Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Apr. 30, 2014 | 29-May-14 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Apr-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'MLNK | ' |
Entity Registrant Name | 'MODUSLINK GLOBAL SOLUTIONS INC | ' |
Entity Central Index Key | '0000914712 | ' |
Current Fiscal Year End Date | '--07-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 51,931,730 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Apr. 30, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $170,554 | $77,916 |
Accounts receivable, trade, net of allowance for doubtful accounts of $68 and $64 at April 30, 2014 and July 31, 2013, respectively | 139,051 | 142,098 |
Inventories | 62,275 | 61,322 |
Prepaid expenses and other current assets | 11,747 | 9,750 |
Total current assets | 383,627 | 291,086 |
Property and equipment, net | 27,009 | 34,290 |
Investments in affiliates | 7,000 | 7,970 |
Goodwill | 3,058 | 3,058 |
Other intangible assets, net | 935 | 1,764 |
Other assets | 7,357 | 5,528 |
Total assets | 428,986 | 343,696 |
Current liabilities: | ' | ' |
Accounts payable | 99,977 | 110,148 |
Accrued restructuring | 2,538 | 4,670 |
Accrued expenses | 39,681 | 34,748 |
Other current liabilities | 25,488 | 26,865 |
Total current liabilities | 167,684 | 176,431 |
Long-term portion of accrued restructuring | 235 | 494 |
Notes payable | 72,320 | ' |
Other long-term liabilities | 9,950 | 9,866 |
Long-term liabilities | 82,505 | 10,360 |
Total liabilities | 250,189 | 186,791 |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value per share. Authorized 5,000,000 shares; zero issued or outstanding shares at April 30, 2014 and July 31, 2013 | ' | ' |
Common stock, $0.01 par value per share. Authorized 1,400,000,000 shares; 51,891,548 issued and outstanding shares at April 30, 2014; 51,575,893 issued and outstanding shares at July 31, 2013 | 519 | 516 |
Additional paid-in capital | 7,449,180 | 7,419,806 |
Accumulated deficit | -7,284,927 | -7,277,130 |
Accumulated other comprehensive income | 14,025 | 13,713 |
Total stockholders' equity | 178,797 | 156,905 |
Total liabilities and stockholders' equity | $428,986 | $343,696 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Apr. 30, 2014 | Jul. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, trade, allowance for doubtful accounts | $68 | $64 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares Authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares Authorized | 1,400,000,000 | 1,400,000,000 |
Common stock, shares issued | 51,891,548 | 51,575,893 |
Common stock, shares outstanding | 51,891,548 | 51,575,893 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Net revenue | $173,274 | $173,016 | $558,700 | $573,503 |
Cost of revenue | 157,575 | 157,641 | 498,426 | 519,226 |
Gross profit | 15,699 | 15,375 | 60,274 | 54,277 |
Operating expenses | ' | ' | ' | ' |
Selling, general and administrative | 17,100 | 19,287 | 54,787 | 67,149 |
Amortization of intangible assets | 269 | 283 | 829 | 852 |
Impairment of long-lived assets | ' | ' | 500 | ' |
Restructuring, net | 3,468 | 2,565 | 5,440 | 8,833 |
Total operating expenses | 20,837 | 22,135 | 61,556 | 76,834 |
Operating loss | -5,138 | -6,760 | -1,282 | -22,557 |
Other expense: | ' | ' | ' | ' |
Interest income | 159 | 64 | 326 | 229 |
Interest expense | -2,049 | -324 | -2,461 | -524 |
Other losses, net | -507 | -417 | -316 | -2,715 |
Impairment of investments in affiliates | -1,243 | ' | -1,420 | -1,500 |
Total other expense | -3,640 | -677 | -3,871 | -4,510 |
Loss from continuing operations before income taxes | -8,778 | -7,437 | -5,153 | -27,067 |
Income tax expense | 700 | 392 | 2,590 | 1,975 |
Equity in losses of affiliates, net of tax | ' | 418 | 134 | 1,453 |
Loss from continuing operations | -9,478 | -8,247 | -7,877 | -30,495 |
Discontinued operations, net of income taxes: | ' | ' | ' | ' |
Income (loss) from discontinued operations | ' | -59 | 80 | -1,019 |
Net loss | ($9,478) | ($8,306) | ($7,797) | ($31,514) |
Net loss per share - basic and diluted: | ' | ' | ' | ' |
Loss from continuing operations | ($0.18) | ($0.17) | ($0.15) | ($0.68) |
Loss from discontinued operations | ' | ' | ' | ($0.02) |
Net loss | ($0.18) | ($0.17) | ($0.15) | ($0.70) |
Weighted average common shares outstanding - basic and diluted | 51,498 | 47,968 | 51,502 | 45,046 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Net loss | ($9,478) | ($8,306) | ($7,797) | ($31,514) |
Other comprehensive income: | ' | ' | ' | ' |
Foreign currency translation adjustment | 1,277 | -918 | 1,219 | 4,098 |
