603) |
Provision for (benefit from) income taxes | (2,226) | 754 | ||
Net loss | $ (5,676) | $ (5,136) | $ (3,409) | $ (22,357) |
Net loss per share - basic and diluted (USD per share) | $ (0.10) | $ (0.09) | $ (0.06) | $ (0.40) |
Weighted-average shares used in computing basic net loss per share - basic and diluted (in shares) | 57,420 | 56,928 | 58,548 | 56,120 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Jan. 31, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (5,676) | $ (5,136) | $ (3,409) | $ (22,357) |
Unrealized holding gain (loss) on short-term investments, net | 180 | (14) | (1) | 82 |
Comprehensive loss | $ (5,496) | $ (5,150) | $ (3,410) | $ (22,275) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (3,409) | $ (22,357) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Stock-based compensation | 37,588 | 36,098 |
Depreciation and amortization | 8,379 | 6,712 |
Deferred income taxes | (3,658) | 62 |
Excess tax benefits from employee stock plans | (904) | (247) |
Other | 405 | 1,603 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (4,455) | (1,692) |
Inventory | 2,273 | (2,608) |
Prepaid expenses, other current assets and other assets | (498) | (2,568) |
Accounts payable and accrued liabilities | 2,076 | 2,762 |
Accrued compensation | (3,889) | 6,912 |
Deferred revenue, net | 26,801 | 19,552 |
Other liabilities | (740) | (670) |
Net cash provided by operating activities | 59,969 | 43,559 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of short-term investments | (29,905) | (114,484) |
Proceeds from maturities of short-term investments | 90,830 | 76,450 |
Business acquisition, net of cash acquired | (31,531) | 0 |
Change in restricted cash | (9,101) | 0 |
Purchases of property and equipment | (7,459) | (5,552) |
Proceeds from sales of short-term investments | 0 | 1,001 |
Net cash provided by (used in) investing activities | 12,834 | (42,585) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Common stock repurchases | (75,104) | 0 |
Proceeds from issuance of common stock under employee stock plans | 8,997 | 12,318 |
Excess tax benefits from employee stock plans | 904 | 247 |
Net cash provided by (used in) financing activities | (65,203) | 12,565 |
Effect of foreign exchange rate changes on cash and cash equivalents | 103 | (1,252) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 7,703 | 12,287 |
CASH AND CASH EQUIVALENTS—Beginning of period | 103,124 | 78,535 |
CASH AND CASH EQUIVALENTS—End of period | 110,827 | 90,822 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Purchases of property and equipment not yet paid | 761 | 2,960 |
Cash paid for income taxes, net | $ 566 | $ 425 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 9 Months Ended |
Apr. 30, 2016 | |
Accounting Policies [Abstract] | |
Description of the Business and Summary of Significant Accounting Policies | DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Infoblox Inc. (together with our subsidiaries, “we,” “us” or “our”) was originally incorporated in the State of Illinois in February 1999 and was reincorporated in the State of Delaware in May 2003. We are headquartered in Santa Clara, California and have subsidiaries and representative offices located throughout the world. We provide a broad family of enterprise and service provider-class solutions to automate management of the critical network infrastructure services needed for secure, scalable and fault-tolerant connections between applications, devices and users. Basis of Presentation The condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated. The accompanying condensed consolidated balance sheet as of April 30, 2016 and the condensed consolidated statements of operations and the condensed consolidated statements of comprehensive loss for the three and nine months ended April 30, 2016 and 2015 and the condensed consolidated statements of cash flows for the nine months ended April 30, 2016 and 2015 are unaudited. The condensed consolidated balance sheet as of July 31, 2015 was derived from the audited consolidated balance sheet as of July 31, 2015 . These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2015 . The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, pursuant to the rules and regulations of the Securities Exchange Commission, or SEC. They do not include all of the financial information and footnotes required by GAAP for complete financial statements. We believe the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments necessary for their fair presentation. All adjustments are of a normal recurring nature. The results for the three and nine months ended April 30, 2016 are not necessarily indicative of the results to be expected for any subsequent quarter or for the year ending July 31, 2016. Significant Accounting Policies We describe our significant accounting policies in Note 1 to the consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2015 . Except for the accounting policy related to our market stock units, or MSUs, described below, and the election to allocate the cost related to the repurchase of common stock between additional paid-in-capital and accumulated deficit (see Note 7), there have been no significant changes in our accounting policies during the three and nine months ended April 30, 2016 , as compared to the significant accounting policies described in our Annual Report on Form 10-K for the year ended July 31, 2015 . During the first quarter of fiscal 2016, we granted MSUs to certain of our executive officers as part of our executive compensation program. We measure and recognize compensation cost for all stock-based awards based on the awards' fair value. We use the Monte-Carlo simulation model to estimate the fair value of MSUs. As the MSUs contain a performance metric with a market condition (our stock performance relative to a market index), we recognize compensation cost for MSUs using the graded vesting approach, net of estimated forfeitures and do not adjust the expense for subsequent changes in the expected outcome of the market-based vesting conditions. Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Those management estimates and assumptions affect revenue recognition, allowances for doubtful accounts and sales returns, valuation of our cash equivalents and available-for-sale investments, valuation of inventory, determination of fair value of stock-based awards, valuation of goodwill and intangible assets acquired, impairment of goodwill and other intangible assets, amortization of intangible assets, contingencies and litigation and accounting for income taxes, including the valuation reserve on deferred tax assets and uncertain tax positions. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors and adjust those estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from these estimates and assumptions, and those differences could be material to the condensed consolidated financial statements. Concentrations of Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, short-term investments, restricted cash and accounts receivable. Our cash, cash equivalents, short-term investments and restricted cash are invested in high-credit quality financial instruments with banks and financial institutions. Such deposits may be in excess of insured limits provided on such deposits. We mitigate credit risk in respect to accounts receivable by performing ongoing credit evaluations of our customers and maintaining a reserve for potential credit losses. In addition, we generally require our customers to prepay for maintenance and support services to mitigate the risk of uncollectible accounts receivable. Significant customers are those which represent more than 10% of our total net revenue or total gross accounts receivable balance at each respective balance sheet date. Exclusive Networks, Ltd., a distributor, accounted for 13.8% and 13.5% of our total net revenue for the three and nine months ended April 30, 2016 and 12.2% and 11.8% for the three and nine months ended April 30, 2015. Exclusive Networks Ltd. accounted for 16.9% of our total gross accounts receivable as of April 30, 2016 . Exclusive Networks Ltd. accounted for 14.0% of our total gross accounts receivable as of July 31, 2015 . We believe it is unlikely that the loss of any of our channel partners would have a long-term material adverse effect on our total net revenue as we believe end-users would likely purchase our products from a different channel partner. However, a loss of any one of these channel partners could have a material adverse impact during the transition period. Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. ASU 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ,” that simplifies various aspects related to how share-based payments are accounted for and presented in the financial statements. The areas for simplification involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance will be effective for public business entities in fiscal years beginning after December 15, 2016, including interim periods within those years, which for us would be the first quarter of fiscal year 2018. Early adoption is permitted, and we are currently evaluating the impact of this new guidance on our condensed consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17 “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ,” to simplify the presentation of deferred income taxes. Under this new standard, both deferred tax liabilities and assets are required to be classified as noncurrent in a classified balance sheet. ASU 2015-17 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2016. We adopted this standard during the three months ended April 30, 2016 on a prospective basis and, therefore, no adjustments were made to the prior periods reflected in our condensed consolidated financial statements. As we have a full valuation allowance against substantially all of our deferred tax assets, the adoption changed the presentation of valuation allowance only and had no material impact on our condensed consolidated balance sheet as of April 30, 2016. In July 2015, the FASB issued ASU 2015-11— Inventory—Simplifying the Measurement of Inventory (Topic 330) . ASU 2015-11 changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. It applies to entities