Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2016 | Aug. 31, 2016 | Jan. 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-K | ||
Document Period End Date | Jul. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 55,598,046 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 937 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 123,830 | $ 103,124 |
Short-term investments | 134,275 | 227,712 |
Accounts receivable, net of allowances of $844 at July 31, 2016 and $446 at July 31, 2015 | 59,937 | 45,881 |
Inventory | 6,045 | 8,588 |
Prepaid expenses and other current assets | 12,588 | 10,459 |
Total current assets | 336,675 | 395,764 |
Property and equipment, net | 22,004 | 23,225 |
Restricted cash | 10,030 | 3,515 |
Intangible assets, net | 20,119 | 1,923 |
Goodwill | 58,965 | 33,293 |
Other assets | 1,310 | 1,547 |
TOTAL ASSETS | 449,103 | 459,267 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued liabilities | 25,871 | 19,136 |
Accrued compensation | 18,420 | 22,931 |
Deferred revenue, net | 122,223 | 95,130 |
Total current liabilities | 166,514 | 137,197 |
Deferred revenue, net | 53,681 | 41,717 |
Other liabilities | 10,400 | 5,201 |
TOTAL LIABILITIES | 230,595 | 184,115 |
Commitments and contingencies (Note 9) | ||
STOCKHOLDERS' EQUITY: | ||
Convertible preferred stock, $0.0001 par value per share—5,000 shares authorized; no shares issued or outstanding | 0 | |
Common stock, $0.0001 par value per share—100,000 shares authorized; 55,973 shares and 58,836 shares issued and outstanding as of July 31, 2016 and July 31, 2015 | 6 | 6 |
Additional paid-in capital | 459,811 | 438,725 |
Accumulated other comprehensive income (loss) | 30 | (37) |
Accumulated deficit | (241,339) | (163,542) |
TOTAL STOCKHOLDERS' EQUITY | 218,508 | 275,152 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 449,103 | $ 459,267 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowances | $ 446 | $ 464 |
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 | 59,762,000 | 58,836,000 |
Common stock, shares outstanding | 59,762,000 | 58,836,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Net revenue: | |||
Products and licenses | $ 178,805 | $ 156,510 | $ 130,348 |
Services | 179,481 | 149,615 | 119,992 |
Total net revenue | 358,286 | 306,125 | 250,340 |
Cost of revenue: | |||
Products and licenses | 37,715 | 35,362 | 29,327 |
Services | 38,643 | 31,769 | 26,471 |
Total cost of revenue | 76,358 | 67,131 | 55,798 |
Gross profit | 281,928 | 238,994 | 194,542 |
Operating expenses: | |||
Research and development | 70,034 | 65,092 | 49,289 |
Sales and marketing | 178,983 | 162,217 | 138,612 |
General and administrative | 44,019 | 37,110 | 29,621 |
Restructuring charges | 5,657 | 0 | 0 |
Total operating expenses | 298,693 | 264,419 | 217,522 |
Loss from operations | (16,765) | (25,425) | (22,980) |
Other income (expense), net | 511 | (651) | (18) |
Loss before provision for (benefit from) income taxes | (16,254) | (26,076) | (22,998) |
Provision for (benefit from) income taxes | (2,543) | 1,007 | 919 |
Net loss | $ (13,711) | $ (27,083) | $ (23,917) |
Net loss per share - basic and diluted (USD per share) | $ (0.24) | $ (0.48) | $ (0.45) |
Weighted-average shares used in computing net loss per share - basic and diluted (in shares) | 58,080 | 56,626 | 53,581 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Statement of Other Comprehensive Income (Loss) [Abstract] | |||
Net loss | $ (13,711) | $ (27,083) | $ (23,917) |
Unrealized holding gain (loss) on short-term investments, net | 67 | 47 | (73) |
Comprehensive loss | $ (13,644) | $ (27,036) | $ (23,990) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Common Stock [Member] |
Balance at (in shares) at Jul. 31, 2013 | 51,670 | ||||
Balance at at Jul. 31, 2013 | $ 189,553 | $ 302,101 | $ (11) | $ (112,542) | $ 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 40,934 | 40,934 | |||
Issuance of common stock upon exercise of stock options (in shares) | 2,052 | ||||
Issuance of common stock upon exercise of stock options | 13,835 | 13,834 | $ 1 | ||
Issuance of common stock in connection with the ESPP (in shares) | 644 | ||||
Issuance of common stock in connection with the ESPP | 8,161 | 8,161 | |||
Restricted stock units issued in connection with business acquisition (in shares) | 18 | ||||
Restricted stock units issued in connection with business acquisition | 573 | 573 | |||
Excess tax benefit from employee stock plans | 170 | 170 | |||
Vesting of early exercised stock options | 60 | 60 | |||
Issuance of common stock upon vesting of restricted stock units (in shares) | 681 | ||||
Net unrealized holding loss on short-term investments | (73) | (73) | |||
Net loss | (23,917) | (23,917) | |||
Balance at (in shares) at Jul. 31, 2014 | 55,065 | ||||
Balance at at Jul. 31, 2014 | 229,296 | 365,833 | (84) | (136,459) | $ 6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 47,597 | 47,597 | |||
Issuance of common stock upon exercise of stock options (in shares) | 1,919 | ||||
Issuance of common stock upon exercise of stock options | 16,629 | 16,629 | |||
Issuance of common stock in connection with the ESPP (in shares) | 745 | ||||
Issuance of common stock in connection with the ESPP | 8,435 | 8,435 | |||
Excess tax benefit from employee stock plans | 207 | 207 | |||
Vesting of early exercised stock options | 24 | 24 | |||
Issuance of common stock upon vesting of restricted stock units (in shares) | 1,107 | ||||
Net unrealized holding loss on short-term investments | 47 | 47 | |||
Net loss | (27,083) | (27,083) | |||
Balance at (in shares) at Jul. 31, 2015 | 58,836 | ||||
Balance at at Jul. 31, 2015 | 275,152 | 438,725 | (37) | (163,542) | $ 6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 48,415 | 48,415 | |||
Common stock repurchases (in shares) | (6,346) | ||||
Common stock repurchases | (108,868) | (44,782) | (64,086) | ||
Issuance of common stock upon exercise of stock options (in shares) | 886 | ||||
Issuance of common stock upon exercise of stock options | 7,513 | 7,513 | |||
Issuance of common stock in connection with the ESPP (in shares) | 788 | ||||
Issuance of common stock in connection with the ESPP | 9,735 | 9,735 | |||
Excess tax benefit from employee stock plans | 205 | 205 | |||
Issuance of common stock upon vesting of restricted stock units (in shares) | 1,809 | ||||
Net unrealized holding loss on short-term investments | 67 | 67 | |||
Net loss | (13,711) | (13,711) | |||
Balance at (in shares) at Jul. 31, 2016 | 55,973 | ||||
Balance at at Jul. 31, 2016 | $ 218,508 | $ 459,811 | $ 30 | $ (241,339) | $ 6 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (13,711) | $ (27,083) | $ (23,917) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Stock-based compensation | 48,246 | 47,623 | 40,971 |
Depreciation and amortization | 11,654 | 8,888 | 8,735 |
Excess tax benefits from employee stock plans | (205) | (207) | (170) |
Deferred income taxes | (3,658) | 0 | 0 |
Other | 953 | 2,096 | 827 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (13,810) | (9,461) | 2,308 |
Inventory | 2,449 | (2,615) | (1,867) |
Prepaid expenses, other current assets and other assets | 825 | (3,629) | (1,500) |
Accounts payable and accrued liabilities | 4,817 | 2,833 | 3,061 |
Accrued compensation | (4,511) | 9,734 | 725 |
Deferred revenue, net | 36,075 | 20,734 | 17,927 |
Other liabilities | (1,013) | (902) | (792) |
Net cash provided by operating activities | 68,111 | 48,011 | 46,308 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of short-term investments | (29,905) | (147,137) | (186,322) |
Proceeds from maturities of short-term investments | 122,880 | 109,290 | 86,730 |
Proceeds from sales of short-term investments | 0 | 1,001 | 47,180 |
Purchases of property and equipment | (8,318) | (10,303) | (6,352) |
Business acquisition, net of cash acquired | (31,531) | 0 | (1,000) |
Change in restricted cash | (8,508) | 0 | 0 |
Net cash provided by (used in) investing activities | 44,618 | (47,149) | (59,764) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Common stock repurchases | (108,868) | 0 | 0 |
Proceeds from issuance of common stock under the employee stock plans | 17,248 | 25,039 | 21,993 |
Settlement of hold back liability related to IID acquisition | (566) | 0 | 0 |
Excess tax benefits from employee stock plans | 205 | 207 | 170 |
Net cash provided by (used in) financing activities | (91,981) | 25,246 | 22,163 |
Effect of foreign exchange rate changes on cash and cash equivalents | (42) | (1,519) | 0 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 20,706 | 24,589 | 8,707 |
CASH AND CASH EQUIVALENTS - Beginning of year | 103,124 | 78,535 | 69,828 |
CASH AND CASH EQUIVALENTS - End of year | 123,830 | 103,124 | 78,535 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||
Purchases of property and equipment not yet paid | 542 | 1,341 | 484 |
Cash paid for income taxes, net | 727 | 483 | 489 |
Restricted stock units released in connection with business acquisition | $ 0 | $ 0 | $ 573 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 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 its subsidiaries, “we” 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 accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include all adjustments necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the periods presented. The accompanying consolidated financial statements include the accounts of Infoblox Inc. and our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the 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, restricted cash and available-for-sale investments, valuation of inventory, determination of fair value of stock-based awards, valuation of assumed liabilities and acquired goodwill, tangible and intangible assets, impairment of goodwill and other intangible assets, amortization of intangible assets, restructuring liabilities, 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 consolidated financial statements. Concentration of Supply Risk with Contract Manufacturer We outsource the substantial majority of our manufacturing, repair and supply chain management operations to one independent contract manufacturer. The inability of the manufacturer to fulfill our supply requirements could have a material and adverse effect on our business and consolidated financial statements. In addition, our independent contract manufacturer procures components and manufactures our products based on our demand forecasts. These forecasts are based on our 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. We may be subject to the requirement to purchase inventory or to pay additional fees to the contract manufacturer if there is a significant difference in scheduled shipments or if the contract manufacturer holds inventory longer than a specified period. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, restricted cash, available-for-sale investments and accounts receivable. Our cash, cash equivalents and restricted cash are invested in high-credit quality financial instruments held mainly in two US banks. Such deposits may be in excess of insured limits provided on such deposits. Our investments consist of a diversified portfolio of highly liquid securities that have maturities of less than two years. 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. Cash and Cash Equivalents All highly liquid investments purchased with an original maturity of three months or less are classified as cash and cash equivalents. Cash and cash equivalents consist of cash on hand, demand deposits with banks, highly liquid investments in money market funds, U.S. Treasury securities and certificates of deposit which are readily convertible into cash. Restricted Cash Under our facility lease arrangements, we are required to maintain letters of credit from a U.S. bank as security for performance under these agreements. The letters of credit are generally invested in U.S. Treasury securities or money market funds or interest-bearing accounts in amounts equal to the letters of credit, which are classified as restricted cash on the consolidated balance sheets. As of July 31, 2016, restricted cash amounted to $12.0 million , of which $2.0 million is shown as part of prepaid expenses and other current assets and $10.0 million is shown as non-current assets in the consolidated balance sheet. Of the $12.0 million restricted cash as of July 31, 2016, $8.5 million is related to hold-back liability in connection with the IID acquisition. As of July 31, 2015, restricted cash, which is shown under non-current assets in the consolidated balance sheet, amounted to $3.5 million . Short-term Investments Investments with original maturities at purchase of greater than three months are classified as short-term or long-term investments. Management determines the appropriate classification of securities at the time of purchase and re-evaluates such classification as of each balance sheet date. Our investments in publicly-traded debt securities are classified as available-for-sale. Available-for-sale investments are initially recorded at cost and periodically adjusted to fair value in the consolidated balance sheets. Unrealized gains and losses on these investments are reported as a separate component of accumulated other comprehensive income (loss). Realized gains and losses are determined based on the specific identification method and are reported in the consolidated statements of operations. The investments are adjusted for amortization of premiums and discounts to maturity and such amortization is included in other income (expense), net. We recognize an impairment charge for available-for-sale investments when a decline in the fair value of our investments below the cost basis is determined to be other than temporary. We consider various factors in determining whether to recognize an impairment charge, including the length of time the investment has been in a loss position, the extent to which the fair value has been less than the cost basis, the investment's financial condition and near-term prospects, and our intent to sell, or whether it is more likely than not we will be required to sell, the investment before recovery of the investment's amortized cost basis. If we determine that the decline in an investment's fair value is other than temporary, the difference is recognized as an impairment loss in our consolidated statements of operations. During the year ended July 31, 2016 , we did not consider any of our investments to be other-than-temporarily impaired. Fair Value Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market in which we transact, and consider assumptions that market participants would use when pricing the asset or liability. We apply the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level I - Quoted prices in active markets for identical assets or liabilities. Level II - Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. These inputs are valued using market based approaches. Level III - Inputs are unobservable inputs based on management assumptions. These inputs, if any, are valued using internal financial models. Inventory Inventories are stated at the lower of standard cost, which approximates actual cost (first-in, first-out), or market value (estimated net realizable value). The valuation of inventories at the lower of cost or market value requires the use of estimates regarding the amount of inventory that will be sold and the prices at which current inventory will be sold. These estimates are dependent on our assessment of current and expected orders from our customers. If actual market conditions are less favorable than those projected by management, inventory write-downs may be required. Our finished goods mainly consist of appliances that are used for the replacement of failed units under maintenance and support agreements and finished goods needed for our expanded depot requirements. We write down refurbished inventory based on the age of the units and number of hardware failures. Property and Equipment, Net Property and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which are two to seven years. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful lives of the assets or the remaining lease term. Upon the retirement or disposition of property and equipment, the related costs and accumulated depreciation are removed from, and the resulting gain or loss is included in, the consolidated statements of operations. Repair and maintenance costs that do not extend the life or improve an asset are charged to expense as incurred. Goodwill, Intangible Assets and Other Long-Lived Assets Goodwill represents the future economic benefits arising from other assets acquired in a business combination or an acquisition that are not individually identified and separately recorded. The excess of the purchase price over the estimated fair value of net assets of businesses acquired in a business combination is recognized as goodwill. Intangible assets consist of identifiable intangible assets, including developed technology, customer relationships, non-compete agreements, trademarks and patents, resulting from our acquisitions. Intangible assets are recorded at fair value, net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense is included as a component of cost of products and licenses revenue and sales and marketing expense in the accompanying consolidated statements of operations. Amounts included in sales and marketing expense relate to amortization of intangible asset attributed to customer relationships. Goodwill and other intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized, but instead tested for impairment at least annually during the fourth quarter. Such goodwill and other intangible assets may also be tested for impairment between annual tests in the presence of impairment indicators such as, but not limited to: (a) a significant adverse change in legal factors or in the business climate; (b) a substantial decline in our market capitalization, (c) an adverse action or assessment by a regulator; (d) unanticipated competition; (e) loss of key personnel; (f) a more likely-than-not expectation of sale or disposal of a reporting unit or a significant portion thereof; (g) a realignment of our resources or restructuring of our existing businesses in response to changes to industry and market conditions; (h) testing for recoverability of a significant asset group within a reporting unit; or (i) higher discount rate used in the impairment analysis as impacted by an increase in interest rates. We evaluate goodwill for impairment on an annual basis as of May 1st or more frequently if we believe impairment indicators exist. Goodwill is tested for impairment by comparing the reporting unit's carrying value, including goodwill, to the fair value of the reporting unit. We operate under one reporting unit and for our annual goodwill impairment test, we determine the fair value of our reporting unit based on the Company's enterprise value. Long-lived assets, such as property and equipment and intangible assets subject to depreciation and amortization, are evaluated for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Among the factors and circumstances we considered in determining recoverability are: (i) a significant decrease in the market price of a long-lived asset; (ii) a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition; (iii) a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, including an adverse action or assessment by a regulator; (iv) an accumulation of costs significantly in excess of the amount originally expected for the acquisition and (v) current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. There have been no indicators of impairment of goodwill, intangible assets and other long-lived assets, and we did not record any impairment losses during fiscal years 2016 , 2015 and 2014 . Revenue Recognition We generate revenue from the sales or licensing of hardware and software products, support and maintenance, and other services through a direct sales force and indirect relationships with our channel partners. Revenue is recognized when all of the following criteria are met: Persuasive evidence of an arrangement exists. Evidence of an arrangement generally consists of a purchase order issued pursuant to the terms and conditions of a distributor or value-added reseller agreement or, in limited cases, an end-user agreement. Delivery or performance has occurred. We use shipping and related documents, distributor sell-through reports, or written evidence of customer acceptance, when applicable, to verify delivery or performance. We do not recognize product revenue until transfer of title and risk of loss, which generally is upon shipment to value-added resellers or end-users. The sales price is fixed or determinable. We assess whether the sales price is fixed or determinable based on payment terms and whether the sales price is subject to refund or adjustment. Collection is probable . We assess probability of collection on a customer-by-customer basis. We subject our customers to a credit review process that evaluates their financial condition and ability to pay for our products and services. If we conclude that collection is not probable, we do not recognize revenue until cash is received. We recognize product revenue at the time