Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended | |
Oct. 31, 2013 | Nov. 15, 2013 | |
Document Information [Abstract] | ' | ' |
Entity Registrant Name | 'Palo Alto Networks Inc | ' |
Entity Central Index Key | '0001327567 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Oct-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year End Date | '--07-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 72,491,140 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Oct. 31, 2013 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $266,182 | $310,614 |
Short-term investments | 170,551 | 109,007 |
Accounts receivable, net of allowance for doubtful accounts of $486 and $51 at October 31, 2013 and July 31, 2013, respectively | 91,439 | 87,461 |
Prepaid expenses and other current assets | 24,160 | 22,617 |
Total current assets | 552,332 | 529,699 |
Property and equipment, net | 42,409 | 32,086 |
Long-term investments | 33,642 | 17,314 |
Other assets | 11,560 | 6,507 |
Total assets | 639,943 | 585,606 |
Current liabilities: | ' | ' |
Accounts payable | 15,218 | 15,544 |
Accrued and other liabilities | 17,876 | 14,609 |
Accrued compensation | 23,618 | 22,004 |
Deferred revenue | 171,617 | 153,945 |
Total current liabilities | 228,329 | 206,102 |
Deferred revenue—non-current | 107,339 | 95,285 |
Other long-term liabilities | 14,496 | 11,799 |
Commitments and contingencies (Note 5) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock; $0.0001 par value; 100,000 shares authorized; none issued and outstanding at October 31, 2013 and July 31, 2013 | 0 | 0 |
Common stock, $0.0001 par value; 1,000,000 shares authorized; 72,483 and 71,612 shares issued and outstanding at October 31, 2013 and July 31, 2013, respectively | 7 | 7 |
Additional paid-in capital | 406,902 | 381,703 |
Accumulated other comprehensive income (loss) | 5 | -16 |
Accumulated deficit | -117,135 | -109,274 |
Total stockholders’ equity | 289,779 | 272,420 |
Total liabilities and stockholders’ equity | $639,943 | $585,606 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Oct. 31, 2013 | Jul. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Allowance for doubtful accounts (in usd) | $486 | $51 |
Stockholders' equity: | ' | ' |
Preferred stock, par value (in usd per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in usd per share) | $0.00 | $0.00 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 72,483,000 | 71,612,000 |
Common Stock, Shares, Outstanding | 72,483,000 | 71,612,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Revenue: | ' | ' |
Product | $75,485 | $55,514 |
Services | 52,695 | 30,420 |
Total revenue | 128,180 | 85,934 |
Cost of revenue: | ' | ' |
Product | 17,954 | 14,416 |
Services | 15,853 | 9,774 |
Total cost of revenue | 33,807 | 24,190 |
Total gross profit | 94,373 | 61,744 |
Operating expenses: | ' | ' |
Research and development | 19,893 | 13,312 |
Sales and marketing | 67,366 | 42,607 |
General and administrative | 14,125 | 8,956 |
Total operating expenses | 101,384 | 64,875 |
Operating loss | -7,011 | -3,131 |
Interest income | 160 | 98 |
Other income (expense), net | 237 | -170 |
Loss before income taxes | -6,614 | -3,203 |
Provision for income taxes | 1,247 | 312 |
Net loss | -7,861 | -3,515 |
Net loss attributable to common stockholders | ($7,861) | ($3,515) |
Net loss per share attributable to common stockholders, basic and diluted (in usd per share) | ($0.11) | ($0.05) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted (in shares) | 71,681 | 66,813 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Net loss | ($7,861) | ($3,515) |
Other comprehensive loss, net of tax: | ' | ' |
Change in unrealized gains (loss) on investments | 21 | -27 |
Comprehensive loss | ($7,840) | ($3,542) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Cash flows from operating activities | ' | ' |
Net loss | ($7,861) | ($3,515) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 3,146 | 2,053 |
Amortization of investment premiums, net of accretion of purchase discounts | 386 | 316 |
Share-based compensation for equity based awards | 14,383 | 8,284 |
Excess tax benefit from share-based compensation | -56 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | -3,978 | -10,727 |
Prepaid expenses and other assets | -1,707 | -3,830 |
Accounts payable | -205 | 1,076 |
Accrued and other liabilities | 5,047 | 4,819 |
Deferred revenue | 29,726 | 24,600 |
Net cash provided by operating activities | 38,881 | 23,076 |
Cash flows from investing activities | ' | ' |
Purchase of property, equipment, and other assets | -15,680 | -4,015 |
Purchase of investments | -122,238 | -168,475 |
Proceeds from maturities of investments | 43,959 | 0 |
Net cash used in investing activities | -93,959 | -172,490 |
Cash flows from financing activities | ' | ' |
Excess tax benefit from share-based compensation | 56 | 0 |
Proceeds from exercise of stock options | 4,610 | 1,534 |
Proceeds from employee stock purchase plan | 5,988 | 0 |
Payments of initial public offering costs | 0 | -265 |
Repurchase of restricted common stock from terminated employees | -8 | -24 |
Net cash provided by financing activities | 10,646 | 1,245 |
Net decrease in cash and cash equivalents | -44,432 | -148,169 |
Cash and cash equivalents—beginning of period | 310,614 | 322,642 |
Cash and cash equivalents—end of period | 266,182 | 174,473 |
Non-cash investing and financing activities | ' | ' |
Purchase of property, equipment, and other assets not yet paid | $3,556 | $0 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Oct. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business and Summary of Significant Accounting Policies | ' |
Description of Business and Summary of Significant Accounting Policies | |
Description of Business | |
Palo Alto Networks, Inc. (the “Company,” “we,” “us,” or “our”), located in Santa Clara, California, was incorporated in March 2005 under the laws of the State of Delaware and commenced operations in April 2005. We offer a next-generation network security platform that allows enterprises, service providers, and government entities to secure their networks and safely enable the increasingly complex and rapidly growing number of applications running on their networks. The core of our platform is our Next-Generation Firewall that delivers application, user, and content visibility and control integrated within the firewall through our proprietary operating system, hardware, and software architecture. We primarily sell our products and services to end-customers through our channel partners and infrequently directly to end-customers. Our partners are supported by our sales and marketing organization in the Americas, in Europe, the Middle East, and Africa (EMEA), and in Asia Pacific and Japan (APAC). | |
Basis of Presentation | |