Pension liability adjustments, net of tax | -1,164 | ' | -914 | ' |
Net unrealized holding gain on securities | 11 | 36 | 7 | 35 |
Total adjustments | 124 | -882 | 312 | 4,133 |
Comprehensive loss | ($9,354) | ($9,188) | ($7,485) | ($27,381) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 |
Cash flows from operating activities of continuing operations: | ' | ' |
Net loss | ($7,797) | ($31,514) |
Income (loss) from discontinued operations | 80 | -1,019 |
Loss from continuing operations | -7,877 | -30,495 |
Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities of continuing operations: | ' | ' |
Depreciation | 10,198 | 10,211 |
Amortization of intangible assets | 829 | 852 |
Amortization of deferred financing costs | 1,113 | 236 |
Accretion of debt discount | 418 | ' |
Impairment of long-lived assets | 500 | ' |
Loss on the sale of available-for-sale securities | ' | 19 |
Share-based compensation | 1,663 | 1,841 |
Non-operating losses, net | 316 | 2,715 |
Equity in losses of affiliates and impairments | 1,554 | 2,953 |
Changes in operating assets and liabilities: | ' | ' |
Trade accounts receivable, net | 3,876 | -537 |
Inventories | -343 | 13,483 |
Prepaid expenses and other current assets | -1,927 | 1,026 |
Accounts payable, accrued restructuring and accrued expenses | -9,008 | -1,198 |
Refundable and accrued income taxes, net | 243 | -2,614 |
Other assets and liabilities | -2,144 | -271 |
Net cash used in by operating activities of continuing operations | -589 | -1,779 |
Cash flows from investing activities of continuing operations: | ' | ' |
Additions to property and equipment | -3,142 | -4,572 |
Proceeds from the disposition of the TFL business, net of transaction costs of $81 | ' | 1,269 |
Proceeds from the sale of available-for-sale securities | ' | 96 |
Proceeds from the sale of equity investments in affiliates | ' | 207 |
Investments in affiliates | -584 | -1,637 |
Net cash used in investing activities of continuing operations | -3,726 | -4,637 |
Cash flows from financing activities of continuing operations: | ' | ' |
Payment of deferred financing costs | ' | -1,416 |
Repayments on capital lease obligations | -81 | -45 |
Proceeds from issuance of common stock to Steel Partners Holdings, L.P., net of transaction costs of $2,325 during the nine months ended April 30, 2013 | ' | 27,675 |
Proceeds from issuance of common stock transaction costs | 505 | ' |
Proceeds from issuance of convertible notes, net of transaction costs of $3,430 during the nine months ended April 30, 2014 | 96,570 | ' |
Repurchase of common stock | ' | -152 |
Net cash provided by financing activities of continuing operations | 96,994 | 26,062 |
Cash flows from discontinued operations: | ' | ' |
Operating cash flows | -324 | -1,791 |
Net cash used in discontinued operations | -324 | -1,791 |
Net effect of exchange rate changes on cash and cash equivalents | 283 | 952 |
Net decrease in cash and cash equivalents | 92,638 | 18,807 |
Cash and cash equivalents at beginning of period | 77,916 | 52,369 |
Cash and cash equivalents at end of period | $170,554 | $71,176 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Apr. 30, 2014 |
Disposition of the TFL business, transaction costs | $81 |
Common stock issuance, transaction cost | 2,325 |
Convertible notes issuance, transaction Cost | $3,430 |
Nature_of_Operations
Nature of Operations | 9 Months Ended |
Apr. 30, 2014 | |
Nature of Operations | ' |
(1) NATURE OF OPERATIONS | |
ModusLink Global Solutions, Inc. (together with its consolidated subsidiaries, “ModusLink Global Solutions” or the “Company”), through its wholly-owned subsidiaries, ModusLink Corporation (“ModusLink”) and ModusLink PTS, Inc. (“ModusLink PTS”), executes comprehensive supply chain and logistics services (the “Supply Chain Business”) that are designed to improve clients’ revenue, cost, sustainability and customer experience objectives. ModusLink Global Solutions provides services to leading companies in consumer electronics, communications, computing, medical devices, software, and retail. The Company’s operations are supported by a global footprint that includes more than 25 sites across North America, Europe and the Asia Pacific region | |
The Company previously operated under the names CMGI, Inc. and CMG Information Services, Inc. and was incorporated in Delaware in 1986. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Apr. 30, 2014 | |
Basis of Presentation | ' |
(2) BASIS OF PRESENTATION | |