of shipment provided that all other revenue recognition criteria have been met. Our channel partners generally receive an order from an end-customer prior to placing an order with us. In addition, payment from our channel partners is not contingent on the partner’s success in sales to end-customers. Our channel partners generally do not stock appliances and only have limited stock rotation rights and no price protection rights. When necessary, we make certain estimates and maintain allowances for sales returns and other programs based on our historical experience. To date, these estimates have not been significant. S ervices revenue includes maintenance and support, training and consulting, and subscription services revenue. Maintenance and support revenue includes arrangements for software maintenance and technical support for our products and licenses. Maintenance is offered under renewable, fee-based contracts, which include 24-hour technical support, hardware repair and replacement parts, bug fixes, patches and unspecified upgrades on a when-and-if-available basis. Revenue from customer maintenance and support contracts and subscription services is deferred and recognized ratably over the contractual period, generally one to three years. Revenue from consulting and training is recognized as the services are completed. Revenues are reported net of sales taxes. Multiple Element Arrangements We enter into multiple element revenue arrangements in which a customer may purchase a combination of hardware, software, software upgrades, hardware and software maintenance and support, training and consulting, and subscription services. We account for multiple agreements with a single customer as one arrangement if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single arrangement. Most of our products are hardware appliances containing software components that operate together to provide the essential functionality of the product. Therefore, the software sold with our hardware appliances are considered non-software deliverables and are not accounted for under the industry-specific software revenue recognition guidance. Our products and licenses revenue also includes stand-alone software products. Stand-alone software may operate on our hardware appliances, but is not considered essential to the functionality of the hardware and continues to be subject to the industry-specific software revenue recognition guidance. The industry-specific software revenue recognition guidance includes the use of the residual method under which the amount of revenue allocated to delivered elements equals the total arrangement consideration less the aggregate fair value of any undelivered elements. If VSOE of fair value of one or more undelivered items does not exist, revenue from the entire arrangement is deferred and recognized at the earlier of: (i) delivery of those elements or (ii) when fair value can be established unless support and maintenance is the only undelivered element, in which case, the entire arrangement fee is recognized ratably over the contractual service period. We provide unspecified software upgrades for most of our products, on a when-and-if available basis, through maintenance and support contracts. To the extent that the software being supported does not function together with the hardware to deliver the hardware’s essential functionality, these support arrangements would continue to be subject to the industry-specific software revenue recognition guidance. We allocate the arrangement fee to each element based upon the relative selling price of that element and, if software and software-related (e.g., maintenance for the software element) elements are also included in the arrangement, we allocate the arrangement fee to each of those software and software-related elements as a group based on the relative selling price for those elements. After such allocations are made, the amount of the arrangement fee allocated to the software and software-related elements is accounted for using the residual method. When applying the relative selling price method, we determine the selling price for each element using vendor-specific objective evidence, or VSOE, of selling price, if it exists, or if not, third-party evidence, or TPE, of selling price, if it exists. If neither VSOE nor TPE of selling price exist for an element, we use our best estimate of selling price, or BESP, for that element. The revenue allocated to each element is then recognized when the basic revenue recognition criteria are met for that element. We limit the amount of revenue recognized for delivered elements to an amount that is not contingent upon future delivery of additional products or services or meeting of any specified performance conditions. Whenever possible, we determine VSOE for each element based on historical stand-alone sales to third parties. For maintenance and support, training and consulting, and subscription services, we determine the VSOE of fair value based on our history of stand-alone sales demonstrating that a substantial majority of transactions fall within a narrow range for each service offering. We historically have not been able to determine TPE for our products, maintenance and support, training or consulting services. TPE is determined based on competitor prices for similar elements when sold separately. Generally, our offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, our go-to-market strategy differs from that of our peers and we are unable to reliably determine what similar competitor products' selling prices are on a stand-alone basis. When we are unable to establish the selling price of an element using VSOE or TPE, we use BESP in our allocation of consideration to various elements under the arrangement. The objective of BESP is to determine the price at which we would transact a sale if the product or service were sold on a stand-alone basis. The BESP is established based on internal and external factors, including pricing practices such as discounting, cost of products, the geographies in which we offer our products and services, and customer classes and distribution channels (e.g. distributor, value-added reseller and direct end-user). The determination of BESP is made through consultation with and approval by our management, taking into consideration our pricing model and go-to-market strategy. For our non-software deliverables, we generally determine relative selling price based on BESP. However, for our maintenance and support, training and consulting, and subscription services, we generally use VSOE to determine relative selling price. When we are unable to establish selling price using VSOE for our maintenance and support, training and consulting, and subscription services, we use BESP in our allocation of arrangement consideration. We regularly review VSOE and BESP data provided by actual transactions to update these estimates and the relative selling prices allocated to each element. Deferred Revenue, Net Deferred revenue, net represents amounts invoiced to customers, less related cost of revenue, for which the related revenue has not been recognized because one or more of the revenue recognition criteria have not been met. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the consolidated balance sheet date. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at invoiced amounts, net of allowances for doubtful accounts if applicable, and do not bear interest. We evaluate the collectability of our accounts receivable based on known collection risks and historical experience. In circumstances where we are aware of a specific customer's inability to meet its financial obligations to us (e.g., bankruptcy filings or substantial downgrading of credit ratings), we record a specific reserve for bad debts against amounts due to reduce the net recognized receivable to the amount we reasonably believe will be collected. For all other customers, we record reserves for bad debts based on the length of time the receivables are past due and our historical experience of collections and write-offs. If circumstances change, such as higher-than-expected defaults or an unexpected material adverse change in a major customer's ability to meet its financial obligations, our estimate of the recoverability of the amounts due could be reduced by a material amount. Concentration of Revenue and Accounts Receivable Significant customers are those which represent more than 10% of our total net revenue or gross accounts receivable balance at each respective balance sheet date. We had one distributor, Exclusive Networks, which accounted for 14.8% , 10.8% and 10.5% of our total net revenue for fiscal years 2016 , 2015 and 2014 . As of July 31, 2016 and 2015 , Exclusive Networks accounted 17.1% and 12.1% of our total gross accounts receivable. Shipping and Handling Shipping charges billed to customers are included in revenue and the related shipping costs are included in cost of revenue. Research and Development Costs Software development costs incurred in the research and development of new products and enhancements to existing products are charged to expense as incurred. Software development costs are capitalized after technological feasibility has been established. The period between achievement of technological feasibility, which we define as the establishment of a working model, and the general availability of such software to customers has been short, resulting in software development costs qualifying for capitalization being insignificant. Accordingly, we did not capitalize any software development costs during the years ended July 31, 2016 , 2015 and 2014 . Stock-Based Compensation We recognize share-based compensation expense for all share-based payment awards including employee stock options, RSUs, MSUs and purchases under our ESPP based on each award's fair value on the grant date. We utilize the BSM option pricing model in order to determine the fair value of stock options and ESPP. The BSM model requires various highly subjective assumptions that represent management's best estimates of volatility, risk-free interest rate, expected life, and dividend yield. We estimate expected volatility based on the historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options and ESPP. We determine the expected term of stock options using the simplified method which deems the term to be the average of the time-to-vesting and the contractual life of the options. The expected life of ESPP approximates the offering period. The fair value of the RSUs is determined using the closing price of our common stock on the date of the grant. Compensation is recognized on a straight-line basis over the requisite service period of each grant adjusted for estimated forfeitures. 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 and do not adjust the expense for subsequent changes in the expected outcome of the market-based vesting conditions. In addition, we are required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. We estimate the forfeiture rate based on historical experience and our expectations regarding future pre-vesting termination behavior of employees. Restructuring Charges In June 2016, we implemented a restructuring plan to reprioritize and reduce investments in all of our functions. The announced actions include steps intended to optimize program-based and discretionary spending; revise hiring priorities with a goal to support customer-facing sales coverage while improving overall sales and marketing efficiency; and reduce headcount in higher cost locations and for certain identified positions. As a result, we have recorded restructuring charges comprised principally of employee severance and associated termination costs related to the reduction of our workforce. Our restructuring plan includes one-time termination benefits which are recognized as a liability at estimated fair value when the approved plan has identified the number of employees, functions and associated estimated costs, the plan has been communicated to the employees, and changes to the terms of the plan are considered unlikely. Advertising Costs Advertising costs are charged to sales and marketing expenses as incurred in the consolidated statements of operations. Advertising expense during fiscal years 2016 , 2015 and 2014 was $0.6 million , $1.4 million and $1.3 million . Foreign Currency The functional currency of our foreign subsidiaries is the U.S. dollar. Transactions denominated in currencies other than the functional currency are remeasured at the average exchange rate in effect during the period. At the end of each reporting period, our subsidiaries' monetary assets and liabilities are remeasured to the functional currency using exchange rates in effect at the end of the reporting period. Non-monetary assets and liabilities are remeasured at historical exchange rates. Gains and losses related to remeasurement are recorded in other expense, net in the consolidated statements of operations. Foreign currency exchange losses included in other expense, net during fiscal years 2016 , 2015 and 2014 were $0.5 million , $1.4 million and $0.5 million . Income Taxes We account for income taxes under an asset and liability approach for deferred income taxes, which requires recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements, but have not been reflected in our taxable income. Estimates and judgments occur in the calculation of certain tax liabilities and in the determination of the recoverability of certain deferred income tax assets, which arise from temporary differences and carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We regularly assess the likelihood that our deferred income tax assets will be realized based on the realization guidance available. To the extent that we believe any amounts are not more-likely-than-not to be realized, we record a valuation allowance to reduce the deferred income tax assets. We regularly assess the need for the valuation allowance on our deferred tax assets, and to the extent that we determine that an adjustment is needed, such adjustment will be recorded in the period that the determination is made. We regularly review our tax positions and benefits to be realized. We recognize tax liabilities based upon our estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. We recognize interest and penalties related to income tax matters as income tax expense. For fiscal years 2016 , 2015 and 2014 , we did not incur any interest or penalties associated with unrecognized tax benefits. Segment Information Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by our chief operating decision maker in deciding how to allocate resources and assessing performance. Our chief operating decision maker is our chief executive officer. Our chief executive officer reviews financial information presented on a consolidated basis, for purposes of allocating resources and evaluating financial performance. We have one business activity and there are no segment managers who are held accountable for operations, operating results beyond revenue goals or gross margins, or plans for levels or components below the consolidated unit level. Accordingly, we have a single reporting segment. Recently Issued Accounting Pronounc |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Jul. 31, 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 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 weighted-average shares of common stock equivalents were excluded from the computation of diluted net loss per share for the years presented because including them would have been antidilutive: Year Ended July 31, 2016 2015 2014 (In thousands) Stock options to purchase common stock 2,134 3,155 3,629 Restricted stock units 2,060 2,077 1,745 Employee stock purchase plan 290 139 380 |
Cash Equivalents and Short-term
Cash Equivalents and Short-term Investments, Restricted Cash and Fair Value Measurements | 12 Months Ended |
Jul. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Cash Equivalents and 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 July 31, 2016 : Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (In thousands) Cash equivalents: Money market funds $ 8,749 $ — $ — $ 8,749 Short-term investments: U.S. Treasury securities 104,974 39 (7 ) 105,006 U.S. government agency securities 16,551 2 (6 ) 16,547 FDIC-backed certificates of deposit 12,720 6 (4 ) 12,722 Total short-term investments 134,245 47 (17 ) 134,275 Restricted cash: Money market funds 3,425 — — 3,425 Total cash equivalents, short-term investments and restricted cash $ 146,419 $ 47 $ (17 ) $ 146,449 The following table presents the maturities of our short-term investments which are classified as available-for-sale securities as of July 31, 2016 : Amortized Cost Estimated Fair Value (In thousands) Due within one year $ 109,521 $ 109,550 Due after one year through two years 24,724 24,725 Total $ 134,245 $ 134,275 We classify our available-for-sale investments as short-term investments in our consolidated balance sheets 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: Money market funds 3,416 1 (4 ) 3,413 Total cash equivalents, short-term investments and restricted cash $ 236,857 $ 67 $ (104 ) $ 236,820 Unrealized losses related to our short-term investments are due to interest rate fluctuations as opposed to credit quality. In addition, we do not intend to sell and it is not likely that we would be required to sell these investments before recovery of their amortized cost basis, which may be at maturity. As a result, there were no other-than-temporary impairments for these investments at July 31, 2016 and 2015. 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 July 31, 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 Reported as cash equivalents: Money market funds $ 8,749 $ — $ — $ 8,749 Reported as short-term investments: U.S. Treasury securities 105,006 — — 105,006 U.S. government agency securities — 16,547 — 16,547 FDIC-backed certificates of deposit — 12,722 — 12,722 Total short-term investments 105,006 29,269 — 134,275 Reported as restricted cash: Money market funds 3,425 — — 3,425 Total financial assets $ 117,180 $ 29,269 $ — $ 146,449 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 Reported as cash equivalents: Money market funds $ 5,695 $ — $ — $ 5,695 Reported as 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 Reported as restricted cash: Money market funds 3,413 — — 3,413 Total financial assets $ 171,818 $ 65,002 $ — $ 236,820 We value our Level I assets, consisting primarily 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 fiscal years July 31, 2016 and 2015 . |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jul. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Components | BALANCE SHEET COMPONENTS Allowance for Doubtful Accounts and Sales Returns Reserve The allowances for doubtful accounts and sales returns consist of the following activity: Balance at Beginning of Year Charged to (Reversed From) Cost and Expenses or Revenue Deductions Balance at End of Year (In thousands) Year Ended July 31, 2014 Allowance for doubtful accounts $ 356 $ 72 $ (89 ) $ 339 Sales returns reserve 225 (73 ) (27 ) 125 Total allowance for doubtful accounts and sales returns reserve $ 581 $ (1 ) $ (116 ) $ 464 Year Ended July 31, 2015 Allowance for doubtful accounts $ 339 $ 85 $ (108 ) $ 316 Sales returns reserve 125 32 (27 ) 130 Total allowance for doubtful accounts and sales returns reserve $ 464 $ 117 $ (135 ) $ 446 Year Ended July 31, 2016 Allowance for doubtful accounts $ 316 $ 288 $ (41 ) $ 563 Sales returns reserve 130 394 (243 ) 281 Total allowance for doubtful accounts and sales returns reserve $ 446 $ 682 $ (284 ) $ 844 Inventory Inventory consists of the following: As of July 31, 2016 2015 (In thousands) Raw materials $ 1,262 $ 2,224 Finished goods 4,783 6,364 Total inventory $ 6,045 $ 8,588 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: As of July 31, 2016 2015 (In thousands) Prepaid expenses $ 9,104 $ 8,742 Other current assets 3,484 1,717 Total prepaid expenses and other current assets $ 12,588 $ 10,459 Property and Equipment, Net Property and equipment, net consists of the following: As of July 31, 2016 2015 (In thousands) Computer equipment and software $ 34,260 $ 28,073 Furniture and fixtures 5,470 4,666 Leasehold improvements 12,003 11,370 Total property and equipment, gross 51,733 44,109 Less accumulated depreciation and amortization (29,729 ) (20,884 ) Total property and equipment, net $ 22,004 $ 23,225 Depreciation and amortization expense was $9.0 million , $6.7 million and $6.3 million in fiscal years 2016 , 2015 and 2014 . Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following: As of July 31, 2016 2015 (In thousands) Accounts payable $ 11,803 $ 10,041 Accrued restructuring liability (see Note 8) 3,750 — Other 10,318 9,095 Total accounts payable and other current liabilities $ 25,871 $ 19,136 Deferred Revenue, Net Deferred revenue, net consists of the following: As of July 31, 2016 2015 (In thousands) Deferred revenue: Products and licenses $ 8,124 $ 6,255 Services 171,841 133,834 Total deferred revenue 179,965 140,089 Deferred cost of revenue: Products and licenses 360 567 Services 3,701 2,675 Total deferred cost of revenue 4,061 3,242 Total deferred revenue, net 175,904 136,847 Less current portion 122,223 95,130 Non-current portion $ 53,681 $ 41,717 |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Jul. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | OTHER INCOME (EXPENSE), NET Other income (expense), net is comprised of the following: Year Ended July 31, 2016 2015 2014 (In thousands) Interest income and other, net $ 1,016 $ 751 $ 435 Foreign currency exchange losses (505 ) (1,402 ) (453 ) Total other income (expense), net $ 511 $ (651 ) $ (18 ) |