The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles, consistent in all material respects with those applied in our Annual Report on Form 10-K for the fiscal year ended July 31, 2013. The condensed consolidated financial statements include all adjustments necessary for a fair presentation of the quarterly results. All adjustments are of a normal recurring nature. We have made estimates and judgments affecting the amounts reported in our condensed consolidated financial statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. | |
Principles of Consolidation | |
The condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | |
Summary of Significant Accounting Policies | |
There have been no material changes to our significant accounting policies as compared to those described in our Annual Report on Form 10-K for the fiscal year ended July 31, 2013. | |
Warranties | |
We generally provide a one-year warranty on hardware and a three-month warranty on software. We are indemnified by our contract manufacturer for product liability claims arising out of manufacturing defects. We accrue for potential warranty claims as a component of cost of product revenues based on historical experience and other data. Accrued warranty is recorded in accrued liabilities on the condensed consolidated balance sheets and is reviewed periodically for adequacy. To date, we have not accrued any significant costs associated with our warranty. | |
Recent Accounting Pronouncements | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740)-Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The standard requires us to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward or other tax credit carryforward when settlement in this manner is available under applicable tax law. The guidance is effective for us in the first quarter of fiscal 2015. We do not believe the adoption of this guidance will have a material impact on our condensed consolidated financial statements. | |
In February 2013, the FASB issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220)-Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The standard requires entities to present (either on the face of the income statement or in the notes) the effects on the line items of the income statement for amounts reclassified out of accumulated other comprehensive income. The guidance was effective for us in the first quarter of fiscal 2014. Our adoption of this guidance did not impact our financial statements as the guidance is related to disclosure only and we did not have significant reclassifications out of accumulated other comprehensive income. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||||||
We categorize assets and liabilities recorded at fair value on our condensed consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows: | |||||||||||||||||||||||||||||||||
• | Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||||||||||
• | Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. | ||||||||||||||||||||||||||||||||
• | Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. | ||||||||||||||||||||||||||||||||
The following table presents the fair value of our financial assets and liabilities using the above input categories (in thousands): | |||||||||||||||||||||||||||||||||
October 31, 2013 | July 31, 2013 | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 1,926 | $ | — | $ | — | $ | 1,926 | $ | 1,822 | $ | — | $ | — | $ | 1,822 | |||||||||||||||||
U.S. government and agency securities | — | 80,062 | — | 80,062 | — | 46,700 | — | 46,700 | |||||||||||||||||||||||||
Money market funds | — | — | — | — | 131,845 | — | — | 131,845 | |||||||||||||||||||||||||
Total cash equivalents | 1,926 | 80,062 | — | 81,988 | 133,667 | 46,700 | — | 180,367 | |||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||||
Corporate debt securities | — | 27,292 | — | 27,292 | — | 32,834 | — | 32,834 | |||||||||||||||||||||||||
U.S. government and agency securities | — | 143,259 | — | 143,259 | — | 76,173 | — | 76,173 | |||||||||||||||||||||||||
Total short-term investments | — | 170,551 | — | 170,551 | — | 109,007 | — | 109,007 | |||||||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||||||||||
Corporate debt securities | — | 6,097 | — | 6,097 | — | 12,317 | — | 12,317 | |||||||||||||||||||||||||
U.S. government and agency securities | — | 27,545 | — | 27,545 | — | 4,997 | — | 4,997 | |||||||||||||||||||||||||
Total long-term investments | — | 33,642 | — | 33,642 | — | 17,314 | — | 17,314 | |||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||
Restricted cash | 1,220 | — | — | 1,220 | 1,221 | — | — | 1,221 | |||||||||||||||||||||||||
Total other assets | 1,220 | — | — | 1,220 | 1,221 | — | — | 1,221 | |||||||||||||||||||||||||
Total assets measured at fair value | $ | 3,146 | $ | 284,255 | $ | — | $ | 287,401 | $ | 134,888 | $ | 173,021 | $ | — | $ | 307,909 | |||||||||||||||||
Investments
Investments | 3 Months Ended | |||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Investments | ' | |||||||||||||||||||||||
Investments | ||||||||||||||||||||||||
The following tables summarize our unrealized gains and losses and fair value of investments as of October 31, 2013 and July 31, 2013 (in thousands): | ||||||||||||||||||||||||
31-Oct-13 | ||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
Certificates of deposit | $ | 1,926 | $ | — | $ | — | $ | 1,926 | ||||||||||||||||
Corporate debt securities | 33,367 | 25 | (3 | ) | 33,389 | |||||||||||||||||||
U.S. government and agency securities | 250,883 | 7 | (24 | ) | 250,866 | |||||||||||||||||||
Total | $ | 286,176 | $ | 32 | $ | (27 | ) | $ | 286,181 | |||||||||||||||
31-Jul-13 | ||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
Certificates of deposit | $ | 1,822 | $ | — | $ | — | $ | 1,822 | ||||||||||||||||
Corporate debt securities | 45,173 | 12 | (34 | ) | 45,151 | |||||||||||||||||||
U.S. government and agency securities | 127,864 | 8 | (2 | ) | 127,870 | |||||||||||||||||||
Money market funds | 131,845 | — | — | 131,845 | ||||||||||||||||||||
Total | $ | 306,704 | $ | 20 | $ | (36 | ) | $ | 306,688 | |||||||||||||||
The following tables present our investments that were in an unrealized loss position as of October 31, 2013 and July 31, 2013 (in thousands): | ||||||||||||||||||||||||
31-Oct-13 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||
Corporate debt securities | $ | 4,557 | $ | (2 | ) | $ | 2,060 | $ | (1 | ) | $ | 6,617 | $ | (3 | ) | |||||||||
U.S. government and agency securities | 162,279 | (24 | ) | — | — | 162,279 | (24 | ) | ||||||||||||||||
Total | $ | 166,836 | $ | (26 | ) | $ | 2,060 | $ | (1 | ) | $ | 168,896 | $ | (27 | ) | |||||||||
31-Jul-13 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||
Corporate debt securities | $ | 31,429 | $ | (34 | ) | $ | — | $ | — | $ | 31,429 | $ | (34 | ) | ||||||||||
U.S. government and agency securities | 15,926 | (2 | ) | — | — | 15,926 | (2 | ) | ||||||||||||||||
Total | $ | 47,355 | $ | (36 | ) | $ | — | $ | — | $ | 47,355 | $ | (36 | ) | ||||||||||
