Palo Alto Networks (PANW) 10-Q 24 Feb 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information Document	6 Months Ended
	Jan. 31, 2014	Feb. 14, 2014
Document Information [Abstract]	'	'
Entity Registrant Name	'Palo Alto Networks Inc	'
Entity Central Index Key	'0001327567	'
Document Type	'10-Q	'
Document Period End Date	31-Jan-14	'
Amendment Flag	'false	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year End Date	'--07-31	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	74,064,857

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jan. 31, 2014	Jul. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$261,867	$310,614
Short-term investments	176,345	109,007
Accounts receivable, net of allowance for doubtful accounts of $466 and $51 at January 31, 2014 and July 31, 2013, respectively	86,090	87,461
Prepaid expenses and other current assets	30,985	22,617
Total current assets	555,287	529,699
Property and equipment, net	45,735	32,086
Long-term investments	63,105	17,314
Other assets	24,899	6,507
Total assets	689,026	585,606
Current liabilities:	'	'
Accounts payable	10,341	15,544
Accrued and other liabilities	20,425	14,609
Accrued compensation	29,713	22,004
Deferred revenue	202,330	153,945
Total current liabilities	262,809	206,102
Deferred revenue—non-current	122,261	95,285
Other long-term liabilities	19,512	11,799
Commitments and contingencies (Note 6)	'	'
Stockholders' equity:	'	'
Preferred stock; $0.0001 par value; 100,000 shares authorized; none issued and outstanding at January 31, 2014 and July 31, 2013	0	0
Common stock; $0.0001 par value; 1,000,000 shares authorized; 73,998 and 71,612 shares issued and outstanding at January 31, 2014 and July 31, 2013, respectively	7	7
Additional paid-in capital	441,475	381,703
Accumulated other comprehensive gain (loss)	43	-16
Accumulated deficit	-157,081	-109,274
Total stockholders’ equity	284,444	272,420
Total liabilities and stockholders’ equity	$689,026	$585,606

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jan. 31, 2014	Jul. 31, 2013
In Thousands, except Share data, unless otherwise specified
Current assets:	'	'
Allowance for doubtful accounts (in usd)	$466	$51
Stockholders' equity:	'	'
Preferred stock, par value (in usd per share)	$0.00	$0.00
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in usd per share)	$0.00	$0.00
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common Stock, Shares, Issued (in shares)	73,998,000	71,612,000
Common Stock, Shares, Outstanding (in shares)	73,998,000	71,612,000

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Revenue:	'	'	'	'
Product	$80,823	$61,944	$156,308	$117,458
Services	60,245	34,555	112,940	64,975
Total revenue	141,068	96,499	269,248	182,433
Cost of revenue:	'	'	'	'
Product	20,221	16,636	38,175	31,052
Services	17,283	10,982	33,136	20,756
Total cost of revenue	37,504	27,618	71,311	51,808
Total gross profit	103,564	68,881	197,937	130,625
Operating expenses:	'	'	'	'
Research and development	24,253	15,495	44,146	28,807
Sales and marketing	76,734	45,796	144,100	88,403
General and administrative	39,733	9,747	53,858	18,703
Total operating expenses	140,720	71,038	242,104	135,913
Operating loss	-37,156	-2,157	-44,167	-5,288
Interest income	187	116	347	214
Other expense, net	-371	-60	-134	-230
Loss before income taxes	-37,340	-2,101	-43,954	-5,304
Provision for income taxes	2,606	512	3,853	824
Net loss	-39,946	-2,613	-47,807	-6,128
Net loss attributable to common stockholders	($39,946)	($2,613)	($47,807)	($6,128)
Net loss per share attributable to common stockholders, basic and diluted (in usd per share)	($0.55)	($0.04)	($0.66)	($0.09)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted (in shares)	72,854	67,651	72,260	67,225

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Net loss	($39,946)	($2,613)	($47,807)	($6,128)
Other comprehensive gain (loss), net of tax:	'	'	'	'
Change in unrealized gains (losses) on investments	48	16	69	-11
Reclassification adjustment for realized net gains on investments included in net loss	-10	0	-10	0
Net change	38	16	59	-11
Comprehensive loss	($39,908)	($2,597)	($47,748)	($6,139)

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013
Cash flows from operating activities	'	'
Net loss	($47,807)	($6,128)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Depreciation and amortization	7,082	4,468
Amortization of investment premiums, net of accretion of purchase discounts	747	822
Share-based compensation for equity based awards	38,729	17,030
Excess tax benefit from share-based compensation	-674	-106
Changes in operating assets and liabilities:	'	'
Accounts receivable, net	1,371	-22,944
Prepaid expenses and other assets	-6,207	-7,290
Accounts payable	-4,387	1,716
Accrued and other liabilities	16,062	17,640
Deferred revenue	75,361	52,375
Net cash provided by operating activities	80,277	57,583
Cash flows from investing activities	'	'
Purchase of property, equipment, and other assets	-25,483	-10,236
Purchase of investments	-249,803	-252,633
Proceeds from sales of investments	6,630	13,491
Proceeds from maturities of investments	129,096	57,150
Acquisition of business, net of cash acquired	-10,102	0
Net cash used in investing activities	-149,662	-192,228
Cash flows from financing activities	'	'
Excess tax benefit from share-based compensation	674	106
Proceeds from exercise of stock options	14,085	2,554
Proceeds from employee stock purchase plan	5,988	0
Repurchase of restricted common stock from terminated employees	-109	-35
Payment of initial public offering costs	0	-2,698
Net cash provided by (used in) financing activities	20,638	-73
Net decrease in cash and cash equivalents	-48,747	-134,718
Cash and cash equivalents—beginning of period	310,614	322,642
Cash and cash equivalents—end of period	$261,867	$187,924

