Palo Alto Networks (PANW) 10-Q 25 Nov 14 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information Document	3 Months Ended
	Oct. 31, 2014	Nov. 17, 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-Oct-14	'
Amendment Flag	'false	'
Document Fiscal Year Focus	'2015	'
Document Fiscal Period Focus	'Q1	'
Document Fiscal Year End Date	'--07-31	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	80,545,942

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Oct. 31, 2014	Jul. 31, 2014
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$543,747	$653,812
Short-term investments	227,752	118,690
Accounts receivable, net of allowance for doubtful accounts of $983 and $471 at October 31, 2014 and July 31, 2014, respectively	116,224	135,518
Prepaid expenses and other current assets	45,844	50,306
Total current assets	933,567	958,326
Property and equipment, net	49,823	48,744
Long-term investments	289,011	201,880
Goodwill	155,033	155,033
Intangible assets, net	47,451	47,955
Other assets	65,471	66,528
Total assets	1,540,356	1,478,466
Current liabilities:	'	'
Accounts payable	10,497	14,526
Accrued compensation	35,935	48,727
Accrued and other liabilities	27,852	25,000
Deferred revenue	286,682	259,918
Total current liabilities	360,966	348,171
Convertible senior notes, net	471,856	466,875
Long-term deferred revenue	184,038	162,660
Other long-term liabilities	30,285	32,177
Commitments and contingencies (Note 6)	'	'
Stockholders' equity:	'	'
Preferred stock; $0.0001 par value; 100,000 shares authorized; none issued and outstanding at October 31, 2014 and July 31, 2014	0	0
Common stock; $0.0001 par value; 1,000,000 shares authorized; 80,518 and 79,519 shares issued and outstanding at October 31, 2014 and July 31, 2014, respectively	8	8
Additional paid-in capital	859,010	804,406
Accumulated other comprehensive loss	-13	-105
Accumulated deficit	-365,794	-335,726
Total stockholders’ equity	493,211	468,583
Total liabilities and stockholders’ equity	$1,540,356	$1,478,466

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Oct. 31, 2014	Jul. 31, 2014
In Thousands, except Share data, unless otherwise specified
Current assets:	'	'
Allowance for doubtful accounts (in usd)	$983	$471
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)	80,518,000	79,519,000
Common Stock, Shares, Outstanding (in shares)	80,518,000	79,519,000

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Oct. 31, 2014	Oct. 31, 2013
Revenue:	'	'
Product	$101,476	$75,485
Services	90,870	52,695
Total revenue	192,346	128,180
Cost of revenue:	'	'
Product	29,141	17,954
Services	24,320	15,853
Total cost of revenue	53,461	33,807
Total gross profit	138,885	94,373
Operating expenses:	'	'
Research and development	37,305	19,893
Sales and marketing	106,366	67,366
General and administrative	18,977	14,125
Total operating expenses	162,648	101,384
Operating loss	-23,763	-7,011
Interest expense	-5,489	-8
Other income, net	341	405
Loss before income taxes	-28,911	-6,614
Provision for income taxes	1,157	1,247
Net loss	($30,068)	($7,861)
Net loss per share, basic and diluted	($0.38)	($0.11)
Weighted-average shares used to compute net loss per share, basic and diluted	79,388	71,681

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Oct. 31, 2014	Oct. 31, 2013
Net loss	($30,068)	($7,861)
Other comprehensive gain, net of tax:	'	'
Change in unrealized gains (losses) on investments	92	21
Comprehensive loss	($29,976)	($7,840)

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Oct. 31, 2014	Oct. 31, 2013
Cash flows from operating activities	'	'
Net loss	($30,068)	($7,861)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Share-based compensation for equity based awards	38,443	14,383
Depreciation and amortization	6,115	3,146
Amortization of investment premiums, net of accretion of purchase discounts	667	386
Amortization of debt discount and debt issuance costs	5,478	0
Excess tax benefit from share-based compensation	-346	-56
Changes in operating assets and liabilities:	'	'
Accounts receivable, net	19,294	-3,978
Prepaid expenses and other assets	3,409	-1,707
Accounts payable	-4,460	-205
Accrued compensation	-12,792	1,614
Accrued and other liabilities	1,046	3,433
Deferred revenue	48,142	29,726
Net cash provided by operating activities	74,928	38,881
Cash flows from investing activities	'	'
Purchase of investments	-247,849	-122,238
Proceeds from sales of investments	1,999	0
Proceeds from maturities of investments	50,692	43,959
Purchase of property, equipment, and other assets	-5,935	-15,680
Net cash used in investing activities	-201,093	-93,959
Cash flows from financing activities	'	'
Proceeds from exercise of stock options	7,963	4,610
Proceeds from employee stock purchase plan	7,791	5,988
Excess tax benefit from share-based compensation	346	56
Repurchase of restricted common stock from terminated employees	0	-8
Net cash provided by financing activities	16,100	10,646
Net decrease in cash and cash equivalents	-110,065	-44,432
Cash and cash equivalents—beginning of period	653,812	310,614
Cash and cash equivalents—end of period	$543,747	$266,182

Description_of_Business_and_Su

Description of Business and Summary of Significant Accounting Policies	3 Months Ended
	Oct. 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 enterprise security platform that allows enterprises, service providers, and government entities to simultaneously empower and secure their organizations by safely enabling the increasingly complex and rapidly growing number of applications running on their networks and by preventing breaches stemming from targeted cyber attacks.
	Our enterprise security platform consists of three major elements: our Next-Generation Firewall, our Advanced Endpoint Protection, and our Threat Intelligence Cloud. Our Next-Generation Firewall delivers application, user, and content visibility and control as well as protection against network-based cyber threats integrated within the firewall through our proprietary hardware and software architecture. Our Advanced Endpoint Protection prevents cyber attacks that aim to exploit software vulnerabilities on a broad variety of fixed and virtual endpoints. Our Threat Intelligence Cloud provides central intelligence capabilities as well as automated delivery of preventative measures against cyber attacks. The cloud-based element of our platform is delivered in the form of a service that can be used either in the public cloud or in a private cloud using a dedicated appliance.
	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, 2014. 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. Certain prior period amounts have been reclassified to conform with current period presentation.
	Principles of Consolidation
	The condensed consolidated financial statements include our accounts and our 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 months ended October 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, 2014.
	Recent Accounting Pronouncements
	In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40)-Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The standard provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The standard is effective for fiscal years ending after December 15, 2016, and for interim periods thereafter. Early adoption is permitted. We will adopt the new standard in our fiscal year ending 2017. The adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements.
	In May 2014, the FASB issued ASU No. 2014-09 regarding Accounting Standards Codification (ASC) Topic 606-Revenue from Contracts with Customers. The standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for us in the first quarter of fiscal 2018 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within the guidance; or (ii) retrospective with the cumulative effect of initially applying the guidance recognized at the date of initial application and providing certain additional disclosures as defined per the guidance. Early adoption is not permitted. We are currently evaluating adoption methods and whether this standard will have a material impact on our condensed consolidated financial statements.
	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 was effective for us in the first quarter of fiscal 2015. Our adoption of this guidance did not have any impact on our condensed consolidated financial statements.