Unrealized losses related to these investments are due to interest rate fluctuations as opposed to credit quality. In addition, we do not intend to sell and it is not more likely than not 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 is no other-than-temporary impairment for these investments at October 31, 2013. | ||||||||||||||||||||||||
The amortized cost and fair value of our investments at October 31, 2013, by contractual years-to-maturity, are as follows (in thousands): | ||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||
Due within one year | $ | 263,528 | $ | 263,542 | ||||||||||||||||||||
Due within one to two years | 22,648 | 22,639 | ||||||||||||||||||||||
Total | $ | 286,176 | $ | 286,181 | ||||||||||||||||||||
Intangible_Assets
Intangible Assets | 3 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Intangible Assets Disclosure | ' | |||||||
Intangible Assets | ||||||||
Intangible assets included in other assets consisted of the following (in thousands): | ||||||||
31-Oct-13 | 31-Jul-13 | |||||||
Acquired intellectual property | $ | 6,546 | $ | 1,546 | ||||
Less: amortization | (343 | ) | (188 | ) | ||||
Total | $ | 6,203 | $ | 1,358 | ||||
Amortization expense was $155,000 and $13,000 for the first quarter of fiscal 2014 and 2013, respectively. On September 4, 2013 we entered into an agreement to purchase intellectual property for $5,000,000, which will be amortized over a weighted average period of 13 years. | ||||||||
The following table summarizes estimated future amortization expense of intangible assets as of October 31, 2013 (in thousands): | ||||||||
Amount | ||||||||
Years ending July 31: | ||||||||
Remaining 2014 | $ | 615 | ||||||
2015 | 761 | |||||||
2016 | 704 | |||||||
2017 | 611 | |||||||
2018 | 484 | |||||||
2019 and thereafter | 3,028 | |||||||
Total | $ | 6,203 | ||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||
Oct. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Commitments and Contingencies | ||||
Leases | ||||
We lease our facilities under various non-cancelable operating leases, which expire through the year ending July 31, 2023. | ||||
The aggregate future non-cancelable minimum rental payments on our operating leases, as of October 31, 2013, are as follows (in thousands): | ||||
Amount | ||||
Years ending July 31: | ||||
Remaining 2014 | $ | 7,038 | ||
2015 | 13,416 | |||
2016 | 13,563 | |||
2017 | 12,591 | |||
2018 | 11,427 | |||
2019 and thereafter | 52,300 | |||
Committed gross lease payments | 110,335 | |||
Less: proceeds from sublease rental | (10,700 | ) | ||
Net operating lease obligation | $ | 99,635 | ||
Contract Manufacturer Commitments | ||||
Our independent contract manufacturer procures components and assembles 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 product marketing organizations, adjusted for overall market conditions. In order to reduce manufacturing lead times and plan for adequate supply, we may issue forecasts and orders for components and products that are non-cancelable. Obligations under contracts that we can cancel without a significant penalty are not included. As of October 31, 2013, we had $25,300,000 of open orders. | ||||
Litigation | ||||
In December 2011, Juniper Networks, Inc. filed a complaint against us in the United States District Court for the District of Delaware alleging patent infringement. The complaint seeks preliminary and permanent injunctions against infringement, treble damages, and attorney’s fees. On February 9, 2012, we filed a response to the complaint, which denied all claims and asserted that the claimant’s patents were invalid. On February 28, 2012, Juniper filed a motion to strike our defense of invalidity based on the legal doctrine of “assignor estoppel.” On March 23, 2012, we filed a brief in opposition to that motion. Juniper filed a brief in response on April 2, 2012. On August 2, 2012, the District Court issued an order granting Juniper’s motion as to one of the patents in suit (the ’634 patent) but denying Juniper’s motion as to the five other patents in suit. On September 4, 2012, Juniper filed a motion to amend its complaint to allege that our appliances infringe two additional U.S. patents but also to withdraw its allegations as to a previously-asserted patent. This amended complaint was officially filed on September 25, 2012, pursuant to a stipulation between the parties. Juniper now alleges that our appliances infringe seven of its patents. On September 13, 2012, we filed with the U.S. Patent and Trademark Office requests for inter partes reexamination of five of the six patents asserted by Juniper in its original complaint. We did not file a request for reexamination on the withdrawn patent. On October 12, 2012, we filed an answer to Juniper’s amended complaint, which denied that we infringed Juniper’s patents and asserted that Juniper’s patents were invalid. On October 19 and December 3, 2012, the U.S. Patent and Trademark Office granted our requests for reexamination for three patents, rejecting a number of the claims asserted in the litigation, and on November 15 and 26, 2012, the U.S. Patent and Trademark Office denied our requests for reexamination as to two other patents. We have the opportunity to seek review of these denials within the U.S. Patent and Trademark Office. Each party served its opening expert report on April 12, 2013, and rebuttal expert report on May 13, 2013, and supplemental expert reports on June 11, 2013. The parties filed opening and responsive briefs regarding claim construction, filed their opening summary judgment briefs on August 20, 2013, and filed opposition briefs and additional summary judgment motions on September 12, 2013. On June 20, 2013 and July 23, 2013, we filed with the U.S. Patent and Trademark Office petitions for inter partes review for two other patents asserted by Juniper in the litigation. The Patent and Trademark Office has not yet ruled on those petitions. A hearing to resolve claim construction issues, as well as motions for summary judgment, was heard on November 15, 2013. | ||||
A trial date has been scheduled for February 24, 2014, and we are vigorously defending ourselves from such claims. At this stage in the litigation we do not believe that a loss is probable and we are unable to estimate a possible loss or range of possible loss. | ||||
On September 30, 2013, we filed a lawsuit against Juniper in the United States District Court for the Northern District of California. The lawsuit alleges that Juniper’s products infringe three of our U.S. patents, and seeks monetary damages and a permanent injunction. On November 21, 2013, Juniper filed an answer and counterclaims in a separate action pending in the United States District Court for the Northern District of California. In its counterclaims Juniper seeks a declaration that the asserted patents owned by us are not infringed and are invalid. Juniper’s counterclaims also assert that our products infringe three additional Juniper patents. We have not yet responded to Juniper’s counterclaims. | ||||