Acquisitions
Acquisitions | 12 Months Ended |
Jul. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 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 . The cash paid for this acquisition immediately after the Closing Date, net of cash acquired, was $31.5 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 year 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 was $0.6 million , which approximated 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 . The working capital adjustment holdback was released to the selling shareholders during the fourth quarter of fiscal 2016. The unpaid hold-back amounts totaling $8.5 million are reported as restricted cash in our consolidated balance sheet as of July 31, 2016 of which the current portion of $2.0 million is shown as part of prepaid expenses and other current assets. The liabilities associated with these hold-back amounts as of July 31, 2016 had a total carrying value of $8.1 million , of which $1.9 million is included as part of accounts payable and accrued liabilities and $6.2 million is included as part of other liabilities in the consolidated balance sheet. We recognized approximately $0.6 million of acquisition-related costs as general and administrative expense on our consolidated statements of operations during the year ended July 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 consolidated financial statements for the year ended July 31, 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 July 31, 2016: Estimated Fair Value Estimated Useful Life Accumulated Amortization Net Carrying Value (in thousands) (in Years) (in thousands) Developed technology $ 15,330 7 $ (1,045 ) $ 14,285 Customer relationships 4,500 8 (268 ) 4,232 Non-compete agreements 700 2 (167 ) 533 Trade name 370 1 (176 ) 194 Total $ 20,900 $ (1,656 ) $ 19,244 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 year ended July 31, 2016 was $1.7 million . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jul. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill is generally not deductible for tax purposes in stock for stock transactions. The balance of goodwill was $59.0 million and $33.3 million as of July 31, 2016 and 2015 . The change in the carrying amount of goodwill for fiscal year 2016 was as follows: Amount in Thousands Balance as of July 31, 2015 $ 33,293 IID acquisition 25,672 Balance as of July 31, 2016 $ 58,965 Intangible Assets The gross carrying amount and accumulated amortization of our intangible assets other than goodwill were as follows: As of July 31, 2016 Amortization Period Gross Value Accumulated Amortization Net Carrying Value Weighted-Average Remaining Amortization Period (Dollars in thousands) Developed technology 5 to 7 years $ 22,635 $ (7,715 ) $ 14,920 6.49 years Customer relationships 2 to 8 years 11,074 (6,685 ) 4,389 7.37 years Trademarks 1 to 6 years 570 (376 ) 194 0.58 years Patents 6 years 1,000 (917 ) 83 0.50 years Non-compete agreements 2 years 700 (167 ) 533 1.58 years Total $ 35,979 $ (15,860 ) $ 20,119 As of July 31, 2015 Amortization Period Gross Value Accumulated Amortization Net Carrying Value Weighted-Average Remaining Amortization Period (Dollars in thousands) Developed technology 5 to 6 years $ 7,305 $ (5,908 ) $ 1,397 3.30 years Customer relationships 2 to 7 years 6,574 (6,323 ) 251 2.67 years Trademarks 6 years 200 (175 ) 25 0.75 years Patents 6 years 1,000 (750 ) 250 1.50 years Total $ 15,079 $ (13,156 ) $ 1,923 We recognized intangible asset amortization expense in the consolidated statements of operations as follows: Year Ended July 31, 2016 2015 2014 (In thousands) Cost of products and licenses revenue $ 1,973 $ 1,160 $ 1,110 Sales and marketing 731 1,013 1,308 Total intangible asset amortization expense $ 2,704 $ 2,173 $ 2,418 As of July 31, 2016 , estimated amortization expense related to our identifiable acquisition-related intangible assets in future periods is as follows: Fiscal Year Ending July 31, Estimated Amortization Expense (In thousands) 2017 $ 3,619 2018 3,143 2019 2,898 2020 2,898 2021 2,807 Thereafter 4,754 Total $ 20,119 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Jul. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | RESTRUCTURING CHARGES In June 2016, we implemented a restructuring plan to reprioritize and reduce investments in all of our functions. The announced actions include steps intended to optimize program-based and discretionary spending; revise hiring priorities with a goal to support customer-facing sales coverage while improving overall sales and marketing efficiency; and reduce headcount in higher cost locations and for certain identified positions. As a result, we have recorded restructuring charges comprised principally of employee severance and associated termination costs related to the reduction of our workforce. Our restructuring plan includes one-time termination benefits which are recognized as a liability at estimated fair value when the approved plan has identified the number of employees, functions and associated estimated costs, the plan has been communicated to the employees, and changes to the terms of the plan are considered unlikely. During fiscal year ended July 31, 2016, we incurred $5.7 million in restructuring charges. These charges were mainly related to employee severance and benefit arrangements due to the terminations of employees. The remaining accrual as of July 31, 2016 of $3.8 million , which is included as part of accounts payable and accrued liabilities in the consolidated balance as of July 31, 2016, primarily relates to severance benefits we expect to payout in the next 12 months. The following table presents the restructuring activity for the year ended July 31, 2016: Employee Severance and Benefits Operating Lease Terminations Fixed Assets Impairment Stock-based Compensation Other Total (in thousands) Accrued restructuring balance as of July 31, 2015 $ — $ — $ — $ — $ — $ — Accruals 5,013 267 68 155 154 5,657 Cash payments (1,672 ) — — — (12 ) (1,684 ) Non-cash charges — — (68 ) (155 ) — (223 ) Accrued restructuring as of July 31, 2016 $ 3,341 $ 267 $ — $ — $ 142 $ 3,750 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Operating Leases We have entered into non-cancelable operating leases for facilities that expire at various dates through February 2022. Rent under the agreements is expensed to operations on a straight-line basis over the terms of the leases. The aggregate future non-cancelable minimum lease payments for our operating leases as of July 31, 2016 consist of the following: Fiscal Year Ending July 31, Operating Leases (In thousands) 2017 $ 5,328 2018 4,770 2019 4,573 2020 4,564 2021 2,571 Thereafter 246 Total $ 22,052 Rent expense for all operating leases amounted to $5.5 million , $5.1 million and $4.7 million during fiscal years 2016 , 2015 and 2014 . In May 2012, we entered into an agreement for the lease of an office building located in Santa Clara, California consisting of 127,000 square feet for an initial term of eight years which commenced in February 2013. This office building houses our corporate headquarters that we started occupying in March 2013. The annual base rent for this office lease ranges from approximately $3.2 million to $3.9 million over the term of the lease and we are also responsible for the payment of certain operating expenses, including utilities and real estate taxes. Pursuant to the terms of the lease agreement, we were obligated to provide a standby letter of credit in the amount of approximately $3.2 million as collateral for our full performance. In connection with this office lease, we received from the landlord leasehold incentives of approximately $6.0 million to make leasehold improvements to the leased office space. The leasehold incentive was recorded as leasehold improvements within property and equipment, net and as deferred rent within other liabilities in the consolidated balance sheets. The deferred rent liability is being amortized against rent expense over the term of the lease on a straight-line basis. The leasehold improvements are being amortized to expense over the shorter of the period from when the improvements were placed into service until the end of their respective useful lives or the lease term. As of July 31, 2016 , $3.2 million lease incentives remained unamortized, of which $2.5 million was included in other liabilities and $0.7 million was included in accounts payable and accrued liabilities in the consolidated balance sheet. Contract Manufacturer Commitments The third-party 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 contract manufacturer which may not be cancelable. In addition, we also have purchase commitments with other third-party contract manufacturers and suppliers. As of July 31, 2016 , we had $7.3 million in purchase commitments with our contract manufacturers and suppliers, of which $5.6 million relates to open purchase orders with our primary 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 product with a non-infringing equivalent-in-function 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 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 April 16, 2013, Versata Software, Inc., or Versata, filed suit against us in the United States District Court for the District of Delaware in an action captioned Versata Software, Inc. F/K/A Trilogy Software, Inc.; and Versata Development Group, Inc. F/K/A Trilogy Development Group, Inc. v. Infoblox, Inc., Case No 1:13-cv-00678-UNA (D.Del.) (the “Action”). In the Action, Versata alleged that we directly and/or indirectly infringed U.S. Patent Nos. 6,834,282; 6,907,414; 7,363,593 and 7,426,481 by making, using, licensing, selling and offering for sale software products and related services including but not limited to Infoblox IP Address Management. In December 2013, we filed a motion to dismiss the Action. In September 2015, the Court issued its Report and Recommendation to partially grant our motion. On October 28, 2015, Versata stipulated to the Court to dismiss the case with prejudice. On June 9, 2015, Stacey Greenfield (“Plaintiff”), 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 these cases, while possible, are not probable, and therefore we have not recorded any accrual for them as of July 31, 2016 and July 31, 2015 . Further, any possible range of loss cannot be reasonably estimated at this time. |
Common Stock Reserved for Issua
Common Stock Reserved for Issuance | 12 Months Ended |
Jul. 31, 2016 | |
Equity [Abstract] | |
Common Stock Reserved for Issuance | COMMON STOCK RESERVED FOR ISSUANCE We had reserved shares of common stock for future issuance as follows: As of July 31, 2016 2015 (In thousands) Outstanding restricted stock units 4,306 4,406 Shares reserved for future grants 4,760 3,963 Outstanding stock options 2,113 3,357 Shares reserved for employee stock purchase plan 917 1,120 Outstanding MSUs 189 — 12,285 12,846 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jul. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Stock-based Compensation Plans Our stock-based compensation plans include the 2012 Equity Incentive Plan (the “2012 Plan”), the 2005 Stock Plan (the “2005 Plan”), the 2003 Stock Plan (the “2003 Plan”), (collectively the “Plans”) and the 2012 Employee Stock Purchase Plan (the "ESPP"). Under the Plans, we have granted (or in the case of acquired plans, assumed) stock options and RSUs. We have issued common stock under the ESPP. 2012 Equity Incentive Plan In April 2012, our board of directors approved and we adopted the 2012 Plan. It was subsequently amended in December 2012. Under the 2012 Plan, we have the ability to issue incentive stock options (“ISOs”), nonstatutory stock options (“NSOs”), restricted stock units, restricted stock awards (“RSAs”), stock appreciation rights (“SARs”), stock bonus awards or performance awards. ISOs may be granted to employees with exercise prices not less than the fair value of the common stock on the grant date as determined by the board of directors, and NSOs may be granted to employees, directors or consultants at exercise prices not less than 85% of the fair value of the common stock on the grant date as determined by the board of directors. If, at the time we grant an option, the optionee directly or by attribution owns stock possessing more than 10% of the total combined voting power of all classes of our stock, the exercise price must be at least 110% of the fair value of the common stock on the grant date as determined by the board of directors. Options, RSUs, RSAs, SARs, stock bonus awards and performance awards may be granted with vesting terms as determined by the board of directors and expire no more than ten years after the date of grant or earlier if employment or service is terminated. As of July 31, 2016 , 4.8 million shares were available for grant under the 2012 Plan. 2003 Stock Plan In March 2003, our board of directors approved and we adopted the 2003 Plan. As of April 20, 2012, no shares were available for grant under the 2003 Plan and all outstanding options would continue to be governed and remain outstanding in accordance with their existing terms. In addition, any shares subject to outstanding awards under the 2003 Plan that are issuable upon the exercise of options that expire or become unexercisable for any reason without having been exercised in full will be available for future grant and issuance under the 2012 Plan. Employee Stock Purchase Plan Concurrent with the effectiveness of our registration statement on Form S-1 on April 19, 2012, the ESPP became effective. It was subsequently amended in December 2012, February 2014 and in May 2016. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, subject to plan limitations. The ESPP provides for a 12 -month offering period comprised of two purchase periods of six months. Employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s common stock (i) at the date of commencement of the offering period or (ii) at the last day of the purchase period. Employees purchased approximately 0.8 million shares at an average price per share of $12.36 , 0.7 million shares at an average price per share of $11.32 and 0.6 million shares at an average price per share of $12.70 under our ESPP during fiscal years 2016 , 2015 and 2014 . As of July 31, 2016 , 0.9 million shares were available for future issuance under the ESPP. The following table summarizes the stock-based compensation expense by line item in the Consolidated Statements of Operations: Year Ended July 31, 2016 2015 2014 (In thousands) Cost of revenue $ 4,396 $ 4,450 $ 3,619 Research and development 11,033 10,828 7,375 Sales and marketing 23,184 23,687 22,919 General and administrative 9,633 8,658 7,058 Total stock-based compensation $ 48,246 $ 47,623 $ 40,971 The following table summarizes the stock-based compensation expense by award type: Year Ended July 31, 2016 2015 2014 (In thousands) RSUs $ 36,634 $ 31,952 $ 24,359 Stock options 5,234 8,860 12,252 ESPP 4,717 6,811 4,360 MSUs 1,661 — — Total stock-based compensation $ 48,246 $ 47,623 $ 40,971 The following table summarizes the unrecognized stock-based compensation balance, net of estimated forfeitures, by type of awards as of 2016 : As of July 31, 2016 Weighted-Average Amortization Period (In thousands) (In years) RSUs $ 54,855 2.44 Stock options 4,928 2.02 ESPP 3,874 0.81 MSUs 1,768 1.38 Total unrecognized stock-based compensation balance $ 65,425 2.28 Determination of Fair Value The estimated grant date fair value of our stock options and ESPP awards was calculated using the BSM option-pricing model, based on the following assumptions: Year Ended July 31, 2016 2015 2014 Employee Stock Options: Expected term (in years) 6.08 6.08 6.08 Risk-free interest rate 1.7 % 1.81 % 1.86 % Expected volatility 52 % 55 % 55 % Dividend rate — % — % — % Weighted average fair value per share $ 9.48 $ 9.49 $ 16.75 ESPP: Expected term (in years) 0.50 - 2.00 0.50 - 2.00 0.50 - 2.00 Risk-free interest rate 0.41% - 0.96% 0.08% - 0.71% 0.06% - 0.48% Expected volatility 62% - 64% 67% - 71% 55% - 77% Dividend rate — % — % — % Weighted average fair value per share $6.01 - $9.44 $7.02-$14.02 $6.12 - $12.87 Determination of Fair Value The exercise price per share of our options to purchase common stock is the closing sale price per share of our common stock as quoted on the NYSE on the date of grant. The fair value of each grant of stock options was determined using the BSM option pricing model and assumptions discussed below. Each of the fair value inputs is subjective and generally requires significant judgment to determine. Expected Term -The expected term represents the period that our stock-based awards are expected to be outstanding. For option grants, we determine the expected term using the simplified method which deems the term to be the average of the time-to-vesting and the contractual life of the options. The expected term for the ESPP is based on the term of the purchase period. Risk-Free Interest Rate -The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the option's expected term. Expected Volatility -Since we only have a short trading history of our common stock, we use a blended volatility to estimate expected volatility. The blended volatility includes a weighting of our historical volatility from the date of our IPO to the respective grant date and the average historical stock volatilities of several unrelated public companies within our industry that we consider to be comparable to our business over a period equivalent to the expected term of the stock option grants. Dividend Rate -The expected dividend is based on our history and expected dividend payouts. The expected dividend yield is zero as the Company has historically paid no dividends and does not anticipate dividends to be paid in the future. Forfeiture Rate -We estimate our forfeiture rate based on an analysis of our actual forfeitures and will continue to evaluate the adequacy of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover behavior and other factors. The impact from any forfeiture rate adjustment would be recognized in full in the period of adjustment, and if the actual number of future forfeitures differs from our estimates, we might be required to record adjustments to stock-based compensation in future periods. Stock Option Activity The following table summarizes the stock option activity and related information as of and for the three years ended July 31, 2016 under our Plans: Options Outstanding 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, 2013 6,663 $ 9.35 7.47 $ 155,580 Options granted 523 31.83 Options exercised (2,052 ) 6.74 Options forfeited/expired (220 ) 16.17 Outstanding as of July 31, 2014 4,914 $ 12.52 6.67 $ 14,980 Options granted 875 17.94 Options exercised (1,919 ) 8.66 Options forfeited/expired (513 ) 17.1 Outstanding as of July 31, 2015 3,357 $ 15.45 6.67 $ 32,040 Options granted 74 18.76 Options exercised (886 ) 8.48 Options forfeited/expired (432 ) 20.74 Outstanding as of July 31, 2016 2,113 $ 17.41 6.11 $ 9,424 Vested and expected to vest - July 31, 2016 2,055 $ 17.32 6.05 $ 9,354 Exercisable - July 31, 2016 1,569 $ 16.39 5.46 $ 8,605 The aggregate intrinsic value represents the difference between the Company's closing stock price on the last trading day of the period and the exercise price multiplied by the number of the related options. The pre-tax intrinsic value of options exercised, representing the difference between the fair market value of the Company's common stock on the date of the exercise and the exercise price of each option, was $7.9 million , $27.4 million and 57.0 million for fiscal years 2016 , 2015 and 2014 . Total grant date fair value of options vested during fiscal years 2016 , 2015 and 2014 was $7.2 million , $10.6 million and $12.7 million . Restricted Stock Unit Activity RSUs generally vest ratably over a period of four years from the date of grant subject to the employee’s continuing service to the Company over that period. Until vested, RSUs do not have the voting and dividend participation rights of common stock and the shares underlying the awards are not considered issued and outstanding. RSUs are converted into shares of the Company’s common stock upon vesting on a one-for-one basis. The cost of the RSUs is determined using the fair value of the Company’s common stock on the date of the grant. Compensation is recognized on a straight-line basis over the requisite service period of each grant adjusted for estimated forfeitures. A summary of the restricted stock unit activity during the three years ended July 31, 2016 is presented below: Number of Units Weighted-Average Grant Date Fair Value Per Share (In thousands) Outstanding as of July 31, 2013 1,986 $ 21.15 Granted 2,432 $ 29.72 Vested (699 ) $ 22.37 Cancellations due to forfeitures (277 ) $ 29.9 Outstanding as of July 31, 2014 3,442 $ 26.47 Granted 2,889 $ 17.85 Vested (1,107 ) $ 27.99 Cancellations due to forfeitures (818 ) $ 23.26 Outstanding as of July 31, 2015 4,406 $ 21.03 Granted 2,901 $ 17.69 Vested (1,810 ) $ 20.69 Cancellations due to forfeitures (1,191 ) $ 20.14 Outstanding as of July 31, 2016 4,306 $ 19.17 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 $1.7 million stock-based compensation expense, net of estimated forfeitures, related to MSUs during the year ended July 31, 2016 . As of July 31, 2016 , there was approximately $1.8 million of unrecognized compensation cost, net of estimated forfeitures, related to MSUs. After the first performance period which ended on July 31, 2016, 27,497 MSUs were earned based on 36.7% average achievement rate. The 27,497 MSUs were released during the first quarter of fiscal 2017. A total of 55,934 MSUs were forfeited during the year ended July 31, 2016 . As of July 31, 2016, 189,066 MSUs remained outstanding. 