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Oct. 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 as of October 31, 2014 and July 31, 2014 (in thousands):
			October 31, 2014								July 31, 2014
			Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	Short-term investments:
	Corporate debt securities		$	—	$	39,297	$	—	$	39,297	$	—	$	22,239	$	—	$	22,239
	U.S. government and agency securities		—		188,455		—		188,455		—		96,451		—		96,451
	Total short-term investments		—		227,752		—		227,752		—		118,690		—		118,690
	Long-term investments:
	Certificates of deposit		—		1,000		—		1,000		—		1,000		—		1,000
	Corporate debt securities		—		63,433		—		63,433		—		39,018		—		39,018
	U.S. government and agency securities		—		224,578		—		224,578		—		161,862		—		161,862
	Total long-term investments		—		289,011		—		289,011		—		201,880		—		201,880
	Other assets:
	Restricted cash		1,220		—		—		1,220		1,220		—		—		1,220
	Total other assets		1,220		—		—		1,220		1,220		—		—		1,220
	Total assets measured at fair value		$	1,220	$	516,763	$	—	$	517,983	$	1,220	$	320,570	$	—	$	321,790
	Refer to Note 5. Convertible Senior Notes for the carrying amount and estimated fair value of our convertible senior notes, which were not recorded at fair value as of October 31, 2014.

Investments

Investments	3 Months Ended
	Oct. 31, 2014
Investments, Debt and Equity Securities [Abstract]	'
Investments	'
	Investments
	The following tables summarize the unrealized gains and losses and fair value of our investments as of October 31, 2014 and July 31, 2014 (in thousands):
		31-Oct-14
		Amortized Cost		Unrealized Gains			Unrealized Losses			Estimated Fair Value
	Certificates of deposit	$	1,000	$	—		$	—		$	1,000
	Corporate debt securities	102,797		18			(85		)	102,730
	U.S. government and agency securities	412,980		172			(119		)	413,033
	Total	$	516,777	$	190		$	(204	)	$	516,763
		31-Jul-14
		Amortized Cost		Unrealized Gains			Unrealized Losses			Estimated Fair Value
	Certificates of deposit	$	1,000	$	—		$	—		$	1,000
	Corporate debt securities	61,299		16			(58		)	61,257
	U.S. government and agency securities	258,376		45			(108		)	258,313
	Total	$	320,675	$	61		$	(166	)	$	320,570
	The following tables present our investments that were in an unrealized loss position as of October 31, 2014 and July 31, 2014 (in thousands):
		31-Oct-14
		Less Than 12 Months					12 Months or Greater					Total
		Fair Value		Unrealized Loss			Fair Value			Unrealized Loss		Fair Value		Unrealized Loss
	Corporate debt securities	$	72,352	$	(85	)	$	—		$	—	$	72,352	$	(85	)
	U.S. government and agency securities	185,151		(119		)	—			—		185,151		(119		)
	Total	$	257,503	$	(204	)	$	—		$	—	$	257,503	$	(204	)
		31-Jul-14
		Less Than 12 Months					12 Months or Greater					Total
		Fair Value		Unrealized Loss			Fair Value			Unrealized Loss		Fair Value		Unrealized Loss
	Corporate debt securities	$	43,868	$	(58	)	$	—		$	—	$	43,868	$	(58	)
	U.S. government and agency securities	142,490		(108		)	—			—		142,490		(108		)
	Total	$	186,358	$	(166	)	$	—		$	—	$	186,358	$	(166	)
	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, 2014.
	The following table summarizes the amortized cost and fair value of our investments as of October 31, 2014, by contractual years-to-maturity (in thousands):
		Amortized Cost		Fair Value
	Due within one year	$	227,738	$	227,752
	Due within one to two years	287,530		287,506
	Due within two to three years	1,509		1,505
	Total	$	516,777	$	516,763

Intangible_Assets

Intangible Assets	3 Months Ended
	Oct. 31, 2014
Intangible Assets, Net (Excluding Goodwill) [Abstract]	'
Intangible Assets	'
	Intangible Assets
	The following table presents details of our purchased intangible assets as of October 31, 2014 and July 31, 2014 (in thousands):
			31-Oct-14										31-Jul-14
			Gross Carrying Amount			Accumulated Amortization				Net Carrying Amount			Gross Carrying Amount			Accumulated Amortization				Net Carrying Amount
	Intangible assets with finite lives:
	Developed technology		$	42,100		$	(2,965	)		$	39,135		$	34,500		$	(1,643	)		$	32,857
	Acquired intellectual property		7,796			(1,169		)		6,627			6,546			(958		)		5,588
	In-process research and development held for defensive purposes		1,900			(528		)		1,372			1,900			(370		)		1,530
	Other		500			(183		)		317			500			(120		)		380
	Total intangible assets with finite lives		52,296			(4,845		)		47,451			43,446			(3,091		)		40,355
	In-process research and development with indefinite lives		—			—				—			7,600			—				7,600
	Total purchased intangible assets		$	52,296		$	(4,845	)		$	47,451		$	51,046		$	(3,091	)		$	47,955
	We recognized amortization expense of $1,754,000 and $155,000 for the three months ended October 31, 2014 and 2013, respectively. Our in-process research and development acquired from Cyvera Ltd. in April 2014 was transferred to developed technology during the three months ended October 31, 2014 and is being amortized over its estimated useful life of seven years.
	The following table summarizes our estimated future amortization expense of intangible assets with finite lives by type as of October 31, 2014 (in thousands):
		Fiscal Years Ending July 31,
		Remaining 2015			2016				2017			2018			2019				2020 and Thereafter
	Developed technology	$	4,511		$	6,014			$	6,014		$	6,014		$	6,014			$	10,568
	Acquired intellectual property	644			816				722			596			511				3,338
	In-process research and development held for defensive purposes	475			633				264			—			—				—
	Other	187			130				—			—			—				—
	Total future amortization expense	$	5,817		$	7,593			$	7,000		$	6,610		$	6,525			$	13,906