In addition to the above matter, we are subject to legal proceedings, claims, and litigation arising in the ordinary course of business, including intellectual property litigation. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. We accrue for contingencies when we believe that a loss is probable and that we can reasonably estimate the amount of any such loss. We have made an assessment of the probability of incurring any such losses and whether or not those losses are estimable. | ||||
To the extent there is a reasonable possibility that a loss exceeding amounts already recognized may be incurred and the amount of such additional loss would be material, we will either disclose the estimated additional loss or state that such an estimate cannot be made. |
Equity_Award_Plans
Equity Award Plans | 3 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Equity Award Plans | ' | ||||||||||||
Equity Award Plans | |||||||||||||
Stock Option Activities | |||||||||||||
A summary of the activity under our stock plans and changes during the reporting periods and a summary of information related to options exercisable, vested, and expected to vest are presented below (in thousands, except per share amounts): | |||||||||||||
Options Outstanding | |||||||||||||
Number | Weighted- | Weighted- | Aggregate | ||||||||||
of | Average | Average | Intrinsic | ||||||||||
Shares | Exercise | Remaining | Value | ||||||||||
Price | Contractual | ||||||||||||
Term (Years) | |||||||||||||
Balance—July 31, 2013 | 10,033 | $ | 11.74 | 7.8 | $ | 373,228 | |||||||
Options granted | — | — | |||||||||||
Options forfeited | (154 | ) | 10.82 | ||||||||||
Options exercised | (676 | ) | 6.82 | ||||||||||
Balance—October 31, 2013 | 9,203 | 12.12 | 7.6 | $ | 276,458 | ||||||||
Options vested and expected to vest—October 31, 2013 | 8,859 | $ | 11.96 | 7.6 | $ | 267,542 | |||||||
Options exercisable—October 31, 2013 | 4,950 | $ | 8.79 | 7.3 | $ | 165,182 | |||||||
Restricted Stock Units (RSUs) Activities | |||||||||||||
A summary of the activity under our stock plans and changes during the reporting periods and a summary of information related to RSUs vested and expected to vest are presented below (in thousands, except per share amounts): | |||||||||||||
RSUs Outstanding | |||||||||||||
Number | Weighted- | Weighted- | Aggregate | ||||||||||
of | Average | Average | Intrinsic | ||||||||||
Shares | Grant-Date Fair Value Per Share | Remaining | Value | ||||||||||
Contractual | |||||||||||||
Term (Years) | |||||||||||||
Balance—July 31, 2013 | 2,241 | $ | 54.36 | 1.5 | $ | 109,675 | |||||||
RSUs granted | 459 | 46.03 | |||||||||||
RSUs vested | (52 | ) | 64.35 | ||||||||||
RSUs forfeited | (83 | ) | 55.2 | ||||||||||
Balance—October 31, 2013 | 2,565 | $ | 52.63 | 1.5 | $ | 108,140 | |||||||
RSUs vested and expected to vest—October 31, 2013 | 2,315 | $ | 52.74 | 1.4 | $ | 97,600 | |||||||
Employee Stock Purchase Plan (ESPP) | |||||||||||||
During the three months ended October 31, 2013 and 2012, compensation expense recognized in connection with the 2012 Employee Stock Purchase Plan was $1,002,000 and $1,344,000, respectively. | |||||||||||||
Share-Based Compensation | |||||||||||||
The following table summarizes the assumptions used to value grants related to the 2012 ESPP in each period: | |||||||||||||
Three Months Ended October 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Risk-free interest rate | —% | N/A | |||||||||||
Expected term (years) | < 1 year | N/A | |||||||||||
Volatility | 39% | N/A | |||||||||||
Dividend yield | —% | N/A | |||||||||||
Share-based compensation is included in costs and expenses as follows (in thousands): | |||||||||||||
Three Months Ended October 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Cost of revenue | $ | 1,663 | $ | 610 | |||||||||
Research and development | 3,262 | 1,690 | |||||||||||
Sales and marketing | 6,628 | 4,298 | |||||||||||
General and administrative | 2,858 | 1,744 | |||||||||||
Total | $ | 14,411 | $ | 8,342 | |||||||||
During the three months ended October 31, 2012, we modified the terms of certain share-based awards and as a result, we recorded compensation expense within sales and marketing expense of $1,400,000. | |||||||||||||
At October 31, 2013, total compensation cost related to unvested share-based awards granted to employees under our stock plans but not yet recognized was $137,222,000, net of estimated forfeitures. This cost is expected to be amortized on a straight-line basis over a weighted-average period of three years. Future grants will increase the amount of compensation expense to be recorded in these periods. |
Income_Taxes
Income Taxes | 3 Months Ended |
Oct. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Our provision for income taxes for the three months ended October 31, 2013 reflects an effective tax rate of negative 19%, and consists of foreign income, withholding taxes, and limited state income tax due to our net operating loss carryforwards and other tax attributes. | |
Our provision for income taxes for the three months ended October 31, 2012 reflected an effective tax rate of negative 10% and consists of foreign income and withholding taxes. |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 3 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Net Income (Loss) Per Share | ' | |||||||
Net Income (Loss) Per Share | ||||||||
We compute net income (loss) per share of common stock using the two-class method required for participating securities. We consider shares issued upon the early exercise of options subject to repurchase and unvested restricted shares to be participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares. In accordance with the two-class method, earnings allocated to these participating securities, which include participation rights in undistributed earnings with common stock, are subtracted from net income to determine net income (loss) attributable to common stockholders. | ||||||||
Basic net income (loss) per common share is computed by dividing net income (loss) attributable to common stockholders by basic weighted-average shares outstanding during the period. All participating securities are excluded from basic weighted-average shares outstanding. In computing diluted net income (loss) attributable to common stockholders, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities. Diluted net income (loss) per share attributable to common stockholders is computed by dividing net income (loss) attributable to common stockholders by diluted weighted-average shares outstanding, including potentially dilutive securities. | ||||||||
The following table presents the computation of basic and diluted net income (loss) per share of common stock (in thousands, except per share data): | ||||||||
Three Months Ended October 31, | ||||||||