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. In May 2016, our board of directors authorized a $150 million increase to the stock repurchase program. 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. 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 year ended July 31, 2016, we repurchased on the open market 3,404,932 shares at a weighted-average per share price of $17.27 . 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. As of July 31, 2016, there was approximately $141.1 million available for repurchases under this program. Subsequent to fiscal year 2016, we repurchased on the open market 525,659 shares at a weighted-average per share price of $19.02 . Shares Available for Grant The following table presents the stock grant activity and the total number of shares available for grant under the 2012 Plan as of July 31, 2016 : 2012 Plan (In thousands) Balance at July 31, 2015 3,963 Additional shares authorized for issuance 2,338 RSUs granted (2,901 ) MSUs granted (245 ) Options granted (74 ) RSUs forfeited 1,191 Options forfeited/expired(1) 432 MSUs forfeited 56 Balance at July 31, 2016 4,760 (1) Includes forfeited or expired options under the 2003 Plan that forfeited or expired unexercised which became available for grant under the 2012 Plan according to its terms. Any shares subject to outstanding awards under the 2003 Plan that are issuable upon the exercise of options that expire or become unexercisable for any reason without having been exercised in full will be available for future grant and issuance under the 2012 Plan. Employee 401(k) Plan We have a qualified contributory savings plan under Section 401(k) of the Internal Revenue Code covering substantially all of our United States employees. Each participant in the plan may elect to contribute up to $18,000 of his or her annual compensation to the plan for the calendar years 2016 and 2015 and up to $17,500 for 2014. Individuals who were 50 or older may contribute up to $24,000 of their annual income for calendar years 2016 and 2015. Starting in the second quarter of fiscal 2015, we began matching eligible employee contributions on a service based tiered formula. We match $0.50 of each $1.00 of contributions per pay period to the maximum allowable amount ranging from 2% to 8% of eligible earnings depending on length of service. These contributions vest immediately. Our matching contributions to the 401(k) plan during fiscal year 2016 and 2015 were $1.2 million and $0.7 million . Prior to fiscal year 2015, we did not make any matching contributions to the 401(k) plan. |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The geographical breakdown of our income (loss) before provision for income taxes for fiscal years 2016 , 2015 and 2014 is as follows: Year Ended July 31, 2016 2015 2014 (In thousands) Domestic $ (18,872 ) $ (28,113 ) $ (24,964 ) International 2,618 2,037 1,966 Loss before provision for (benefit from) income taxes $ (16,254 ) $ (26,076 ) $ (22,998 ) The components of the provision for (benefit from) income taxes are as follows: Year Ended July 31, 2016 2015 2014 (In thousands) Current: State $ 381 $ 355 $ 209 Foreign 708 578 416 Total current 1,089 933 625 Deferred: Federal (3,437 ) 74 — State (195 ) — — Foreign — — 294 Total deferred (3,632 ) 74 294 Provision for (benefit from) income taxes $ (2,543 ) $ 1,007 $ 919 The reconciliation of the statutory federal income tax and our effective income tax is as follows: Year Ended July 31, 2016 2015 2014 (In thousands) Tax at statutory federal rate $ (5,689 ) $ (9,127 ) $ (8,049 ) Change in valuation allowance 1,026 6,021 5,663 Stock-based compensation and other permanent items 3,931 4,555 3,696 R&D credit (1,724 ) (664 ) (528 ) State tax—net of federal benefit 161 283 158 Foreign rate differential (207 ) (135 ) 23 Foreign tax credit (28 ) (52 ) (6 ) Other (13 ) 126 (38 ) Provision for (benefit from) income taxes $ (2,543 ) $ 1,007 $ 919 Our benefit from income taxes in fiscal year 2016 included a $3.7 million one-time benefit from the partial release of valuation allowance as a result of the IID acquisition. The components of the deferred tax assets, net are as follows: As of July 31, 2016 2015 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 12,005 $ 10,469 Deferred revenue 15,987 12,995 Stock-based compensation 9,604 9,269 Tax credit carryforwards 11,206 8,584 Accruals, reserves and other 6,395 8,330 Fixed assets depreciation and other — 921 Identified intangibles and other — 212 Gross deferred tax asset 55,197 50,780 Valuation allowance (48,694 ) (50,772 ) Total deferred tax asset 6,503 8 Deferred tax liability: Identified intangibles and other (6,081 ) (74 ) Fixed assets depreciation (518 ) — Total deferred tax liability (6,599 ) (74 ) Net deferred tax liability $ (96 ) $ (66 ) Recognition of deferred tax assets is appropriate when realization of these assets is more-likely-than-not. Based upon the weight of available evidence, which includes our historical operating performance and our ability to generate sufficient taxable income in the future, we recorded a full valuation allowance of $48.1 million and $50.4 million against the net U.S. deferred tax assets as of July 31, 2016 and 2015 .We also recorded a $0.6 million and $0.4 million valuation allowance against all Canadian deferred tax assets as of July 31, 2016 and 2015 based upon the same above-mentioned criteria. The net valuation allowance decreased by $2.1 million during the year ended July 31, 2016 . The need for valuation allowance is subject to adjustment in future periods if sufficient positive evidence exists to support reversal. As of July 31, 2016 , we had U.S. federal net operating loss carryforwards of $170.5 million and California net operating loss carryforwards of $53.9 million . The federal net operating loss carryforwards will expire at various dates beginning in the year ending July 31, 2021 if not utilized. The California net operating loss carryforwards will expire at various dates beginning in the year ending July 31, 2018 if not utilized. Additionally, as of July 31, 2016, we had U.S. federal and California research and development credit carryforwards of $8.7 million and $7.8 million . The federal credit carryforwards will begin to expire at various dates beginning in 2023 while the California credit carryforwards are not subject to expiration. As of July 31, 2016 , we also had Canadian scientific research and experimental credit carryforwards of $0.9 million which will expire beginning in 2034. Net operating losses of approximately $141.8 million have not been included in the deferred tax asset table above as these net operating losses are attributable to excess tax benefits associated with equity related settlements. These benefits will not be recognized in the financial statements until they result in a reduction in taxes payable. When recognized in the financial statements, the tax benefit will be recorded to stockholders' equity. During fiscal year 2016, we recognized approximately $0.2 million of excess tax benefits which resulted in a credit to stockholders' equity. Utilization of our net operating loss and credit carryforwards may be subject to a substantial annual limitation provided for in the Internal Revenue Code and similar state codes. Such annual limitation could result in the expiration of net operating loss and credit carryforwards before utilization. We do not believe that such limitation rules will have a material impact on the financial statements. Our policy with respect to our undistributed foreign subsidiaries' earnings is to consider those earnings to be indefinitely reinvested and, accordingly, no related provision for U.S. federal or state income tax has been provided. Upon distribution of those earnings in the form of dividends or otherwise, we may be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes in the various countries. At July 31, 2016 , the undistributed earnings approximated $5.7 million and the unrecorded deferred tax liability is estimated to be approximately $2.0 million . Uncertain Tax Positions As of July 31, 2016 , 2015 and 2014 , we had gross unrecognized tax benefits of $4.7 million , $3.4 million and $2.9 million . The balance of gross unrecognized tax benefits at July 31, 2016 relates to deferred tax assets with a corresponding valuation allowance. If recognized, the impact on our effective tax rate would not be material due to the full valuation allowance. We have not accrued interest and penalties related to unrecognized tax benefits reflected in the consolidated financial statements during fiscal years 2016 , 2015 and 2014 . Our policy for classifying interest and penalties associated with unrecognized income tax benefits is to include such items in income tax expense. The following table summarizes the activity related to the unrecognized tax benefits: Year Ended July 31, 2016 2015 2014 (In thousands) Gross unrecognized tax benefits beginning balance $ 3,414 $ 2,863 $ 2,268 Increases related to tax positions taken during current year 1,038 457 612 Increases (Decreases) related to tax positions from prior years 222 94 (17 ) Gross unrecognized tax benefits $ 4,674 $ 3,414 $ 2,863 We believe that the change to our unrecognized tax benefits in the next 12 months will not be material to our consolidated financial statements. We are subject to taxation in the United States, various states and several foreign jurisdictions. We are not currently under examination in any major jurisdiction. All years for U.S. federal and state jurisdictions and fiscal years 2010 through 2016 for our major foreign jurisdictions remain subject to examination for income tax purposes. |
Segment Information
Segment Information | 12 Months Ended |
Jul. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We operate in one single segment. The following table represents net revenue based on the customer’s location, as determined by the customer’s shipping address: Year Ended July 31, 2016 2015 2014 (In thousands) Americas $ 226,398 $ 205,349 $ 164,323 Europe, Middle East and Africa 94,752 73,773 58,570 Asia Pacific 37,136 27,003 27,447 Total net revenue $ 358,286 $ 306,125 $ 250,340 Included within the Americas total in the above table was revenue from sales in the U.S. of $215.7 million , $193.5 million and $154.9 million during fiscal years 2016 , 2015 and 2014 . Aside from the U.S., no other country comprised 10% of our net revenue for fiscal years 2016 , 2015 , or 2014 . Our property and equipment, net by location is summarized as follows: As of July 31, 2016 2015 (In thousands) Americas $ 20,601 $ 21,807 Europe, Middle East and Africa 915 712 Asia Pacific 488 706 $ 22,004 $ 23,225 Included within the Americas total in the above table was property and equipment, net in the U.S. of 19.8 million and $21.8 million as of July 31, 2016 and 2015 . Aside from the U.S., no other country comprised 10% of our fixed assets as of July 31, 2016 and 2015 . |
Unautited Quarterly Financial D
Unautited Quarterly Financial Data | 12 Months Ended |
Jul. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | UNAUDITED QUARTERLY FINANCIAL DATA The following tables set forth our unaudited quarterly consolidated statement of operations data for each of the last eight quarters in the period ended July 31, 2016 . The unaudited quarterly consolidated statement of operations data below have been prepared on the same basis as the audited consolidated financial statements included elsewhere in this Annual Report on Form 10-K and reflect all necessary adjustments, consisting only of normal recurring adjustments, that we believe are necessary for a fair statement of this information. The results of historical quarters are not necessarily indicative of the results of operations for a full year or any future period. Fiscal 2016 Three Months Ended October 31, January 31, April 30, July 31, 2015 2016 2016 2016 (In thousands, except per share amounts) Net revenue: Products and licenses $ 50,857 $ 51,516 $ 37,771 $ 38,661 Services 43,165 44,483 44,191 47,642 Total net revenue 94,022 95,999 81,962 86,303 Cost of revenue: Products and licenses 10,350 9,856 9,046 8,463 Services 8,752 9,065 10,176 10,650 Total cost of revenue 19,102 18,921 19,222 19,113 Gross profit 74,920 77,078 62,740 67,190 Operating expenses: Research and development 17,833 17,461 17,300 17,440 Sales and marketing 47,286 45,996 42,506 43,195 General and administrative 10,457 11,149 10,956 11,457 Restructuring expense — — — 5,657 Total operating expenses 75,576 74,606 70,762 77,749 Income (loss) from operations (656 ) 2,472 (8,022 ) (10,559 ) Other income (expense), net 95 167 309 (60 ) Income (loss) before provision for (benefit from) income taxes (561 ) 2,639 (7,713 ) (10,619 ) Provision for (benefit from) income taxes 950 (1,139 ) (2,037 ) (317 ) Net income (loss) $ (1,511 ) $ 3,778 $ (5,676 ) $ (10,302 ) Net income (loss) per share - basic and diluted $ (0.03 ) $ 0.06 $ (0.10 ) $ (0.18 ) Fiscal 2015 Three Months Ended October 31, January 31, April 30, July 31, 2014 2015 2015 2015 (In thousands, except per share amounts) Net revenue: Products and licenses $ 31,508 $ 37,917 $ 40,737 $ 46,348 Services 35,211 36,387 37,366 40,651 Total net revenue 66,719 74,304 78,103 86,999 Cost of revenue: Products and licenses 7,467 8,787 9,069 10,039 Services 7,467 7,491 8,257 8,554 Total cost of revenue 14,934 16,278 17,326 18,593 Gross profit 51,785 58,026 60,777 68,406 Operating expenses: Research and development 14,570 15,504 16,709 18,309 Sales and marketing 38,455 39,788 39,536 44,438 General and administrative 7,960 9,355 9,740 10,055 Total operating expenses 60,985 64,647 65,985 72,802 Loss from operations (9,200 ) (6,621 ) (5,208 ) (4,396 ) Other income (expense), net (190 ) (590 ) 206 (77 ) Loss before provision for (benefit from) income taxes (9,390 ) (7,211 ) (5,002 ) (4,473 ) Provision for (benefit from) income taxes 820 (200 ) 134 253 Net loss $ (10,210 ) $ (7,011 ) $ (5,136 ) $ (4,726 ) Net loss per share - basic and diluted $ (0.18 ) $ (0.13 ) $ (0.09 ) $ (0.08 ) Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted loss per share. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Jul. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | SUBSEQUENT EVENT On September 16, 2016, we entered into an Agreement and Plan of Merger (the "Merger Agreement") with Delta Holdco, LLC, a Delaware limited liability company (“Parent”), and India Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), each of which is an affiliate of Vista Equity Partners (“Vista”). The Merger Agreement provides for the acquisition of the Company by Parent in a two-step all cash transaction, consisting of a tender offer, followed immediately by a merger (the "Merger"). Pursuant to the Merger Agreement, and upon the terms and subject to the conditions described therein, Parent will cause Merger Sub to commence a tender offer for all of the Company’s outstanding shares of common stock, par value $0.0001 per share, at a purchase price of $26.50 per share or approximately $1.6 billion , net to the sellers in cash, without interest, subject to any required withholding of taxes. The consummation of the Merger is subject to certain representations, warranties and covenants of the parties customary for a transaction of this nature. The Company has agreed to operate its business in the ordinary course of business in all material respects and has agreed to certain other customary restrictions on its operations, as set forth more fully in the Merger Agreement. |
Description of the Business a23
Description of the Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include all adjustments necessary for the fair presentation of our consolidated financial position, results of operations and cash flows for the periods presented. The accompanying consolidated financial statements include the accounts of Infoblox Inc. and our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the 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, restricted cash and available-for-sale investments, valuation of inventory, determination of fair value of stock-based awards, valuation of assumed liabilities and acquired goodwill, tangible and intangible assets, impairment of goodwill and other intangible assets, amortization of intangible assets, restructuring liabilities, 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 consolidated financial statements. |
Concentration of Supply Risk with Contract Manufacturer | Concentration of Supply Risk with Contract Manufacturer We outsource the substantial majority of our manufacturing, repair and supply chain management operations to one independent contract manufacturer. The inability of the manufacturer to fulfill our supply requirements could have a material and adverse effect on our business and consolidated financial statements. In addition, our independent contract manufacturer procures components and manufactures our products based on our demand forecasts. These forecasts are based on our 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. We may be subject to the requirement to purchase inventory or to pay additional fees to the contract manufacturer if there is a significant difference in scheduled shipments or if the contract manufacturer holds inventory longer than a specified period. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash, cash equivalents, restricted cash, available-for-sale investments and accounts receivable. Our cash, cash equivalents and restricted cash are invested in high-credit quality financial instruments held mainly in two US banks. Such deposits may be in excess of insured limits provided on such deposits. Our investments consist of a diversified portfolio of highly liquid securities that have maturities of less than two years. 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. |
Cash and Cash Equivalents, Restricted Cash | Cash and Cash Equivalents All highly liquid investments purchased with an original maturity of three months or less are classified as cash and cash equivalents. Cash and cash equivalents consist of cash on hand, demand deposits with banks, highly liquid investments in money market funds, U.S. Treasury securities and certificates of deposit which are readily convertible into cash. Restricted Cash Under our facility lease arrangements, we are required to maintain letters of credit from a U.S. bank as security for performance under these agreements. The letters of credit are generally invested in U.S. Treasury securities or money market funds or interest-bearing accounts in amounts equal to the letters of credit, which are classified as restricted cash on the consolidated balance sheet |
Short-term Investments | Short-term Investments Investments with original maturities at purchase of greater than three months are classified as short-term or long-term investments. Management determines the appropriate classification of securities at the time of purchase and re-evaluates such classification as of each balance sheet date. Our investments in publicly-traded debt securities are classified as available-for-sale. Available-for-sale investments are initially recorded at cost and periodically adjusted to fair value in the consolidated balance sheets. Unrealized gains and losses on these investments are reported as a separate component of accumulated other comprehensive income (loss). Realized gains and losses are determined based on the specific identification method and are reported in the consolidated statements of operations. The investments are adjusted for amortization of premiums and discounts to maturity and such amortization is included in other income (expense), net. We recognize an impairment charge for available-for-sale investments when a decline in the fair value of our investments below the cost basis is determined to be other than temporary. We consider various factors in determining whether to recognize an impairment charge, including the length of time the investment has been in a loss position, the extent to which the fair value has been less than the cost basis, the investment's financial condition and near-term prospects, and our intent to sell, or whether it is more likely than not we will be required to sell, the investment before recovery of the investment's amortized cost basis. If we determine that the decline in an investment's fair value is other than temporary, the difference is recognized as an impairment loss in our consolidated statements of operations. During the year ended July 31, 2016 , we did not consider any of our investments to be other-than-temporarily impaired. |