that measure inventory using a method other than last-in, first-out or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. Early adoption is permitted, and we are in the process of evaluating the timing of the adoption. Should we not early adopt, this standard will be effective for us in fiscal year 2018. The adoption of this standard is not expected to have a significant impact on our condensed consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , which provides guidance on determining whether a cloud computing arrangement contains a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. We adopted this standard during the three months ended October 31, 2015 and our adoption did not have a significant impact on our condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the revenue recognition requirements in Accounting Standards Codification (ASC) 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The guidance requires the use of either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within the guidance; or (ii) retrospective with the cumulative effect of initially applying the guidance recognized at the date of initial application and providing certain additional disclosures as defined per the guidance. In July 2015, the FASB decided to delay the effective date of the new revenue standard by one year. As such, ASU 2014-09 will be effective for us in fiscal year 2019, with the option to adopt earlier in fiscal year 2018. In April 2016, the FASB finalized amendments to the guidance in the new revenue standard on identifying performance obligations and accounting for licenses of intellectual property. The amendments address implementation issues that were raised during the comment period and discussed by the FASB’s Revenue Recognition Transition Resource Group. The amendments have the same effective date and transition requirements as the new revenue standard. We are currently evaluating adoption timing and methods and whether this standard will have a material impact on our condensed consolidated financial statements. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | NET INCOME (LOSS) PER SHARE We compute basic net income (loss) per share using the weighted average number of common shares outstanding during the period. We compute diluted net income (loss) per share using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares include shares issuable upon the exercise of stock options and upon the vesting of restricted stock units, or RSUs, and each purchase under our employee stock purchase plan, or ESPP, under the treasury stock method. In loss periods, basic net loss per share and diluted net loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded. The following outstanding weighted-average shares of common stock equivalents were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been antidilutive: Three Months Ended April 30, Nine Months ended April 30, 2016 2015 2016 2015 (In thousands) Stock options to purchase common stock 2,167 2,861 2,337 3,395 Restricted stock units 1,953 2,243 2,202 1,806 Employee Stock Purchase Plan 137 188 148 80 |
Cash Equivalents, Short-Term In
Cash Equivalents, Short-Term Investments, Restricted Cash and Fair Value Measurements | 9 Months Ended |
Apr. 30, 2016 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Cash Equivalents, Short-term Investments, Restricted Cash and Fair Value Measurements | CASH EQUIVALENTS, SHORT-TERM INVESTMENTS, RESTRICTED CASH AND FAIR VALUE MEASUREMENTS Cash Equivalents, Short-term Investments and Restricted Cash The following table summarizes our cash equivalents, short-term investments and restricted cash as of April 30, 2016 : Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (In thousands) Cash equivalents: Money market funds $ 9,460 $ — $ — $ 9,460 Short-term investments: U.S. Treasury securities 119,537 15 (36 ) 119,516 U.S. government agency securities 29,327 2 (17 ) 29,312 FDIC-backed certificates of deposit 17,520 10 (12 ) 17,518 Total short-term investments 166,384 27 (65 ) 166,346 Restricted cash: U.S. Treasury securities 3,417 — — 3,417 Total cash equivalents, short-term investments and restricted cash $ 179,261 $ 27 $ (65 ) $ 179,223 The restricted cash in the table above does not include the $9.1 million in time deposits maintained in connection with the IID acquisition (see Note 6) and $0.1 million time deposits maintained in connection with a letter of credit. The following table presents the contractual maturities of our short-term investments which are classified as available-for-sale securities as of April 30, 2016 : Amortized Cost Estimated Fair Value (In thousands) Due within one year $ 119,978 $ 119,964 Due after one year through two years 46,406 46,382 Total $ 166,384 $ 166,346 We classify our available-for-sale investments as short-term investments in our condensed consolidated balance sheet based on the availability of the funds for use in operations or strategic investments rather than the actual maturity dates. The following table summarizes our cash equivalents, short-term investments and restricted cash as of July 31, 2015: Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (In thousands) Cash equivalents: Money market funds $ 5,695 $ — $ — $ 5,695 Short-term investments: U.S. Treasury securities 162,718 50 (58 ) 162,710 U.S. government agency securities 42,468 9 (10 ) 42,467 FDIC-backed certificates of deposit 22,560 7 (32 ) 22,535 Total short-term investments 227,746 66 (100 ) 227,712 Restricted cash: U.S. Treasury securities 3,416 1 (4 ) 3,413 Total cash equivalents, short-term investments and restricted cash $ 236,857 $ 67 $ (104 ) $ 236,820 Fair Value Measurements The following table sets forth the fair value of our financial assets by level within the fair value hierarchy: Fair Value Measurements at April 30, 2016 Using: Quoted Prices in Active Markets For Identical Assets Significant Other Observable Remaining Inputs Significant Other Unobservable Remaining Inputs (Level I) (Level II) (Level III) Total (In thousands) Financial Assets Cash equivalents: Money market funds $ 9,460 $ — $ — $ 9,460 Short-term investments: U.S. Treasury securities 119,516 — — 119,516 U.S. government agency securities — 29,312 — 29,312 FDIC-backed certificates of deposit — 17,518 — 17,518 Total short-term investments 119,516 46,830 — 166,346 Restricted cash: U.S. Treasury securities 3,417 — — 3,417 Total financial assets $ 132,393 $ 46,830 $ — $ 179,223 Fair Value Measurements at July 31, 2015 Using: Quoted Prices in Active Markets For Identical Assets Significant Other Observable Remaining Inputs Significant Other Unobservable Remaining Inputs (Level I) (Level II) (Level III) Total (In thousands) Financial Assets Cash equivalents: Money market funds $ 5,695 $ — $ — $ 5,695 Short-term investments: U.S. Treasury securities 162,710 — — 162,710 U.S. government agency securities — 42,467 — 42,467 FDIC-backed certificates of deposit — 22,535 — 22,535 Total short-term investments 162,710 65,002 — 227,712 Restricted cash: U.S. Treasury securities 3,413 — — 3,413 Total financial assets $ 171,818 $ 65,002 $ — $ 236,820 We value our Level I assets, consisting of money market funds and U.S. Treasury securities, using quoted prices in active markets for identical instruments. Financial assets whose fair values we measure on a recurring basis using Level II inputs consist of U.S. government agency securities and Federal Deposit Insurance Corporation, or FDIC-backed certificates of deposit. We measure the fair values of these assets with the help of a pricing service that either provides quoted market prices in active markets for identical or similar securities or uses observable inputs for their pricing without applying significant adjustments because the inputs used in the valuation model, such as interest rates and volatility, can be corroborated by readily observable market data for substantially the full term of the financial assets. There were no transfers between Level I, Level II and Level III fair value hierarchies during the three and nine months ended April 30, 2016 . |
Inventory and Deferred Revenue
Inventory and Deferred Revenue | 9 Months Ended |
Apr. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Inventory and Deferred Revenue | INVENTORY AND DEFERRED REVENUE Inventory Inventory consists of the following: April 30, 2016 July 31, 2015 (In thousands) Raw materials $ 1,488 $ 2,224 Finished goods 5,010 6,364 Total inventory $ 6,498 $ 8,588 Deferred Revenue, Net Deferred revenue, net consists of the following: April 30, 2016 July 31, 2015 (In thousands) Deferred revenue: Products and licenses $ 7,688 $ 6,255 Services 163,437 133,834 Total deferred revenue 171,125 140,089 Deferred cost of revenue: Products and licenses 339 567 Services 4,156 2,675 Total deferred cost of revenue 4,495 3,242 Total deferred revenue, net 166,630 136,847 Less current portion 114,724 95,130 Non-current portion $ 51,906 $ 41,717 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Apr. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Contract Manufacturer Commitments The independent contract manufacturer that provides the substantial majority of our manufacturing, repair and supply chain operations procures components and builds our products based on our forecasts. These forecasts are based on estimates of future demand for our products, which are in turn based on historical trends and an analysis from our sales and marketing organizations, adjusted for overall market conditions. In order to reduce manufacturing lead times and plan for adequate component supply, we may issue purchase orders to this independent contract manufacturer which may not be cancelable. In addition, we also have purchase commitments with other third-party contract manufacturers and suppliers. As of April 30, 2016 , we had $8.5 million in purchase commitments with our third-party contract manufacturers and suppliers, of which $7.9 million relates to open purchase orders with our primary independent contract manufacturer. Guarantees We have entered into agreements with some of our customers that contain indemnification provisions relating to potential situations where claims could be alleged that our products infringe the intellectual property rights of a third party. We have, at our option and expense, the ability to repair any infringement, replace the product with a non-infringing functionally equivalent product, or refund our customers the unamortized value of the product based on its estimated useful life, typically five years . Other guarantees or indemnification arrangements include guarantees of product and service performance and standby letters of credit for lease facilities and corporate credit cards. We have not recorded a liability related to these indemnification and guarantee provisions, and our guarantees and indemnification arrangements have not had any significant impact on our condensed consolidated financial statements to date. Loss Contingencies and Legal Proceedings We are subject to the possibility of various loss contingencies arising in the ordinary course of business. An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the range of loss can be reasonably estimated. However, the actual loss in any such contingency may be materially different from our estimates, which could result in the need to record additional expenses. If the amount of liability is not probable or the amount cannot be reasonably estimated, no accruals have been made. We regularly evaluate current information available to management to determine whether such accruals should be adjusted and whether new accruals are required in the periods presented. From time to time, we are subject to various legal proceedings, claims and litigation arising in the ordinary course of business. Other than the litigation matter described below, as to which we are unable to make a materiality determination, we do not believe we are party to any currently pending legal proceedings, the outcome of which would have a material adverse effect on our financial position, results of operations or cash flows. There can be no assurance that existing or future legal proceedings arising in the ordinary course of business or otherwise will not have a material adverse effect on our financial position, results of operations or cash flows. On June 9, 2015, Stacey Greenfield, who claims to be a stockholder of the Company, filed suit in the United States District Court for the Southern District of New York under Section 16(b) of the Securities Exchange Act of 1934 (“Section 16”) against Cadian Capital Management, LP, and certain persons and entities allegedly affiliated with it (collectively, the “Cadian Defendants”) in an action captioned Greenfield v. Cadian Capital Management, L.P., et al., Case No. 15-civ-04478. We are named as a nominal defendant. Plaintiff alleges that the Cadian Defendants engaged in transactions in our securities that resulted in “short-swing” profits within the scope of Section 16, and seeks disgorgement from the Cadian Defendants of those alleged “short-swing” profits on our behalf. On September 3, 2015, the Cadian Defendants filed a motion to dismiss the complaint. On October 7, 2015, Plaintiff filed an amended complaint (“Amended Complaint”). On December 11, 2015, the Cadian Defendants filed a motion to dismiss the Amended Complaint, which Plaintiff has since opposed. The motion to dismiss has been fully briefed but has not been ruled upon by the Court. The parties have agreed that we (as a nominal defendant) shall not be required to file any responsive pleading until after the Cadian Defendants’ motion to dismiss is decided. We believe at this time that liabilities associated with this case, while possible, are not probable, and therefore we have not recorded any accrual for them as of April 30, 2016 and July 31, 2015 . Further, any possible range of loss cannot be reasonably estimated at this time. |
Business Acquisition
Business Acquisition | 9 Months Ended |
Apr. 30, 2016 | |
Business Combinations [Abstract] | |
Business Acquisition | BUSINESS ACQUISITION On February 8, 2016 (Closing Date), we acquired IID Security Inc. (IID), a provider of global cyber threat intelligence and security solutions, for a total purchase consideration of $43.1 million , including a customary post-closing working capital adjustment of $0.6 million , an indemnification hold-back of $4.2 million and a founders’ hold-back of $3.7 million . This acquisition is a component of our strategy to enhance our product offerings with security functionality. The indemnification hold-back is payable to compensate for, if any, certain breaches of representations or warranties or violations or defaults of any obligations by the sellers subsequent to the acquisition during a period of 18 months following the Closing Date. The founders’ hold-back represents deferred payments to the two IID founders to be released in installments during the two years following the Closing Date unless the founders’ employment is terminated prior to the release of the hold-back amount, in which case the entire unreleased amount will be released to the founders on the five years anniversary of the Closing Date. We calculated the present value of the hold-back amounts based on the timing of release of funds and a discount rate of 4% , representing the cost of debt of comparable companies because we do not have any debt. The face value of the working capital adjustment is $0.6 million , which represents carrying value due to the relatively short period of time from the Closing Date to the actual release of the fund. The face value of the indemnification hold-back is $4.5 million and the founders’ hold-back is $4.0 million . These hold-back amounts totaling $9.1 million are reported as restricted cash in our condensed consolidated balance sheet as of April 30, 2016 of which the current portion of $2.6 million is shown as part of prepaid expenses and other current assets. The liabilities associated with these hold-back amounts as of April 30, 2016 had a total carrying value of $8.5 million , of which $2.4 million is included as part of accounts payable and accrued liabilities and $6.1 million is included as part of other liabilities in the condensed consolidated balance sheet. We recognized approximately $0.6 million of acquisition-related costs as general and administrative expense on our condensed consolidated statements of operations, of which $0.2 million was recognized during the three months ended April 30, 2016 and $0.4 million was recognized during the three months ended January 31, 2016. The acquired tangible and intangible assets and assumed liabilities are as follows: Estimated Fair Value (in thousands) Assets acquired: Cash $ 3,119 Other current assets 788 Long-term assets 357 Liabilities assumed: Accounts payable and accrued liabilities (925 ) Deferred revenue (2,981 ) Deferred income tax liability, net (3,658 ) Other current and long-term liabilities (149 ) Intangible assets acquired 20,900 Goodwill 25,672 Total purchase consideration $ 43,123 Goodwill represents the excess of the purchase consideration over the fair value of the underlying intangible assets and net liabilities assumed. The goodwill recognized in this acquisition is primarily attributable to the expected benefits from future technology, cost synergies and knowledgeable and experienced workforce who joined us as part of the acquisition. This goodwill is not deductible for income tax purposes. The accompanying condensed consolidated financial statements for the three and nine months ended April 30, 2016 include the operations of IID from the Closing Date. No supplemental pro-forma information is presented for this acquisition due to the immaterial effect of the acquisition on our results of operations. The following table presents details of the intangible assets acquired from IID and the related accumulated amortization and net carrying value as of April 30, 2016: Estimated Fair Value Estimated Useful Life Accumulated Amortization Net Carrying Value (in thousands) (in Years) (in thousands) Developed technology $ 15,330 7 $ (497 ) $ 14,833 Customer relationships 4,500 8 (128 ) 4,372 Non-compete agreements 700 2 (79 ) 621 Trade name 370 1 (84 ) 286 Total $ 20,900 $ (788 ) $ 20,112 We amortize the intangible assets straight-line over their estimated useful lives. We determined the fair values of the intangible assets with the assistance of a valuation firm. The estimation of the fair value of the intangible assets required the use of valuation techniques and entailed consideration of all the relevant factors that might affect the fair value, such as present value factors, estimates of future revenues and costs. Amortization expense from intangible assets acquired from IID during the three and nine months ended April 30, 2016 was $0.8 million . The expected future amortization expense for all acquired intangible assets, including those from IID acquisition, as of April 30, 2016 is as follows: Fiscal Period: (in thousands) Remaining three months of fiscal 2016 $ 970 Fiscal 2017 3,619 Fiscal 2018 3,143 Fiscal 2019 2,897 Fiscal 2020 2,897 Fiscal 2021 2,807 Thereafter 4,755 Total amortization expense $ 21,088 Goodwill Goodwill balances are presented below: Carrying Amount (in thousands) Balance as of July 31, 2015 $ 33,293 Goodwill from the acquisition of IID 25,672 Balance as of April 30, 2016 $ 58,965 |
Stockholders_ Equity and Employ
Stockholders’ Equity and Employee Benefit Plans | 9 Months Ended |