Description_of_Business_and_Su

Description of Business and Summary of Significant Accounting Policies	6 Months Ended
	Jan. 31, 2014
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 our 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 of and for the three and six months ended January 31, 2014, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended July 31, 2013, except for the inclusion of a policy related to business combinations and broadening our policy on the Impairment of Long-Lived Assets to include policies related to goodwill and intangible assets.
	Business Combinations
	We include the results of operations of the businesses that we acquire as of the respective dates of acquisition. We allocate the fair value of the purchase price of our acquisitions to the tangible assets acquired, liabilities assumed, and intangible assets acquired, based on their estimated fair values. The excess of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Additional information existing as of the acquisition date but unknown to us may become known during the remainder of the measurement period, not to exceed 12 months from the acquisition date, which may result in changes to the amounts and allocations recorded.
	Goodwill, Intangible Assets, and Impairment of Long-Lived Assets
	Goodwill is evaluated for impairment on an annual basis in the fourth quarter of our fiscal year, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. We have elected to first assess qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount. If we determine that it is more likely than not that the fair value of our single reporting unit is less than its carrying amount, then the two-step goodwill impairment test will be performed. The first step, identifying a potential impairment, compares the fair value of our single reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step will be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the implied fair value is recognized as an impairment loss.
	We evaluate events and changes in circumstances that could indicate carrying amounts of long-lived assets, including property and equipment and purchased intangible assets subject to amortization, may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability of long-lived assets by determining whether or not the carrying amount of such assets will be recovered through undiscounted expected future cash flows. If the total of the future undiscounted cash flows is less than the carrying amount of an asset, we record an impairment loss for the amount by which the carrying amount of the asset exceeds the fair value of the asset.
	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	6 Months Ended
	Jan. 31, 2014
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):
			January 31, 2014								July 31, 2013
			Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	Cash equivalents:
	Certificates of deposit		$	—	$	—	$	—	$	—	$	1,822	$	—	$	—	$	1,822
	U.S. government and agency securities		—		38,000		—		38,000		—		46,700		—		46,700
	Money market funds		—		—		—		—		131,845		—		—		131,845
	Total cash equivalents		—		38,000		—		38,000		133,667		46,700		—		180,367
	Short-term investments:
	Corporate debt securities		—		27,555		—		27,555		—		32,834		—		32,834
	U.S. government and agency securities		—		148,790		—		148,790		—		76,173		—		76,173
	Total short-term investments		—		176,345		—		176,345		—		109,007		—		109,007
	Long-term investments:
	Certificates of deposit		—		2,999		—		2,999		—		—		—		—
	Corporate debt securities		—		18,879		—		18,879		—		12,317		—		12,317
	U.S. government and agency securities		—		41,227		—		41,227		—		4,997		—		4,997
	Total long-term investments		—		63,105		—		63,105		—		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		$	1,220	$	277,450	$	—	$	278,670	$	134,888	$	173,021	$	—	$	307,909

Investments

Investments	6 Months Ended
	Jan. 31, 2014
Investments, Debt and Equity Securities [Abstract]	'
Investments	'
	Investments
	The following tables summarize our unrealized gains and losses and fair value of investments as of January 31, 2014 and July 31, 2013 (in thousands):
		31-Jan-14
		Amortized Cost		Unrealized Gains			Unrealized Losses			Estimated Fair Value
	Certificates of deposit	$	3,000	$	—		$	(1	)	$	2,999
	Corporate debt securities	46,419		23			(8		)	46,434
	U.S. government and agency securities	227,988		35			(6		)	228,017
	Total	$	277,407	$	58		$	(15	)	$	277,450
		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 January 31, 2014 and July 31, 2013 (in thousands):
		31-Jan-14
		Less Than 12 Months					12 Months or Greater					Total
		Fair Value		Unrealized Loss			Fair Value			Unrealized Loss		Fair Value		Unrealized Loss
	Certificates of deposit	$	2,999	$	(1	)	$	—		$	—	$	2,999	$	(1	)
	Corporate debt securities	16,834		(8		)	—			—		16,834		(8		)
	U.S. government and agency securities	29,645		(6		)	—			—		29,645		(6		)
	Total	$	49,478	$	(15	)	$	—		$	—	$	49,478	$	(15	)
		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 January 31, 2014.
	The following table summarizes the amortized cost and fair value of our investments as of January 31, 2014, by contractual years-to-maturity (in thousands):
		Amortized Cost		Fair Value
	Due within one year	$	214,320	$	214,345
	Due within one to two years	63,087		63,105
	Total	$	277,407	$	277,450

Acquisitions_Notes

Acquisitions (Notes)	6 Months Ended
	Jan. 31, 2014
Business Combinations [Abstract]	'
Acquisitions	'
	Acquisitions
	Business Combination
	On December 26, 2013, we completed our acquisition of Morta Security, Inc. ("Morta"), a privately-held cybersecurity company. We have accounted for this transaction as a business combination and exchanged total cash consideration of $10,345,000, of which $2,500,000 was withheld for Morta's indemnification obligations. Morta brings us a team of cybersecurity experts which will enhance the proven detection and prevention capabilities of our WildFire offering.
	The following table summarizes our preliminary allocation of the purchase price based on the fair value of assets acquired and liabilities assumed (in thousands):
		Amount
	Goodwill	$	10,094
	Identified intangible assets	2,200
	Net liabilities assumed	(1,949		)
	Total	$	10,345
	The following table presents details of the identified intangible assets acquired (in thousands, except years):
		Fair Value			Estimated Useful Life
	In-process research and development held for defensive purposes	$	1,900		3 years
	Other	300			2 years
	Total	$	2,200
	Morta’s operating results are included in our Condensed Consolidated Statements of Operations from the date of the acquisition and are considered immaterial for purposes of pro forma financial disclosures. Goodwill generated from this business combination is primarily attributable to human capital with threat intelligence experience and capabilities and is not tax deductible for U.S. federal income tax purposes.
	Other Purchased Intangible Assets
	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.