The accompanying condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of a normal recurring nature) considered necessary for fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and related notes for the year ended July 31, 2013, which are contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on October 15, 2013. The results for the three and nine months ended April 30, 2014 are not necessarily indicative of the results to be expected for the full fiscal year. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. | |
All significant intercompany transactions and balances have been eliminated in consolidation. | |
The Company considers events or transactions that occur after the balance sheet date but before the issuance of financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. For the period ended April 30, 2014, the Company evaluated subsequent events for potential recognition and disclosure through the date these financial statements were filed. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Apr. 30, 2014 | |
Recent Accounting Pronouncements | ' |
(3) RECENT ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Exists”, amending the guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. The guidance requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented as a reduction of a deferred tax asset when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists, with certain exceptions. This accounting guidance is effective prospectively starting with our first quarter of fiscal year 2015, and is related to presentation only. Its adoption will not have a material impact on our consolidated results of operations, financial position or cash flows. | |
In the second quarter of 2014, the Company adopted FASB ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which amends ASC 220, Comprehensive Income. This ASU requires the disclosure of amounts reclassified out of accumulated other comprehensive income by component and by net income line item. The disclosure may be provided either parenthetically on the face of the financial statements or in the notes. The adoption did not have a material effect on the Company’s consolidated financial statements and as a result no disclosure was provided in the notes. | |
In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends ASC 205, Presentation of Financial Statements, and ASC 360, Property, Plant and Equipment. This ASU defines a discontinued operation as a component or group of components that is disposed of or meets the criteria as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. This ASU requires additional disclosures about discontinued operations and new disclosures for components of an entity that are held for sale or disposed of and are individually significant but do not qualify for presentation as a discontinued operation. The adoption did not have a material effect on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The effective date will be the first quarter of fiscal year 2018 using one of two retrospective application methods. The Company has not determined the potential effects on the consolidated financial statements. |
Inventories
Inventories | 9 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Inventories | ' | ||||||||
(4) INVENTORIES | |||||||||
Inventories are stated at the lower of cost or market. Cost is determined by both the moving average and the first-in, first-out methods. Materials that the Company procures on behalf of its clients that are included in inventory typically include materials such as compact discs, printed materials, manuals, labels, hardware accessories, flash memory, consumer packaging, shipping boxes and labels, power cords and cables for client-owned electronic devices. | |||||||||
Inventories consisted of the following: | |||||||||
April 30, | July 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Raw materials | $ | 47,153 | $ | 46,920 | |||||
Work-in-process | 821 | 1,256 | |||||||
Finished goods | 14,301 | 13,146 | |||||||
$ | 62,275 | $ | 61,322 | ||||||
The Company continuously monitors inventory balances and records inventory write-downs for any excess of the cost of the inventory over its estimated market value. The Company also monitors inventory balances for obsolescence and excess quantities as compared to projected demand. The Company’s inventory methodology is based on assumptions about average shelf life of inventory, forecasted volumes, forecasted selling prices, write-down history of inventory, market conditions and contractual arrangements with clients. While such assumptions may change from period to period, in determining the net realizable value of its inventories, the Company uses the best information available as of the balance sheet date. If actual market conditions are less favorable than those projected, or the Company experiences a higher incidence of inventory obsolescence because of rapidly changing technology and customer requirements, additional inventory write-downs may be required. Once established, write-downs of inventory are considered permanent adjustments to the cost basis of inventory and cannot be reversed due to subsequent increases in demand forecasts. |