Apr. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stockholders' Equity and Employee Benefit Plans | STOCKHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS Stock-based Compensation The following table summarizes stock-based compensation expense for stock option grants, ESPP purchase rights, restricted stock units, or RSUs, and MSUs recorded in our condensed consolidated statements of operations: Three Months Ended April 30, Nine Months ended April 30, 2016 2015 2016 2015 (In thousands) Cost of revenue $ 1,014 $ 1,001 $ 3,363 $ 3,405 Research and development 2,523 2,549 8,648 7,790 Sales and marketing 5,726 5,941 18,287 18,136 General and administrative 2,532 2,268 7,290 6,767 $ 11,795 $ 11,759 $ 37,588 $ 36,098 The following table summarizes stock-based compensation expense by award type: Three Months Ended April 30, Nine Months ended April 30, 2016 2015 2016 2015 (In thousands) RSUs $ 9,137 $ 8,169 $ 28,452 $ 23,453 Stock options 1,215 1,990 4,381 7,144 ESPP 970 1,600 3,386 5,501 MSUs 473 — 1,369 — $ 11,795 $ 11,759 $ 37,588 $ 36,098 The following table summarizes the unrecognized stock-based compensation balance, net of estimated forfeitures, by type of awards as of April 30, 2016 : As of April 30, 2016 Weighted-Average Amortization Period (In thousands) (In years) RSUs $ 67,999 2.62 Stock options 6,366 2.20 ESPP 2,682 1.00 MSUs 2,744 1.25 Total unrecognized stock-based compensation balance $ 79,791 2.48 Determination of Fair Value The fair value of stock option grants and ESPP purchase rights was estimated at the date of grant and start of the offering period using the following assumptions: Three Months Ended April 30, Nine Months ended April 30, 2016 2015 2016 2015 Stock Options: Expected term (in years) — 6.08 6.08 6.08 Risk-free interest rate — 1.66 % 1.70 % 1.79 % Expected volatility — 54 % 52 % 56 % Dividend rate — — % — % — % Weighted average fair value per share — $ 11.89 $ 9.48 $ 8.88 Employee Stock Purchase Plan: Expected term (in years) — — 0.50 - 2.00 0.50 - 2.00 Risk-free interest rate — — 0.51% - 0.96% 0.16% - 0.71% Expected volatility — — 64 % 71 % Dividend rate — — — % — % Weighted average fair value per share — — $6.19 - $9.44 $7.02-$10.72 We did not grant any stock options during the three months ended April 30, 2016. Stock Option Activity A summary of the stock option activity under our stock plans during the nine months ended April 30, 2016 is presented below: Number of Shares Underlying Outstanding Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In years) (In thousands) Outstanding as of July 31, 2015 3,357 $ 15.45 6.67 $ 32,040 Granted 74 18.76 Exercised (648 ) 8.12 Canceled due to forfeitures and expirations (350 ) 19.94 Outstanding as of April 30, 2016 2,433 16.85 6.31 8,685 Vested and expected to vest as of April 30, 2016 2,370 16.74 6.21 8,656 Vested and exercisable as of April 30, 2016 1,743 $ 15.34 5.47 $ 8,266 Restricted Stock Unit Activity A summary of the RSU activity during the nine months ended April 30, 2016 is presented below: Number of Units Weighted-Average Grant Date Fair Value Per Share (In thousands) Outstanding as of July 31, 2015 4,406 $ 21.03 Granted 2,694 17.64 Vested (1,559 ) 20.41 Cancellations due to forfeitures (788 ) 19.99 Outstanding as of April 30, 2016 4,753 $ 19.49 Market Stock Units In September 2015, the Compensation Committee of our board of directors approved awarding MSUs to certain of our officers. In general, the target shares are eligible to be earned in three annual installments, based on the number of shares eligible to be earned for the applicable performance period multiplied by the Performance Multiplier (as defined below) in effect for the applicable performance period. The performance periods consist of a one-, two- and three-year period within the three-year period covering fiscal 2016, fiscal 2017 and fiscal 2018, with each performance period commencing on the first day of fiscal 2016. In each of the first two performance periods, up to one-third of the target shares are eligible to be earned. In the third performance period, up to the maximum shares ( 175% of target shares) less any shares that were earned in a prior performance period are eligible to be earned. The performance goal under the MSUs is our total stockholder return relative to the Russell 2000 Index over the applicable performance period. The Performance Multiplier is based on the positive difference or negative difference, measured in percentage points, between our total stockholder return and the total return for the Russell 2000 Index over the applicable performance period, and ranges from 0% to 175% . Subject to certain exceptions, the MSUs shall vest, if at all, only following the end of each applicable performance period, and the officer must be employed by us at the end of such performance period in order to vest in the award. We use a Monte-Carlo simulation to calculate the fair value of the award on the grant date. Monte-Carlo simulation requires various assumptions including stock price volatility and risk free interest rate as of the valuation date corresponding to the length of time remaining in the performance period and expected dividend yield. In September 2015, we granted a total of 245,000 MSUs with a weighted-average grant date fair value per unit of $20.66 . We recognized $0.5 million and $1.4 million stock-based compensation expense, net of estimated forfeitures, related to MSUs during the three and nine months ended April 30, 2016 . As of April 30, 2016 , there was approximately $2.7 million of unrecognized compensation cost, net of estimated forfeitures, related to MSUs. No MSUs vested during the three and nine months ended April 30, 2016 because the first performance period would not be completed until the end of fiscal 2016. A total of 20,000 MSUs were canceled during the three and nine months ended April 30, 2016 . Share Repurchase Program In November 2015, our board of directors authorized a $100 million share repurchase program, with $50 million of that program to be executed as an accelerated share repurchase, or ASR, and the remaining $50 million of that program to be executed from time to time in compliance with applicable securities laws in the open market or in privately-negotiated transactions. The timing and amounts of any repurchases will be based on market conditions and other factors including price, regulatory requirements and capital availability. The authorization for open market purchases does not require the purchase of any minimum number of shares, has no expiration date and may be suspended, modified or discontinued at any time without prior notice. Under this program, shares repurchased are recorded as a reduction to capital in excess of par value and an increase in accumulated deficit in our condensed consolidated balance sheet. As of April 30, 2016, there was approximately $25 million available for repurchases under this program. In May 2016, our board of directors authorized a $150 million increase to the stock repurchase program. Accelerated Share Repurchase Program In December 2015, we executed an ASR with Goldman, Sachs & Co., or GS&Co, pursuant to which, on December 8, 2015, we paid GS&Co $50 million and received an initial delivery of 2,192,982 shares, representing 80% of the total ASR amount. Upon final settlement of the ASR, GS&Co could have been required to deliver additional shares of common stock to us or we could have been required to deliver shares of our common stock, or elected to make a cash payment, to GS&Co, based on the terms and conditions of the ASR. In February 2016, the ASR was completed and GS&Co delivered 748,464 additional shares to us, resulting in total repurchases of 2,941,446 shares at an average per share price of $17.00 . We accounted for the ASR program as a share repurchase transaction resulting in a reduction of stockholders’ equity and the delivery of 2,941,446 shares resulted in an immediate reduction, on trade date, of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share. Open Market Stock Repurchases During the three months ended April 30, 2016, we repurchased on the open market 1,592,480 shares at an average per share price of $15.72 . The repurchases resulted in a reduction of stockholders' equity and an immediate reduction, on trade date, of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share. |
Income Taxes
Income Taxes | 9 Months Ended |
Apr. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The income tax benefit for the three months ended April 30, 2016 was $2.0 million , which consisted of federal tax benefit offset by state and foreign income taxes. The provision for income taxes for the three months ended April 30, 2015 was $0.1 million , which consisted of state and foreign income taxes. The change in the income tax benefit for the three months ended April 30, 2016 compared to the same period in the prior year was principally attributable to a one-time benefit from the partial release of valuation allowance due to the IID acquisition. For the three months ended April 30, 2016, our income tax benefit differed from the statutory amount primarily due to U.S. and foreign taxes currently payable as we realized no benefit for current year losses due to maintaining a full valuation allowance against net U.S. deferred tax assets. For the three months ended April 30, 2016 and 2015, we also maintained a full valuation allowance against net Canadian deferred tax assets. The income tax benefit for the nine months ended April 30, 2016 was $2.2 million and primarily consisted of federal tax benefit offset by state and foreign income taxes. The provision for income taxes for the nine months ended April 30, 2015 was $0.8 million and primarily consisted of state and foreign income taxes. The change in the income tax benefit for the nine months ended April 30, 2016 compared to the same period in the prior year was primarily due to a one-time benefit from the partial release of valuation allowance due to the IID acquisition. The realization of tax benefits of deferred tax assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on the available objective evidence, management does not believe it is more likely than not that the net U.S. and Canadian deferred tax assets will be realizable. Accordingly, we have provided a full valuation allowance against net U.S. and Canadian deferred tax assets as of April 30, 2016 and July 31, 2015. We intend to maintain the valuation allowance until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance. During the three and nine months ended April 30, 2016, there have been no material changes to the total amount of unrecognized tax benefits. The Protecting Americans from Tax Hikes Act of 2015, or the PATH Act, which made the research tax credit permanent, was passed on December 18, 2015. The PATH Act retroactively extended the federal research tax credit from January 1, 2015. As we have a full valuation allowance against net U.S. deferred tax asset, this provision has no material impact on our financial statements for the three and nine months ended April 30, 2016. |
Segment Information
Segment Information | 9 Months Ended |