Convertible_Senior_Notes_Notes

Convertible Senior Notes (Notes)	3 Months Ended
	Oct. 31, 2014
Debt Disclosure [Abstract]	'
Convertible Senior Notes	'
	Convertible Senior Notes
	Convertible Senior Notes
	On June 30, 2014, we issued $575,000,000 aggregate principal amount of 0.0% convertible senior notes due 2019 (the “Notes”). The Notes are governed by an indenture between us, as the issuer, and U.S. Bank National Association, as Trustee. The Notes are unsecured, unsubordinated obligations that do not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness, or the issuance or repurchase of securities by us or any of our subsidiaries. The Notes mature on July 1, 2019 unless converted or repurchased in accordance with their terms prior to such date. We cannot redeem the Notes prior to maturity.
	The Notes are convertible for up to 5,214,000 shares of our common stock at an initial conversion rate of approximately 9.068 shares of common stock per $1,000 principal amount, which is equal to an initial conversion price of approximately $110.28 per share of common stock, subject to adjustment. Holders of the Notes may surrender their Notes for conversion at their option at any time prior to the close of business on the business day immediately preceding January 1, 2019, only under the following circumstances, none of which have occurred to date:
	•	during any fiscal quarter commencing after the fiscal quarter ending on October 31, 2014 (and only during such fiscal quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price for the Notes on each applicable trading day;
	•	during the five business day period after any five consecutive trading day period (the “measurement period”), in which the trading price per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the Notes on each such trading day; or
	•	upon the occurrence of specified corporate events.
	On or after January 1, 2019, holders may convert all or any portion of their Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date regardless of the foregoing conditions. Upon conversion, holders will receive cash equal to the aggregate principal amount of the Notes to be converted, and, at our election, cash and/or shares of our common stock for any amounts in excess of the aggregate principal amount of the Notes being converted.
	The conversion price will be subject to adjustment in some events. Holders of the Notes who convert their Notes in connection with certain corporate events that constitute a “make-whole fundamental change” per the Indenture governing the Notes are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, upon the occurrence of a corporate event that constitutes a “fundamental change” per the Indenture governing the Notes, holders of the Notes may require us to repurchase for cash all or a portion of the Notes at a purchase price equal to 100% of the principal amount of the Notes plus accrued and unpaid contingent interest.
	In accounting for the issuance of the Notes, we separated the Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the Notes as a whole. The difference between the principal amount of the Notes and the liability component (the “debt discount”), is amortized to interest expense using the effective interest method over the term of the Notes. The equity component of the Notes is included in additional paid-in capital in the condensed consolidated balance sheets and is not remeasured as long as it continues to meet the conditions for equity classification.
	In accounting for the transaction costs related to the issuance of the Notes, we allocated the total amount incurred to the liability and equity components using the same proportions as the proceeds from the Notes. Transaction costs attributable to the liability component were recorded in other assets in the condensed consolidated balance sheets and are being amortized to interest expense in the condensed consolidated statements of operations using the effective interest method over the term of the Notes. Transaction costs attributable to the equity component were netted with the equity component of the Notes in additional paid-in capital in the condensed consolidated balance sheets. We recorded liability issuance costs, or debt issuance costs, of $12,497,000 and equity issuance costs of $2,949,000.
	The following table sets forth the components of the Notes as of October 31, 2014 and July 31, 2014 (in thousands):
		31-Oct-14			31-Jul-14
	Liability:
	Principal	$	575,000		$	575,000
	Less: debt discount, net of amortization	103,144			108,125
	Net carrying amount	$	471,856		$	466,875
	Equity	$	(109,785	)	$	(109,785	)
	The total estimated fair value of the Notes was $677,856,000 and $587,087,000 at October 31, 2014 and July 31, 2014, respectively. The fair value was determined based on the closing trading price per $100 of the Notes as of the last day of trading for the period. We consider the fair value of the Notes at October 31, 2014 and July 31, 2014 to be a Level 2 measurement. The fair value of the Notes is primarily affected by the trading price of our common stock and market interest rates. Based on the closing price of our common stock of $105.70 on October 31, 2014, the if-converted value of the Notes was less than its principal amount.
	The following table sets forth interest expense recognized related to the Notes for the three months ended October 31, 2014 (dollars in thousands):
		Amount
	Amortization of debt issuance costs	$	497
	Amortization of debt discount	4,981
	Total interest expense recognized	$	5,478
	Effective interest rate of the liability component	4.8		%
	Note Hedges
	To minimize the impact of potential economic dilution upon conversion of the Notes, we entered into convertible note hedge transactions (the “Note Hedges”) with respect to our common stock concurrent with the issuance of the Notes. The Note Hedges cover up to 5,214,000 shares of our common stock at a strike price per share that corresponds to the initial conversion price of the Notes, which are also subject to adjustment, and are exercisable upon conversion of the Notes. The Note Hedges will expire upon maturity of the Notes. The Note Hedges are separate transactions and are not part of the terms of the Notes. Holders of the Notes will not have any rights with respect to the Note Hedges. The shares receivable related to the Note Hedges are excluded from the calculation of diluted earnings per share as they are antidilutive.
	We paid an aggregate amount of $110,975,000 for the Note Hedges, which is included in additional paid-in capital in the condensed consolidated balance sheets.
	Warrants
	Separately, but concurrently with our issuance of the Notes, we entered into warrant transactions (the “Warrants”) whereby we sold warrants to acquire up to 5,214,000 shares of our common stock at a strike price of approximately $137.85 per share, subject to adjustments. The shares issuable under the Warrants will be included in the calculation of diluted earnings per share when the average market value per share of our common stock for the reporting period exceeds the strike price of the Warrants. The Warrants are separate transactions and are not part of the Notes or Notes Hedges, and are not remeasured through earnings each reporting period. Holders of the Notes and Note Hedges will not have any rights with respect to the Warrants.
	We received aggregate proceeds of $78,258,000 from the sale of the Warrants, which is included in additional paid-in capital in the condensed consolidated balance sheets.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Oct. 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 October 31, 2014 (in thousands):
		Amount
	Fiscal years ending July 31:
	Remaining 2015	$	11,686
	2016	15,629
	2017	14,549
	2018	12,016
	2019	9,697
	2020 and thereafter	42,603
	Committed gross lease payments	106,180
	Less: proceeds from sublease rental	10,282
	Net operating lease obligation	$	95,898
	Contract Manufacturer Commitments
	Our independent contract manufacturer procures components and assembles our products based on our forecasts. These forecasts are based on estimates of demand for our products primarily for the next twelve months, 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, 2014, we had $39,018,000 of open orders.
	Litigation
	In December 2011, Juniper Networks, Inc. (“Juniper”) filed a complaint against us in the United States District Court for the District of Delaware alleging patent infringement, which sought preliminary and permanent injunctions against infringement, treble damages, and attorneys' fees. On September 30, 2013, we filed a lawsuit against Juniper in the United States District Court for the Northern District of California alleging that Juniper’s products infringe three of our U.S. patents, and sought monetary damages and a permanent injunction.
	On May 27, 2014, we entered into a Settlement, Release and Cross-License Agreement (the “settlement agreement”) with Juniper to resolve all pending litigation between the parties, including those discussed above. Under the terms of the settlement agreement, we agreed to pay Juniper a one-time settlement amount of approximately $175,000,000, which was comprised of $75,000,000 in cash, 1,081,000 shares of our common stock with an approximate value of $70,000,000, and a warrant to purchase 463,000 shares of our common stock with an approximate value of $30,000,000, in exchange for the following:
	•	Mutual dismissal with prejudice of all pending litigation between the parties and general release of all liability for Palo Alto Networks and Juniper,
	•	Cross-license between both parties for the patents-in-suit and associated family members and counterparts worldwide for the life of the patents, and
	•	Mutual covenant not to sue for infringement of any other patents for a period of eight years.
	For accounting purposes, the fair value of the total consideration as of the settlement date was $182,473,000, which was comprised of $75,000,000 in cash, $75,231,000 in common stock, and $32,242,000 in warrant. The fair values of the common stock and warrant were measured using the closing price of our common stock on the settlement date.
	The warrant was issued on June 3, 2014 and entitled Juniper to purchase up to 463,000 shares of common stock at an exercise price of $0.0001 per share and was classified as a liability during the period it was outstanding. On July 1, 2014, Juniper exercised the warrant in full. Accordingly, we recorded the change in the fair value of the warrant liability through the exercise date of $5,859,000 within other income (expense), net in the consolidated statement of operations for the year ended July 31, 2014.
	We accounted for the settlement agreement as a multiple-element arrangement and allocated the fair value of the consideration as of the settlement date to the identifiable elements based on their estimated fair values. Of the total settlement amount, $61,300,000 was allocated to the licensing of intellectual property, $54,300,000 was allocated to the mutual dismissal of claims, and the remaining amount was allocated to the mutual covenant not to sue. The mutual dismissal of claims and the mutual covenant not to sue have no identifiable future benefit, and as a result we recorded a settlement charge within operating expenses in the consolidated statements of operations for the year ended July 31, 2014. The licensing of intellectual property is being amortized over the estimated period of benefit of five years.
	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. As of October 31, 2014, we have not recorded any accrual for loss contingencies associated with such legal proceedings, determined that an unfavorable outcome is probable or reasonably possible, or determined that the amount or range of any possible loss is reasonably estimable.