Investments_in_Affiliates
Investments in Affiliates | 9 Months Ended |
Apr. 30, 2014 | |
Investments in Affiliates | ' |
(5) INVESTMENTS IN AFFILIATES | |
The Company maintains interests in several early-stage privately held technology companies primarily through its interests in two venture capital funds which invest as “@Ventures.” These investments are generally made in connection with a round of financing with other third-party investors. | |
During the three and nine months ended April 30, 2014, approximately $0.2 million and $0.6 million was invested by @Ventures in privately held companies, respectively. During the three and nine months ended April 30, 2013, approximately $0.2 million and $1.6 million was invested by @Ventures in privately held companies, respectively. During the three and nine months ended April 30, 2014, the Company recorded $1.2 million and $1.4 million in impairment charges related to investments in the @Ventures portfolio of companies, respectively. No impairment charges were recorded during the three months ended April 30, 2013. During the nine months ended April 30, 2013, the Company recorded a $1.5 million impairment charge related to an investment in the @Ventures portfolio of companies. During the nine month periods ended April 30, 2013, the Company received distributions from its investments of $0.2 million. The Company did not receive any distributions from its investments during the current year. At April 30, 2014 and July 31, 2013, the Company’s carrying value of investments in privately held companies was approximately $7.0 million and $8.0 million, respectively. | |
Investments in which the Company’s interest is less than 20% and which are not classified as available-for-sale securities are carried at the lower of cost or net realizable value (the “cost method”) unless it is determined that the Company exercises significant influence over the investee company, in which case the equity method of accounting is used. For those investments in which the Company’s voting interest is between 20% and 50%, the equity method of accounting is generally used. Under this method, the investment balance, originally recorded at cost, is adjusted to recognize the Company’s share of net earnings or losses of the investee company as they occur, limited to the extent of the Company’s investment in, advances to and commitments for the investee. These adjustments are reflected in “Equity in losses of affiliates and impairments” in the Company’s Consolidated Statement of Operations. As of April 30, 2014 all of the investments in affiliates held by the Company are being accounted for under the cost method. | |
The Company assesses the need to record impairment losses on its investments and records such losses when the impairment of an investment is determined to be other than temporary in nature. The process of assessing whether a particular investment’s net realizable value is less than its carrying cost requires a significant amount of judgment. In making this judgment, the Company carefully considers the investee’s cash position, projected cash flows (both short and long-term), financing needs, recent financing rounds, most recent valuation data, the current investing environment, management/ownership changes and competition. The valuation process is based primarily on information that the Company requests from these privately held companies which are not subject to the same disclosure and audit requirements as those of U.S. public companies. As such, the reliability and the accuracy of the data may vary. |
Goodwill
Goodwill | 9 Months Ended |
Apr. 30, 2014 | |
Goodwill | ' |
(6) GOODWILL | |
The Company conducts its goodwill impairment test on July 31 of each fiscal year. In addition, if and when events or circumstances change that could reduce the fair value of any of its reporting units below its carrying value, an interim test is performed. In making this assessment, the Company relies on a number of factors including operating results, business plans, economic projections, anticipated future cash flows, and transactions and marketplace data. The Company’s reporting units are: Americas, Asia, Europe and its All Other category, which primarily represents the e-Business operating segment. | |