Goodwill_and_Intangible_Assets

Goodwill and Intangible Assets	6 Months Ended
	Jan. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
Intangible Assets Disclosure	'
	Goodwill and Intangible Assets
	Goodwill
	The following table presents details of our goodwill during the six months ended January 31, 2014 (in thousands):
		Gross Carrying Amount		Accumulated Impairment Loss			Net Carrying Amount
	Balance as of July 31, 2013	$	—	$	—		$	—
	Goodwill acquired	10,094		—			10,094
	Balance as of January 31, 2014	$	10,094	$	—		$	10,094
	Purchased Intangible Assets
	The following tables present details of our purchased intangible assets as of January 31, 2014 and July 31, 2013 (in thousands):
		31-Jan-14
		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	Acquired intellectual property	$	6,546	$	(548	)	$	5,998
	In-process research and development held for defensive purposes	1,900		(53		)	1,847
	Other	300		(12		)	288
	Total	$	8,746	$	(613	)	$	8,133
		31-Jul-13
		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	Acquired intellectual property	$	1,546	$	(188	)	$	1,358
	Amortization expense was $270,000 and $425,000 for the three and six months ended January 31, 2014, respectively, and $13,000 and $26,000 for the three and six months ended January 31, 2013, respectively.
	The following table summarizes our estimated future amortization expense of intangible assets by type as of January 31, 2014 (in thousands):
		Fiscal Years Ending July 31,
		Remaining 2014		2015			2016		2017		2018		2019 and Thereafter
	Acquired intellectual property	$	410	$	761		$	704	$	611	$	484	$	3,028
	In-process research and development held for defensive purposes	317		633			633		264		—		—
	Other	75		150			63		—		—		—
	Total future amortization expense	$	802	$	1,544		$	1,400	$	875	$	484	$	3,028

Commitments_and_Contingencies

Commitments and Contingencies	6 Months Ended
	Jan. 31, 2014
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 following table presents details of the aggregate future non-cancelable minimum rental payments on our operating leases as of January 31, 2014 (in thousands):
		Amount
	Fiscal years ending July 31:
	Remaining 2014	$	5,575
	2015	13,599
	2016	13,824
	2017	12,858
	2018	11,693
	2019 and thereafter	52,300
	Committed gross lease payments	109,849
	Less: proceeds from sublease rental	10,700
	Net operating lease obligation	$	99,149
	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 January 31, 2014, we had $32,150,000 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 granted both of those petitions and instituted trials to take place in August 2014 and September 2014. A hearing to resolve claim construction issues, as well as motions for summary judgment, was heard on November 15, 2013.
	The Court issued an order on February 6, 2014, in which the Court construed several disputed claim limitations, granted Juniper’s motion for summary judgment of assignor estoppel, denied Juniper’s motion for summary judgment of infringement, and granted in part and denied in part our motion for summary judgment of non-infringement. A trial began on 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.
	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.

Mutual_Covenant_Not_to_Sue_and

Mutual Covenant Not to Sue and Release Agreement (Notes)	6 Months Ended
	Jan. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Mutual Covenant Not to Sue and Release Agreement	'
	Mutual Covenant Not to Sue and Release Agreement
	On January 27, 2014, we executed a Mutual Covenant Not to Sue and Release agreement, thereby extending an existing covenant for six more years. We evaluated the transaction as a multiple-element arrangement and allocated the one-time payment that we made in the amount of $20,000,000 to each identifiable element using its relative fair value. Based on our estimates of fair value, we determined that the primary benefit of the arrangement is avoided litigation cost and the release of any potential past claims, with no material value attributable to future use or benefit. Accordingly, we recorded a $20,000,000 expense in general and administrative expense during the three months ended January 31, 2014.

Equity_Award_Plans

Equity Award Plans	6 Months Ended
	Jan. 31, 2014
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 period 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	(414	)		14.94
	Options exercised	(1,812	)		7.78
	Balance—January 31, 2014	7,807			12.49			7.5		$	366,617
	Options vested and expected to vest—January 31, 2014	7,586			$	12.38		7.4		$	357,073
	Options exercisable—January 31, 2014	4,335			$	9.73		7.2		$	215,536
	Restricted Stock Units (RSUs) Activities
	A summary of the activity under our stock plans and changes during the reporting period 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	3,612			54.72
	RSUs vested	(447	)		56.42
	RSUs forfeited	(205	)		54.57
	Balance—January 31, 2014	5,201			$	54.42		1.6		$	309,199
	RSUs vested and expected to vest—January 31, 2014	4,640			$	54.44		1.6		$	275,848
	Shares Available for Grant
	The following table presents the stock activity and the total number of shares available for grant as of January 31, 2014 (in thousands):
		Number of Shares
	Balance—July 31, 2013	8,932
	Authorized	3,223
	RSUs granted	(3,612	)
	Repurchased	21
	Options forfeited	414
	RSUs forfeited	205
	Balance—January 31, 2014	9,183
	Employee Stock Purchase Plan (ESPP)
	Compensation expense recognized in connection with the 2012 Employee Stock Purchase Plan was $1,073,000 and $2,075,000 for the three and six months ended January 31, 2014, respectively, and $1,467,000 and $2,811,000 for the three and six months ended January 31, 2013, 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 January 31, 2014		Six Months Ended January 31, 2014
	Risk-free interest rate	N/A		—%
	Expected term (years)	N/A		< 1 year
	Volatility	N/A		39%
	Dividend yield	N/A		—%
	The following table summarizes share-based compensation included in costs and expenses (in thousands):
		Three Months Ended January 31,							Six Months Ended January 31,
		2014				2013			2014			2013
	Cost of revenue	$	2,405			$	825		$	4,155		$	1,435
	Research and development	5,807				1,973			9,159			3,663
	Sales and marketing	9,745				3,935			16,678			8,233
	General and administrative	6,427				2,021			8,803			3,765
	Total	$	24,384			$	8,754		$	38,795		$	17,096
	At January 31, 2014, total compensation cost related to unvested share-based awards granted to employees under our stock plans but not yet recognized was $266,970,000, 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.
	During the three months ended January 31, 2014, we accelerated the vesting of certain share-based awards and as a result, in the three and six months ended January 31, 2014, we recorded compensation expense within general and administrative expense of $3,384,000.
	During the three months ended October 31, 2012, we modified the terms of certain share-based awards and as a result, in the three and six months ended January 31, 2013, we recorded compensation expense within sales and marketing expense of $461,000 and $1,861,000, respectively.