Equity_Award_Plans

Equity Award Plans	3 Months Ended
	Oct. 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 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, 2014	5,830		$	13.02		7	$	395,507
	Options granted	—		—
	Options forfeited	(17	)	13.17
	Options exercised	(618	)	12.86
	Balance—October 31, 2014	5,195		$	13.04		6.8	$	481,369
	Options vested and expected to vest—October 31, 2014	5,105		$	12.95		6.8	$	473,489
	Options exercisable—October 31, 2014	3,247		$	10.63		6.6	$	308,692
	Restricted Stock Unit (RSU) Activities
	A summary of the activity under our stock plans 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, 2014	6,046		$	59.84		1.4	$	488,880
	RSUs granted	511		92.61
	RSUs vested	(265	)	50.88
	RSUs forfeited	(99	)	59.39
	Balance—October 31, 2014	6,193		$	62.93		1.3	$	654,600
	RSUs vested and expected to vest—October 31, 2014	5,658		$	62.64		1.2	$	598,051
	Share-Based Compensation
	The following table summarizes share-based compensation included in costs and expenses (in thousands):
		Three Months Ended October 31,
		2014			2013
	Cost of product revenue	$	749		$	250
	Cost of services revenue	3,495			1,413
	Research and development	13,999			3,262
	Sales and marketing	15,799			6,628
	General and administrative	4,433			2,858
	Total	$	38,475		$	14,411
	At October 31, 2014, total compensation cost related to unvested share-based awards not yet recognized was $327,189,000, net of estimated forfeitures. This cost is expected to be amortized on a straight-line basis over a weighted-average period of approximately 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, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	Income Taxes
	Our provision for income taxes for the three months ended October 31, 2014 reflects an effective tax rate of negative 4.0%. Our effective tax rate for this period was negative as we recorded a provision for income taxes on year to date losses. The key components of our income tax provision consist of foreign income, foreign withholding taxes, and limited US federal and state income tax due primarily to our net operating loss carryforward. Key components of our effective tax rate consist of foreign tax losses which derive no benefit, non-deductible share-based compensation, and changes in our valuation allowance. As compared to the three months ended October 31, 2013, our negative effective tax rate changed due to fluctuations in our overall loss before income taxes and the geographic mix of income due to global expansion.
	Our provision for income taxes for the three months ended October 31, 2013 reflects an effective tax rate of negative 18.9%, and consists of foreign income, withholding taxes, and limited state income tax due to our net operating loss carryforwards and other tax attributes.

Net_Income_Loss_Per_Share

Net Income (Loss) Per Share	3 Months Ended
	Oct. 31, 2014
Earnings Per Share [Abstract]	'
Net Income (Loss) Per Share	'
	Net Income (Loss) Per Share
	Basic net income (loss) per common share is computed by dividing net income (loss) by basic weighted-average shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) 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
		October 31,
		2014				2013
	Net loss	$	(30,068	)		$	(7,861	)
	Weighted-average shares used to compute net loss per share, basic and diluted	79,388				71,681
	Net loss per share, basic and diluted	$	(0.38	)		$	(0.11	)
	The following securities were excluded from the computation of diluted net income (loss) per share of common stock for the periods presented as their effect would have been antidilutive (in thousands):
		October 31,
		2014			2013
	Options to purchase common stock	5,195			9,203
	RSUs	6,193			2,565
	ESPP shares	35			53
	Convertible senior notes	5,214			—
	Warrants related to the issuance of the convertible senior notes	5,214			—