The Company’s remaining goodwill of $3.1 million as of April 30, 2014 and July 31, 2013 relates to the Company’s e-Business reporting unit. There were no indicators of impairment identified related to the Company’s e-Business reporting unit during the three and nine months ended April 30, 2014. |
Other_Current_Liabilities
Other Current Liabilities | 9 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Other Current Liabilities | ' | ||||||||
(7) OTHER CURRENT LIABILITIES | |||||||||
The following table reflects the components of “Other Current Liabilities”: | |||||||||
April 30, | July 31, | ||||||||
2014 | 2013 | ||||||||
Accrued pricing liabilities | $ | 20,015 | $ | 20,854 | |||||
Other | 5,473 | 6,011 | |||||||
$ | 25,488 | $ | 26,865 | ||||||
As of April 30, 2014 and July 31, 2013, the Company had accrued pricing liabilities of approximately $20.0 million and $20.9 million, respectively. As previously reported by the Company, several adjustments were made to its historic financial statements for periods ending on or before January 31, 2012, the most significant of which related to the treatment of vendor rebates in its pricing policies. Where the retention of a rebate or a mark-up was determined to have been inconsistent with a client contract (collectively referred to as “pricing adjustments”), the Company concluded that these amounts were not properly recorded as revenue. Accordingly, revenue was reduced by an equivalent amount for the period that the rebate was estimated to have affected. A corresponding liability for the same amount was recorded in that period (referred to as accrued pricing liabilities). The Company believes that it may not ultimately be required to pay all of the accrued pricing liabilities, due in part to the nature of the interactions with its clients. The remaining accrued pricing liabilities at April 30, 2014 will be derecognized when there is sufficient information for the Company to conclude that such liabilities have been extinguished, which may occur through payment, legal release, or other legal or factual determination. |
Restructuring_Net
Restructuring, Net | 9 Months Ended | ||||||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||||||
Restructuring, Net | ' | ||||||||||||||||||||
(8) RESTRUCTURING, NET | |||||||||||||||||||||
Restructuring and other costs for the three and nine months ended April 30, 2014 primarily included continuing charges for personnel reductions and facility consolidations in an effort to streamline operations across our global supply chain operations. It is expected that the payments of employee-related charges will be substantially completed during the fiscal year ended July 31, 2014. The remaining contractual obligations primarily relate to facility lease obligations for vacant space resulting from the previous restructuring activities of the Company. The Company anticipates that these contractual obligations will be substantially fulfilled by August 2015. | |||||||||||||||||||||
The $3.5 million restructuring charge recorded during the three months ended April 30, 2014 primarily consisted of $0.3 million, $0.3 million and $2.6 million of employee-related costs in the Americas, Asia and Europe, respectively, related to the workforce reduction of 55 employees in our global supply chain operations and also $0.3 million related to our eBusiness operation. The $2.6 million restructuring charge recorded during the three months ended April 30, 2013 primarily consisted of $2.5 million of employee-related costs in the Europe region, related to the workforce reduction of 75 employees in our global supply chain operations, as well as $0.1 million related to our e-Business operation. | |||||||||||||||||||||
The $5.4 million restructuring charge recorded during the nine months ended April 30, 2014 primarily consisted of $0.9 million, $0.7 million and $3.6 million of employee-related costs in the Americas, Asia and Europe, respectively, related to the workforce reduction of 139 employees in our global supply chain operations and also $0.3 million related to our eBusiness operation. The $8.8 million restructuring charge recorded during the nine months ended April 30, 2013 primarily consisted of $1.3 million, $2.0 million and $4.7 million of employee-related costs in the Americas, Asia and Europe, respectively, related to the workforce reduction of 277 employees in our global supply chain operations and also $0.8 million related to our eBusiness operation. | |||||||||||||||||||||