Income_Taxes

Income Taxes	6 Months Ended
	Jan. 31, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	Income Taxes
	Our provision for income taxes for the three and six months ended January 31, 2014 reflects an effective tax rate of negative 7% and negative 9%, respectively. Our effective tax rates for these periods were negative due to the fact that we recorded a provision for income taxes on year-to-date losses. The key components of our income tax provision, and the related effective tax rate, consist of foreign tax losses which derive no benefit, non-deductible share-based compensation and foreign withholding taxes. As compared to the same periods last year, our negative effective tax rate decreased due to an increase in our loss before income taxes.
	Our provision for income taxes for the three and six months ended January 31, 2013 reflects an effective tax rate of negative 24% and negative 16%, respectively. Our effective tax rates for these periods were negative due to the fact that we recorded a provision for income taxes on year-to-date losses. The key components of our income tax provision, and the related effective tax rate, consist of foreign tax losses which derive no benefit, non-deductible share-based compensation and foreign withholding taxes.

Net_Income_Loss_Per_Share

Net Income (Loss) Per Share	6 Months Ended
	Jan. 31, 2014
Earnings Per Share [Abstract]	'
Earnings Per Share [Text Block]	'
	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 loss per share of common stock (in thousands, except per share data):
		Three Months Ended January 31,							Six Months Ended January 31,
		2014				2013			2014			2013
	Net loss attributable to common stockholders	$	(39,946	)		$	(2,613	)	$	(47,807	)	$	(6,128	)
	Weighted-average shares used to compute net loss per share, basic and diluted	72,854				67,651			72,260			67,225
	Net loss per share attributable to common stockholders, basic and diluted	$	(0.55	)		$	(0.04	)	$	(0.66	)	$	(0.09	)
	The following outstanding options, RSUs, and ESPP shares were excluded from the computation of diluted net loss per common share applicable to common stockholders for the periods presented as their effects would have been antidilutive (in thousands):
		31-Jan-14			31-Jan-13
	Options to purchase common stock	7,807			12,797
	RSUs	5,201			1,580
	ESPP shares	132			—

Description_of_Business_and_Su1

Description of Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jan. 31, 2014
Accounting Policies [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 our 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.
Business Combinations	'
	Business Combinations
	We include the results of operations of the businesses that we acquire as of the respective dates of acquisition. We allocate the fair value of the purchase price of our acquisitions to the tangible assets acquired, liabilities assumed, and intangible assets acquired, based on their estimated fair values. The excess of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Additional information existing as of the acquisition date but unknown to us may become known during the remainder of the measurement period, not to exceed 12 months from the acquisition date, which may result in changes to the amounts and allocations recorded.
Goodwill, Intangible Assets and Impairment of Long-lived Assets	'
	Goodwill, Intangible Assets, and Impairment of Long-Lived Assets
	Goodwill is evaluated for impairment on an annual basis in the fourth quarter of our fiscal year, and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. We have elected to first assess qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount. If we determine that it is more likely than not that the fair value of our single reporting unit is less than its carrying amount, then the two-step goodwill impairment test will be performed. The first step, identifying a potential impairment, compares the fair value of our single reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step will be performed; otherwise, no further step is required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the implied fair value is recognized as an impairment loss.
	We evaluate events and changes in circumstances that could indicate carrying amounts of long-lived assets, including property and equipment and purchased intangible assets subject to amortization, may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability of long-lived assets by determining whether or not the carrying amount of such assets will be recovered through undiscounted expected future cash flows. If the total of the future undiscounted cash flows is less than the carrying amount of an asset, we record an impairment loss for the amount by which the carrying amount of the asset exceeds the fair value of the asset.
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)	6 Months Ended
	Jan. 31, 2014
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):
		January 31, 2014								July 31, 2013
		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	Cash equivalents:
	Certificates of deposit	$	—	$	—	$	—	$	—	$	1,822	$	—	$	—	$	1,822
	U.S. government and agency securities	—		38,000		—		38,000		—		46,700		—		46,700
	Money market funds	—		—		—		—		131,845		—		—		131,845
	Total cash equivalents	—		38,000		—		38,000		133,667		46,700		—		180,367
	Short-term investments:
	Corporate debt securities	—		27,555		—		27,555		—		32,834		—		32,834
	U.S. government and agency securities	—		148,790		—		148,790		—		76,173		—		76,173
	Total short-term investments	—		176,345		—		176,345		—		109,007		—		109,007
	Long-term investments:
	Certificates of deposit	—		2,999		—		2,999		—		—		—		—
	Corporate debt securities	—		18,879		—		18,879		—		12,317		—		12,317
	U.S. government and agency securities	—		41,227		—		41,227		—		4,997		—		4,997
	Total long-term investments	—		63,105		—		63,105		—		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	$	1,220	$	277,450	$	—	$	278,670	$	134,888	$	173,021	$	—	$	307,909