Fair Value | Fair Value Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, we consider the principal or most advantageous market in which we transact, and consider assumptions that market participants would use when pricing the asset or liability. We apply the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level I - Quoted prices in active markets for identical assets or liabilities. Level II - Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. These inputs are valued using market based approaches. Level III - Inputs are unobservable inputs based on management assumptions. These inputs, if any, are valued using internal financial models. |
Inventory | Inventory Inventories are stated at the lower of standard cost, which approximates actual cost (first-in, first-out), or market value (estimated net realizable value). The valuation of inventories at the lower of cost or market value requires the use of estimates regarding the amount of inventory that will be sold and the prices at which current inventory will be sold. These estimates are dependent on our assessment of current and expected orders from our customers. If actual market conditions are less favorable than those projected by management, inventory write-downs may be required. Our finished goods mainly consist of appliances that are used for the replacement of failed units under maintenance and support agreements and finished goods needed for our expanded depot requirements. We write down refurbished inventory based on the age of the units and number of hardware failures. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, including leasehold improvements, are stated at cost, less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, which are two to seven years. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful lives of the assets or the remaining lease term. Upon the retirement or disposition of property and equipment, the related costs and accumulated depreciation are removed from, and the resulting gain or loss is included in, the consolidated statements of operations. Repair and maintenance costs that do not extend the life or improve an asset are charged to expense as incurred. |
Goodwill | Goodwill, Intangible Assets and Other Long-Lived Assets Goodwill represents the future economic benefits arising from other assets acquired in a business combination or an acquisition that are not individually identified and separately recorded. The excess of the purchase price over the estimated fair value of net assets of businesses acquired in a business combination is recognized as goodwill. Intangible assets consist of identifiable intangible assets, including developed technology, customer relationships, non-compete agreements, trademarks and patents, resulting from our acquisitions. Intangible assets are recorded at fair value, net of accumulated amortization. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense is included as a component of cost of products and licenses revenue and sales and marketing expense in the accompanying consolidated statements of operations. Amounts included in sales and marketing expense relate to amortization of intangible asset attributed to customer relationships. Goodwill and other intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized, but instead tested for impairment at least annually during the fourth quarter. Such goodwill and other intangible assets may also be tested for impairment between annual tests in the presence of impairment indicators such as, but not limited to: (a) a significant adverse change in legal factors or in the business climate; (b) a substantial decline in our market capitalization, (c) an adverse action or assessment by a regulator; (d) unanticipated competition; (e) loss of key personnel; (f) a more likely-than-not expectation of sale or disposal of a reporting unit or a significant portion thereof; (g) a realignment of our resources or restructuring of our existing businesses in response to changes to industry and market conditions; (h) testing for recoverability of a significant asset group within a reporting unit; or (i) higher discount rate used in the impairment analysis as impacted by an increase in interest rates. We evaluate goodwill for impairment on an annual basis as of May 1st or more frequently if we believe impairment indicators exist. Goodwill is tested for impairment by comparing the reporting unit's carrying value, including goodwill, to the fair value of the reporting unit. We operate under one reporting unit and for our annual goodwill impairment test, we determine the fair value of our reporting unit based on the Company's enterprise value. |
Impairment of Long-Lived Assets | Long-lived assets, such as property and equipment and intangible assets subject to depreciation and amortization, are evaluated for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Among the factors and circumstances we considered in determining recoverability are: (i) a significant decrease in the market price of a long-lived asset; (ii) a significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition; (iii) a significant adverse change in legal factors or in the business climate that could affect the value of a long-lived asset, including an adverse action or assessment by a regulator; (iv) an accumulation of costs significantly in excess of the amount originally expected for the acquisition and (v) current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. There have been no indicators of impairment of goodwill, intangible assets and other long-lived assets, and we did not record any impairment losses during fiscal years 2016 , 2015 and 2014 . |
Revenue Recognition | Revenue Recognition We generate revenue from the sales or licensing of hardware and software products, support and maintenance, and other services through a direct sales force and indirect relationships with our channel partners. Revenue is recognized when all of the following criteria are met: Persuasive evidence of an arrangement exists. Evidence of an arrangement generally consists of a purchase order issued pursuant to the terms and conditions of a distributor or value-added reseller agreement or, in limited cases, an end-user agreement. Delivery or performance has occurred. We use shipping and related documents, distributor sell-through reports, or written evidence of customer acceptance, when applicable, to verify delivery or performance. We do not recognize product revenue until transfer of title and risk of loss, which generally is upon shipment to value-added resellers or end-users. The sales price is fixed or determinable. We assess whether the sales price is fixed or determinable based on payment terms and whether the sales price is subject to refund or adjustment. Collection is probable . We assess probability of collection on a customer-by-customer basis. We subject our customers to a credit review process that evaluates their financial condition and ability to pay for our products and services. If we conclude that collection is not probable, we do not recognize revenue until cash is received. We recognize product revenue at the time of shipment provided that all other revenue recognition criteria have been met. Our channel partners generally receive an order from an end-customer prior to placing an order with us. In addition, payment from our channel partners is not contingent on the partner’s success in sales to end-customers. Our channel partners generally do not stock appliances and only have limited stock rotation rights and no price protection rights. When necessary, we make certain estimates and maintain allowances for sales returns and other programs based on our historical experience. To date, these estimates have not been significant. S ervices revenue includes maintenance and support, training and consulting, and subscription services revenue. Maintenance and support revenue includes arrangements for software maintenance and technical support for our products and licenses. Maintenance is offered under renewable, fee-based contracts, which include 24-hour technical support, hardware repair and replacement parts, bug fixes, patches and unspecified upgrades on a when-and-if-available basis. Revenue from customer maintenance and support contracts and subscription services is deferred and recognized ratably over the contractual period, generally one to three years. Revenue from consulting and training is recognized as the services are completed. Revenues are reported net of sales taxes. |
Multiple Element Arrangments | Multiple Element Arrangements We enter into multiple element revenue arrangements in which a customer may purchase a combination of hardware, software, software upgrades, hardware and software maintenance and support, training and consulting, and subscription services. We account for multiple agreements with a single customer as one arrangement if the contractual terms and/or substance of those agreements indicate that they may be so closely related that they are, in effect, parts of a single arrangement. Most of our products are hardware appliances containing software components that operate together to provide the essential functionality of the product. Therefore, the software sold with our hardware appliances are considered non-software deliverables and are not accounted for under the industry-specific software revenue recognition guidance. Our products and licenses revenue also includes stand-alone software products. Stand-alone software may operate on our hardware appliances, but is not considered essential to the functionality of the hardware and continues to be subject to the industry-specific software revenue recognition guidance. The industry-specific software revenue recognition guidance includes the use of the residual method under which the amount of revenue allocated to delivered elements equals the total arrangement consideration less the aggregate fair value of any undelivered elements. If VSOE of fair value of one or more undelivered items does not exist, revenue from the entire arrangement is deferred and recognized at the earlier of: (i) delivery of those elements or (ii) when fair value can be established unless support and maintenance is the only undelivered element, in which case, the entire arrangement fee is recognized ratably over the contractual service period. We provide unspecified software upgrades for most of our products, on a when-and-if available basis, through maintenance and support contracts. To the extent that the software being supported does not function together with the hardware to deliver the hardware’s essential functionality, these support arrangements would continue to be subject to the industry-specific software revenue recognition guidance. We allocate the arrangement fee to each element based upon the relative selling price of that element and, if software and software-related (e.g., maintenance for the software element) elements are also included in the arrangement, we allocate the arrangement fee to each of those software and software-related elements as a group based on the relative selling price for those elements. After such allocations are made, the amount of the arrangement fee allocated to the software and software-related elements is accounted for using the residual method. When applying the relative selling price method, we determine the selling price for each element using vendor-specific objective evidence, or VSOE, of selling price, if it exists, or if not, third-party evidence, or TPE, of selling price, if it exists. If neither VSOE nor TPE of selling price exist for an element, we use our best estimate of selling price, or BESP, for that element. The revenue allocated to each element is then recognized when the basic revenue recognition criteria are met for that element. We limit the amount of revenue recognized for delivered elements to an amount that is not contingent upon future delivery of additional products or services or meeting of any specified performance conditions. Whenever possible, we determine VSOE for each element based on historical stand-alone sales to third parties. For maintenance and support, training and consulting, and subscription services, we determine the VSOE of fair value based on our history of stand-alone sales demonstrating that a substantial majority of transactions fall within a narrow range for each service offering. We historically have not been able to determine TPE for our products, maintenance and support, training or consulting services. TPE is determined based on competitor prices for similar elements when sold separately. Generally, our offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, our go-to-market strategy differs from that of our peers and we are unable to reliably determine what similar competitor products' selling prices are on a stand-alone basis. When we are unable to establish the selling price of an element using VSOE or TPE, we use BESP in our allocation of consideration to various elements under the arrangement. The objective of BESP is to determine the price at which we would transact a sale if the product or service were sold on a stand-alone basis. The BESP is established based on internal and external factors, including pricing practices such as discounting, cost of products, the geographies in which we offer our products and services, and customer classes and distribution channels (e.g. distributor, value-added reseller and direct end-user). The determination of BESP is made through consultation with and approval by our management, taking into consideration our pricing model and go-to-market strategy. For our non-software deliverables, we generally determine relative selling price based on BESP. However, for our maintenance and support, training and consulting, and subscription services, we generally use VSOE to determine relative selling price. When we are unable to establish selling price using VSOE for our maintenance and support, training and consulting, and subscription services, we use BESP in our allocation of arrangement consideration. We regularly review VSOE and BESP data provided by actual transactions to update these estimates and the relative selling prices allocated to each element. |
Deferred Revenue, Net | Deferred Revenue, Net Deferred revenue, net represents amounts invoiced to customers, less related cost of revenue, for which the related revenue has not been recognized because one or more of the revenue recognition criteria have not been met. The current portion of deferred revenue represents the amounts that are expected to be recognized as revenue within one year of the consolidated balance sheet date. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at invoiced amounts, net of allowances for doubtful accounts if applicable, and do not bear interest. We evaluate the collectability of our accounts receivable based on known collection risks and historical experience. In circumstances where we are aware of a specific customer's inability to meet its financial obligations to us (e.g., bankruptcy filings or substantial downgrading of credit ratings), we record a specific reserve for bad debts against amounts due to reduce the net recognized receivable to the amount we reasonably believe will be collected. For all other customers, we record reserves for bad debts based on the length of time the receivables are past due and our historical experience of collections and write-offs. If circumstances change, such as higher-than-expected defaults or an unexpected material adverse change in a major customer's ability to meet its financial obligations, our estimate of the recoverability of the amounts due could be reduced by a material amount. |
Concentration of Revenue and Accounts Receivable | Concentration of Revenue and Accounts Receivable Significant customers are those which represent more than 10% of our total net revenue or gross accounts receivable balance at each respective balance sheet date. |
Shipping and Handling | Shipping and Handling Shipping charges billed to customers are included in revenue and the related shipping costs are included in cost of revenue. |
Research and Development Costs | Research and Development Costs Software development costs incurred in the research and development of new products and enhancements to existing products are charged to expense as incurred. Software development costs are capitalized after technological feasibility has been established. The period between achievement of technological feasibility, which we define as the establishment of a working model, and the general availability of such software to customers has been short, resulting in software development costs qualifying for capitalization being insignificant. Accordingly, we did not capitalize any software development costs during the years ended July 31, 2016 , 2015 and 2014 . |
Stock-Based Compensation | Stock-Based Compensation We recognize share-based compensation expense for all share-based payment awards including employee stock options, RSUs, MSUs and purchases under our ESPP based on each award's fair value on the grant date. We utilize the BSM option pricing model in order to determine the fair value of stock options and ESPP. The BSM model requires various highly subjective assumptions that represent management's best estimates of volatility, risk-free interest rate, expected life, and dividend yield. We estimate expected volatility based on the historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options and ESPP. We determine the expected term of stock options using the simplified method which deems the term to be the average of the time-to-vesting and the contractual life of the options. The expected life of ESPP approximates the offering period. The fair value of the RSUs is determined using the closing price of our common stock on the date of the grant. Compensation is recognized on a straight-line basis over the requisite service period of each grant adjusted for estimated forfeitures. 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 and do not adjust the expense for subsequent changes in the expected outcome of the market-based vesting conditions. In addition, we are required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. We estimate the forfeiture rate based on historical experience and our expectations regarding future pre-vesting termination behavior of employees. |
Advertising Costs | Advertising Costs Advertising costs are charged to sales and marketing expenses as incurred in the consolidated statements of operations. |
Foreign Currency | Foreign Currency The functional currency of our foreign subsidiaries is the U.S. dollar. Transactions denominated in currencies other than the functional currency are remeasured at the average exchange rate in effect during the period. At the end of each reporting period, our subsidiaries' monetary assets and liabilities are remeasured to the functional currency using exchange rates in effect at the end of the reporting period. Non-monetary assets and liabilities are remeasured at historical exchange rates. Gains and losses related to remeasurement are recorded in other expense, net in the consolidated statements of operations. |
Income Taxes | Income Taxes We account for income taxes under an asset and liability approach for deferred income taxes, which requires recognition of deferred income tax assets and liabilities for the expected future tax consequences of events that have been recognized in our consolidated financial statements, but have not been reflected in our taxable income. Estimates and judgments occur in the calculation of certain tax liabilities and in the determination of the recoverability of certain deferred income tax assets, which arise from temporary differences and carryforwards. Deferred income tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets are expected to be realized or settled. We regularly assess the likelihood that our deferred income tax assets will be realized based on the realization guidance available. To the extent that we believe any amounts are not more-likely-than-not to be realized, we record a valuation allowance to reduce the deferred income tax assets. We regularly assess the need for the valuation allowance on our deferred tax assets, and to the extent that we determine that an adjustment is needed, such adjustment will be recorded in the period that the determination is made. We regularly review our tax positions and benefits to be realized. We recognize tax liabilities based upon our estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-not to be sustained. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. We recognize interest and penalties related to income tax matters as income tax expense. For fiscal years 2016 , 2015 and 2014 , we did not incur any interest or penalties associated with unrecognized tax benefits. |