Apr. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We operate in one segment. The following table represents net revenue based on the customer’s location, as determined by the customer’s shipping address: Three Months Ended April 30, Nine Months ended April 30, 2016 2015 2016 2015 (In thousands) Americas $ 50,204 $ 53,123 $ 170,201 $ 144,551 Europe, Middle East and Africa ("EMEA") 22,262 19,112 73,486 54,237 Asia Pacific ("APAC") 9,496 5,868 28,296 20,338 Total net revenue $ 81,962 $ 78,103 $ 271,983 $ 219,126 Included within the Americas total in the above table is revenue from sales in the United States of $47.9 million and $50.1 million for the three months ended April 30, 2016 and 2015 and $161.8 million and $136.4 million for the nine months ended April 30, 2016 and 2015 . No other country comprised more than 10% of our net revenue for the three and nine months ended April 30, 2016 and 2015 . Our property and equipment, net by location is summarized as follows: April 30, 2016 July 31, 2015 (In thousands) Americas $ 22,130 $ 21,807 EMEA 559 712 APAC 1,042 706 Total property and equipment, net $ 23,731 $ 23,225 Included within the Americas total in the above table is property and equipment, net in the United States of $21.4 million and $21.8 million as of April 30, 2016 and July 31, 2015 . |
Description of the Business a16
Description of the Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Apr. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include our accounts and the accounts of our wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated. The accompanying condensed consolidated balance sheet as of April 30, 2016 and the condensed consolidated statements of operations and the condensed consolidated statements of comprehensive loss for the three and nine months ended April 30, 2016 and 2015 and the condensed consolidated statements of cash flows for the nine months ended April 30, 2016 and 2015 are unaudited. The condensed consolidated balance sheet as of July 31, 2015 was derived from the audited consolidated balance sheet as of July 31, 2015 . These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2015 . The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, pursuant to the rules and regulations of the Securities Exchange Commission, or SEC. They do not include all of the financial information and footnotes required by GAAP for complete financial statements. We believe the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments necessary for their fair presentation. All adjustments are of a normal recurring nature. The results for the three and nine months ended April 30, 2016 are not necessarily indicative of the results to be expected for any subsequent quarter or for the year ending July 31, 2016. |
Use of Estimates | Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Those management estimates and assumptions affect revenue recognition, allowances for doubtful accounts and sales returns, valuation of our cash equivalents and available-for-sale investments, valuation of inventory, determination of fair value of stock-based awards, valuation of goodwill and intangible assets acquired, impairment of goodwill and other intangible assets, amortization of intangible assets, contingencies and litigation and accounting for income taxes, including the valuation reserve on deferred tax assets and uncertain tax positions. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors and adjust those estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from these estimates and assumptions, and those differences could be material to the condensed consolidated financial statements. |
Concentrations of Risk | Concentrations of Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, short-term investments, restricted cash and accounts receivable. Our cash, cash equivalents, short-term investments and restricted cash are invested in high-credit quality financial instruments with banks and financial institutions. Such deposits may be in excess of insured limits provided on such deposits. We mitigate credit risk in respect to accounts receivable by performing ongoing credit evaluations of our customers and maintaining a reserve for potential credit losses. In addition, we generally require our customers to prepay for maintenance and support services to mitigate the risk of uncollectible accounts receivable. Significant customers are those which represent more than 10% of our total net revenue or total gross accounts receivable balance at each respective balance sheet date. Exclusive Networks, Ltd., a distributor, accounted for 13.8% and 13.5% of our total net revenue for the three and nine months ended April 30, 2016 and 12.2% and 11.8% for the three and nine months ended April 30, 2015. Exclusive Networks Ltd. accounted for 16.9% of our total gross accounts receivable as of April 30, 2016 . Exclusive Networks Ltd. accounted for 14.0% of our total gross accounts receivable as of July 31, 2015 . We believe it is unlikely that the loss of any of our channel partners would have a long-term material adverse effect on our total net revenue as we believe end-users would likely purchase our products from a different channel partner. However, a loss of any one of these channel partners could have a material adverse impact during the transition period. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. ASU 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ,” that simplifies various aspects related to how share-based payments are accounted for and presented in the financial statements. The areas for simplification involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance will be effective for public business entities in fiscal years beginning after December 15, 2016, including interim periods within those years, which for us would be the first quarter of fiscal year 2018. Early adoption is permitted, and we are currently evaluating the impact of this new guidance on our condensed consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17 “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ,” to simplify the presentation of deferred income taxes. Under this new standard, both deferred tax liabilities and assets are required to be classified as noncurrent in a classified balance sheet. ASU 2015-17 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2016. We adopted this standard during the three months ended April 30, 2016 on a prospective basis and, therefore, no adjustments were made to the prior periods reflected in our condensed consolidated financial statements. As we have a full valuation allowance against substantially all of our deferred tax assets, the adoption changed the presentation of valuation allowance only and had no material impact on our condensed consolidated balance sheet as of April 30, 2016. In July 2015, the FASB issued ASU 2015-11— Inventory—Simplifying the Measurement of Inventory (Topic 330) . ASU 2015-11 changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. It applies to entities that measure inventory using a method other than last-in, first-out or the retail inventory method. The amendments apply to all other inventory, which includes inventory that is measured using first-in, first-out (FIFO) or average cost. Early adoption is permitted, and we are in the process of evaluating the timing of the adoption. Should we not early adopt, this standard will be effective for us in fiscal year 2018. The adoption of this standard is not expected to have a significant impact on our condensed consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , which provides guidance on determining whether a cloud computing arrangement contains a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. We adopted this standard during the three months ended October 31, 2015 and our adoption did not have a significant impact on our condensed consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which supersedes the revenue recognition requirements in Accounting Standards Codification (ASC) 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The guidance requires the use of either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within the guidance; or (ii) retrospective with the cumulative effect of initially applying the guidance recognized at the date of initial application and providing certain additional disclosures as defined per the guidance. In July 2015, the FASB decided to delay the effective date of the new revenue standard by one year. As such, ASU 2014-09 will be effective for us in fiscal year 2019, with the option to adopt earlier in fiscal year 2018. In April 2016, the FASB finalized amendments to the guidance in the new revenue standard on identifying performance obligations and accounting for licenses of intellectual property. The amendments address implementation issues that were raised during the comment period and discussed by the FASB’s Revenue Recognition Transition Resource Group. The amendments have the same effective date and transition requirements as the new revenue standard. We are currently evaluating adoption timing and methods and whether this standard will have a material impact on our condensed consolidated financial statements. |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding weighted-average shares of common stock equivalents were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been antidilutive: Three Months Ended April 30, Nine Months ended April 30, 2016 2015 2016 2015 (In thousands) Stock options to purchase common stock 2,167 2,861 2,337 3,395 Restricted stock units 1,953 2,243 2,202 1,806 Employee Stock Purchase Plan 137 188 148 80 |
Cash Equivalents, Short-Term 18