Investments_Tables

Investments (Tables)	6 Months Ended
	Jan. 31, 2014
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 January 31, 2014 and July 31, 2013 (in thousands):
		31-Jan-14
		Amortized Cost		Unrealized Gains			Unrealized Losses			Estimated Fair Value
	Certificates of deposit	$	3,000	$	—		$	(1	)	$	2,999
	Corporate debt securities	46,419		23			(8		)	46,434
	U.S. government and agency securities	227,988		35			(6		)	228,017
	Total	$	277,407	$	58		$	(15	)	$	277,450
		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 January 31, 2014 and July 31, 2013 (in thousands):
		31-Jan-14
		Less Than 12 Months					12 Months or Greater					Total
		Fair Value		Unrealized Loss			Fair Value			Unrealized Loss		Fair Value		Unrealized Loss
	Certificates of deposit	$	2,999	$	(1	)	$	—		$	—	$	2,999	$	(1	)
	Corporate debt securities	16,834		(8		)	—			—		16,834		(8		)
	U.S. government and agency securities	29,645		(6		)	—			—		29,645		(6		)
	Total	$	49,478	$	(15	)	$	—		$	—	$	49,478	$	(15	)
		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 following table summarizes the amortized cost and fair value of our investments as of January 31, 2014, by contractual years-to-maturity (in thousands):
		Amortized Cost		Fair Value
	Due within one year	$	214,320	$	214,345
	Due within one to two years	63,087		63,105
	Total	$	277,407	$	277,450

Acquisitions_Tables

Acquisitions (Tables)	6 Months Ended
	Jan. 31, 2014
Business Combinations [Abstract]	'
Schedule of Purchase Price Allocation	'
	The following table summarizes our preliminary allocation of the purchase price based on the fair value of assets acquired and liabilities assumed (in thousands):
		Amount
	Goodwill	$	10,094
	Identified intangible assets	2,200
	Net liabilities assumed	(1,949		)
	Total	$	10,345
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination	'
	The following table presents details of the identified intangible assets acquired (in thousands, except years):
		Fair Value			Estimated Useful Life
	In-process research and development held for defensive purposes	$	1,900		3 years
	Other	300			2 years
	Total	$	2,200

Goodwill_and_Intangible_Assets1

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jan. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
Schedule of Goodwill	'
	The following table presents details of our goodwill during the six months ended January 31, 2014 (in thousands):
		Gross Carrying Amount		Accumulated Impairment Loss			Net Carrying Amount
	Balance as of July 31, 2013	$	—	$	—		$	—
	Goodwill acquired	10,094		—			10,094
	Balance as of January 31, 2014	$	10,094	$	—		$	10,094
Finite-Lived Intangible Assets and Related Amortization	'
	The following tables present details of our purchased intangible assets as of January 31, 2014 and July 31, 2013 (in thousands):
		31-Jan-14
		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	Acquired intellectual property	$	6,546	$	(548	)	$	5,998
	In-process research and development held for defensive purposes	1,900		(53		)	1,847
	Other	300		(12		)	288
	Total	$	8,746	$	(613	)	$	8,133
		31-Jul-13
		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	Acquired intellectual property	$	1,546	$	(188	)	$	1,358
Finite-Lived Intangible Assets, Future Amortization Expense	'
	The following table summarizes our estimated future amortization expense of intangible assets by type as of January 31, 2014 (in thousands):
		Fiscal Years Ending July 31,
		Remaining 2014		2015			2016		2017		2018		2019 and Thereafter
	Acquired intellectual property	$	410	$	761		$	704	$	611	$	484	$	3,028
	In-process research and development held for defensive purposes	317		633			633		264		—		—
	Other	75		150			63		—		—		—
	Total future amortization expense	$	802	$	1,544		$	1,400	$	875	$	484	$	3,028

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	6 Months Ended
	Jan. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Schedule of Future Minimum Rental Payments for Operating Leases	'
	The following table presents details of the aggregate future non-cancelable minimum rental payments on our operating leases as of January 31, 2014 (in thousands):
		Amount
	Fiscal years ending July 31:
	Remaining 2014	$	5,575
	2015	13,599
	2016	13,824
	2017	12,858
	2018	11,693
	2019 and thereafter	52,300
	Committed gross lease payments	109,849
	Less: proceeds from sublease rental	10,700
	Net operating lease obligation	$	99,149

Equity_Award_Plans_Tables

Equity Award Plans (Tables)	6 Months Ended
	Jan. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Schedule of Stock Options Activity	'
	A summary of the activity under our stock plans and changes during the reporting period 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	(414	)		14.94
	Options exercised	(1,812	)		7.78
	Balance—January 31, 2014	7,807			12.49			7.5		$	366,617
	Options vested and expected to vest—January 31, 2014	7,586			$	12.38		7.4		$	357,073
	Options exercisable—January 31, 2014	4,335			$	9.73		7.2		$	215,536
Schedule of Restricted Stock Units Award Activity	'
	A summary of the activity under our stock plans and changes during the reporting period 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	3,612			54.72
	RSUs vested	(447	)		56.42
	RSUs forfeited	(205	)		54.57
	Balance—January 31, 2014	5,201			$	54.42		1.6		$	309,199
	RSUs vested and expected to vest—January 31, 2014	4,640			$	54.44		1.6		$	275,848
Shares Available For Grant	'
	The following table presents the stock activity and the total number of shares available for grant as of January 31, 2014 (in thousands):
		Number of Shares
	Balance—July 31, 2013	8,932
	Authorized	3,223
	RSUs granted	(3,612	)
	Repurchased	21
	Options forfeited	414
	RSUs forfeited	205
	Balance—January 31, 2014	9,183
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 January 31, 2014		Six Months Ended January 31, 2014
	Risk-free interest rate	N/A		—%
	Expected term (years)	N/A		< 1 year
	Volatility	N/A		39%
	Dividend yield	N/A		—%
Schedule of Allocation of Share Based Compensation Expense	'
	The following table summarizes share-based compensation included in costs and expenses (in thousands):
		Three Months Ended January 31,							Six Months Ended January 31,
		2014				2013			2014			2013
	Cost of revenue	$	2,405			$	825		$	4,155		$	1,435
	Research and development	5,807				1,973			9,159			3,663
	Sales and marketing	9,745				3,935			16,678			8,233
	General and administrative	6,427				2,021			8,803			3,765
	Total	$	24,384			$	8,754		$	38,795		$	17,096