Description_of_Business_and_Su1

Description of Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Oct. 31, 2014
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, 2014. 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. Certain prior period amounts have been reclassified to conform with current period presentation.
Principles of Consolidation	'
	Principles of Consolidation
	The condensed consolidated financial statements include our accounts and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40)-Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The standard provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The standard is effective for fiscal years ending after December 15, 2016, and for interim periods thereafter. Early adoption is permitted. We will adopt the new standard in our fiscal year ending 2017. The adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements.
	In May 2014, the FASB issued ASU No. 2014-09 regarding Accounting Standards Codification (ASC) Topic 606-Revenue from Contracts with Customers. The standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for us in the first quarter of fiscal 2018 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within the guidance; or (ii) retrospective with the cumulative effect of initially applying the guidance recognized at the date of initial application and providing certain additional disclosures as defined per the guidance. Early adoption is not permitted. We are currently evaluating adoption methods and whether this standard will have a material impact on our condensed consolidated financial statements.
	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 was effective for us in the first quarter of fiscal 2015. Our adoption of this guidance did not have any impact on our condensed consolidated financial statements.
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, 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 as of October 31, 2014 and July 31, 2014 (in thousands):
		October 31, 2014								July 31, 2014
		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	Short-term investments:
	Corporate debt securities	$	—	$	39,297	$	—	$	39,297	$	—	$	22,239	$	—	$	22,239
	U.S. government and agency securities	—		188,455		—		188,455		—		96,451		—		96,451
	Total short-term investments	—		227,752		—		227,752		—		118,690		—		118,690
	Long-term investments:
	Certificates of deposit	—		1,000		—		1,000		—		1,000		—		1,000
	Corporate debt securities	—		63,433		—		63,433		—		39,018		—		39,018
	U.S. government and agency securities	—		224,578		—		224,578		—		161,862		—		161,862
	Total long-term investments	—		289,011		—		289,011		—		201,880		—		201,880
	Other assets:
	Restricted cash	1,220		—		—		1,220		1,220		—		—		1,220
	Total other assets	1,220		—		—		1,220		1,220		—		—		1,220
	Total assets measured at fair value	$	1,220	$	516,763	$	—	$	517,983	$	1,220	$	320,570	$	—	$	321,790

Investments_Tables

Investments (Tables)	3 Months Ended
	Oct. 31, 2014
Investments, Debt and Equity Securities [Abstract]	'
Schedule of available-for-sale investments	'
	The following tables summarize the unrealized gains and losses and fair value of our investments as of October 31, 2014 and July 31, 2014 (in thousands):
		31-Oct-14
		Amortized Cost		Unrealized Gains			Unrealized Losses			Estimated Fair Value
	Certificates of deposit	$	1,000	$	—		$	—		$	1,000
	Corporate debt securities	102,797		18			(85		)	102,730
	U.S. government and agency securities	412,980		172			(119		)	413,033
	Total	$	516,777	$	190		$	(204	)	$	516,763
		31-Jul-14
		Amortized Cost		Unrealized Gains			Unrealized Losses			Estimated Fair Value
	Certificates of deposit	$	1,000	$	—		$	—		$	1,000
	Corporate debt securities	61,299		16			(58		)	61,257
	U.S. government and agency securities	258,376		45			(108		)	258,313
	Total	$	320,675	$	61		$	(166	)	$	320,570
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, 2014 and July 31, 2014 (in thousands):
		31-Oct-14
		Less Than 12 Months					12 Months or Greater					Total
		Fair Value		Unrealized Loss			Fair Value			Unrealized Loss		Fair Value		Unrealized Loss
	Corporate debt securities	$	72,352	$	(85	)	$	—		$	—	$	72,352	$	(85	)
	U.S. government and agency securities	185,151		(119		)	—			—		185,151		(119		)
	Total	$	257,503	$	(204	)	$	—		$	—	$	257,503	$	(204	)
		31-Jul-14
		Less Than 12 Months					12 Months or Greater					Total
		Fair Value		Unrealized Loss			Fair Value			Unrealized Loss		Fair Value		Unrealized Loss
	Corporate debt securities	$	43,868	$	(58	)	$	—		$	—	$	43,868	$	(58	)
	U.S. government and agency securities	142,490		(108		)	—			—		142,490		(108		)
	Total	$	186,358	$	(166	)	$	—		$	—	$	186,358	$	(166	)
Contractual maturities of available-for-sale investments	'
	The following table summarizes the amortized cost and fair value of our investments as of October 31, 2014, by contractual years-to-maturity (in thousands):
		Amortized Cost		Fair Value
	Due within one year	$	227,738	$	227,752
	Due within one to two years	287,530		287,506
	Due within two to three years	1,509		1,505
	Total	$	516,777	$	516,763

Intangible_Assets_Tables

Intangible Assets (Tables)	3 Months Ended
	Oct. 31, 2014
Intangible Assets, Net (Excluding Goodwill) [Abstract]	'
Schedule of Intangible Assets By Major Class	'
	The following table presents details of our purchased intangible assets as of October 31, 2014 and July 31, 2014 (in thousands):
			31-Oct-14										31-Jul-14
			Gross Carrying Amount			Accumulated Amortization				Net Carrying Amount			Gross Carrying Amount			Accumulated Amortization				Net Carrying Amount
	Intangible assets with finite lives:
	Developed technology		$	42,100		$	(2,965	)		$	39,135		$	34,500		$	(1,643	)		$	32,857
	Acquired intellectual property		7,796			(1,169		)		6,627			6,546			(958		)		5,588
	In-process research and development held for defensive purposes		1,900			(528		)		1,372			1,900			(370		)		1,530
	Other		500			(183		)		317			500			(120		)		380
	Total intangible assets with finite lives		52,296			(4,845		)		47,451			43,446			(3,091		)		40,355
	In-process research and development with indefinite lives		—			—				—			7,600			—				7,600
	Total purchased intangible assets		$	52,296		$	(4,845	)		$	47,451		$	51,046		$	(3,091	)		$	47,955
Future Amortization Expense of Intangible Assets	'
	The following table summarizes our estimated future amortization expense of intangible assets with finite lives by type as of October 31, 2014 (in thousands):
		Fiscal Years Ending July 31,
		Remaining 2015			2016				2017			2018			2019				2020 and Thereafter
	Developed technology	$	4,511		$	6,014			$	6,014		$	6,014		$	6,014			$	10,568
	Acquired intellectual property	644			816				722			596			511				3,338
	In-process research and development held for defensive purposes	475			633				264			—			—				—
	Other	187			130				—			—			—				—
	Total future amortization expense	$	5,817		$	7,593			$	7,000		$	6,610		$	6,525			$	13,906