Cash Equivalents, Short-Term Investments, Restricted Cash and Fair Value Measurements (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Schedule Cash Equivalents, Short-term Investments and Restricted Cash | The following table summarizes our cash equivalents, short-term investments and restricted cash as of July 31, 2015: Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (In thousands) Cash equivalents: Money market funds $ 5,695 $ — $ — $ 5,695 Short-term investments: U.S. Treasury securities 162,718 50 (58 ) 162,710 U.S. government agency securities 42,468 9 (10 ) 42,467 FDIC-backed certificates of deposit 22,560 7 (32 ) 22,535 Total short-term investments 227,746 66 (100 ) 227,712 Restricted cash: U.S. Treasury securities 3,416 1 (4 ) 3,413 Total cash equivalents, short-term investments and restricted cash $ 236,857 $ 67 $ (104 ) $ 236,820 The following table summarizes our cash equivalents, short-term investments and restricted cash as of April 30, 2016 : Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (In thousands) Cash equivalents: Money market funds $ 9,460 $ — $ — $ 9,460 Short-term investments: U.S. Treasury securities 119,537 15 (36 ) 119,516 U.S. government agency securities 29,327 2 (17 ) 29,312 FDIC-backed certificates of deposit 17,520 10 (12 ) 17,518 Total short-term investments 166,384 27 (65 ) 166,346 Restricted cash: U.S. Treasury securities 3,417 — — 3,417 Total cash equivalents, short-term investments and restricted cash $ 179,261 $ 27 $ (65 ) $ 179,223 |
Investments Classified by Contractual Maturity Date | The following table presents the contractual maturities of our short-term investments which are classified as available-for-sale securities as of April 30, 2016 : Amortized Cost Estimated Fair Value (In thousands) Due within one year $ 119,978 $ 119,964 Due after one year through two years 46,406 46,382 Total $ 166,384 $ 166,346 |
Schedule of Fair Value of Assets and Liabilities by Level | The following table sets forth the fair value of our financial assets by level within the fair value hierarchy: Fair Value Measurements at April 30, 2016 Using: Quoted Prices in Active Markets For Identical Assets Significant Other Observable Remaining Inputs Significant Other Unobservable Remaining Inputs (Level I) (Level II) (Level III) Total (In thousands) Financial Assets Cash equivalents: Money market funds $ 9,460 $ — $ — $ 9,460 Short-term investments: U.S. Treasury securities 119,516 — — 119,516 U.S. government agency securities — 29,312 — 29,312 FDIC-backed certificates of deposit — 17,518 — 17,518 Total short-term investments 119,516 46,830 — 166,346 Restricted cash: U.S. Treasury securities 3,417 — — 3,417 Total financial assets $ 132,393 $ 46,830 $ — $ 179,223 Fair Value Measurements at July 31, 2015 Using: Quoted Prices in Active Markets For Identical Assets Significant Other Observable Remaining Inputs Significant Other Unobservable Remaining Inputs (Level I) (Level II) (Level III) Total (In thousands) Financial Assets Cash equivalents: Money market funds $ 5,695 $ — $ — $ 5,695 Short-term investments: U.S. Treasury securities 162,710 — — 162,710 U.S. government agency securities — 42,467 — 42,467 FDIC-backed certificates of deposit — 22,535 — 22,535 Total short-term investments 162,710 65,002 — 227,712 Restricted cash: U.S. Treasury securities 3,413 — — 3,413 Total financial assets $ 171,818 $ 65,002 $ — $ 236,820 |
Inventory and Deferred Revenue
Inventory and Deferred Revenue (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Inventory | Inventory consists of the following: April 30, 2016 July 31, 2015 (In thousands) Raw materials $ 1,488 $ 2,224 Finished goods 5,010 6,364 Total inventory $ 6,498 $ 8,588 |
Schedule of Deferred Revenue, Net | Deferred revenue, net consists of the following: April 30, 2016 July 31, 2015 (In thousands) Deferred revenue: Products and licenses $ 7,688 $ 6,255 Services 163,437 133,834 Total deferred revenue 171,125 140,089 Deferred cost of revenue: Products and licenses 339 567 Services 4,156 2,675 Total deferred cost of revenue 4,495 3,242 Total deferred revenue, net 166,630 136,847 Less current portion 114,724 95,130 Non-current portion $ 51,906 $ 41,717 |
Business Acquisition (Tables)
Business Acquisition (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | The acquired tangible and intangible assets and assumed liabilities are as follows: Estimated Fair Value (in thousands) Assets acquired: Cash $ 3,119 Other current assets 788 Long-term assets 357 Liabilities assumed: Accounts payable and accrued liabilities (925 ) Deferred revenue (2,981 ) Deferred income tax liability, net (3,658 ) Other current and long-term liabilities (149 ) Intangible assets acquired 20,900 Goodwill 25,672 Total purchase consideration $ 43,123 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table presents details of the intangible assets acquired from IID and the related accumulated amortization and net carrying value as of April 30, 2016: Estimated Fair Value Estimated Useful Life Accumulated Amortization Net Carrying Value (in thousands) (in Years) (in thousands) Developed technology $ 15,330 7 $ (497 ) $ 14,833 Customer relationships 4,500 8 (128 ) 4,372 Non-compete agreements 700 2 (79 ) 621 Trade name 370 1 (84 ) 286 Total $ 20,900 $ (788 ) $ 20,112 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The expected future amortization expense for all acquired intangible assets, including those from IID acquisition, as of April 30, 2016 is as follows: Fiscal Period: (in thousands) Remaining three months of fiscal 2016 $ 970 Fiscal 2017 3,619 Fiscal 2018 3,143 Fiscal 2019 2,897 Fiscal 2020 2,897 Fiscal 2021 2,807 Thereafter 4,755 Total amortization expense $ 21,088 |
Schedule of Goodwill | Goodwill balances are presented below: Carrying Amount (in thousands) Balance as of July 31, 2015 $ 33,293 Goodwill from the acquisition of IID 25,672 Balance as of April 30, 2016 $ 58,965 |
Stockholders_ Equity and Empl21
Stockholders’ Equity and Employee Benefit Plans (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-based Compensation by Statement of Operations | The following table summarizes stock-based compensation expense for stock option grants, ESPP purchase rights, restricted stock units, or RSUs, and MSUs recorded in our condensed consolidated statements of operations: Three Months Ended April 30, Nine Months ended April 30, 2016 2015 2016 2015 (In thousands) Cost of revenue $ 1,014 $ 1,001 $ 3,363 $ 3,405 Research and development 2,523 2,549 8,648 7,790 Sales and marketing 5,726 5,941 18,287 18,136 General and administrative 2,532 2,268 7,290 6,767 $ 11,795 $ 11,759 $ 37,588 $ 36,098 The following table summarizes stock-based compensation expense by award type: Three Months Ended April 30, Nine Months ended April 30, 2016 2015 2016 2015 (In thousands) RSUs $ 9,137 $ 8,169 $ 28,452 $ 23,453 Stock options 1,215 1,990 4,381 7,144 ESPP 970 1,600 3,386 5,501 MSUs 473 — 1,369 — $ 11,795 $ 11,759 $ 37,588 $ 36,098 |
Schedule of Unrecognized Stock-Based Compensation Balance | The following table summarizes the unrecognized stock-based compensation balance, net of estimated forfeitures, by type of awards as of April 30, 2016 : As of April 30, 2016 Weighted-Average Amortization Period (In thousands) (In years) RSUs $ 67,999 2.62 Stock options 6,366 2.20 ESPP 2,682 1.00 MSUs 2,744 1.25 Total unrecognized stock-based compensation balance $ 79,791 2.48 |
Schedule of Determination of Fair Value | using the following assumptions: Three Months Ended April 30, Nine Months ended April 30, 2016 2015 2016 2015 Stock Options: Expected term (in years) — 6.08 6.08 6.08 Risk-free interest rate — 1.66 % 1.70 % 1.79 % Expected volatility — 54 % 52 % 56 % Dividend rate — — % — % — % Weighted average fair value per share — $ 11.89 $ 9.48 $ 8.88 Employee Stock Purchase Plan: Expected term (in years) — — 0.50 - 2.00 0.50 - 2.00 Risk-free interest rate — — 0.51% - 0.96% 0.16% - 0.71% Expected volatility — — 64 % 71 % Dividend rate — — — % — % Weighted average fair value per share — — $6.19 - $9.44 $7.02-$10.72 |
Schedule of Stock-Based Compensation Activity | A summary of the stock option activity under our stock plans during the nine months ended April 30, 2016 is presented below: Number of Shares Underlying Outstanding Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In years) (In thousands) Outstanding as of July 31, 2015 3,357 $ 15.45 6.67 $ 32,040 Granted 74 18.76 Exercised (648 ) 8.12 Canceled due to forfeitures and expirations (350 ) 19.94 Outstanding as of April 30, 2016 2,433 16.85 6.31 8,685 Vested and expected to vest as of April 30, 2016 2,370 16.74 6.21 8,656 Vested and exercisable as of April 30, 2016 1,743 $ 15.34 5.47 $ 8,266 |
Schedule of Restricted Stock Units Award Activity | A summary of the RSU activity during the nine months ended April 30, 2016 is presented below: Number of Units Weighted-Average Grant Date Fair Value Per Share (In thousands) Outstanding as of July 31, 2015 4,406 $ 21.03 Granted 2,694 17.64 Vested (1,559 ) 20.41 Cancellations due to forfeitures (788 ) 19.99 Outstanding as of April 30, 2016 4,753 $ 19.49 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Apr. 30, 2016 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas | We operate in one segment. The following table represents net revenue based on the customer’s location, as determined by the customer’s shipping address: Three Months Ended April 30, Nine Months ended April 30, 2016 2015 2016 2015 (In thousands) Americas $ 50,204 $ 53,123 $ 170,201 $ 144,551 Europe, Middle East and Africa ("EMEA") 22,262 19,112 73,486 54,237 Asia Pacific ("APAC") 9,496 5,868 28,296 20,338 Total net revenue $ 81,962 $ 78,103 $ 271,983 $ 219,126 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Our property and equipment, net by location is summarized as follows: April 30, 2016 July 31, 2015 (In thousands) Americas $ 22,130 $ 21,807 EMEA 559 712 APAC 1,042 706 Total property and equipment, net $ 23,731 $ 23,225 |
Description of the Business a23
Description of the Business and Summary of Significant Accounting Policies (Details) - Exclusive Networks [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Apr. 30, 2016 | Jan. 31, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | Jul. 31, 2015 | |
Revenue [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 13.80% | 12.20% | 13.50% | 11.80% | |
Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 16.90% | 14.00% |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 2,167 | 2,861 | 2,337 | 3,395 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 1,953 | 2,243 | 2,202 | 1,806 |
Employee Stock Purchase Plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 137 | 188 | 148 | 80 |
Cash Equivalents, Short-Term 25
Cash Equivalents, Short-Term Investments, Restricted Cash and Fair Value Measurements (Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jul. 31, 2015 |
Short-term investments [Abstract] | ||
Short-term investments, Amortized Cost | $ 166,384 | $ 227,746 |