Segment Information | Segment Information Operating segments are components of an enterprise for which separate financial information is available and is evaluated regularly by our chief operating decision maker in deciding how to allocate resources and assessing performance. Our chief operating decision maker is our chief executive officer. Our chief executive officer reviews financial information presented on a consolidated basis, for purposes of allocating resources and evaluating financial performance. We have one business activity and there are no segment managers who are held accountable for operations, operating results beyond revenue goals or gross margins, or plans for levels or components below the consolidated unit level. Accordingly, we have a single reporting segment. |
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. We are currently evaluating adoption timing and whether this standard will have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires substantially all leases to be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. The new standard also will result in enhanced quantitative and qualitative disclosures, including significant judgments made by management, to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing leases. The standard requires modified retrospective adoption as of the beginning of the earliest comparative period presented in the consolidated financial statements and will be effective for annual reporting periods beginning after December 15, 2018, which for us would be the first quarter of fiscal year 2020. Early adoption is permitted. We are currently evaluating adoption timing and whether this standard will have a material impact on our 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 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 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 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 consolidated financial statements. |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following weighted-average shares of common stock equivalents were excluded from the computation of diluted net loss per share for the years presented because including them would have been antidilutive: Year Ended July 31, 2016 2015 2014 (In thousands) Stock options to purchase common stock 2,134 3,155 3,629 Restricted stock units 2,060 2,077 1,745 Employee stock purchase plan 290 139 380 |
Cash Equivalents and Short-te25
Cash Equivalents and Short-term Investments, Restricted Cash and Fair Value Measurements (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities | The following table summarizes our cash equivalents, short-term investments and restricted cash as of July 31, 2016 : Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value (In thousands) Cash equivalents: Money market funds $ 8,749 $ — $ — $ 8,749 Short-term investments: U.S. Treasury securities 104,974 39 (7 ) 105,006 U.S. government agency securities 16,551 2 (6 ) 16,547 FDIC-backed certificates of deposit 12,720 6 (4 ) 12,722 Total short-term investments 134,245 47 (17 ) 134,275 Restricted cash: Money market funds 3,425 — — 3,425 Total cash equivalents, short-term investments and restricted cash $ 146,419 $ 47 $ (17 ) $ 146,449 The following table presents the maturities of our short-term investments which are classified as available-for-sale securities as of July 31, 2016 : Amortized Cost Estimated Fair Value (In thousands) Due within one year $ 109,521 $ 109,550 Due after one year through two years 24,724 24,725 Total $ 134,245 $ 134,275 We classify our available-for-sale investments as short-term investments in our consolidated balance sheets 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: Money market funds 3,416 1 (4 ) 3,413 Total cash equivalents, short-term investments and restricted cash $ 236,857 $ 67 $ (104 ) $ 236,820 |
Fair Value Measurement | The following table sets forth the fair value of our financial assets by level within the fair value hierarchy: Fair Value Measurements at July 31, 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 Reported as cash equivalents: Money market funds $ 8,749 $ — $ — $ 8,749 Reported as short-term investments: U.S. Treasury securities 105,006 — — 105,006 U.S. government agency securities — 16,547 — 16,547 FDIC-backed certificates of deposit — 12,722 — 12,722 Total short-term investments 105,006 29,269 — 134,275 Reported as restricted cash: Money market funds 3,425 — — 3,425 Total financial assets $ 117,180 $ 29,269 $ — $ 146,449 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 Reported as cash equivalents: Money market funds $ 5,695 $ — $ — $ 5,695 Reported as 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 Reported as restricted cash: Money market funds 3,413 — — 3,413 Total financial assets $ 171,818 $ 65,002 $ — $ 236,820 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Allowance for Doubtful Accounts and Sales Returns Reserve | The allowances for doubtful accounts and sales returns consist of the following activity: Balance at Beginning of Year Charged to (Reversed From) Cost and Expenses or Revenue Deductions Balance at End of Year (In thousands) Year Ended July 31, 2014 Allowance for doubtful accounts $ 356 $ 72 $ (89 ) $ 339 Sales returns reserve 225 (73 ) (27 ) 125 Total allowance for doubtful accounts and sales returns reserve $ 581 $ (1 ) $ (116 ) $ 464 Year Ended July 31, 2015 Allowance for doubtful accounts $ 339 $ 85 $ (108 ) $ 316 Sales returns reserve 125 32 (27 ) 130 Total allowance for doubtful accounts and sales returns reserve $ 464 $ 117 $ (135 ) $ 446 Year Ended July 31, 2016 Allowance for doubtful accounts $ 316 $ 288 $ (41 ) $ 563 Sales returns reserve 130 394 (243 ) 281 Total allowance for doubtful accounts and sales returns reserve $ 446 $ 682 $ (284 ) $ 844 |
Schedule of Inventory | Inventory Inventory consists of the following: As of July 31, 2016 2015 (In thousands) Raw materials $ 1,262 $ 2,224 Finished goods 4,783 6,364 Total inventory $ 6,045 $ 8,588 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: As of July 31, 2016 2015 (In thousands) Prepaid expenses $ 9,104 $ 8,742 Other current assets 3,484 1,717 Total prepaid expenses and other current assets $ 12,588 $ 10,459 |
Schedule of Property, Plant and Equipment | Property and Equipment, Net Property and equipment, net consists of the following: As of July 31, 2016 2015 (In thousands) Computer equipment and software $ 34,260 $ 28,073 Furniture and fixtures 5,470 4,666 Leasehold improvements 12,003 11,370 Total property and equipment, gross 51,733 44,109 Less accumulated depreciation and amortization (29,729 ) (20,884 ) Total property and equipment, net $ 22,004 $ 23,225 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following: As of July 31, 2016 2015 (In thousands) Accounts payable $ 11,803 $ 10,041 Accrued restructuring liability (see Note 8) 3,750 — Other 10,318 9,095 Total accounts payable and other current liabilities $ 25,871 $ 19,136 |
Schedule of Deferred Revenue, Net | Deferred Revenue, Net Deferred revenue, net consists of the following: As of July 31, 2016 2015 (In thousands) Deferred revenue: Products and licenses $ 8,124 $ 6,255 Services 171,841 133,834 Total deferred revenue 179,965 140,089 Deferred cost of revenue: Products and licenses 360 567 Services 3,701 2,675 Total deferred cost of revenue 4,061 3,242 Total deferred revenue, net 175,904 136,847 Less current portion 122,223 95,130 Non-current portion $ 53,681 $ 41,717 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense, Net | Other income (expense), net is comprised of the following: Year Ended July 31, 2016 2015 2014 (In thousands) Interest income and other, net $ 1,016 $ 751 $ 435 Foreign currency exchange losses (505 ) (1,402 ) (453 ) Total other income (expense), net $ 511 $ (651 ) $ (18 ) |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 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 [Table Text Block] | The following table presents details of the intangible assets acquired from IID and the related accumulated amortization and net carrying value as of July 31, 2016: Estimated Fair Value Estimated Useful Life Accumulated Amortization Net Carrying Value (in thousands) (in Years) (in thousands) Developed technology $ 15,330 7 $ (1,045 ) $ 14,285 Customer relationships 4,500 8 (268 ) 4,232 Non-compete agreements 700 2 (167 ) 533 Trade name 370 1 (176 ) 194 Total $ 20,900 $ (1,656 ) $ 19,244 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill for fiscal year 2016 was as follows: Amount in Thousands Balance as of July 31, 2015 $ 33,293 IID acquisition 25,672 Balance as of July 31, 2016 $ 58,965 |
Schedule of Gross Carrying Amount and Accumulated Amortization of Intangible Assets | The gross carrying amount and accumulated amortization of our intangible assets other than goodwill were as follows: As of July 31, 2016 Amortization Period Gross Value Accumulated Amortization Net Carrying Value Weighted-Average Remaining Amortization Period (Dollars in thousands) Developed technology 5 to 7 years $ 22,635 $ (7,715 ) $ 14,920 6.49 years Customer relationships 2 to 8 years 11,074 (6,685 ) 4,389 7.37 years Trademarks 1 to 6 years 570 (376 ) 194 0.58 years Patents 6 years 1,000 (917 ) 83 0.50 years Non-compete agreements 2 years 700 (167 ) 533 1.58 years Total $ 35,979 $ (15,860 ) $ 20,119 As of July 31, 2015 Amortization Period Gross Value Accumulated Amortization Net Carrying Value Weighted-Average Remaining Amortization Period (Dollars in thousands) Developed technology 5 to 6 years $ 7,305 $ (5,908 ) $ 1,397 3.30 years Customer relationships 2 to 7 years 6,574 (6,323 ) 251 2.67 years Trademarks 6 years 200 (175 ) 25 0.75 years Patents 6 years 1,000 (750 ) 250 1.50 years Total $ 15,079 $ (13,156 ) $ 1,923 |
Schedule of Intangible Asset Amortization Expense, by Income Statement Location | We recognized intangible asset amortization expense in the consolidated statements of operations as follows: Year Ended July 31, 2016 2015 2014 (In thousands) Cost of products and licenses revenue $ 1,973 $ 1,160 $ 1,110 Sales and marketing 731 1,013 1,308 Total intangible asset amortization expense $ 2,704 $ 2,173 $ 2,418 |
Schedule of Estimated Amortization Expense | As of July 31, 2016 , estimated amortization expense related to our identifiable acquisition-related intangible assets in future periods is as follows: Fiscal Year Ending July 31, Estimated Amortization Expense (In thousands) 2017 $ 3,619 2018 3,143 2019 2,898 2020 2,898 2021 2,807 Thereafter 4,754 Total $ 20,119 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | The following table presents the restructuring activity for the year ended July 31, 2016: Employee Severance and Benefits Operating Lease Terminations Fixed Assets Impairment Stock-based Compensation Other Total (in thousands) Accrued restructuring balance as of July 31, 2015 $ — $ — $ — $ — $ — $ — Accruals 5,013 267 68 155 154 5,657 Cash payments (1,672 ) — — — (12 ) (1,684 ) Non-cash charges — — (68 ) (155 ) — (223 ) Accrued restructuring as of July 31, 2016 $ 3,341 $ 267 $ — $ — $ 142 $ 3,750 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments | The aggregate future non-cancelable minimum lease payments for our operating leases as of July 31, 2016 consist of the following: Fiscal Year Ending July 31, Operating Leases (In thousands) 2017 $ 5,328 2018 4,770 2019 4,573 2020 4,564 2021 2,571 Thereafter 246 Total $ 22,052 |
Common Stock Reserved for Iss32
Common Stock Reserved for Issuance (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Equity [Abstract] | |
Schedule of Common Stock Reserved for Issuance | We had reserved shares of common stock for future issuance as follows: As of July 31, 2016 2015 (In thousands) Outstanding restricted stock units 4,306 4,406 Shares reserved for future grants 4,760 3,963 Outstanding stock options 2,113 3,357 Shares reserved for employee stock purchase plan 917 1,120 Outstanding MSUs 189 — 12,285 12,846 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-based Compensation by Statement of Operations | The following table summarizes the stock-based compensation expense by line item in the Consolidated Statements of Operations: Year Ended July 31, 2016 2015 2014 (In thousands) Cost of revenue $ 4,396 $ 4,450 $ 3,619 Research and development 11,033 10,828 7,375 Sales and marketing 23,184 23,687 22,919 General and administrative 9,633 8,658 7,058 Total stock-based compensation $ 48,246 $ 47,623 $ 40,971 The following table summarizes the stock-based compensation expense by award type: Year Ended July 31, 2016 2015 2014 (In thousands) RSUs $ 36,634 $ 31,952 $ 24,359 Stock options 5,234 8,860 12,252 ESPP 4,717 6,811 4,360 MSUs 1,661 — — Total stock-based compensation $ 48,246 $ 47,623 $ 40,971 |
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 2016 : As of July 31, 2016 Weighted-Average Amortization Period (In thousands) (In years) RSUs $ 54,855 2.44 Stock options 4,928 2.02 ESPP 3,874 0.81 MSUs 1,768 1.38 Total unrecognized stock-based compensation balance $ 65,425 2.28 |
Schedule of Determination of Fair Value | The estimated grant date fair value of our stock options and ESPP awards was calculated using the BSM option-pricing model, based on the following assumptions: Year Ended July 31, 2016 2015 2014 Employee Stock Options: Expected term (in years) 6.08 6.08 6.08 Risk-free interest rate 1.7 % 1.81 % 1.86 % Expected volatility 52 % 55 % 55 % Dividend rate — % — % — % Weighted average fair value per share $ 9.48 $ 9.49 $ 16.75 ESPP: Expected term (in years) 0.50 - 2.00 0.50 - 2.00 0.50 - 2.00 Risk-free interest rate 0.41% - 0.96% 0.08% - 0.71% 0.06% - 0.48% Expected volatility 62% - 64% 67% - 71% 55% - 77% Dividend rate — % — % — % Weighted average fair value per share $6.01 - $9.44 $7.02-$14.02 $6.12 - $12.87 |
Schedule of Stock-Based Compensation Activity | The following table summarizes the stock option activity and related information as of and for the three years ended July 31, 2016 under our Plans: Options Outstanding 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, 2013 6,663 $ 9.35 7.47 $ 155,580 Options granted 523 31.83 Options exercised (2,052 ) 6.74 Options forfeited/expired (220 ) 16.17 Outstanding as of July 31, 2014 4,914 $ 12.52 6.67 $ 14,980 Options granted 875 17.94 Options exercised (1,919 ) 8.66 Options forfeited/expired (513 ) 17.1 Outstanding as of July 31, 2015 3,357 $ 15.45 6.67 $ 32,040 Options granted 74 18.76 Options exercised (886 ) 8.48 Options forfeited/expired (432 ) 20.74 Outstanding as of July 31, 2016 2,113 $ 17.41 6.11 $ 9,424 Vested and expected to vest - July 31, 2016 2,055 $ 17.32 6.05 $ 9,354 Exercisable - July 31, 2016 1,569 $ 16.39 5.46 $ 8,605 |
Schedule of Restricted Stock Units | A summary of the restricted stock unit activity during the three years ended July 31, 2016 is presented below: Number of Units Weighted-Average Grant Date Fair Value Per Share (In thousands) Outstanding as of July 31, 2013 1,986 $ 21.15 Granted 2,432 $ 29.72 Vested (699 ) $ 22.37 Cancellations due to forfeitures (277 ) $ 29.9 Outstanding as of July 31, 2014 3,442 $ 26.47 Granted 2,889 $ 17.85 Vested (1,107 ) $ 27.99 Cancellations due to forfeitures (818 ) $ 23.26 Outstanding as of July 31, 2015 4,406 $ 21.03 Granted 2,901 $ 17.69 Vested (1,810 ) $ 20.69 Cancellations due to forfeitures (1,191 ) $ 20.14 Outstanding as of July 31, 2016 4,306 $ 19.17 |
Schedule of Shares Available for Grant | The following table presents the stock grant activity and the total number of shares available for grant under the 2012 Plan as of July 31, 2016 : 2012 Plan (In thousands) Balance at July 31, 2015 3,963 Additional shares authorized for issuance 2,338 RSUs granted (2,901 ) MSUs granted (245 ) Options granted (74 ) RSUs forfeited 1,191 Options forfeited/expired(1) 432 MSUs forfeited 56 Balance at July 31, 2016 4,760 (1) Includes forfeited or expired options under the 2003 Plan that forfeited or expired unexercised which became available for grant under the 2012 Plan according to its terms. Any shares subject to outstanding awards under the 2003 Plan that are issuable upon the exercise of options that expire or become unexercisable for any reason without having been exercised in full will be available for future grant and issuance under the 2012 Plan. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and International | geographical breakdown of our income (loss) before provision for income taxes for fiscal years 2016 , 2015 and 2014 is as follows: Year Ended July 31, 2016 2015 2014 (In thousands) Domestic $ (18,872 ) $ (28,113 ) $ (24,964 ) International 2,618 2,037 1,966 Loss before provision for (benefit from) income taxes $ (16,254 ) $ (26,076 ) $ (22,998 ) |
Schedule of Components of Provision for Income Taxes | The components of the provision for (benefit from) income taxes are as follows: Year Ended July 31, 2016 2015 2014 (In thousands) Current: State $ 381 $ 355 $ 209 Foreign 708 578 416 Total current 1,089 933 625 Deferred: Federal (3,437 ) 74 — State (195 ) — — Foreign — — 294 Total deferred (3,632 ) 74 294 Provision for (benefit from) income taxes $ (2,543 ) $ 1,007 $ 919 |
Schedule of Statutory Federal Income Tax and Effective Income Tax Rate Reconciliation | The reconciliation of the statutory federal income tax and our effective income tax is as follows: Year Ended July 31, 2016 2015 2014 (In thousands) Tax at statutory federal rate $ (5,689 ) $ (9,127 ) $ (8,049 ) Change in valuation allowance 1,026 6,021 5,663 Stock-based compensation and other permanent items 3,931 4,555 3,696 R&D credit (1,724 ) (664 ) (528 ) State tax—net of federal benefit 161 283 158 Foreign rate differential (207 ) (135 ) 23 Foreign tax credit (28 ) (52 ) (6 ) Other (13 ) 126 (38 ) Provision for (benefit from) income taxes $ (2,543 ) $ 1,007 $ 919 |
Schedule of Deferred Tax Assets and Liabilities | The components of the deferred tax assets, net are as follows: As of July 31, 2016 2015 (In thousands) Deferred tax assets: Net operating loss carryforwards $ 12,005 $ 10,469 Deferred revenue 15,987 12,995 Stock-based compensation 9,604 9,269 Tax credit carryforwards 11,206 8,584 Accruals, reserves and other 6,395 8,330 Fixed assets depreciation and other — 921 Identified intangibles and other — 212 Gross deferred tax asset 55,197 50,780 Valuation allowance (48,694 ) (50,772 ) Total deferred tax asset 6,503 8 Deferred tax liability: Identified intangibles and other (6,081 ) (74 ) Fixed assets depreciation (518 ) — Total deferred tax liability (6,599 ) (74 ) Net deferred tax liability $ (96 ) $ (66 ) |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits: Year Ended July 31, 2016 2015 2014 (In thousands) Gross unrecognized tax benefits beginning balance $ 3,414 $ 2,863 $ 2,268 Increases related to tax positions taken during current year 1,038 457 612 Increases (Decreases) related to tax positions from prior years 222 94 (17 ) Gross unrecognized tax benefits $ 4,674 $ 3,414 $ 2,863 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table represents net revenue based on the customer’s location, as determined by the customer’s shipping address: Year Ended July 31, 2016 2015 2014 (In thousands) Americas $ 226,398 $ 205,349 $ 164,323 Europe, Middle East and Africa 94,752 73,773 58,570 Asia Pacific 37,136 27,003 27,447 Total net revenue $ 358,286 $ 306,125 $ 250,340 Our property and equipment, net by location is summarized as follows: As of July 31, 2016 2015 (In thousands) Americas $ 20,601 $ 21,807 Europe, Middle East and Africa 915 712 Asia Pacific 488 706 $ 22,004 $ 23,225 |
Unautited Quarterly Financial36
Unautited Quarterly Financial Data (Tables) | 12 Months Ended |
Jul. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | Fiscal 2016 Three Months Ended October 31, January 31, April 30, July 31, 2015 2016 2016 2016 (In thousands, except per share amounts) Net revenue: Products and licenses $ 50,857 $ 51,516 $ 37,771 $ 38,661 Services 43,165 44,483 44,191 47,642 Total net revenue 94,022 95,999 81,962 86,303 Cost of revenue: Products and licenses 10,350 9,856 9,046 8,463 Services 8,752 9,065 10,176 10,650 Total cost of revenue 19,102 18,921 19,222 19,113 Gross profit 74,920 77,078 62,740 67,190 Operating expenses: Research and development 17,833 17,461 17,300 17,440 Sales and marketing 47,286 45,996 42,506 43,195 General and administrative 10,457 11,149 10,956 11,457 Restructuring expense — — — 5,657 Total operating expenses 75,576 74,606 70,762 77,749 Income (loss) from operations (656 ) 2,472 (8,022 ) (10,559 ) Other income (expense), net 95 167 309 (60 ) Income (loss) before provision for (benefit from) income taxes (561 ) 2,639 (7,713 ) (10,619 ) Provision for (benefit from) income taxes 950 (1,139 ) (2,037 ) (317 ) Net income (loss) $ (1,511 ) $ 3,778 $ (5,676 ) $ (10,302 ) Net income (loss) per share - basic and diluted $ (0.03 ) $ 0.06 $ (0.10 ) $ (0.18 ) Fiscal 2015 Three Months Ended October 31, January 31, April 30, July 31, 2014 2015 2015 2015 (In thousands, except per share amounts) Net revenue: Products and licenses $ 31,508 $ 37,917 $ 40,737 $ 46,348 Services 35,211 36,387 37,366 40,651 Total net revenue 66,719 74,304 78,103 86,999 Cost of revenue: Products and licenses 7,467 8,787 9,069 10,039 Services 7,467 7,491 8,257 8,554 Total cost of revenue 14,934 16,278 17,326 18,593 Gross profit 51,785 58,026 60,777 68,406 Operating expenses: Research and development 14,570 15,504 16,709 18,309 Sales and marketing 38,455 39,788 39,536 44,438 General and administrative 7,960 9,355 9,740 10,055 Total operating expenses 60,985 64,647 65,985 72,802 Loss from operations (9,200 ) (6,621 ) (5,208 ) (4,396 ) Other income (expense), net (190 ) (590 ) 206 (77 ) Loss before provision for (benefit from) income taxes (9,390 ) (7,211 ) (5,002 ) (4,473 ) Provision for (benefit from) income taxes 820 (200 ) 134 253 Net loss $ (10,210 ) $ (7,011 ) $ (5,136 ) $ (4,726 ) Net loss per share - basic and diluted $ (0.18 ) $ (0.13 ) $ (0.09 ) $ (0.08 ) |