Convertible_Senior_Notes_Table

Convertible Senior Notes (Tables)	3 Months Ended
	Oct. 31, 2014
Debt Disclosure [Abstract]	'
Components of Convertible Senior Notes	'
	The following table sets forth the components of the Notes as of October 31, 2014 and July 31, 2014 (in thousands):
		31-Oct-14			31-Jul-14
	Liability:
	Principal	$	575,000		$	575,000
	Less: debt discount, net of amortization	103,144			108,125
	Net carrying amount	$	471,856		$	466,875
	Equity	$	(109,785	)	$	(109,785	)
Interest Expense Recognized related to the Notes	'
	The following table sets forth interest expense recognized related to the Notes for the three months ended October 31, 2014 (dollars in thousands):
		Amount
	Amortization of debt issuance costs	$	497
	Amortization of debt discount	4,981
	Total interest expense recognized	$	5,478
	Effective interest rate of the liability component	4.8		%

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	3 Months Ended
	Oct. 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 October 31, 2014 (in thousands):
		Amount
	Fiscal years ending July 31:
	Remaining 2015	$	11,686
	2016	15,629
	2017	14,549
	2018	12,016
	2019	9,697
	2020 and thereafter	42,603
	Committed gross lease payments	106,180
	Less: proceeds from sublease rental	10,282
	Net operating lease obligation	$	95,898

Equity_Award_Plans_Tables

Equity Award Plans (Tables)	3 Months Ended
	Oct. 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 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, 2014	5,830		$	13.02		7	$	395,507
	Options granted	—		—
	Options forfeited	(17	)	13.17
	Options exercised	(618	)	12.86
	Balance—October 31, 2014	5,195		$	13.04		6.8	$	481,369
	Options vested and expected to vest—October 31, 2014	5,105		$	12.95		6.8	$	473,489
	Options exercisable—October 31, 2014	3,247		$	10.63		6.6	$	308,692
Schedule of Restricted Stock Units Award Activity	'
	A summary of the activity under our stock plans 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, 2014	6,046		$	59.84		1.4	$	488,880
	RSUs granted	511		92.61
	RSUs vested	(265	)	50.88
	RSUs forfeited	(99	)	59.39
	Balance—October 31, 2014	6,193		$	62.93		1.3	$	654,600
	RSUs vested and expected to vest—October 31, 2014	5,658		$	62.64		1.2	$	598,051
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 October 31,
		2014			2013
	Cost of product revenue	$	749		$	250
	Cost of services revenue	3,495			1,413
	Research and development	13,999			3,262
	Sales and marketing	15,799			6,628
	General and administrative	4,433			2,858
	Total	$	38,475		$	14,411

Net_Income_Loss_Per_Share_Tabl

Net Income (Loss) Per Share (Tables)	3 Months Ended
	Oct. 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
		October 31,
		2014				2013
	Net loss	$	(30,068	)		$	(7,861	)
	Weighted-average shares used to compute net loss per share, basic and diluted	79,388				71,681
	Net loss per share, basic and diluted	$	(0.38	)		$	(0.11	)
Schedule of antidilutive securities excluded from computation of net income (loss) per share	'
	The following securities were excluded from the computation of diluted net income (loss) per share of common stock for the periods presented as their effect would have been antidilutive (in thousands):
		October 31,
		2014			2013
	Options to purchase common stock	5,195			9,203
	RSUs	6,193			2,565
	ESPP shares	35			53
	Convertible senior notes	5,214			—
	Warrants related to the issuance of the convertible senior notes	5,214			—

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	Oct. 31, 2014	Jul. 31, 2014
In Thousands, unless otherwise specified
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Short-term investments	$227,752	$118,690
Long-term investments	289,011	201,880
Other assets	1,220	1,220
Total assets measured at fair value	517,983	321,790
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	1,220
Total assets measured at fair value	1,220	1,220
Level 2	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Short-term investments	227,752	118,690
Long-term investments	289,011	201,880
Other assets	0	0
Total assets measured at fair value	516,763	320,570
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
Corporate debt securities	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Short-term investments	39,297	22,239
Long-term investments	63,433	39,018
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	39,297	22,239
Long-term investments	63,433	39,018
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
U.S. government and agency securities	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Short-term investments	188,455	96,451
Long-term investments	224,578	161,862
U.S. government and agency securities | Level 1	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
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	'	'
Short-term investments	188,455	96,451
Long-term investments	224,578	161,862
U.S. government and agency securities | Level 3	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Short-term investments	0	0
Long-term investments	0	0
Certificates of deposit	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Long-term investments	1,000	1,000
Other assets	1,220	1,220
Certificates of deposit | Level 1	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Long-term investments	0	0
Other assets	1,220	1,220
Certificates of deposit | Level 2	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Long-term investments	1,000	1,000
Other assets	0	0
Certificates of deposit | Level 3	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis	'	'
Long-term investments	0	0
Other assets	$0	$0

Investments_AvailableforSale_I

Investments (Available-for-Sale Investments) (Details) (USD $)	Oct. 31, 2014	Jul. 31, 2014
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities	'	'
Amortized Cost	$516,777	$320,675
Unrealized Gains	190	61
Unrealized Losses	-204	-166
Estimated Fair Value	516,763	320,570
Certificates of deposit	'	'
Schedule of Available-for-sale Securities	'	'
Amortized Cost	1,000	1,000
Unrealized Gains	0	0
Unrealized Losses	0	0
Estimated Fair Value	1,000	1,000
Corporate debt securities	'	'
Schedule of Available-for-sale Securities	'	'
Amortized Cost	102,797	61,299
Unrealized Gains	18	16
Unrealized Losses	-85	-58
Estimated Fair Value	102,730	61,257
U.S. government and agency securities	'	'
Schedule of Available-for-sale Securities	'	'
Amortized Cost	412,980	258,376
Unrealized Gains	172	45
Unrealized Losses	-119	-108
Estimated Fair Value	$413,033	$258,313

Investments_AvailableforSale_I1

Investments (Available-for-Sale Investments in Unrealized Loss Position) (Details) (USD $)	Oct. 31, 2014	Jul. 31, 2014
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities	'	'
Less than 12 Months, Fair Value	$257,503	$186,358
12 Months or Greater, Fair Value	0	0
Total, Unrealized Loss Position, Fair Value	257,503	186,358
Less than 12 Months, Unrealized Loss	-204	-166
12 Months or Greater, Unrealized Loss	0	0
Unrealized Losses	-204	-166
Corporate debt securities	'	'
Schedule of Available-for-sale Securities	'	'
Less than 12 Months, Fair Value	72,352	43,868
12 Months or Greater, Fair Value	0	0
Total, Unrealized Loss Position, Fair Value	72,352	43,868
Less than 12 Months, Unrealized Loss	-85	-58
12 Months or Greater, Unrealized Loss	0	0
Unrealized Losses	-85	-58
U.S. government and agency securities	'	'
Schedule of Available-for-sale Securities	'	'
Less than 12 Months, Fair Value	185,151	142,490
12 Months or Greater, Fair Value	0	0
Total, Unrealized Loss Position, Fair Value	185,151	142,490
Less than 12 Months, Unrealized Loss	-119	-108
12 Months or Greater, Unrealized Loss	0	0
Unrealized Losses	($119)	($108)