Short-term investments, Gross Unrealized Gain | 27 | 66 |
Short-term investments, Gross Unrealized Losses | (65) | (100) |
Short-term investments | 166,346 | 227,712 |
Restricted Cash [Abstract] | ||
Total cash equivalents and short-term investments, Amortized Cost | 179,261 | 236,857 |
Total cash equivalents and short-term investments, Unrealized Gains | 27 | 67 |
Total cash equivalents and short-term investments, Unrealized Losses | (65) | (104) |
Total cash equivalents and short-term investments, Estimated Fair Value | 179,223 | 236,820 |
Amortized Cost | ||
Amortized cost, Due within one year | 119,978 | |
Amortized cost, Due between one to two years | 46,406 | |
Amortized cost, Total | 166,384 | |
Estimated Fair Value | ||
Estimated Fair Value, Due within one year | 119,964 | |
Estimated Fair Value, Due between one to two years | 46,382 | |
Estimated Fair Value, Total | 166,346 | |
US Treasury Securities [Member] | ||
Short-term investments [Abstract] | ||
Short-term investments, Amortized Cost | 119,537 | 162,718 |
Short-term investments, Gross Unrealized Gain | 15 | 50 |
Short-term investments, Gross Unrealized Losses | (36) | (58) |
Short-term investments | 119,516 | 162,710 |
Restricted Cash [Abstract] | ||
Restricted cash, Amortized Costs Basis | 3,417 | 3,416 |
Restricted cash, Gross Unrealized Gains | 0 | 1 |
Restricted cash, Gross Unrealized Losses | 0 | (4) |
Restricted cash, Fair Value Disclosure | 3,417 | 3,413 |
US Government Agencies Securities [Member] | ||
Short-term investments [Abstract] | ||
Short-term investments, Amortized Cost | 29,327 | 42,468 |
Short-term investments, Gross Unrealized Gain | 2 | 9 |
Short-term investments, Gross Unrealized Losses | (17) | (10) |
Short-term investments | 29,312 | 42,467 |
FDIC-backed certificates of deposit [Member] | ||
Short-term investments [Abstract] | ||
Short-term investments, Amortized Cost | 17,520 | 22,560 |
Short-term investments, Gross Unrealized Gain | 10 | 7 |
Short-term investments, Gross Unrealized Losses | (12) | (32) |
Short-term investments | 17,518 | 22,535 |
Money Market Funds [Member] | ||
Cash equivalents [Abstract] | ||
Cash equivalents, Amortized Cost | 9,460 | 5,695 |
Cash equivalents, Unrealized Gains | 0 | 0 |
Cash equivalents, Unrealized Losses | 0 | 0 |
Cash equivalents, Estimated Fair Value | $ 9,460 | $ 5,695 |
Cash Equivalents, Short-Term 26
Cash Equivalents, Short-Term Investments, Restricted Cash and Fair Value Measurements (Schedule of the Fair Value of Assets and Liabilities by Level) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jul. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 166,346 | $ 227,712 |
Total financial assets | 179,223 | 236,820 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 119,516 | 162,710 |
Total financial assets | 132,393 | 171,818 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 46,830 | 65,002 |
Total financial assets | 46,830 | 65,002 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Total financial assets | 0 | 0 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 119,516 | 162,710 |
Restricted cash | 3,417 | 3,413 |
US Treasury Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 119,516 | 162,710 |
Restricted cash | 3,417 | 3,413 |
US Treasury Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
US Treasury Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
US Government Agencies Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 29,312 | 42,467 |
US Government Agencies Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
US Government Agencies Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 29,312 | 42,467 |
US Government Agencies Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
FDIC-backed certificates of deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 17,518 | 22,535 |
FDIC-backed certificates of deposit [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
FDIC-backed certificates of deposit [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 17,518 | 22,535 |
FDIC-backed certificates of deposit [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 9,460 | 5,695 |
Money Market Funds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 9,460 | 5,695 |
Money Market Funds [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 0 | 0 |
Money Market Funds [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | $ 0 | $ 0 |
Cash Equivalents, Short-Term 27
Cash Equivalents, Short-Term Investments, Restricted Cash and Fair Value Measurements (Narrative) (Details) $ in Millions | Apr. 30, 2016USD ($) |
IID Acquisition [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Time Deposits | $ 9.1 |
Letter of Credit [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Time Deposits | $ 0.1 |
Inventory and Deferred Revenu28
Inventory and Deferred Revenue (Schedule of Inventory) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jul. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 1,488 | $ 2,224 |
Finished goods | 5,010 | 6,364 |
Total inventory | $ 6,498 | $ 8,588 |
Inventory and Deferred Revenu29
Inventory and Deferred Revenue (Schedule of Deferred Revenue) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Jul. 31, 2015 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 171,125 | $ 140,089 |
Deferred cost of revenue | 4,495 | 3,242 |
Total deferred revenue, net | 166,630 | 136,847 |
Less current portion | 114,724 | 95,130 |
Total deferred income taxes and other tax liabilities | 51,906 | 41,717 |
Products and Licenses [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 7,688 | 6,255 |
Deferred cost of revenue | 339 | 567 |
Services [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 163,437 | 133,834 |
Deferred cost of revenue | $ 4,156 | $ 2,675 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 9 Months Ended |
Apr. 30, 2016USD ($) | |
Guarantor Obligations [Line Items] | |
Open purchase orders | $ 7.9 |
Indemnification Agreement [Member] | |
Guarantor Obligations [Line Items] | |
Term of guarantee | 5 years |
Open Purchase Orders [Member] | |
Guarantor Obligations [Line Items] | |
Open purchase orders | $ 8.5 |
Business Acquisition (Details)
Business Acquisition (Details) - USD ($) $ in Thousands | Feb. 08, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Jan. 31, 2016 | Apr. 30, 2016 |
Business Acquisition [Line Items] | |||||
Accumulated Amortization | $ 800 | ||||
IID Security Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 43,100 | ||||
Working Capital Adjustment | 600 | ||||
Business Combinations, Indemnification | 4,200 | ||||
Business Combinations, Founders Hold-Back | $ 3,700 | ||||
Indemnification Breach Period After Closing | 18 months | ||||
Hold-Back Release of Installment Period | 2 years | ||||
Hold-Back Release of Entire Amount Period | 5 years | ||||
Fair Value Inputs, Discount Rate | 4.00% | ||||
Business Combinations, Indemnification Hold-back- Face Value | $ 4,500 | $ 4,500 | |||
Business Combinations, Founders Hold-Back-Face Value | 4,000 | 4,000 | |||
Business Combinations Hold-Back Liabilities | 8,500 | 8,500 | |||
Business Combination, Acquisition Related Costs | 200 | $ 400 | 600 | ||
Accumulated Amortization | $ 788 | ||||
Prepaid Expenses and Other Current Assets [Member] | IID Security Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Prepaid Expense and Other Assets, Current | 2,600 | 2,600 | |||
Accounts Payable and Accrued Liabilities [Member] | IID Security Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combinations Hold-Back Liabilities | 2,400 | 2,400 | |||
Other Liabilities [Member] | IID Security Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combinations Hold-Back Liabilities | $ 6,100 | $ 6,100 |
Business Acquisition (Schedule
Business Acquisition (Schedule of Acquisitions) (Details) - USD ($) $ in Thousands | Apr. 30, 2016 | Feb. 08, 2016 | Jul. 31, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 58,965 | $ 33,293 | |
IID Security Inc [Member] | |||
Business Acquisition [Line Items] | |||
Restricted Cash and Cash Equivalents | 9,100 | ||
Cash | $ 3,119 | ||
Other current assets | 788 | ||
Long-term assets | 357 | ||
Accounts payable and accrued liabilities | (925) | ||
Deferred revenue | (2,981) | ||
Deferred income tax liability, net | (3,658) | ||
Other current and long-term liabilities | (149) | ||
Intangible assets acquired | $ 20,900 | 20,900 | |
Goodwill | 25,672 | ||
Total purchase consideration | $ 43,123 |
Business Acquisition (Schedul33
Business Acquisition (Schedule of Intangible Assets Acquired) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2016 | Apr. 30, 2016 | Feb. 08, 2016 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Accumulated Amortization | $ 800 | |||
IID Security Inc [Member] | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Fair Value | $ 20,900 | $ 20,900 | ||
Accumulated Amortization | $ 788 | |||
Net Carrying Value | 20,112 | |||
IID Security Inc [Member] | Developed technology | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Fair Value | $ 15,330 | |||
Estimated Useful Life | 7 years | |||
Accumulated Amortization | 497 | |||
Net Carrying Value | $ 14,833 | |||
IID Security Inc [Member] | Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Fair Value | $ 4,500 | |||
Estimated Useful Life | 8 years | |||
Accumulated Amortization | 128 | |||
Net Carrying Value | $ 4,372 | |||
IID Security Inc [Member] | Non-compete agreements | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Fair Value | $ 700 | |||
Estimated Useful Life | 2 years | |||
Accumulated Amortization | 79 | |||
Net Carrying Value | $ 621 | |||
IID Security Inc [Member] | Trade name | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Estimated Fair Value | $ 370 | |||
Estimated Useful Life | 1 year | |||
Accumulated Amortization | $ 84 | |||
Net Carrying Value | $ 286 |
Business Acquisition (Intangibl
Business Acquisition (Intangible Assets Future Amortization Expense) (Details) $ in Thousands | Apr. 30, 2016USD ($) |
Business Combinations [Abstract] | |
Remaining three months of fiscal 2016 | $ 970 |
Fiscal 2,017 | 3,619 |
Fiscal 2,018 | 3,143 |
Fiscal 2,019 | 2,897 |
Fiscal 2,020 | 2,897 |
Fiscal 2,021 | 2,807 |
Thereafter | 4,755 |
Total amortization expense | $ 21,088 |
Business Acquisition (Schedul35
Business Acquisition (Schedule of Goodwill) (Details) $ in Thousands | 9 Months Ended |