Net_Income_Loss_Per_Share_Tabl

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jan. 31, 2014
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 loss per share of common stock (in thousands, except per share data):
		Three Months Ended January 31,							Six Months Ended January 31,
		2014				2013			2014			2013
	Net loss attributable to common stockholders	$	(39,946	)		$	(2,613	)	$	(47,807	)	$	(6,128	)
	Weighted-average shares used to compute net loss per share, basic and diluted	72,854				67,651			72,260			67,225
	Net loss per share attributable to common stockholders, basic and diluted	$	(0.55	)		$	(0.04	)	$	(0.66	)	$	(0.09	)
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 loss per common share applicable to common stockholders for the periods presented as their effects would have been antidilutive (in thousands):
		31-Jan-14			31-Jan-13
	Options to purchase common stock	7,807			12,797
	RSUs	5,201			1,580
	ESPP shares	132			—

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	Jan. 31, 2014	Jul. 31, 2013
In Thousands, unless otherwise specified
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Cash equivalents	$38,000	$180,367
Short-term investments	176,345	109,007
Long-term investments	63,105	17,314
Other assets	1,220	1,221
Total assets measured at fair value	278,670	307,909
Level 1	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Cash equivalents	0	133,667
Short-term investments	0	0
Long-term investments	0	0
Other assets	1,220	1,221
Total assets measured at fair value	1,220	134,888
Level 2	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Cash equivalents	38,000	46,700
Short-term investments	176,345	109,007
Long-term investments	63,105	17,314
Other assets	0	0
Total assets measured at fair value	277,450	173,021
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
Other assets	0	0
Total assets measured at fair value	0	0
Certificates of deposit	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Cash equivalents	0	1,822
Long-term investments	2,999	0
Other assets	1,220	1,221
Certificates of deposit | Level 1	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Cash equivalents	0	1,822
Long-term investments	0	0
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
Long-term investments	2,999	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
Long-term investments	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	38,000	46,700
Short-term investments	148,790	76,173
Long-term investments	41,227	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	38,000	46,700
Short-term investments	148,790	76,173
Long-term investments	41,227	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	27,555	32,834
Long-term investments	18,879	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	27,555	32,834
Long-term investments	18,879	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 $)	Jan. 31, 2014	Jul. 31, 2013
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities	'	'
Amortized Cost	$277,407	$306,704
Unrealized Gains	58	20
Unrealized Losses	-15	-36
Estimated Fair Value	277,450	306,688
Certificates of deposit	'	'
Schedule of Available-for-sale Securities	'	'
Amortized Cost	3,000	1,822
Unrealized Gains	0	0
Unrealized Losses	-1	0
Estimated Fair Value	2,999	1,822
Corporate debt securities	'	'
Schedule of Available-for-sale Securities	'	'
Amortized Cost	46,419	45,173
Unrealized Gains	23	12
Unrealized Losses	-8	-34
Estimated Fair Value	46,434	45,151
U.S. government and agency securities	'	'
Schedule of Available-for-sale Securities	'	'
Amortized Cost	227,988	127,864
Unrealized Gains	35	8
Unrealized Losses	-6	-2
Estimated Fair Value	228,017	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 $)	Jan. 31, 2014	Jul. 31, 2013
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities	'	'
Less than 12 Months, Fair Value	$49,478	$47,355
12 Months or Greater, Fair Value	0	0
Total, Unrealized Loss Position, Fair Value	49,478	47,355
Less than 12 Months, Unrealized Loss	-15	-36
12 Months or Greater, Unrealized Loss	0	0
Total, Unrealized Loss	-15	-36
Certificates of deposit	'	'
Schedule of Available-for-sale Securities	'	'
Less than 12 Months, Fair Value	2,999	'
12 Months or Greater, Fair Value	0	'
Total, Unrealized Loss Position, Fair Value	2,999	'
Less than 12 Months, Unrealized Loss	-1	'
12 Months or Greater, Unrealized Loss	0	'
Total, Unrealized Loss	-1	'
Corporate debt securities	'	'
Schedule of Available-for-sale Securities	'	'
Less than 12 Months, Fair Value	16,834	31,429
12 Months or Greater, Fair Value	0	0
Total, Unrealized Loss Position, Fair Value	16,834	31,429
Less than 12 Months, Unrealized Loss	-8	-34
12 Months or Greater, Unrealized Loss	0	0
Total, Unrealized Loss	-8	-34
U.S. government and agency securities	'	'
Schedule of Available-for-sale Securities	'	'
Less than 12 Months, Fair Value	29,645	15,926
12 Months or Greater, Fair Value	0	0
Total, Unrealized Loss Position, Fair Value	29,645	15,926
Less than 12 Months, Unrealized Loss	-6	-2
12 Months or Greater, Unrealized Loss	0	0
Total, Unrealized Loss	($6)	($2)

Investments_AvailableforSale_I2

Investments (Available-for-Sale Investments, Contractual Maturities) (Details) (USD $)	Jan. 31, 2014
In Thousands, unless otherwise specified
Amortized Cost	'
Due within one year	$214,320
Due within one to two years	63,087
Total	277,407
Fair Value	'
Due within one year	214,345
Due within one to two years	63,105
Total	$277,450