2013 | 2012 | |||||||
Net loss attributable to common stockholders | $ | (7,861 | ) | $ | (3,515 | ) | ||
Weighted-average shares used to compute net loss per share, basic and diluted | 71,681 | 66,813 | ||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.11 | ) | $ | (0.05 | ) | ||
The following outstanding options, RSUs, and ESPP shares were excluded from the computation of diluted net income (loss) per common share applicable to common stockholders for the periods presented as their effects would have been antidilutive (in thousands): | ||||||||
31-Oct-13 | 31-Oct-12 | |||||||
Options to purchase common stock | 9,203 | 13,408 | ||||||
RSUs | 2,565 | 216 | ||||||
ESPP shares | 53 | — | ||||||
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended | |
Oct. 31, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Basis of Presentation | ' | |
Basis of Presentation | ||
The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles, consistent in all material respects with those applied in our Annual Report on Form 10-K for the fiscal year ended July 31, 2013. The condensed consolidated financial statements include all adjustments necessary for a fair presentation of the quarterly results. All adjustments are of a normal recurring nature. We have made estimates and judgments affecting the amounts reported in our condensed consolidated financial statements and the accompanying notes. The actual results that we experience may differ materially from our estimates. | ||
Principles of Consolidation | ' | |
Principles of Consolidation | ||
The condensed consolidated financial statements include the accounts of the Company, and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. | ||
Warranties | ' | |
Warranties | ||
We generally provide a one-year warranty on hardware and a three-month warranty on software. We are indemnified by our contract manufacturer for product liability claims arising out of manufacturing defects. We accrue for potential warranty claims as a component of cost of product revenues based on historical experience and other data. Accrued warranty is recorded in accrued liabilities on the condensed consolidated balance sheets and is reviewed periodically for adequacy. To date, we have not accrued any significant costs associated with our warranty | ||
Recent Accounting Pronouncements | ' | |
Recent Accounting Pronouncements | ||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740)-Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The standard requires us to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss (NOL) carryforward or other tax credit carryforward when settlement in this manner is available under applicable tax law. The guidance is effective for us in the first quarter of fiscal 2015. We do not believe the adoption of this guidance will have a material impact on our condensed consolidated financial statements. | ||
In February 2013, the FASB issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220)-Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The standard requires entities to present (either on the face of the income statement or in the notes) the effects on the line items of the income statement for amounts reclassified out of accumulated other comprehensive income. The guidance was effective for us in the first quarter of fiscal 2014. Our adoption of this guidance did not impact our financial statements as the guidance is related to disclosure only and we did not have significant reclassifications out of accumulated other comprehensive income. | ||
Fair Value Measurements | ' | |
Fair Value Measurements | ||
We categorize assets and liabilities recorded at fair value on our condensed consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows: | ||
• | Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. | |
• | Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. | |
• | Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Oct. 31, 2013 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of fair value of financial assets and liabilities | ' | ||||||||||||||||||||||||||||||||
The following table presents the fair value of our financial assets and liabilities using the above input categories (in thousands): | |||||||||||||||||||||||||||||||||
October 31, 2013 | July 31, 2013 | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||||||||||
Certificates of deposit | $ | 1,926 | $ | — | $ | — | $ | 1,926 | $ | 1,822 | $ | — | $ | — | $ | 1,822 | |||||||||||||||||
U.S. government and agency securities | — | 80,062 | — | 80,062 | — | 46,700 | — | 46,700 | |||||||||||||||||||||||||
Money market funds | — | — | — | — | 131,845 | — | — | 131,845 | |||||||||||||||||||||||||
Total cash equivalents | 1,926 | 80,062 | — | 81,988 | 133,667 | 46,700 | — | 180,367 | |||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||||
Corporate debt securities | — | 27,292 | — | 27,292 | — | 32,834 | — | 32,834 | |||||||||||||||||||||||||
U.S. government and agency securities | — | 143,259 | — | 143,259 | — | 76,173 | — | 76,173 | |||||||||||||||||||||||||
Total short-term investments | — | 170,551 | — | 170,551 | — | 109,007 | — | 109,007 | |||||||||||||||||||||||||
Long-term investments: | |||||||||||||||||||||||||||||||||
Corporate debt securities | — | 6,097 | — | 6,097 | — | 12,317 | — | 12,317 | |||||||||||||||||||||||||
U.S. government and agency securities | — | 27,545 | — | 27,545 | — | 4,997 | — | 4,997 | |||||||||||||||||||||||||
Total long-term investments | — | 33,642 | — | 33,642 | — | 17,314 | — | 17,314 | |||||||||||||||||||||||||
Other assets: | |||||||||||||||||||||||||||||||||
Restricted cash | 1,220 | — | — | 1,220 | 1,221 | — | — | 1,221 | |||||||||||||||||||||||||
Total other assets | 1,220 | — | — | 1,220 | 1,221 | — | — | 1,221 | |||||||||||||||||||||||||
Total assets measured at fair value | $ | 3,146 | $ | 284,255 | $ | — | $ | 287,401 | $ | 134,888 | $ | 173,021 | $ | — | $ | 307,909 | |||||||||||||||||
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||||||||||||||||||
Oct. 31, 2013 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Schedule of available-for-sale investments | ' | |||||||||||||||||||||||
The following tables summarize our unrealized gains and losses and fair value of investments as of October 31, 2013 and July 31, 2013 (in thousands): | ||||||||||||||||||||||||
31-Oct-13 | ||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
Certificates of deposit | $ | 1,926 | $ | — | $ | — | $ | 1,926 | ||||||||||||||||
Corporate debt securities | 33,367 | 25 | (3 | ) | 33,389 | |||||||||||||||||||
U.S. government and agency securities | 250,883 | 7 | (24 | ) | 250,866 | |||||||||||||||||||
Total | $ | 286,176 | $ | 32 | $ | (27 | ) | $ | 286,181 | |||||||||||||||
31-Jul-13 | ||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||
Certificates of deposit | $ | 1,822 | $ | — | $ | — | $ | 1,822 | ||||||||||||||||