Description of the Business a37
Description of the Business and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Restricted Cash | |||
Restricted cash | $ 12,000 | ||
Advertising Costs | |||
Advertising expense | $ 600 | $ 1,400 | $ 1,300 |
Minimum [Member] | |||
Property, Plant and Equipment, Net | |||
Useful life | 2 years | ||
Maximum [Member] | |||
Property, Plant and Equipment, Net | |||
Useful life | 7 years | ||
Exclusive Networks [Member] | Sales Revenue, Net [Member] | |||
Concentration of Revenue and Accounts Receivable | |||
Percentage of accounts receivable by major customer | 14.80% | 10.80% | 10.50% |
Exclusive Networks [Member] | Accounts Receivable [Member] | |||
Concentration of Revenue and Accounts Receivable | |||
Percentage of accounts receivable by major customer | 17.10% | 12.10% | |
Prepaid Expenses and Other Current Assets [Member] | |||
Restricted Cash | |||
Restricted cash | $ 2,000 | ||
Other Noncurrent Assets [Member] | |||
Restricted Cash | |||
Restricted cash | 10,000 | $ 3,500 | |
Other Liabilities [Member] | |||
Restricted Cash | |||
Restricted cash | 8,500 | ||
Foreign Currency Gain (Loss) [Member] | |||
Foreign Currency | |||
Foreign currency transaction gain (loss) | $ (505) | $ (1,402) | $ (453) |
Net Income (Loss) Per Share (Sc
Net Income (Loss) Per Share (Schedule of Antidilutive Securities) (Details) - shares shares in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 2,134 | 3,155 | 3,629 |
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 | 2,060 | 2,077 | 1,745 |
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 | 290 | 139 | 380 |
Cash Equivalents and Short-te39
Cash Equivalents and Short-term Investments, Restricted Cash and Fair Value Measurements (Cash Equivalents, Short-term Investments and Restricted Cash) (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 134,245 | $ 227,746 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain | 47 | 66 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | (17) | (100) |
Available-for-sale Securities | 134,275 | 227,712 |
Cash Equivalents, Available-for-sale Securities and Restricted Cash, Amortized Cost Basis | 146,419 | 236,857 |
Cash Equivalents, Available-for-sale Securities and Restricted Cash, Gross Unrealized Gains | 47 | 67 |
Cash Equivalents, Available-for-sale Securities and Restricted Cash, Gross Unrealized Losses | (17) | (104) |
Cash Equivalents, Available-for-sale Securities and Restricted Cash, Fair Value Disclosure | 146,449 | 236,820 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 104,974 | 162,718 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain | 39 | 50 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | (7) | (58) |
Available-for-sale Securities | 105,006 | 162,710 |
US Government Agencies Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 16,551 | 42,468 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain | 2 | 9 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | (6) | (10) |
Available-for-sale Securities | 16,547 | 42,467 |
Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 12,720 | 22,560 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain | 6 | 7 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss | (4) | (32) |
Available-for-sale Securities | 12,722 | 22,535 |
Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cash Equivalents, Amortized Cost Basis | 8,749 | 5,695 |
Cash Equivalents, Gross Unrealized Gains | 0 | 0 |
Cash Equivalents, Gross Unrealized Losses | 0 | 0 |
Cash Equivalents, Fair Value Disclosure | 8,749 | 5,695 |
Restricted Cash, Amortized Costs Basis | 3,425 | 3,416 |
Restricted Cash, Gross Unrealized Gains | 0 | 1 |
Restricted Cash, Gross Unrealized Losses | 0 | (4) |
Restricted cash | $ 3,425 | $ 3,413 |
Cash Equivalents and Short-te40
Cash Equivalents and Short-term Investments, Restricted Cash and Fair Value Measurements (Maturities of Short-term Investments) (Details) $ in Thousands | Jul. 31, 2016USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $ 109,521 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 109,550 |
Available-for-sale Securities, Debt Maturities, Year One Through Two, Amortized Cost Basis | 24,724 |
Available-for-sale Securities, Debt Maturities, Year One Through Two, Fair Value | 24,725 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 134,245 |
Available-for-sale Securities, Debt Securities | $ 134,275 |
Cash Equivalents and Short-te41
Cash Equivalents and Short-term Investments, Restricted Cash and Fair Value Measurements (Schedule of the Fair Value of Assets and Liabilities by Level) (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 134,275 | $ 227,712 |
Total financial assets | 146,449 | 236,820 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 105,006 | 162,710 |
Total financial assets | 117,180 | 171,818 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 29,269 | 65,002 |
Total financial assets | 29,269 | 65,002 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Total financial assets | 0 | 0 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 105,006 | 162,710 |
US Treasury Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 105,006 | 162,710 |
US Treasury Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
US Treasury Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
US Government Agencies Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 16,547 | 42,467 |
US Government Agencies Debt Securities [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
US Government Agencies Debt Securities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 16,547 | 42,467 |
US Government Agencies Debt Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 12,722 | 22,535 |
Certificates of Deposit [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Certificates of Deposit [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 12,722 | 22,535 |
Certificates of Deposit [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 8,749 | 5,695 |
Restricted cash | 3,425 | 3,413 |
Money Market Funds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 8,749 | 5,695 |
Restricted cash | 3,425 | 3,413 |
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 |
Balance Sheet Components (Sched
Balance Sheet Components (Schedule of Allowance for Doubtful Accounts and Sales Reserves) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 446 | $ 464 | $ 581 |
Charged to (Reversed From) Cost and Expenses or Revenue | 682 | 117 | (1) |
Deductions | (284) | (135) | (116) |
Balance at End of Year | 844 | 446 | 464 |
Allowance for doubtful accounts [Member] | |||
Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 316 | 339 | 356 |
Charged to (Reversed From) Cost and Expenses or Revenue | 288 | 85 | 72 |
Deductions | 41 | 108 | 89 |
Balance at End of Year | 563 | 316 | 339 |
Sales returns reserve [Member] | |||
Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 130 | 125 | 225 |
Charged to (Reversed From) Cost and Expenses or Revenue | 394 | 32 | (73) |
Deductions | 243 | 27 | 27 |
Balance at End of Year | $ 281 | $ 130 | $ 125 |
Balance Sheet Components (Sch43
Balance Sheet Components (Schedule of Inventory) (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 1,262 | $ 2,224 |
Finished goods | 4,783 | 6,364 |
Total inventory | $ 6,045 | $ 8,588 |
Balance Sheet Components (Sch44
Balance Sheet Components (Schedule of Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 9,104 | $ 8,742 |
Other current assets | 3,484 | 1,717 |
Total prepaid expenses and other current assets | $ 12,588 | $ 10,459 |
Balance Sheet Components (Sch45
Balance Sheet Components (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 51,733 | $ 44,109 | |
Less accumulated depreciation and amortization | (29,729) | (20,884) | |
Total property and equipment, net | 22,004 | 23,225 | |
Depreciation and amortization | 9,000 | 6,700 | $ 6,300 |
Computer equipment and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 34,260 | 28,073 | |
Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | 5,470 | 4,666 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property and equipment, gross | $ 12,003 | $ 11,370 |
Balance Sheet Components (Sch46
Balance Sheet Components (Schedule of Accounts Payable and Accrued Liabilities) (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable | $ 11,803 | $ 10,041 |
Accrued restructuring liability (see Note 8) | 3,750 | 0 |
Other | 10,318 | 9,095 |
Total accounts payable and other current liabilities | $ 25,871 | $ 19,136 |
Balance Sheet Components (Sch47
Balance Sheet Components (Schedule of Deferred Revenue) (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 179,965 | $ 140,089 |
Deferred cost of revenue | 4,061 | 3,242 |
Total deferred revenue, net | 175,904 | 136,847 |
Less current portion | 122,223 | 95,130 |
Non-current portion of deferred revenue | 53,681 | 41,717 |
Products and Licenses [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 8,124 | 6,255 |
Deferred cost of revenue | 360 | 567 |
Services [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 171,841 | 133,834 |
Deferred cost of revenue | $ 3,701 | $ 2,675 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Component of Other Income (Expense) [Line Items] | |||||||||||
Interest income and other, net | $ 1,016 | $ 751 | $ 435 | ||||||||
Total other income (expense), net | $ (60) | $ 309 | $ 167 | $ 95 | $ (77) | $ 206 | $ (590) | $ (190) | 511 | (651) | (18) |
Foreign Currency Gain (Loss) [Member] | |||||||||||
Component of Other Income (Expense) [Line Items] | |||||||||||
Foreign currency exchange losses | $ (505) | $ (1,402) | $ (453) |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Feb. 08, 2016 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 |
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 31,531 | $ 0 | $ 1,000 | |
Restricted cash | 12,000 | |||
Amortization of Intangible Assets | (2,704) | $ (2,173) | $ (2,418) | |
Other Liabilities [Member] | ||||
Business Acquisition [Line Items] | ||||
Restricted cash | 8,500 | |||
Prepaid Expenses and Other Current Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Restricted cash | 2,000 | |||
IID Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Total consideration | $ 43,100 | |||
Working Capital Adjustment | 600 | |||
Business Combinations, Indemnification Hold-Back | 4,200 | |||
Business Combinations, Founders Hold-Back | $ 3,700 | |||
Payments to Acquire Businesses, Net of Cash Acquired | 31,500 | |||
Indemnification Hold Back Period | 18 months | |||
Founders Hold-Back Period | 2 years | |||
Hold-back discount rates | 4.00% | |||
Business Combinations, Indemnification Hold-Back, Fair Value | $ 4,500 | |||
Business Combinations, Founders Hold-Back, Fair Value | $ 4,000 | |||
Restricted cash, Noncurrent | 8,500 | |||
Business Combinations, Hold-back Liabilities | 8,100 | |||
Restructuring charges | 600 | |||
Amortization of Intangible Assets | (1,700) | |||
IID Acquisition [Member] | Other Liabilities [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combinations, Hold-back Liabilities | 6,200 | |||
IID Acquisition [Member] | Accounts Payable and Accrued Liabilities [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combinations, Hold-back Liabilities | 1,900 | |||
IID Acquisition [Member] | Prepaid Expenses and Other Current Assets [Member] | ||||
Business Acquisition [Line Items] | ||||
Restricted cash | $ 2,000 |
Acquisitions (Schedule of Asset
Acquisitions (Schedule of Assets and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Feb. 08, 2016 | Jul. 31, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 58,965 | $ 33,293 | |
IID Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
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 | ||
Goodwill | 25,672 | ||
Total purchase consideration | $ 43,123 |
Acquisitions (Schedule of Intan
Acquisitions (Schedule of Intangible Assets Acquired) (Details) - USD ($) $ in Thousands | Feb. 08, 2016 | Jul. 31, 2016 | Jul. 31, 2015 |
Business Acquisition [Line Items] | |||
Estimated Fair Value | $ 35,979 | $ 15,079 | |
Accumulated Amortization | (15,860) | (13,156) | |
Net Carrying Value | $ 19,244 | 20,119 | 1,923 |
IID Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Fair Value | 20,900 | ||
Accumulated Amortization | $ (1,656) | ||
Developed Technology [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Fair Value | 22,635 | 7,305 | |
Estimated Useful Life | 7 years | ||
Accumulated Amortization | (7,715) | (5,908) | |
Net Carrying Value | $ 14,285 | 14,920 | 1,397 |
Developed Technology [Member] | IID Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Fair Value | 15,330 | ||
Accumulated Amortization | $ (1,045) | ||
Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Fair Value | 11,074 | 6,574 | |
Estimated Useful Life | 8 years | ||
Accumulated Amortization | (6,685) | (6,323) | |
Net Carrying Value | $ 4,232 | 4,389 | $ 251 |
Customer Relationships [Member] | IID Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Fair Value | 4,500 | ||
Accumulated Amortization | $ (268) | ||
Noncompete Agreements [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Fair Value | $ 700 | ||
Estimated Useful Life | 2 years | 2 years | |
Accumulated Amortization | $ (167) | ||
Net Carrying Value | $ 533 | $ 533 | |
Noncompete Agreements [Member] | IID Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Fair Value | 700 | ||
Accumulated Amortization | $ (167) | ||
Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Useful Life | 1 year | ||
Net Carrying Value | $ 194 | ||
Trade Names [Member] | IID Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Estimated Fair Value | 370 | ||
Accumulated Amortization | $ (176) |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets (Goodwill) (Details) $ in Thousands | 12 Months Ended |
Jul. 31, 2016USD ($) | |
Goodwill [Line Items] | |
Goodwill | $ 33,293 |
Goodwill | 58,965 |
IID Acquisition [Member] | |
Goodwill [Line Items] | |
Acquisition | $ 25,672 |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets (Gross Carrying Amount and Accumulated Amortization) (Details) - USD ($) $ in Thousands | Feb. 08, 2016 | Jul. 31, 2016 | Jul. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Value | $ 35,979 | $ 15,079 | |
Accumulated Amortization | (15,860) | (13,156) | |
Net Carrying Value | $ 19,244 | 20,119 | 1,923 |
Developed Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 7 years | ||
Gross Value | 22,635 | 7,305 | |
Accumulated Amortization | (7,715) | (5,908) | |
Net Carrying Value | $ 14,285 | $ 14,920 | $ 1,397 |
Developed Technology [Member] | Weighted Average [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 6 years 5 months 26 days | 3 years 3 months 18 days | |
Developed Technology [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 5 years | 5 years | |
Developed Technology [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 7 years | 6 years | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 8 years | ||
Gross Value | $ 11,074 | $ 6,574 | |
Accumulated Amortization | (6,685) | (6,323) | |
Net Carrying Value | $ 4,232 | $ 4,389 | $ 251 |
Customer Relationships [Member] | Weighted Average [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 7 years 4 months 13 days | 2 years 8 months 1 day | |
Customer Relationships [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 2 years | 2 years | |
Customer Relationships [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 8 years | 7 years | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 6 years | ||
Gross Value | $ 570 | $ 200 | |
Accumulated Amortization | (376) | (175) | |
Net Carrying Value | $ 194 | $ 25 | |
Trademarks [Member] | Weighted Average [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 6 months 29 days | 9 months | |
Trademarks [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 1 year | ||
Trademarks [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 6 years | ||
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 6 years | 6 years | |
Gross Value | $ 1,000 | $ 1,000 | |
Accumulated Amortization | (917) | (750) | |
Net Carrying Value | $ 83 | $ 250 | |
Patents [Member] | Weighted Average [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 6 months | 1 year 6 months | |
Noncompete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 2 years | 2 years | |
Gross Value | $ 700 | ||
Accumulated Amortization | (167) | ||
Net Carrying Value | $ 533 | $ 533 | |
Noncompete Agreements [Member] | Weighted Average [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization Period | 1 year 6 months 29 days |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 2,704 | $ 2,173 | $ 2,418 |
Cost of Products and Licenses Revenue [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 1,973 | 1,160 | 1,110 |
Sales and Marketing [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 731 | $ 1,013 | $ 1,308 |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets (Estimated Amortization Expense) (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Feb. 08, 2016 | Jul. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2,017 | $ 3,619 | ||
2,018 | 3,143 | ||
2,019 | 2,898 | ||
2,020 | 2,898 | ||
2,021 | 2,807 | ||
Thereafter | 4,754 | ||
Net Carrying Value | $ 20,119 | $ 19,244 | $ 1,923 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |||||||
Restructuring charges | $ 5,657 | $ 0 | $ 0 | $ 0 | $ 5,657 | $ 0 | $ 0 |
Accrued restructuring liability | $ 3,750 | $ 3,750 | $ 0 |
Restructuring Charges (Schedule
Restructuring Charges (Schedule of Restructuring Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Restructuring Reserve [Roll Forward] | |||||||
Accrued restructuring balance as of July 31, 2015 | $ 0 | $ 0 | |||||
Accruals | $ 5,657 | $ 0 | $ 0 | 0 | 5,657 | $ 0 | $ 0 |
Cash payments | (1,684) | ||||||
Non-cash charges | (223) | ||||||
Accrued restructuring as of July 31, 2016 | 3,750 | 3,750 | 0 | ||||
Employee Severance [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Accrued restructuring balance as of July 31, 2015 | 0 | 0 | |||||
Accruals | 5,013 | ||||||
Cash payments | (1,672) | ||||||
Non-cash charges | 0 | ||||||
Accrued restructuring as of July 31, 2016 | 3,341 | 3,341 | 0 | ||||
Operating Lease Termination [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Accrued restructuring balance as of July 31, 2015 | 0 | 0 | |||||
Accruals | 267 | ||||||
Cash payments | 0 | ||||||
Non-cash charges | 0 | ||||||
Accrued restructuring as of July 31, 2016 | 267 | 267 | 0 | ||||
Fixed Asset Impairment [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Accrued restructuring balance as of July 31, 2015 | 0 | 0 | |||||
Accruals | 68 | ||||||
Cash payments | 0 | ||||||
Non-cash charges | (68) | ||||||
Accrued restructuring as of July 31, 2016 | 0 | 0 | 0 | ||||
Stock Based Compensation [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Accrued restructuring balance as of July 31, 2015 | 0 | 0 | |||||
Accruals | 155 | ||||||
Cash payments | 0 | ||||||
Non-cash charges | (155) | ||||||
Accrued restructuring as of July 31, 2016 | 0 | 0 | 0 | ||||
Other Restructuring [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Accrued restructuring balance as of July 31, 2015 | $ 0 | 0 | |||||
Accruals | 154 | ||||||
Cash payments | (12) | ||||||
Non-cash charges | 0 | ||||||
Accrued restructuring as of July 31, 2016 | $ 142 | $ 142 | $ 0 |
Commitments and Contingencies58
Commitments and Contingencies (Details) ft² in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2013USD ($) | Jul. 31, 2016USD ($) | Jul. 31, 2015USD ($) | Jul. 31, 2014USD ($) | May 30, 2012ft² | |
Operating Leases | |||||
2,017 | $ 5,328 | ||||
2,018 | 4,770 | ||||
2,019 | 4,573 | ||||
2,020 | 4,564 | ||||
2,021 | 2,571 | ||||
Thereafter | 246 | ||||
Total | 22,052 | ||||
Area in lease agreement (in square feet) | ft² | 127 | ||||
Term of contract | 8 years | ||||
Rent expense | 5,500 | $ 5,100 | $ 4,700 | ||
Rent expense, minimum rentals | 3,200 | ||||
Lessor leasehold incentives | 6,000 | ||||
Unamortized lease incentive from lessor | 3,200 | ||||
Letter of Credit [Member] | |||||
Operating Leases | |||||
Standby letter of credit | $ 3,200 | ||||
Maximum [Member] | |||||
Operating Leases | |||||
Rent expense | 3,900 | ||||
Other Noncurrent Liabilities [Member] | |||||
Operating Leases | |||||
Unamortized lease incentive from lessor | 2,500 | ||||
Accounts Payable and Other Current Liabilities [Member] | |||||
Operating Leases | |||||
Unamortized lease incentive from lessor | $ 700 |
Commitments and Contingencies59
Commitments and Contingencies (Contract Manufacturer Commitments and Guarantees) (Details) $ in Millions | 12 Months Ended |
Jul. 31, 2016USD ($) | |
Guarantor Obligations [Line Items] | |
Open purchase orders | $ 7.3 |
Indemnification Agreement [Member] | |
Guarantor Obligations [Line Items] | |
Useful life | 5 years |
Indemnification Agreement [Member] | Open Purchase Orders [Member] | |
Guarantor Obligations [Line Items] | |