Acquisitions_Details

Acquisitions (Details) (USD $)	0 Months Ended	3 Months Ended
	Dec. 26, 2013	Oct. 31, 2013
		Patents
Business Acquisition [Line Items]	'	'
Total cash consideration	$10,345,000	'
Restricted cash for Morta's indemnification obligations	2,500,000	'
Finite-lived Intangible Assets Acquired	'	$5,000,000
Estimated Weighted Average Useful Life (in years)	'	'13 years

Acquisitions_Purchase_price_al

Acquisitions Purchase price allocation (Details) (USD $)	Dec. 26, 2013
In Thousands, unless otherwise specified
Business Combinations [Abstract]	'
Goodwill	$10,094
Identified intangible assets	2,200
Net liabilities assumed	-1,949
Total	$10,345

Acquisitions_Schedule_of_finit

Acquisitions Schedule of finite-lived intangible assets acquired as part of business combination (Details) (USD $)	0 Months Ended
In Thousands, unless otherwise specified	Dec. 26, 2013
Acquired Finite-Lived Intangible Assets [Line Items]	'
Fair Value	$2,200
In-process research and development held for defensive purposes	'
Acquired Finite-Lived Intangible Assets [Line Items]	'
Fair Value	1,900
Estimated Weighted Average Useful Life (in years)	'3 years
Other	'
Acquired Finite-Lived Intangible Assets [Line Items]	'
Fair Value	$300
Estimated Weighted Average Useful Life (in years)	'2 years

Goodwill_and_Intangible_Assets2

Goodwill and Intangible Assets Goodwill roll-forward (Details) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014
Goodwill [Line Items]	'
Gross carrying amount, beginning	$0
Goodwill acquired	10,094
Gross carrying amount, ending	10,094
Goodwill, accumulated impairment loss, beginning	0
Goodwill, Impairment Loss	0
Goodwill, accumulated impairment loss, ending	0
Goodwill, beginning	0
Goodwill, net, increase (decrease)	10,094
Goodwill, ending	$10,094

Goodwill_and_Intangible_Assets3

Goodwill and Intangible Assets (Details) (USD $)	Jan. 31, 2014	Jul. 31, 2013
In Thousands, unless otherwise specified
Acquired Finite-Lived Intangible Assets [Line Items]	'	'
Gross Carrying Amount	$8,746	'
Accumulated Amortization	-613	'
Net Carrying Value	8,133	'
Patents	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'
Gross Carrying Amount	6,546	1,546
Accumulated Amortization	-548	-188
Net Carrying Value	5,998	1,358
In-process research and development held for defensive purposes	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'
Gross Carrying Amount	1,900	'
Accumulated Amortization	-53	'
Net Carrying Value	1,847	'
Other	'	'
Acquired Finite-Lived Intangible Assets [Line Items]	'	'
Gross Carrying Amount	300	'
Accumulated Amortization	-12	'
Net Carrying Value	$288	'

Goodwill_and_Intangible_Assets4

Goodwill and Intangible Assets Amortization expense (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Acquired Finite-Lived Intangible Assets [Line Items]	'	'	'	'
Amortization of Intangible Assets	$270	$13	$425	$26

Goodwill_and_Intangible_Assets5

Goodwill and Intangible Assets Future Amortization Expense (Details) (USD $)	Jan. 31, 2014
In Thousands, unless otherwise specified
Acquired Finite-Lived Intangible Assets [Line Items]	'
Remaining 2014	$802
2015	1,544
2016	1,400
2017	875
2018	484
2019 and thereafter	3,028
Patents	'
Acquired Finite-Lived Intangible Assets [Line Items]	'
Remaining 2014	410
2015	761
2016	704
2017	611
2018	484
2019 and thereafter	3,028
In-process research and development held for defensive purposes	'
Acquired Finite-Lived Intangible Assets [Line Items]	'
Remaining 2014	317
2015	633
2016	633
2017	264
2018	0
2019 and thereafter	0
Other	'
Acquired Finite-Lived Intangible Assets [Line Items]	'
Remaining 2014	75
2015	150
2016	63
2017	0
2018	0
2019 and thereafter	$0

Commitments_and_Contingencies_1

Commitments and Contingencies Lease commitment schedule (Details) (USD $)	Jan. 31, 2014
In Thousands, unless otherwise specified
Commitments and Contingencies Disclosure [Abstract]	'
Remaining 2014	$5,575
2015	13,599
2016	13,824
2017	12,858
2018	11,693
2019 and thereafter	52,300
Committed gross lease payments	109,849
Less: proceeds from sublease rental	-10,700
Net operating lease obligation	$99,149

Commitments_and_Contingencies_2

Commitments and Contingencies (Textuals) (Details) (USD $)	Jan. 31, 2014
In Thousands, unless otherwise specified
Commitments and Contingencies Disclosure [Abstract]	'
Contractual Obligation	$32,150

Mutual_Covenant_Not_to_Sue_and1

Mutual Covenant Not to Sue and Release Agreement (Details) (USD $)	0 Months Ended	3 Months Ended
	Jan. 27, 2014	Jan. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'	'
Payment related to Mutual Covenant Not to Sue and Release agreement	$20,000,000	'
General and administrative expense related to Mutual Covenant Not to Sue and Release agreement	'	$20,000,000