The following tables summarize the activities related to the restructuring accrual by expense category and by reportable segment for the three and nine months ended April 30, 2014 (in thousands): | |||||||||||||||||||||
Employee | |||||||||||||||||||||
Related | Contractual | ||||||||||||||||||||
Expenses | Obligations | Total | |||||||||||||||||||
Accrued restructuring balance at July 31, 2013 | $ | 3,974 | $ | 1,190 | $ | 5,164 | |||||||||||||||
Restructuring charges | 5,162 | 294 | 5,456 | ||||||||||||||||||
Restructuring adjustments | (3 | ) | (13 | ) | (16 | ) | |||||||||||||||
Cash paid | (7,214 | ) | (686 | ) | (7,900 | ) | |||||||||||||||
Non-cash adjustments | 52 | 17 | 69 | ||||||||||||||||||
Accrued restructuring balance at April 30, 2014 | $ | 1,971 | $ | 802 | $ | 2,773 | |||||||||||||||
All | Consolidated | ||||||||||||||||||||
Americas | Asia | Europe | Other | Total | |||||||||||||||||
Accrued restructuring balance at July 31, 2013 | $ | 382 | $ | 520 | $ | 4,256 | $ | 6 | $ | 5,164 | |||||||||||
Restructuring charges | 918 | 718 | 3,512 | 308 | 5,456 | ||||||||||||||||
Restructuring adjustments | (53 | ) | (12 | ) | 57 | (8 | ) | (16 | ) | ||||||||||||
Cash paid | (714 | ) | (1,020 | ) | (6,050 | ) | (116 | ) | (7,900 | ) | |||||||||||
Non-cash adjustments | (81 | ) | (17 | ) | 161 | 6 | 69 | ||||||||||||||
Accrued restructuring balance at April 30, 2014 | $ | 452 | $ | 189 | $ | 1,936 | $ | 196 | $ | 2,773 | |||||||||||
The net restructuring charges for the three and nine months ended April 30, 2014 and 2013 would have been allocated as follows had the Company recorded the expense and adjustments within the functional department of the restructured activities (in thousands): | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
April 30, | April 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Cost of revenue | $ | 2,207 | $ | 2,358 | $ | 3,580 | $ | 6,656 | |||||||||||||
Selling, general and administrative | 1,261 | 207 | 1,860 | 2,177 | |||||||||||||||||
$ | 3,468 | $ | 2,565 | $ | 5,440 | $ | 8,833 | ||||||||||||||
Debt
Debt | 9 Months Ended | ||||
Apr. 30, 2014 | |||||
Debt | ' | ||||
(9) DEBT | |||||
5.25% Convertible Senior Notes | |||||
On March 18, 2014, the Company entered into an indenture (the “Indenture”) with Wells Fargo Bank, National Association, as trustee (the “Trustee”), relating to the Company’s issuance of $100 million of 5.25% Convertible Senior Notes (the “Notes”). The Notes bear interest at the rate of 5.25% per year, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2014. The Notes will mature on March 1, 2019 unless earlier repurchased by the Company or converted by the holder in accordance with their terms prior to such maturity date. | |||||
The Company’s decision to issue the Notes resulted from a deliberative process that considered many factors. The timing of the Notes issuance was determined in part by what the Company was advised and believed to be favorable market conditions. As noted in the Company’s prior public filings, the Company intends to use the net proceeds from the issuance of the Notes for general corporate purposes, which may include potential acquisitions and other strategic business opportunities. The Company believes that the issuance of the Notes provides greater financial flexibility to the Company may enhance our ability to consummate one or several larger and/or more attractive acquisitions and should provide our customers and/or potential customers with greater confidence in the Company’s liquidity. | |||||
The Company believes that the consummation of one or more successful acquisitions may result in the utilization over time of a material portion of the Company’s tax net operating loss carry forward (“NOLs”) and generate additional shareholder value. At July 31, 2013, the Company’s federal, state and foreign NOLs totaled approximately $2.0 billion, $450.9 million and $60.1 million, respectively. | |||||
Holders of the Notes may convert all or any portion of their notes, in multiples of $1,000 principal amount, at their option at any-time prior to the close of business or the business day immediately preceding the maturity date. Each $1,000 of principal of the Notes will initially be convertible into 166.2593 shares of our common stock, which is equivalent to an initial conversion price of approximately $6.01 per share, subject to adjustment upon the occurrence of certain events, or, if the Company obtains the required consent from its shareholders, into shares of the Company’s common stock, cash or a combination of cash and shares of its common stock, at the Company’s election. The notes and any of the shares of common stock issuable upon conversion have not been registered. | |||||