Corporate debt securities | 45,173 | 12 | (34 | ) | 45,151 | |||||||||||||||||||
U.S. government and agency securities | 127,864 | 8 | (2 | ) | 127,870 | |||||||||||||||||||
Money market funds | 131,845 | — | — | 131,845 | ||||||||||||||||||||
Total | $ | 306,704 | $ | 20 | $ | (36 | ) | $ | 306,688 | |||||||||||||||
Schedule of available-for-sale investments in unrealized loss position | ' | |||||||||||||||||||||||
The following tables present our investments that were in an unrealized loss position as of October 31, 2013 and July 31, 2013 (in thousands): | ||||||||||||||||||||||||
31-Oct-13 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||
Corporate debt securities | $ | 4,557 | $ | (2 | ) | $ | 2,060 | $ | (1 | ) | $ | 6,617 | $ | (3 | ) | |||||||||
U.S. government and agency securities | 162,279 | (24 | ) | — | — | 162,279 | (24 | ) | ||||||||||||||||
Total | $ | 166,836 | $ | (26 | ) | $ | 2,060 | $ | (1 | ) | $ | 168,896 | $ | (27 | ) | |||||||||
31-Jul-13 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||
Corporate debt securities | $ | 31,429 | $ | (34 | ) | $ | — | $ | — | $ | 31,429 | $ | (34 | ) | ||||||||||
U.S. government and agency securities | 15,926 | (2 | ) | — | — | 15,926 | (2 | ) | ||||||||||||||||
Total | $ | 47,355 | $ | (36 | ) | $ | — | $ | — | $ | 47,355 | $ | (36 | ) | ||||||||||
Contractual maturities of available-for-sale investments | ' | |||||||||||||||||||||||
The amortized cost and fair value of our investments at October 31, 2013, by contractual years-to-maturity, are as follows (in thousands): | ||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||
Due within one year | $ | 263,528 | $ | 263,542 | ||||||||||||||||||||
Due within one to two years | 22,648 | 22,639 | ||||||||||||||||||||||
Total | $ | 286,176 | $ | 286,181 | ||||||||||||||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 3 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Finite-Lived Intangible Assets and Related Amortization | ' | |||||||
Intangible assets included in other assets consisted of the following (in thousands): | ||||||||
31-Oct-13 | 31-Jul-13 | |||||||
Acquired intellectual property | $ | 6,546 | $ | 1,546 | ||||
Less: amortization | (343 | ) | (188 | ) | ||||
Total | $ | 6,203 | $ | 1,358 | ||||
Finite-Lived Intangible Assets, Future Amortization Expense | ' | |||||||
The following table summarizes estimated future amortization expense of intangible assets as of October 31, 2013 (in thousands): | ||||||||
Amount | ||||||||
Years ending July 31: | ||||||||
Remaining 2014 | $ | 615 | ||||||
2015 | 761 | |||||||
2016 | 704 | |||||||
2017 | 611 | |||||||
2018 | 484 | |||||||
2019 and thereafter | 3,028 | |||||||
Total | $ | 6,203 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||
Oct. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||
The aggregate future non-cancelable minimum rental payments on our operating leases, as of October 31, 2013, are as follows (in thousands): | ||||
Amount | ||||
Years ending July 31: | ||||
Remaining 2014 | $ | 7,038 | ||
2015 | 13,416 | |||
2016 | 13,563 | |||
2017 | 12,591 | |||
2018 | 11,427 | |||
2019 and thereafter | 52,300 | |||
Committed gross lease payments | 110,335 | |||
Less: proceeds from sublease rental | (10,700 | ) | ||
Net operating lease obligation | $ | 99,635 | ||
Equity_Award_Plans_Tables
Equity Award Plans (Tables) | 3 Months Ended | ||||||||||||
Oct. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of Stock Options Activity | ' | ||||||||||||
Options Outstanding | |||||||||||||
Number | Weighted- | Weighted- | Aggregate | ||||||||||
of | Average | Average | Intrinsic | ||||||||||
Shares | Exercise | Remaining | Value | ||||||||||
Price | Contractual | ||||||||||||
Term (Years) | |||||||||||||
Balance—July 31, 2013 | 10,033 | $ | 11.74 | 7.8 | $ | 373,228 | |||||||
Options granted | — | — | |||||||||||
Options forfeited | (154 | ) | 10.82 | ||||||||||
Options exercised | (676 | ) | 6.82 | ||||||||||
Balance—October 31, 2013 | 9,203 | 12.12 | 7.6 | $ | 276,458 | ||||||||
Options vested and expected to vest—October 31, 2013 | 8,859 | $ | 11.96 | 7.6 | $ | 267,542 | |||||||
Options exercisable—October 31, 2013 | 4,950 | $ | 8.79 | 7.3 | $ | 165,182 | |||||||
Schedule of Restricted Stock Units Award Activity | ' | ||||||||||||
RSUs Outstanding | |||||||||||||
Number | Weighted- | Weighted- | Aggregate | ||||||||||
of | Average | Average | Intrinsic | ||||||||||
Shares | Grant-Date Fair Value Per Share | Remaining | Value | ||||||||||
Contractual | |||||||||||||
Term (Years) | |||||||||||||
Balance—July 31, 2013 | 2,241 | $ | 54.36 | 1.5 | $ | 109,675 | |||||||
RSUs granted | 459 | 46.03 | |||||||||||
RSUs vested | (52 | ) | 64.35 | ||||||||||
RSUs forfeited | (83 | ) | 55.2 | ||||||||||
Balance—October 31, 2013 | 2,565 | $ | 52.63 | 1.5 | $ | 108,140 | |||||||
RSUs vested and expected to vest—October 31, 2013 | 2,315 | $ | 52.74 | 1.4 | $ | 97,600 | |||||||
Summary of Employee Stock Purchase Plan, Valuation Assumptions | ' | ||||||||||||
The following table summarizes the assumptions used to value grants related to the 2012 ESPP in each period: | |||||||||||||
Three Months Ended October 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Risk-free interest rate | —% | N/A | |||||||||||
Expected term (years) | < 1 year | N/A | |||||||||||
Volatility | 39% | N/A | |||||||||||
Dividend yield | —% | N/A | |||||||||||
Schedule of Allocation of Share Based Compensation Expense | ' | ||||||||||||
Share-based compensation is included in costs and expenses as follows (in thousands): | |||||||||||||
Three Months Ended October 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Cost of revenue | $ | 1,663 | $ | 610 | |||||||||
Research and development | 3,262 | 1,690 | |||||||||||
Sales and marketing | 6,628 | 4,298 | |||||||||||
General and administrative | 2,858 | 1,744 | |||||||||||
Total | $ | 14,411 | $ | 8,342 | |||||||||
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 3 Months Ended | |||||||
Oct. 31, 2013 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Computation of basic and diluted net income (loss) per share of common stock | ' | |||||||
The following table presents the computation of basic and diluted net income (loss) per share of common stock (in thousands, except per share data): | ||||||||
Three Months Ended October 31, | ||||||||
2013 | 2012 | |||||||
Net loss attributable to common stockholders | $ | (7,861 | ) | $ | (3,515 | ) | ||
Weighted-average shares used to compute net loss per share, basic and diluted | 71,681 | 66,813 | ||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.11 | ) | $ | (0.05 | ) | ||
Schedule of antidilutive securities excluded from computation of net income (loss) per share | ' | |||||||
The following outstanding options, RSUs, and ESPP shares were excluded from the computation of diluted net income (loss) per common share applicable to common stockholders for the periods presented as their effects would have been antidilutive (in thousands): | ||||||||