Equity_Award_Plans_Stock_Optio

Equity Award Plans (Stock Options Activity) (Details) (USD $)	6 Months Ended	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jan. 31, 2014	Jul. 31, 2013
Options, Outstanding Roll Forward	'	'
Balance, beginning (in shares)	10,033	'
Options granted (in shares)	0	'
Options forfeited (in shares)	-414	'
Options exercised (in shares)	-1,812	'
Balance, ending (in shares)	7,807	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)	$14.94	'
Options exercised (in usd per share)	$7.78	'
Balance, ending (in usd per share)	$12.49	$11.74
Options, Additional Disclosures	'	'
Weighted-Average Remaining Contractual Life (in years)	'7 years 6 months	'7 years 9 months
Aggregate Intrinsic Value	$366,617	$373,228
Options vested and expected to vest (in shares)	7,586	'
Options vested and expected to vest, Weighted-Average Exercise Price (in usd per share)	$12.38	'
Options vested and expected to vest, Weighted-Average Remaining Contractual Term (in years)	'7 years 5 months	'
Options vested and expected to vest, Aggregate Intrinsic Value	357,073	'
Options exercisable (in shares)	4,335	'
Options exercisable, Weighted-Average Exercise Price (in usd per share)	$9.73	'
Options exercisable, Weighted-Average Remaining Contractual Term (in years)	'7 years 2 months	'
Optios exercisable, Aggregate Intrinsic Value	$215,536	'

Equity_Award_Plans_Restricted_

Equity Award Plans (Restricted Stock Units Award Activity) (Details) (Restricted Stock Units (RSUs), USD $)	6 Months Ended	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jan. 31, 2014	Jul. 31, 2013
Restricted Stock Units (RSUs)	'	'
RSUs, Outstanding Roll Forward	'	'
Balance, beginning (in shares)	2,241	'
RSUs granted (in shares)	3,612	'
RSUs vested (in shares)	-447	'
RSUs forfeited (in shares)	-205	'
Balance, ending (in shares)	5,201	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)	$54.72	'
RSUs vested (in usd per share)	$56.42	'
RSUs forfeited (in usd per share)	$54.57	'
Balance, ending (in usd per share)	$54.42	$54.36
RSUs, Additional Disclosures	'	'
Weighted-Average Remaining Contractual Term (in years)	'1 year 7 months	'1 year 6 months
Aggregate Intrinsic Value	$309,199	$109,675
RSUs vested and expected to vest (in shares)	4,640	'
RSUs vested and expected to vest, Weighted-Average Grant-Date Fair Value (in usd per share)	$54.44	'
RSUs vested and expected to vest, Weighted-Average Remaining Contractual Term (in years)	'1 year 7 months	'
RSUs vested and expected to vest, Aggregate Intrinsic Value	$275,848	'

Equity_Award_Plans_Shares_Avai

Equity Award Plans Shares Available for Grant (Details)	6 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award	'
Shares Available for Grant, Beginning (in shares)	8,932
Additional Shares Authorized (in shares)	3,223
Stock Repurchased (in shares)	21
Options forfeited (in shares)	414
Shares Available for Grant, Ending (in shares)	9,183
Restricted Stock Units (RSUs)	'
Share-based Compensation Arrangement by Share-based Payment Award	'
RSUs granted (in shares)	-3,612
RSUs forfeited (in shares)	205

Equity_Award_Plans_Employee_St

Equity Award Plans Employee Stock Purchase Plan, Valuation Assumptions (Details) (Employee Stock Purchase Plan (ESPP))	6 Months Ended
	Jan. 31, 2014
Employee Stock Purchase Plan (ESPP)	'
Share-based Compensation Arrangement by Share-based Payment Award	'
Risk-free interest rate	0.00%
Expected term (in years)	'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		6 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs	'	'	'	'
Allocated Share-based Compensation Expense	$24,384	$8,754	$38,795	$17,096
Cost of revenue	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs	'	'	'	'
Allocated Share-based Compensation Expense	2,405	825	4,155	1,435
Research and development	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs	'	'	'	'
Allocated Share-based Compensation Expense	5,807	1,973	9,159	3,663
Sales and marketing	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs	'	'	'	'
Allocated Share-based Compensation Expense	9,745	3,935	16,678	8,233
General and administrative	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs	'	'	'	'
Allocated Share-based Compensation Expense	$6,427	$2,021	$8,803	$3,765

Equity_Award_Plans_Allocation_1

Equity Award Plans Allocation of Share-based Compensation 2 (Details) (USD $)	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award	'	'	'	'
Allocated Share-based Compensation Expense	$24,384,000	$8,754,000	$38,795,000	$17,096,000
Total compensation cost not yet recognized, nonvested awards, net of estimated forfeitures	266,970,000	'	266,970,000	'
Period for Recognition of Total Compensation Cost Not yet Recognized (in years)	'	'	'3 years	'
Plan Modification, Incremental Compensation Cost	3,384,000	461,000	3,384,000	1,861,000
Employee Stock Purchase Plan (ESPP)	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award	'	'	'	'
Allocated Share-based Compensation Expense	$1,073,000	$1,467,000	$2,075,000	$2,811,000

Income_Taxes_Details

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Income Tax Disclosure [Abstract]	'	'	'	'
Effective income tax rate	-7.00%	-24.40%	-8.80%	-15.50%

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		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]	'	'	'	'
Net loss attributable to common stockholders	($39,946)	($2,613)	($47,807)	($6,128)
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted (in shares)	72,854	67,651	72,260	67,225
Net loss per share attributable to common stockholders, basic and diluted (in usd per share)	($0.55)	($0.04)	($0.66)	($0.09)

Net_Income_Loss_Per_Share_Sche

Net Income (Loss) Per Share (Schedule of Antidilutive Securities Excluded from Computation) (Details)	6 Months Ended
In Thousands, unless otherwise specified	Jan. 31, 2014	Jan. 31, 2013
Options to purchase common stock	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	'	'
Antidilutive securities (in shares)	7,807	12,797
RSUs	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	'	'
Antidilutive securities (in shares)	5,201	1,580
ESPP shares	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	'	'
Antidilutive securities (in shares)	132	0