Holders will have the right to require the Company to repurchase their Notes, at a repurchase price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest, upon the occurrence of certain fundamental changes, subject to certain conditions. No fundamental changes occurred during the three months ended April 30, 2014. | |||||
The Company may not redeem the notes prior to the mandatory date, and no sinking fund is provided for the notes. The Company will have the right to elect to cause the mandatory conversion of the Notes in whole, and not in part, at any time on or after March 6, 2017, if the last reported sale price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company notifies holders of its election to mandatorily convert the notes, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company notifies holders of its election to mandatorily convert the notes. | |||||
We valued the debt using similar nonconvertible debt as of the original issuance date of the Notes and bifurcated the conversion option associated with the Notes from the host debt instrument and recorded the conversion option of $28.1 million in stockholders’ equity. The initial value of the equity component, which reflects the equity conversion feature, is equal to the initial debt discount. The resulting debt discount on the Notes is being accreted to interest expense at the effective interest rate over the estimated life of the Notes. The equity component is included in additional paid-in-capital portion of stockholders’ equity on the Company’s consolidated balance sheet. In addition, the debt issuance costs of $3.4 million are allocated between the liability and equity component in proportion to the allocation of the proceeds. The issuance costs allocated to the liability component ($2.5 million) are capitalized as a long-term asset on the Company’s balance sheet and amortized as additional interest expense over the term of the Notes. This amount has been classified as long-term as the underlying debt instrument has been classified as a long-term liability in the Company’s balance sheet. The issuance costs allocated to the equity component is recorded as a reduction to additional paid-in capital. As of April 30, 2014, the net carrying value of the Notes was $72.3 million. | |||||
April 30, | |||||
2014 | |||||
Carrying amount of equity component (net of allocated debt issuance costs) | $ | 27,148 | |||
Principal amount of Notes | 100,000 | ||||
Unamortized debt discount | (27,680 | ) | |||
Net carrying amount | $ | 72,320 | |||
As of April 30, 2014, the remaining period over which the unamortized discount will be amortized is 58 months. | |||||
Three months | |||||
ended | |||||
April 30, 2014 | |||||
Interest expense related to contractual interest coupon | $ | 680 | |||
Interest expense related to accretion of the discount | 418 | ||||
Interest expense related to debt issuance costs | 51 | ||||
$ | 1,149 | ||||
During the three months ended April 30, 2014, we recognized interest expense of $1.2 million. The effective interest rate on the Notes, including amortization of debt issuance costs and accretion of the discount, is 14.3%. The notes bear interest of 5.25%. | |||||
Credit Facility | |||||
On October 31, 2012, the Company and certain of its domestic subsidiaries entered into a Credit Agreement (the “Credit Facility”) with Wells Fargo Bank, National Association as lender and agent for the lenders party thereto. The Credit Facility provided a senior secured revolving credit facility up to an initial aggregate principal amount of $50.0 million or the calculated borrowing base and was secured by substantially all of the domestic assets of the Company. As of July 31, 2013, the calculated borrowing base was $29.9 million. The Credit Facility was scheduled to terminate on October 31, 2015. Interest on the Credit Facility was based on the Company’s options of LIBOR plus 2.5% or the base rate plus 1.5%. The Credit Facility included one restrictive financial covenant, which is minimum EBITDA, and restrictions that limited the ability of the Company, to among other things, create liens, incur additional indebtedness, make investments, or dispose of assets or property without prior approval from the lenders. | |||||