Apr. 30, 2016USD ($) | |
Business Combinations [Abstract] | |
Balance as of July 31, 2015 | $ 33,293 |
Goodwill from the acquisition of IID | 25,672 |
Balance as of April 30, 2016 | $ 58,965 |
Stockholders_ Equity and Empl36
Stockholders’ Equity and Employee Benefit Plans (Stock-based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2016 | Jan. 31, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 11,795 | $ 11,759 | $ 37,588 | $ 36,098 |
Total unrecognized stock-based compensation balance | 79,791 | $ 79,791 | ||
Total unrecognized stock-based compensation balance, Weighted-average amortization | 2 years 5 months 23 days | |||
Restricted Stock Units (RSUs) [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 9,137 | 8,169 | $ 28,452 | 23,453 |
Total unrecognized stock-based compensation balance | 67,999 | $ 67,999 | ||
Total unrecognized stock-based compensation balance, Weighted-average amortization | 2 years 7 months 13 days | |||
Stock Option [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 1,215 | 1,990 | $ 4,381 | 7,144 |
Total unrecognized stock-based compensation balance | 6,366 | $ 6,366 | ||
Total unrecognized stock-based compensation balance, Weighted-average amortization | 2 years 2 months 12 days | |||
ESPP [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 970 | 1,600 | $ 3,386 | 5,501 |
Total unrecognized stock-based compensation balance | 2,682 | $ 2,682 | ||
Total unrecognized stock-based compensation balance, Weighted-average amortization | 1 year | |||
MSUs [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 473 | 0 | $ 1,369 | 0 |
Total unrecognized stock-based compensation balance | 2,744 | $ 2,744 | ||
Total unrecognized stock-based compensation balance, Weighted-average amortization | 1 year 3 months | |||
Cost of Revenue [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 1,014 | 1,001 | $ 3,363 | 3,405 |
Research and Development [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 2,523 | 2,549 | 8,648 | 7,790 |
Selling and Marketing [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 5,726 | 5,941 | 18,287 | 18,136 |
General and Administrative Expense [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 2,532 | $ 2,268 | $ 7,290 | $ 6,767 |
Stockholders_ Equity and Empl37
Stockholders’ Equity and Employee Benefit Plans (Determination of Fair Value) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years 29 days | 6 years 29 days | 6 years 29 days |
Risk-free interest rate | 1.66% | 1.70% | 1.79% |
Expected volatility | 54.00% | 52.00% | 56.00% |
Dividend rate | 0.00% | 0.00% | 0.00% |
Weighted average fair value per share, stock options (in dollars per share) | $ 11.89 | $ 9.48 | $ 8.88 |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 64.00% | 71.00% | |
Dividend rate | 0.00% | 0.00% | |
Employee Stock Purchase Plan [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | |
Risk-free interest rate | 0.51% | 0.16% | |
Weighted average fair value per share, stock options (in dollars per share) | $ 6.19 | $ 7.02 | |
Employee Stock Purchase Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 2 years | 2 years | |
Risk-free interest rate | 0.96% | 0.71% | |
Weighted average fair value per share, stock options (in dollars per share) | $ 9.44 | $ 10.72 |
Stockholders_ Equity and Empl38
Stockholders’ Equity and Employee Benefit Plans (Stock Option Activities) (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Apr. 30, 2016 | Jul. 31, 2015 | |
Number of Shares Underlying Outstanding Options | ||
Number of Shares Underlying Outstanding Options, Beginning Balance (in shares) | 3,357,000 | |
Number of Shares Underlying Outstanding Options, Granted (in shares) | 74,000 | |
Number of Shares Underlying Outstanding Options, Exercised (in shares) | (648,000) | |
Number of Shares Underlying Outstanding Options, Canceled due to forfeitures and expirations (in shares) | (350,000) | |
Number of Shares Underlying Outstanding Options, Ending Balance (in shares) | 2,433,000 | 3,357,000 |
Number of Shares Underlying Outstanding Options, Vested and Expected to Vest (in shares) | 2,370,000 | |
Number of Shares Underlying Outstanding Options, Exercisable (in shares) | 1,743,000 | |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price, Beginning Balance (USD per share) | $ 15.45 | |
Weighted Average Exercise Price, Granted (USD per share) | 18.76 | |
Weighted Average Exercise Price, Exercised (USD per share) | 8.12 | |
Weighted Average Exercise Price, Canceled due to forfeitures and expirations (USD per share) | 19.94 | |
Weighted Average Exercise Price, Ending Balance (USD per share) | 16.85 | $ 15.45 |
Weighted-Average Exercise Price, Vested and Expected to Vest (USD per share) | 16.74 | |
Weighted-Average Exercise Price, Exercisable (USD per share) | $ 15.34 | |
Weighted Average Remaining Contractual Term | ||
Weighted Average Remaining Contractual Term | 6 years 3 months 21 days | 6 years 8 months 1 day |
Weighted-Average Remaining Contractual Term, Vested and Expected to Vest | 6 years 2 months 15 days | |
Weighted-Average Remaining Contractual Term, Exercisable | 5 years 5 months 19 days | |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value, Outstanding | $ 8,685 | $ 32,040 |
Aggregate Intrinsic Value, Vested and Expected to Vest | 8,656 | |
Aggregate Intrinsic Value, Exercisable | $ 8,266 |
Stockholders_ Equity and Empl39
Stockholders’ Equity and Employee Benefit Plans (Restricted Stock Units Activities) (Details) - Restricted Stock Units (RSUs) [Member] | 9 Months Ended |
Apr. 30, 2016$ / sharesshares | |
Number of Units | |
Number of Units, Outstanding (in shares) | shares | 4,406,000 |
Number of Units, Granted (in shares) | shares | 2,694,000 |
Number of Units, Vested (in shares) | shares | (1,559,000) |
Number of Units, Cancellations due to forfeitures (in shares) | shares | (788,000) |
Number of Units, Outstanding (in shares) | shares | 4,753,000 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value, Outstanding (USD per share) | $ / shares | $ 21.03 |
Weighted Average Grant Date Fair Value, Granted (USD per share) | $ / shares | 17.64 |
Weighted Average Grant Date Fair Value, Vested (USD per share) | $ / shares | 20.41 |
Weighted Average Grant Date Fair Value, Cancellations due to forfeitures (USD per share) | $ / shares | 19.99 |
Weighted Average Grant Date Fair Value, Outstanding (USD per share) | $ / shares | $ 19.49 |
Stockholders_ Equity and Empl40
Stockholders’ Equity and Employee Benefit Plans (Market Stock Units) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015installment$ / sharesshares | Apr. 30, 2016USD ($)shares | Jan. 31, 2015USD ($) | Apr. 30, 2016USD ($)shares | Apr. 30, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total stock-based compensation expense | $ 11,795 | $ 11,759 | $ 37,588 | $ 36,098 | |
Total unrecognized stock-based compensation balance | 79,791 | 79,791 | |||
Market Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of installments | installment | 3 | ||||
Percent of target shares | 175.00% | ||||
Number of units granted (in shares) | shares | 245,000 | ||||
Weighted Average Grant Date Fair Value, Granted (USD per share) | $ / shares | $ 20.66 | ||||
Total stock-based compensation expense | 473 | $ 0 | 1,369 | $ 0 | |
Total unrecognized stock-based compensation balance | $ 2,744 | $ 2,744 | |||
Number of Units, Vested (in shares) | shares | 0 | 0 | |||
Units canceled (in shares) | shares | 20,000 | 20,000 | |||
Market Stock Units [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percent of target shares | 0.00% | ||||
Market Stock Units [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percent of target shares | 175.00% |
Stockholders_ Equity and Empl41
Stockholders’ Equity and Employee Benefit Plans (Share Repurchase Program) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | |||
Feb. 29, 2016 | Apr. 30, 2016 | May. 31, 2016 | Dec. 08, 2015 | Nov. 30, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized amount | $ 100 | ||||
Remaining authorized repurchase amount | 50 | ||||
Accelerated Share Repurchases, Shares Available for Repurchase | $ 25 | ||||
Subsequent Event [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized amount | $ 150 | ||||
December 8, 2015 [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Amount paid for ASR | $ 50 | ||||
Number of shares received (in shares) | 2,192,982 | ||||
Percent of total amount | 80.00% | ||||
February 2016 [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of additional shares received (in shares) | 748,464 | ||||
Accelerated Share Repurchases, Number of Shares Repurchased | 2,941,446 | ||||
Accelerated Share Repurchase [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Remaining authorized repurchase amount | $ 50 | ||||
Price paid per share (dollars per share) | $ 17 | ||||
Open Market Stock Repurchases [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchased and Retired During Period, Shares | 1,592,480 | ||||
Treasury Stock Acquired, Average Cost Per Share | $ 15.72 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 30, 2016 | Apr. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ (2,226) | $ 754 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Apr. 30, 2016USD ($) | Apr. 30, 2015USD ($) | Jan. 31, 2015USD ($) | Apr. 30, 2016USD ($)segment | Apr. 30, 2015USD ($) | Jul. 31, 2015USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Number of reportable segments | segment | 1 | |||||
Net revenue | $ 81,962 | $ 78,103 | $ 271,983 | $ 219,126 | ||
Property and equipment, net | 23,731 | 23,731 | $ 23,225 | |||
Americas [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net revenue | 50,204 | 53,123 | 170,201 | 144,551 | ||
Property and equipment, net | 22,130 | 22,130 | 21,807 | |||
EMEA [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net revenue | 22,262 | 19,112 | 73,486 | 54,237 | ||
Property and equipment, net | 559 | 559 | 712 | |||
Asia Pacific [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net revenue | 9,496 | $ 5,868 | 28,296 | 20,338 | ||
Property and equipment, net | 1,042 | 1,042 | 706 | |||
United States [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net revenue | 47,900 | $ 50,100 | 161,800 | $ 136,400 | ||
Property and equipment, net | $ 21,400 | $ 21,400 | $ 21,800 |