31-Oct-13 | 31-Oct-12 | |||||||
Options to purchase common stock | 9,203 | 13,408 | ||||||
RSUs | 2,565 | 216 | ||||||
ESPP shares | 53 | — | ||||||
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Oct. 31, 2013 | |
Hardware | ' |
Description of Business and Summary of Significant Accounting Policies | ' |
Product warranty term | '1 year |
Software | ' |
Description of Business and Summary of Significant Accounting Policies | ' |
Product warranty term | '3 months |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Oct. 31, 2013 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Short-term investments | $170,551 | $109,007 |
Long-term investments | 33,642 | 17,314 |
Other assets | 1,220 | 1,221 |
Total assets measured at fair value | 287,401 | 307,909 |
Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Other assets | 1,220 | 1,221 |
Total assets measured at fair value | 3,146 | 134,888 |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Short-term investments | 170,551 | 109,007 |
Long-term investments | 33,642 | 17,314 |
Other assets | 0 | 0 |
Total assets measured at fair value | 284,255 | 173,021 |
Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Other assets | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Cash equivalents | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 81,988 | 180,367 |
Cash equivalents | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 1,926 | 133,667 |
Cash equivalents | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 80,062 | 46,700 |
Cash equivalents | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 0 | 0 |
Certificates of deposit | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 1,926 | 1,822 |
Other assets | 1,220 | 1,221 |
Certificates of deposit | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 1,926 | 1,822 |
Other assets | 1,220 | 1,221 |
Certificates of deposit | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 0 | 0 |
Other assets | 0 | 0 |
Certificates of deposit | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 0 | 0 |
Other assets | 0 | 0 |
U.S. government and agency securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 80,062 | 46,700 |
Short-term investments | 143,259 | 76,173 |
Long-term investments | 27,545 | 4,997 |
U.S. government and agency securities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
U.S. government and agency securities | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 80,062 | 46,700 |
Short-term investments | 143,259 | 76,173 |
Long-term investments | 27,545 | 4,997 |
U.S. government and agency securities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Money market funds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 0 | 131,845 |
Money market funds | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 0 | 131,845 |
Money market funds | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 0 | 0 |
Money market funds | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Cash equivalents | 0 | 0 |
Corporate debt securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Short-term investments | 27,292 | 32,834 |
Long-term investments | 6,097 | 12,317 |
Corporate debt securities | Level 1 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Corporate debt securities | Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Short-term investments | 27,292 | 32,834 |
Long-term investments | 6,097 | 12,317 |
Corporate debt securities | Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Short-term investments | 0 | 0 |
Long-term investments | $0 | $0 |
Investments_AvailableforSale_I
Investments (Available-for-Sale Investments) (Details) (USD $) | Oct. 31, 2013 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities | ' | ' |
Amortized Cost | $286,176 | $306,704 |
Unrealized Gains | 32 | 20 |
Unrealized Losses | -27 | -36 |
Estimated Fair Value | 286,181 | 306,688 |
Certificates of deposit | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Amortized Cost | 1,926 | 1,822 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 1,926 | 1,822 |
Corporate debt securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Amortized Cost | 33,367 | 45,173 |
Unrealized Gains | 25 | 12 |
Unrealized Losses | -3 | -34 |
Estimated Fair Value | 33,389 | 45,151 |
U.S. government and agency securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Amortized Cost | 250,883 | 127,864 |
Unrealized Gains | 7 | 8 |
Unrealized Losses | -24 | -2 |
Estimated Fair Value | 250,866 | 127,870 |
Money market funds | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Amortized Cost | ' | 131,845 |
Unrealized Gains | ' | 0 |
Unrealized Losses | ' | 0 |
Estimated Fair Value | ' | $131,845 |
Investments_AvailableforSale_I1
Investments (Available-for-Sale Investments in Unrealized Loss Position) (Details) (USD $) | Oct. 31, 2013 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities | ' | ' |
Less than 12 Months, Fair Value | $166,836 | $47,355 |
12 Months or Greater, Fair Value | 2,060 | 0 |
Total, Unrealized Loss Position, Fair Value | 168,896 | 47,355 |
Less than 12 Months, Unrealized Loss | -26 | -36 |
12 Months or Greater, Unrealized Loss | -1 | 0 |
Total, Unrealized Loss | -27 | -36 |
Corporate debt securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Less than 12 Months, Fair Value | 4,557 | 31,429 |
12 Months or Greater, Fair Value | 2,060 | 0 |
Total, Unrealized Loss Position, Fair Value | 6,617 | 31,429 |
Less than 12 Months, Unrealized Loss | -2 | -34 |
12 Months or Greater, Unrealized Loss | -1 | 0 |
Total, Unrealized Loss | -3 | -34 |
U.S. government and agency securities | ' | ' |
Schedule of Available-for-sale Securities | ' | ' |
Less than 12 Months, Fair Value | 162,279 | 15,926 |
12 Months or Greater, Fair Value | 0 | 0 |
Total, Unrealized Loss Position, Fair Value | 162,279 | 15,926 |
Less than 12 Months, Unrealized Loss | -24 | -2 |
12 Months or Greater, Unrealized Loss | 0 | 0 |
Total, Unrealized Loss | ($24) | ($2) |
Investments_AvailableforSale_I2
Investments (Available-for-Sale Investments, Contractual Maturities) (Details) (USD $) | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |
Amortized Cost | ' |
Due within one year | $263,528 |
Due within one to two years | 22,648 |
Total | 286,176 |
Fair Value | ' |
Due within one year | 263,542 |
Due within one to two years | 22,639 |
Total | $286,181 |
Intangible_Assets_Details
Intangible Assets (Details) (Patents, USD $) | Oct. 31, 2013 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Patents | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Acquired intellectual property | $6,546 | $1,546 |
Less: amortization | -343 | -188 |
Total | $6,203 | $1,358 |
Intangible_Assets_Amortization
Intangible Assets Amortization expense (Details) (Patents, USD $) | 3 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Patents | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortization of Intangible Assets | $155,000 | $13,000 |