Investments_AvailableforSale_I2

Investments (Available-for-Sale Investments, Contractual Maturities) (Details) (USD $)	Oct. 31, 2014	Jul. 31, 2014
In Thousands, unless otherwise specified
Amortized Cost	'	'
Due within one year	$227,738	'
Due within one to two years	287,530	'
Due within two to three years	1,509	'
Total	516,777	'
Fair Value	'	'
Due within one year	227,752	'
Due within one to two years	287,506	'
Due within two to three years	1,505	'
Total	$516,763	$320,570

Intangible_Assets_Intangible_A

Intangible Assets (Intangible Assets and Related Amortization) (Details) (USD $)	Oct. 31, 2014	Jul. 31, 2014
In Thousands, unless otherwise specified
Acquired Intangible Assets	'	'
Gross Carrying Amount	$52,296	$43,446
Accumulated Amortization	-4,845	-3,091
Net Carrying Amount	47,451	40,355
Total purchased intangible assets, gross	52,296	51,046
Total purchased intangible assets, net	47,451	47,955
In-process research and development	'	'
Acquired Intangible Assets	'	'
Indefinite-Lived Intangible Assets	0	7,600
Developed Technology	'	'
Acquired Intangible Assets	'	'
Gross Carrying Amount	42,100	34,500
Accumulated Amortization	-2,965	-1,643
Net Carrying Amount	39,135	32,857
Acquired intellectual property	'	'
Acquired Intangible Assets	'	'
Gross Carrying Amount	7,796	6,546
Accumulated Amortization	-1,169	-958
Net Carrying Amount	6,627	5,588
In-process research and development held for defensive purposes	'	'
Acquired Intangible Assets	'	'
Gross Carrying Amount	1,900	1,900
Accumulated Amortization	-528	-370
Net Carrying Amount	1,372	1,530
Other	'	'
Acquired Intangible Assets	'	'
Gross Carrying Amount	500	500
Accumulated Amortization	-183	-120
Net Carrying Amount	$317	$380

Intangible_Assets_Amortization

Intangible Assets (Amortization Expense) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Oct. 31, 2014	Oct. 31, 2013
Acquired Finite-Lived Intangible Assets	'	'
Amortization of Intangible Assets	$1,754	$155
Cyvera, Ltd. | Developed Technology	'	'
Acquired Finite-Lived Intangible Assets	'	'
Estimated Useful Life (in years)	'7 years	'

Intangible_Assets_Future_Amort

Intangible Assets (Future Amortization Expense) (Details) (USD $)	Oct. 31, 2014
In Thousands, unless otherwise specified
Acquired Finite-Lived Intangible Assets	'
Remaining 2015	$5,817
2016	7,593
2017	7,000
2018	6,610
2019	6,525
2020 and thereafter	13,906
Developed Technology	'
Acquired Finite-Lived Intangible Assets	'
Remaining 2015	4,511
2016	6,014
2017	6,014
2018	6,014
2019	6,014
2020 and thereafter	10,568
Acquired intellectual property	'
Acquired Finite-Lived Intangible Assets	'
Remaining 2015	644
2016	816
2017	722
2018	596
2019	511
2020 and thereafter	3,338
In-process research and development held for defensive purposes	'
Acquired Finite-Lived Intangible Assets	'
Remaining 2015	475
2016	633
2017	264
2018	0
2019	0
2020 and thereafter	0
Other	'
Acquired Finite-Lived Intangible Assets	'
Remaining 2015	187
2016	130
2017	0
2018	0
2019	0
2020 and thereafter	$0

Convertible_Senior_Notes_Addit

Convertible Senior Notes (Additional Information) (Details) (USD $)	0 Months Ended	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2014	Jul. 31, 2014	Oct. 31, 2014
Debt Instrument	'	'	'
Convertible Senior Notes, Issuance Date	30-Jun-14	'	'
Principal amount	$575,000	$575,000	$575,000
Contractual interest rate (in percentage)	0.00%	'	'
Maturity Date	1-Jul-19	'	'
Number of Common Stock Convertible at Initial Conversion Rate (in shares)	5,214	'	'
Convertible Senior Notes, Initial Conversion Rate (in shares per $1000 principal amount)	9.068	'	'
Convertible Senior Notes, Initial Conversion Price (in usd per share)	$110.28	'	'
Threshold Trading Days (in days)	20	'	'
Threshold Consecutive Trading Days (in days)	'30 days	'	'
Repurchase Price As Percentage Of Principal Amount Plus Accrued And Unpaid Interest In Event Of Change	100.00%	'	'
Debt issuance costs	12,497	'	'
Equity issuance costs	2,949	'	'
Fair Value of Convertible Debt	'	587,087	'
Closing price of our common stock used to measure if-converted value of Convertible Senior Notes(in usd per share)	'	'	$105.70
Number of Common Stock Covered by Note Hedge (in shares)	5,214	'	'
Purchase of convertible note hedges	'	110,975	'
Number of Common Stock Covered by Warrants (in shares)	5,214	'	'
Strike Price of Warrants (in usd per share)	$137.85	'	'
Proceeds from Issuance of Warrants	'	78,258	'
Minimum	'	'	'
Debt Instrument	'	'	'
Threshold Percentage of Stock Price Trigger (in percentage)	130.00%	'	'
Maximum	'	'	'
Debt Instrument	'	'	'
Threshold Percentage of Stock Price Trigger (in percentage)	98.00%	'	'
Level 2	'	'	'
Debt Instrument	'	'	'
Fair Value of Convertible Debt	'	'	$677,856

Convertible_Senior_Notes_Compo

Convertible Senior Notes (Components of Convertible Senior Notes) (Details) (USD $)	Oct. 31, 2014	Jul. 31, 2014	Jun. 30, 2014
In Thousands, unless otherwise specified
Debt Disclosure [Abstract]	'	'	'
Principal amount	$575,000	$575,000	$575,000
Less: debt discount, net of amortization	103,144	108,125	'
Net carrying amount	471,856	466,875	'
Equity	($109,785)	($109,785)	'

Convertible_Senior_Notes_Sched

Convertible Senior Notes (Schedule of Interest Expense Recognized) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Oct. 31, 2014
Debt Disclosure [Abstract]	'
Amortization of debt issuance costs	$497
Amortization of debt discount	4,981
Total interest expense recognized	$5,478
Effective interest rate of the liability component (in percentage)	4.80%