Open purchase orders | $ 5.6 |
Common Stock Reserved for Iss60
Common Stock Reserved for Issuance (Details) - shares shares in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Class of Stock [Line Items] | ||
Capital shares reserved for future issuance | 12,285 | 12,846 |
Restricted Stock Units (RSUs) [Member] | ||
Class of Stock [Line Items] | ||
Capital shares reserved for future issuance | 4,306 | 4,406 |
Stock Option [Member] | ||
Class of Stock [Line Items] | ||
Capital shares reserved for future issuance | 2,113 | 3,357 |
Employee Stock Purchase Plan [Member] | ||
Class of Stock [Line Items] | ||
Shares reserved for employee stock purchase plan | 917 | 1,120 |
Market Stock Units [Member] | ||
Class of Stock [Line Items] | ||
Capital shares reserved for future issuance | 189 | 0 |
Equity Plan [Member] | ||
Class of Stock [Line Items] | ||
Capital shares reserved for future issuance | 4,800 | 3,963 |
Employee Benefit Plans (Share-b
Employee Benefit Plans (Share-based Compensation Plans) (Details) - shares shares in Thousands | 12 Months Ended | |
Jul. 31, 2016 | Jul. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Capital shares reserved for future issuance | 12,285 | 12,846 |
2012 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration Period | 10 years | |
Equity Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Capital shares reserved for future issuance | 4,800 | 3,963 |
Nonstatutory Stock Option [Member] | 2012 Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Discount from market price, offering date | 85.00% | |
Potential Scenario, One [Member] | 2012 Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Stock Ownership | 10.00% | |
Fair Value of Common Stock on Grant Date | 110.00% |
Employee Benefit Plans (Employe
Employee Benefit Plans (Employee Stock Purchase Plan) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 48,246 | $ 47,623 | $ 40,971 |
Total unrecognized stock-based compensation balance | $ 65,425 | ||
Total unrecognized stock-based compensation balance, Weighted-average amortization | 2 years 3 months 10 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 36,634 | 31,952 | 24,359 |
Total unrecognized stock-based compensation balance | $ 54,855 | ||
Total unrecognized stock-based compensation balance, Weighted-average amortization | 2 years 5 months 8 days | ||
Stock Option [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 5,234 | $ 8,860 | $ 12,252 |
Total unrecognized stock-based compensation balance | $ 4,928 | ||
Total unrecognized stock-based compensation balance, Weighted-average amortization | 2 years 7 days | ||
Employee Stock Purchase Plan [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Percent of eligible compensation | 15.00% | ||
Offering period | 12 months | ||
Discount from market price, offering date | 85.00% | ||
Share Price | $ 12.36 | $ 11.32 | $ 12.70 |
Shares reserved for employee stock purchase plan | 917 | 1,120 | |
Total stock-based compensation expense | $ 4,717 | $ 6,811 | $ 4,360 |
Total unrecognized stock-based compensation balance | $ 3,874 | ||
Total unrecognized stock-based compensation balance, Weighted-average amortization | 9 months 21 days | ||
Market Stock Units [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 1,661 | 0 | 0 |
Total unrecognized stock-based compensation balance | $ 1,768 | ||
Total unrecognized stock-based compensation balance, Weighted-average amortization | 1 year 4 months 17 days | ||
Cost of Revenue [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 4,396 | 4,450 | 3,619 |
Research and Development [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 11,033 | 10,828 | 7,375 |
Selling and Marketing [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 23,184 | 23,687 | 22,919 |
General and Administrative [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 9,633 | $ 8,658 | $ 7,058 |
Common Stock [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Issuance of common stock in connection with the employee stock purchase plan (in shares) | 788 | 745 | 644 |
Employee Benefit Plans (Determi
Employee Benefit Plans (Determination of Fair Value) (Details) - $ / shares | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
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 | 1.70% | 1.81% | 1.86% |
Expected volatility | 52.00% | 55.00% | 55.00% |
Dividend rate | 0.00% | 0.00% | 0.00% |
Weighted average fair value per share | $ 9.48 | $ 9.49 | $ 16.75 |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend rate | 0.00% | 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 | 6 months |
Risk free interest rate | 0.41% | 0.08% | 0.06% |
Expected volatility | 62.00% | 67.00% | 55.00% |
Weighted average fair value per share | $ 6.01 | $ 7.02 | $ 6.12 |
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 | 2 years |
Risk free interest rate | 0.96% | 0.71% | 0.48% |
Expected volatility | 64.00% | 71.00% | 77.00% |
Weighted average fair value per share | $ 9.44 | $ 14.02 | $ 12.87 |
Employee Benefit Plans (Stock O
Employee Benefit Plans (Stock Option Activities) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Number of Shares Underlying Outstanding Options [Roll Forward] | ||||
Number of Shares Underlying Outstanding Options, Beginning Balance | 3,357 | 4,914 | 6,663 | |
Number of Shares Underlying Outstanding Options, Granted | 74 | 875 | 523 | |
Number of Shares Underlying Outstanding Options, Exercised | (886) | (1,919) | (2,052) | |
Number of Shares Underlying Outstanding Options, Forfeited/Expired | (432) | (513) | (220) | |
Number of Shares Underlying Outstanding Options, Vested and Expected to Vest | 2,055 | |||
Number of Shares Underlying Outstanding Options, Exercisable | 1,569 | |||
Weighted Average Exercise Price [Roll Forward] | ||||
Weighted Average Exercise Price, Beginning Balance | $ 15.45 | $ 12.52 | $ 9.35 | |
Weighted Average Exercise Price, Granted | 18.76 | 17.94 | 31.83 | |
Weighted Average Exercise Price, Exercised | 8.48 | 8.66 | 6.74 | |
Weighted Average Exercise Price, Forfeited/Expired | 20.74 | 17.1 | 16.17 | |
Weighted Average Exercise Price, Ending Balance | 17.41 | $ 15.45 | $ 12.52 | $ 9.35 |
Weighted-Average Exercise Price, Vested and Expected to Vest | 17.32 | |||
Weighted-Average Exercise Price, Exercisable | $ 16.39 | |||
Weighted Average Remaining Contractual Term [Abstract] | ||||
Weighted Average Remaining Contractual Term | 6 years 1 month 9 days | 6 years 8 months 1 day | 6 years 8 months 1 day | 7 years 5 months 19 days |
Weighted-Average Remaining Contractual Term, Vested and Expected to Vest | 6 years 18 days | |||
Weighted-Average Remaining Contractual Term, Exercisable | 5 years 5 months 15 days | |||
Aggregate Intrinsic Value [Abstract] | ||||
Aggregate Intrinsic Value, Outstanding | $ 9,424 | $ 32,040 | $ 14,980 | $ 155,580 |
Aggregate Intrinsic Value, Vested and Expected to Vest | 9,354 | |||
Aggregate Intrinsic Value, Exercisable | 8,605 | |||
Pre-tax intrinsic value of options exercised | 7,900 | 27,400 | 57,000 | |
Grant date fair value | $ 7,200 | $ 10,600 | $ 12,700 |
Employee Benefit Plans (Restric
Employee Benefit Plans (Restricted Stock Units Activities) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award Vesting Period | 4 years | ||
Number of Units, Oustanding beginning balance | 4,406 | 3,442 | 1,986 |
Number of Units, Granted | 2,901 | 2,889 | 2,432 |
Number of Units, Vested | (1,810) | (1,107) | (699) |
Number of Units, Cancellations due to forfeitures | (1,191) | (818) | (277) |
Number of Units, Oustanding ending balance | 4,306 | 4,406 | 3,442 |
Weighted Average Grant Date Fair Value, Outstanding beginning balance | $ 21.03 | $ 26.47 | $ 21.15 |
Weighted Average Grant Date Fair Value, Granted | 17.69 | 17.85 | 29.72 |
Weighted Average Grant Date Fair Value, Vested | 20.69 | 27.99 | 22.37 |
Weighted Average Grant Date Fair Value, Cancellations due to forfeitures | 20.14 | 23.26 | 29.9 |
Weighted Average Grant Date Fair Value, Outstanding ending balance | $ 19.17 | $ 21.03 | $ 26.47 |
Employee Benefit Plans (Shares
Employee Benefit Plans (Shares Available for Grant) (Details) - shares | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Shares Available for Grant [Roll Forward] | ||||
Options granted | (74,000) | (875,000) | (523,000) | |
Options forfeited/expired | 432,000 | 513,000 | 220,000 | |
Restricted Stock Units (RSUs) [Member] | ||||
Shares Available for Grant [Roll Forward] | ||||
Units granted | (2,901,000) | (2,889,000) | (2,432,000) | |
Market Stock Units [Member] | ||||
Shares Available for Grant [Roll Forward] | ||||
Units granted | (245,000) | |||
Options forfeited/expired | 55,934 | |||
2012 Plan [Member] | ||||
Shares Available for Grant [Roll Forward] | ||||
Shares available for grant, beginning balance | 3,963,000 | |||
Additional shares authorized for issuance | 2,338,000 | |||
Shares available for grant, ending balance | 4,760,000 | 3,963,000 | ||
2012 Plan [Member] | Stock Option [Member] | ||||
Shares Available for Grant [Roll Forward] | ||||
Options granted | (74,000) | |||
Options forfeited/expired | 432,000 | |||
2012 Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Shares Available for Grant [Roll Forward] | ||||
Units granted | (2,901,000) | |||
Options forfeited/expired | 1,191,000 | |||
2012 Plan [Member] | Market Stock Units [Member] | ||||
Shares Available for Grant [Roll Forward] | ||||
Units granted | (245,000) | |||
Options forfeited/expired | 56,000 |
Employee Benefit Plans (Master
Employee Benefit Plans (Master Stock Units) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2015$ / sharesshares | Jul. 31, 2016USD ($)installmentshares | Jul. 31, 2015USD ($)shares | Jul. 31, 2014USD ($)shares | Jul. 31, 2013shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Allocated Share-based Compensation Expense | $ | $ 48,246 | $ 47,623 | $ 40,971 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 65,425 | ||||
Number of Shares Underlying Outstanding Options, Exercisable | 1,569,000 | ||||
Achievement Rate | 36.70% | ||||
Options forfeited/expired | 432,000 | 513,000 | 220,000 | ||
Number of Shares Underlying Outstanding Options | 2,113,000 | 3,357,000 | 4,914,000 | 6,663,000 | |
Market Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of installments | installment | 3 | ||||
Allocated Share-based Compensation Expense | $ | $ 1,661 | $ 0 | $ 0 | ||
Percent of target shares | 175.00% | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 1,768 | ||||
Number of Units, Granted | 245,000 | ||||
Weighted Average Grant Date Fair Value, Granted | $ / shares | $ 20.66 | ||||
Number of Shares Underlying Outstanding Options, Exercisable | 27,497 | ||||
Options forfeited/expired | 55,934 | ||||
Number of Shares Underlying Outstanding Options | 189,066 | ||||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Multiplier | 0.00% | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance Multiplier | 175.00% |
Employee Benefit Plans (Stock R
Employee Benefit Plans (Stock Repurchase Program) (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 08, 2015 | May 31, 2016 | Feb. 29, 2016 | Sep. 20, 2016 | Jul. 31, 2016 | Nov. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 100 | |||||
Stock Repurchase Program, Authorized Amount, Increase | $ 150 | |||||
Accelerated Share Repurchase [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | 50 | |||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 50 | |||||
Stock Repurchased During Period, Shares | 2,192,982 | 748,464 | 2,941,446 | |||
Accelerated Share Repurchases, Final Price Paid Per Share | $ 17 | |||||
Other Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 50 | |||||
Open Market Stock Repurchases [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Repurchased During Period, Shares | 3,404,932 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 17.27 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 141.1 | |||||
Subsequent Event [Member] | Open Market Stock Repurchases [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock Repurchased During Period, Shares | 525,659 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 19.02 |
Employee Benefit Plans (Emplo69
Employee Benefit Plans (Employee 401(k)) Plan (Details) - USD ($) | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions per pay period | $ 0.50 | ||
Matching contributions | 1,200,000 | $ 700,000 | |
Younger than 50 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum annual contribution | 18,000 | $ 17,500 | |
50 or Older [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum annual contribution | $ 24,000 | ||
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum contributions percent | 2.00% | ||
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum contributions percent | 8.00% |
Income Taxes (Geographical Brea
Income Taxes (Geographical Breakdown of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ (18,872) | $ (28,113) | $ (24,964) | ||||||||
International | 2,618 | 2,037 | 1,966 | ||||||||
Loss before provision for (benefit from) income taxes | $ (10,619) | $ (7,713) | $ 2,639 | $ (561) | $ (4,473) | $ (5,002) | $ (7,211) | $ (9,390) | $ (16,254) | $ (26,076) | $ (22,998) |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Current: | |||||||||||
State | $ 381 | $ 355 | $ 209 | ||||||||
Foreign | 708 | 578 | 416 | ||||||||
Total current | 1,089 | 933 | 625 | ||||||||
Deferred: | |||||||||||
Federal | (3,437) | 74 | 0 | ||||||||
Deferred State and Local Income Tax Expense (Benefit) | (195) | 0 | 0 | ||||||||
Foreign | 0 | 0 | 294 | ||||||||
Total deferred | (3,632) | 74 | 294 | ||||||||
Provision for (benefit from) income taxes | $ (317) | $ (2,037) | $ (1,139) | $ 950 | $ 253 | $ 134 | $ (200) | $ 820 | $ (2,543) | $ 1,007 | $ 919 |
Income Taxes (Tax Reconciliatio
Income Taxes (Tax Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||||||||
Tax at statutory federal rate | $ (5,689) | $ (9,127) | $ (8,049) | ||||||||
Change in valuation allowance | 1,026 | 6,021 | 5,663 | ||||||||
Stock-based compensation and other permanent items | 3,931 | 4,555 | 3,696 | ||||||||
R&D credit | (1,724) | (664) | (528) | ||||||||
State tax—net of federal benefit | 161 | 283 | 158 | ||||||||
Foreign rate differential | (207) | (135) | 23 | ||||||||
Foreign tax credit | (28) | (52) | (6) | ||||||||
Other | (13) | 126 | (38) | ||||||||
Provision for (benefit from) income taxes | $ (317) | $ (2,037) | $ (1,139) | $ 950 | $ 253 | $ 134 | $ (200) | $ 820 | $ (2,543) | $ 1,007 | $ 919 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jul. 31, 2016 | Jul. 31, 2015 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 12,005 | $ 10,469 |
Deferred revenue | 15,987 | 12,995 |
Stock-based compensation | 9,604 | 9,269 |
Tax credit carryforwards | 11,206 | 8,584 |
Accruals, reserves and other | 6,395 | 8,330 |
Fixed assets depreciation and other | 0 | 921 |
Identified intangibles and other | 0 | 212 |
Gross deferred tax asset | 55,197 | 50,780 |
Valuation allowance | (48,694) | (50,772) |
Total deferred tax asset | 6,503 | 8 |
Deferred tax liability: | ||
Identified intangibles and other | (6,081) | (74) |
Fixed assets depreciation | (518) | 0 |
Total deferred tax liability | 6,599 | 74 |
Net deferred tax assets | $ (96) | $ (66) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2013 | |
Operating Loss Carryforwards [Line Items] | ||||
One-time benefit from the partial release of valuation allowance resulting from IID acquisition | $ 3,658 | $ 0 | $ 0 | |
Valuation allowance | 48,694 | 50,772 | ||
Valuation allowance increase | 2,100 | |||
Net operating losses | 141,800 | |||
Excess tax benefit from employee stock plans | 205 | 207 | 170 | |
Undistributed foreign earnings | 5,700 | |||
Amount of unrecognized deferred tax liability | 2,000 | |||
Unrecognized tax benefits | 4,674 | 3,414 | $ 2,863 | $ 2,268 |
Domestic Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | 48,100 | 50,400 | ||
Foreign Tax Authority [Member] | CANADA | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | 600 | $ 400 | ||
Internal Revenue Service (IRS) [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 170,500 | |||
State and Local Jurisdiction [Member] | California | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | 53,900 | |||
Research Tax Credit Carryforward [Member] | Foreign Tax Authority [Member] | CANADA | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | 900 | |||
Research Tax Credit Carryforward [Member] | Internal Revenue Service (IRS) [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | 8,700 | |||
Research Tax Credit Carryforward [Member] | State and Local Jurisdiction [Member] | California | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | $ 7,800 |
Income Taxes (Uncertain Tax Pos
Income Taxes (Uncertain Tax Positions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross unrecognized tax benefits beginning balance | $ 3,414 | $ 2,863 | $ 2,268 |
Increases related to tax positions taken during current year | 1,038 | 457 | 612 |
Increases (Decreases) related to tax positions from prior years | 222 | 94 | (17) |
Gross unrecognized tax benefits | $ 4,674 | $ 3,414 | $ 2,863 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2016USD ($) | Apr. 30, 2016USD ($) | Jan. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Apr. 30, 2015USD ($) | Jan. 31, 2015USD ($) | Oct. 31, 2014USD ($) | Jul. 31, 2016USD ($)segment | Jul. 31, 2015USD ($) | Jul. 31, 2014USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Number of reportable segments | segment | 1 | ||||||||||
Net revenue | $ 86,303 | $ 81,962 | $ 95,999 | $ 94,022 | $ 86,999 | $ 78,103 | $ 74,304 | $ 66,719 | $ 358,286 | $ 306,125 | $ 250,340 |
Property and equipment, net | 22,004 | 23,225 | 22,004 | 23,225 | |||||||
Americas [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenue | 226,398 | 205,349 | 164,323 | ||||||||
Property and equipment, net | 20,601 | 21,807 | 20,601 | 21,807 | |||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenue | 215,700 | 193,500 | 154,900 | ||||||||
Property and equipment, net | 19,800 | 21,800 | 19,800 | 21,800 | |||||||
Europe, Middle East and Africa [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenue | 94,752 | 73,773 | 58,570 | ||||||||
Property and equipment, net | 915 | 712 | 915 | 712 | |||||||
Asia Pacific [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenue | 37,136 | 27,003 | $ 27,447 | ||||||||
Property and equipment, net | $ 488 | $ 706 | $ 488 | $ 706 |
Unautited Quarterly Financial77
Unautited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2016 | Apr. 30, 2016 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Apr. 30, 2015 | Jan. 31, 2015 | Oct. 31, 2014 | Jul. 31, 2016 | Jul. 31, 2015 | Jul. 31, 2014 | |
Net revenue: | |||||||||||
Products and licenses | $ 38,661 | $ 37,771 | $ 51,516 | $ 50,857 | $ 46,348 | $ 40,737 | $ 37,917 | $ 31,508 | $ 178,805 | $ 156,510 | $ 130,348 |
Services | 47,642 | 44,191 | 44,483 | 43,165 | 40,651 | 37,366 | 36,387 | 35,211 | 179,481 | 149,615 | 119,992 |
Total net revenue | 86,303 | 81,962 | 95,999 | 94,022 | 86,999 | 78,103 | 74,304 | 66,719 | 358,286 | 306,125 | 250,340 |
Cost of revenue: | |||||||||||
Products and licenses | 8,463 | 9,046 | 9,856 | 10,350 | 10,039 | 9,069 | 8,787 | 7,467 | 37,715 | 35,362 | 29,327 |
Services | 10,650 | 10,176 | 9,065 | 8,752 | 8,554 | 8,257 | 7,491 | 7,467 | 38,643 | 31,769 | 26,471 |
Total cost of revenue | 19,113 | 19,222 | 18,921 | 19,102 | 18,593 | 17,326 | 16,278 | 14,934 | 76,358 | 67,131 | 55,798 |
Gross profit | 67,190 | 62,740 | 77,078 | 74,920 | 68,406 | 60,777 | 58,026 | 51,785 | 281,928 | 238,994 | 194,542 |
Operating expenses: | |||||||||||
Research and development | 17,440 | 17,300 | 17,461 | 17,833 | 18,309 | 16,709 | 15,504 | 14,570 | 70,034 | 65,092 | 49,289 |
Sales and marketing | 43,195 | 42,506 | 45,996 | 47,286 | 44,438 | 39,536 | 39,788 | 38,455 | 178,983 | 162,217 | 138,612 |
General and administrative | 11,457 | 10,956 | 11,149 | 10,457 | 10,055 | 9,740 | 9,355 | 7,960 | 44,019 | 37,110 | 29,621 |
Restructuring charges | 5,657 | 0 | 0 | 0 | 5,657 | 0 | 0 | ||||
Total operating expenses | 77,749 | 70,762 | 74,606 | 75,576 | 72,802 | 65,985 | 64,647 | 60,985 | 298,693 | 264,419 | 217,522 |
Loss from operations | (10,559) | (8,022) | 2,472 | (656) | (4,396) | (5,208) | (6,621) | (9,200) | (16,765) | (25,425) | (22,980) |
Other income (expense), net | (60) | 309 | 167 | 95 | (77) | 206 | (590) | (190) | 511 | (651) | (18) |
Loss before provision for (benefit from) income taxes | (10,619) | (7,713) | 2,639 | (561) | (4,473) | (5,002) | (7,211) | (9,390) | (16,254) | (26,076) | (22,998) |
Provision for (benefit from) income taxes | (317) | (2,037) | (1,139) | 950 | 253 | 134 | (200) | 820 | (2,543) | 1,007 | 919 |
Net loss | $ (10,302) | $ (5,676) | $ 3,778 | $ (1,511) | $ (4,726) | $ (5,136) | $ (7,011) | $ (10,210) | $ (13,711) | $ (27,083) | $ (23,917) |
Net loss per share - basic and diluted (USD per share) | $ (0.18) | $ (0.10) | $ 0.06 | $ (0.03) | $ (0.08) | $ (0.09) | $ (0.13) | $ (0.18) | $ (0.24) | $ (0.48) | $ (0.45) |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Billions | Sep. 22, 2016 | Sep. 16, 2016 | Jul. 31, 2016 | Jul. 31, 2015 |
Subsequent Event [Line Items] | ||||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Common stock, par value (USD per share) | $ 0.0001 | |||
Sale price of stock (USD per share) | $ 26.50 | |||
Sale of stock, amount to be received | $ 1.6 |