Acquired Finite-lived Intangible Asset, Amount | $5,000,000 | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '13 years | ' |
Intangible_Assets_Future_Amort
Intangible Assets Future Amortization Expense (Details) (Patents, USD $) | Oct. 31, 2013 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Patents | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Remaining 2014 | $615 | ' |
2015 | 761 | ' |
2016 | 704 | ' |
2017 | 611 | ' |
2018 | 484 | ' |
2019 and thereafter | 3,028 | ' |
Total | $6,203 | $1,358 |
Commitments_and_Contingencies_1
Commitments and Contingencies Lease commitment schedule (Details) (USD $) | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Remaining 2014 | $7,038 |
2015 | 13,416 |
2016 | 13,563 |
2017 | 12,591 |
2018 | 11,427 |
2019 and thereafter | 52,300 |
Committed gross lease payments | 110,335 |
Less: proceeds from sublease rental | -10,700 |
Net operating lease obligation | $99,635 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Textuals) (Details) (USD $) | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contractual Obligation | $25,300 |
Equity_Award_Plans_Stock_Optio
Equity Award Plans (Stock Options Activity) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Jul. 31, 2013 |
Options, Outstanding Roll Forward | ' | ' |
Balance, beginning (in shares) | 10,033 | ' |
Options granted (in shares) | 0 | ' |
Options forfeited (in shares) | -154 | ' |
Options exercised (in shares) | -676 | ' |
Balance, ending (in shares) | 9,203 | 10,033 |
Options, Outstanding, Weighted Average Exercise Price Roll Forward | ' | ' |
Balance, beginning (in usd per share) | $11.74 | ' |
Options granted (in usd per share) | $0 | ' |
Options forfeited (in usd per share) | $10.82 | ' |
Options exercised (in usd per share) | $6.82 | ' |
Balance, ending (in usd per share) | $12.12 | $11.74 |
Options, Additional Disclosures | ' | ' |
Weighted-Average Remaining Contractual Life | '7 years 7 months | '7 years 9 months |
Aggregate Intrinsic Value | $276,458 | $373,228 |
Options vested and expected to vest, Number of Shares | 8,859 | ' |
Options vested and expected to vest, Weighted-Average Exercise Price | $11.96 | ' |
Options vested and exected to vest, Weighted-Average Remaining Contractual Term | '7 years 7 months | ' |
Options vested and expected to vest, Aggregate Intrinsic Value | 267,542 | ' |
Options exercisable, Number of Shares | 4,950 | ' |
Options exercisable, Weighted-Average Exercise Price | $8.79 | ' |
Options exercisable, Weighted-Average Remaining Contractual Term | '7 years 3 months | ' |
Optios exercisable, Aggregate Intrinsic Value | $165,182 | ' |
Equity_Award_Plans_Restricted_
Equity Award Plans (Restricted Stock Units Award Activity) (Details) (Restricted Stock Units (RSUs), USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Jul. 31, 2013 |
Restricted Stock Units (RSUs) | ' | ' |
RSUs, Outstanding Roll Forward | ' | ' |
Balance, beginning (in shares) | 2,241 | ' |
RSUs granted (in shares) | 459 | ' |
RSUs vested (in shares) | -52 | ' |
RSUs forfeited (in shares) | -83 | ' |
Balance, ending (in shares) | 2,565 | 2,241 |
RSUs, Outstanding, Weighted Average Grant-Date Fair Value Per Share Roll Forward | ' | ' |
Balance, beginning (in usd per share) | $54.36 | ' |
RSUs granted (in usd per share) | $46.03 | ' |
RSUs vested (in usd per share) | $64.35 | ' |
RSUs forfeited (in usd per share) | $55.20 | ' |
Balance, ending (in usd per share) | $52.63 | $54.36 |
RSUs, Additional Disclosures | ' | ' |
Weighted-Average Remaining Contractual Term | '1 year 6 months | '1 year 6 months |
Aggregate Intrinsic Value | $108,140 | $109,675 |
RSUs vested and expected to vest, Number of Shares | 2,315 | ' |
RSUs vested and expected to vest, Weighted-Average Grant-Date Fair Value Per Share | $52.74 | ' |
RSUs vested and expected to vest, Weighted-Average Remaining Contractual Term | '1 year 5 months | ' |
RSUs vested and expected to vest, Aggregate Intrinsic Value | $97,600 | ' |
Equity_Award_Plans_Employee_St
Equity Award Plans Employee Stock Purchase Plan, Valuation Assumptions (Details) (Employee Stock Purchase Plan (ESPP)) | 3 Months Ended |
Oct. 31, 2013 | |
Employee Stock Purchase Plan (ESPP) | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Risk-free interest rate | 0.00% |
Expected Term | '6 months |
Volatility | 39.00% |
Dividend yield | 0.00% |
Equity_Award_Plans_Allocation_
Equity Award Plans (Allocation of Share Based Compensation Expense) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' |
Allocated Share-based Compensation Expense | $14,411 | $8,342 |
Cost of revenue | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' |
Allocated Share-based Compensation Expense | 1,663 | 610 |
Research and development | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' |
Allocated Share-based Compensation Expense | 3,262 | 1,690 |
Sales and marketing | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' |
Allocated Share-based Compensation Expense | 6,628 | 4,298 |
General and administrative | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' |
Allocated Share-based Compensation Expense | $2,858 | $1,744 |
Equity_Award_Plans_Allocation_1
Equity Award Plans Allocation of Share-based Compensation 2 (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' |
Total compensation cost not yet recognized, nonvested awards, net of estimated forfeitures | $137,222 | ' |
Allocated Share-based Compensation Expense | 14,411 | 8,342 |
Period for Recognition of Total Compensation Cost Not yet Recognized | '3 years | ' |
Plan Modification, Incremental Compensation Cost | ' | 1,400 |
Employee Stock Purchase Plan (ESPP) | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' |
Allocated Share-based Compensation Expense | $1,002 | $1,344 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Oct. 31, 2013 | Oct. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Effective income tax rate | -19.00% | -10.00% |
Net_Income_Loss_Per_Share_Comp
Net Income (Loss) Per Share (Computation of Basic and Diluted Net Income (Loss) Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' |
Net loss attributable to common stockholders | ($7,861) | ($3,515) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted (in shares) | 71,681 | 66,813 |
Net loss per share attributable to common stockholders, basic and diluted (in usd per share) | ($0.11) | ($0.05) |
Net_Income_Loss_Per_Share_Sche
Net Income (Loss) Per Share (Schedule of Antidilutive Securities Excluded from Computation) (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 |
Options to purchase common stock | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' |
Antidilutive securities (in shares) | 9,203 | 13,408 |
RSUs | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' |
Antidilutive securities (in shares) | 2,565 | 216 |
ESPP shares | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' |
Antidilutive securities (in shares) | 53 | 0 |