Commitments_and_Contingencies_1

Commitments and Contingencies (Lease Commitment) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Oct. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Remaining 2015	$11,686
2016	15,629
2017	14,549
2018	12,016
2019	9,697
2020 and thereafter	42,603
Committed gross lease payments	106,180
Less: proceeds from sublease rental	10,282
Net operating lease obligation	$95,898
Lease Expiration Date	31-Jul-23

Commitments_and_Contingencies_2

Commitments and Contingencies (Contract Manufacturer Commitments) (Details) (USD $)	Oct. 31, 2014
In Thousands, unless otherwise specified
Commitments and Contingencies Disclosure [Abstract]	'
Contract Manufacturer Commitments	$39,018

Commitments_and_Contingencies_3

Commitments and Contingencies (Litigation) (Details) (USD $)	0 Months Ended	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	27-May-14	Jul. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'	'
Legal settlement, per agreement, amount	$175,000	'
Legal settlement in cash, amount	75,000	'
Legal settlement in common stock (in shares)	1,081	'
Legal settlement in common stock, amount, per agreement	70,000	'
Legal settlement in warrants, number of shares of common stock purchasable (in shares)	463	'
Legal settlement in warrants, amount, per agreement	30,000	'
Period of mutual covenant-not-to-sue for patent infringement	'8 years	'
Legal settlement, total amount, settlement date	182,473	'
Legal settlement in common stock, amount, settlement date	75,231	'
legal settlement in warrant, amount, settlement date	32,242	'
Legal settlement in warrants, exercise price (in usd per share)	$0.00	'
Change in fair value of the warrant liability through exercise day	'	5,859
Settlement amount allocated to the licensing of intellectual property	61,300	'
Settlement amount allocated to the mutual dismissal of claims	54,300	'
Settlement amount allocated to the mutual covenant not-to-sue	66,873	'
Legal settlement expense	'	$121,173
Amortization period of cross licensing	'5 years	'

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, 2014	Jul. 31, 2014
Options, Outstanding Roll Forward	'	'
Balance, beginning (in shares)	5,830	'
Options granted (in shares)	0	'
Options forfeited (in shares)	-17	'
Options exercised (in shares)	-618	'
Balance, ending (in shares)	5,195	5,830
Options, Outstanding, Weighted Average Exercise Price Roll Forward	'	'
Balance, beginning (in usd per share)	$13.02	'
Options granted (in usd per share)	$0	'
Options forfeited (in usd per share)	$13.17	'
Options exercised (in usd per share)	$12.86	'
Balance, ending (in usd per share)	$13.04	$13.02
Options, Additional Disclosures	'	'
Weighted-Average Remaining Contractual Life (in years)	'6 years 9 months	'7 years
Aggregate Intrinsic Value	$481,369	$395,507
Options vested and expected to vest (in shares)	5,105	'
Options vested and expected to vest, Weighted-Average Exercise Price (in usd per share)	$12.95	'
Options vested and expected to vest, Weighted-Average Remaining Contractual Term (in years)	'6 years 9 months	'
Options vested and expected to vest, Aggregate Intrinsic Value	473,489	'
Options exercisable (in shares)	3,247	'
Options exercisable, Weighted-Average Exercise Price (in usd per share)	$10.63	'
Options exercisable, Weighted-Average Remaining Contractual Term (in years)	'6 years 7 months	'
Optios exercisable, Aggregate Intrinsic Value	$308,692	'

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, 2014	Jul. 31, 2014
Restricted Stock Units (RSUs)	'	'
RSUs, Outstanding Roll Forward	'	'
Balance, beginning (in shares)	6,046	'
RSUs granted (in shares)	511	'
RSUs vested (in shares)	-265	'
RSUs forfeited (in shares)	-99	'
Balance, ending (in shares)	6,193	6,046
RSUs, Outstanding, Weighted Average Grant-Date Fair Value Per Share Roll Forward	'	'
Balance, beginning (in usd per share)	$59.84	'
RSUs granted (in usd per share)	$92.61	'
RSUs vested (in usd per share)	$50.88	'
RSUs forfeited (in usd per share)	$59.39	'
Balance, ending (in usd per share)	$62.93	$59.84
RSUs, Additional Disclosures	'	'
Weighted-Average Remaining Contractual Term (in years)	'1 year 3 months	'1 year 5 months
Aggregate Intrinsic Value	$654,600	$488,880
RSUs vested and expected to vest (in shares)	5,658	'
RSUs vested and expected to vest, Weighted-Average Grant-Date Fair Value (in usd per share)	$62.64	'
RSUs vested and expected to vest, Weighted-Average Remaining Contractual Term (in years)	'1 year 2 months	'
RSUs vested and expected to vest, Aggregate Intrinsic Value	$598,051	'

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, 2014	Oct. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs	'	'
Allocated Share-based Compensation Expense	$38,475	$14,411
Total compensation cost not yet recognized, nonvested awards, net of estimated forfeitures	327,189	'
Period for Recognition of Total Compensation Cost Not yet Recognized (in years)	'3 years	'
Cost of product revenue	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs	'	'
Allocated Share-based Compensation Expense	749	250
Cost of services revenue	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs	'	'
Allocated Share-based Compensation Expense	3,495	1,413
Research and development	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs	'	'
Allocated Share-based Compensation Expense	13,999	3,262
Sales and marketing	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs	'	'
Allocated Share-based Compensation Expense	15,799	6,628
General and administrative	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs	'	'
Allocated Share-based Compensation Expense	$4,433	$2,858

Income_Taxes_Effective_Tax_Rat

Income Taxes (Effective Tax Rates) (Details)	3 Months Ended
	Oct. 31, 2014	Oct. 31, 2013
Income Tax Disclosure [Abstract]	'	'
Effective income tax rate (in percentage)	-4.00%	-18.90%

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, 2014	Oct. 31, 2013
Earnings Per Share, Diluted, by Common Class, Including Two Class Method	'	'
Net loss	($30,068)	($7,861)
Weighted-average shares used to compute net loss per share, basic and diluted (in shares)	79,388	71,681
Net loss per share, basic and diluted	($0.38)	($0.11)

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, 2014	Oct. 31, 2013
Options to purchase common stock	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	'	'
Antidilutive securities (in shares)	5,195	9,203
RSUs	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	'	'
Antidilutive securities (in shares)	6,193	2,565
ESPP shares	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	'	'
Antidilutive securities (in shares)	35	53
Convertible senior notes	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	'	'
Antidilutive securities (in shares)	5,214	0
Warrants related to the issuance of the convertible senior notes	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	'	'
Antidilutive securities (in shares)	5,214	0