On March 13, 2014, the Company entered into a Second Amendment to Credit Facility, which amended the Company’s Credit Agreement, dated as of October 31, 2012, as amended by the First Amendment to Credit Agreement dated December 18, 2013. The Amendment modified certain provisions of the Credit Agreement that would have restricted or otherwise affected the issuance of the Notes and the use of proceeds therefrom, the conversion of the Notes into common stock of the Company, and the payment of interest on the Notes. Effective as of April 16, 2014, the Company voluntarily terminated the Credit Facility. The Company did not have any outstanding indebtedness related to the Credit Facility as of April 30, 2014. |
Contingencies
Contingencies | 9 Months Ended | |||
Apr. 30, 2014 | ||||
Contingencies | ' | |||
(10) CONTINGENCIES | ||||
On February 15, 2012, the staff of the Division of Enforcement of the SEC initiated with the Company an informal inquiry, and later a formal action, regarding the Company’s treatment of rebates associated with volume discounts provided by vendors. To date, the SEC has not asserted any formal claims. | ||||
On June 11, 2012, we announced the pending restatement of the Company’s financial statements for the periods ending on or before April 30, 2012 (the “June 11, 2012 Announcement”), related to the Company’s accounting treatment of rebates associated with volume discounts provided by vendors. The restated financial statements were filed on January 11, 2013. After the June 11, 2012 Announcement, stockholders of the Company commenced three purported class actions in the United States District Court for the District of Massachusetts arising from the circumstances described in the June 11, 2012 Announcement (the “Securities Actions”), entitled, respectively: | ||||
• | Irene Collier, Individually And On Behalf Of All Others Similarly Situated, vs. ModusLink Global Solutions, Inc., Joseph C. Lawler and Steven G. Crane, Case 1:12-CV-11044-DJC, filed June 12, 2012 (the “Collier Action”); | |||
• | Alexander Shnerer Individually And On Behalf Of All Others Similarly Situated, vs. ModusLink Global Solutions, Inc., Joseph C. Lawler and Steven G. Crane, Case 1:12-CV-11078-DJC, filed June 18, 2012 (the “Shnerer Action”); and | |||
• | Harold Heszkel, Individually and on Behalf of All Others Similarly Situated v. ModusLink Global Solutions, Inc., Joseph C. Lawler, and Steven G. Crane, Case 1:12-CV-11279-DJC, filed July 11, 2012 (the “Heszkel Action”). | |||
Each of the Securities Actions purports to be brought on behalf of those persons who purchased shares of the Company between September 26, 2007 through and including June 8, 2012 (the “Class Period”) and alleges that failure to timely disclose the issues raised in the June 11, 2012 Announcement during the Class Period rendered defendants’ public statements concerning the Company’s financial condition materially false and misleading in violation of Sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder. On February 11, 2013, plaintiffs filed a consolidated amended complaint in the Securities Actions. The Company moved to dismiss the amended complaint on March 11, 2013. On March 26, 2014, following a November 8, 2013 hearing, the Court denied the Company’s motion to dismiss, and, on May 26, 2014, the Company answered the Amended Complaint. The parties are now preparing for discovery in these consolidated actions. | ||||
On July 13, 2012, a fourth stockholder commenced a purported derivative action in United States District Court for the District of Massachusetts against the Company (as nominal defendants), and certain of its current and former directors and officers, entitled, Samuel Montini, Derivatively On Behalf Of ModusLink Global Solutions, Inc. v. Joseph C. Lawler, Steven G. Crane, Francis J. Jules, Virginia G. Breen, Michael J. Mardy, Edward E. Lucente, Jeffrey J. Fenton, Joseph M. O’Donnell, William R. McLennan, Thomas H. Johnson, And Anthony J. Bay, Defendants, And ModusLink Global Solutions, Inc., A Delaware Corporation, Nominal Defendant, Case 1:12-CV-11296-DJC and on July 31, 2012, a fifth stockholder commenced a purported derivative action in United States District Court for the District of Massachusetts against the Company (as nominal defendants), and certain of its current and former directors and officers, entitled, Edward Tansey, Derivatively On Behalf Of ModusLink Global Solutions, Inc. v. Joseph C. Lawler, Steven G. Crane, Francis J. Jules, Virginia G. Breen, Michael J. Mardy, Edward E. Lucente, Jeffrey J. Fenton, Joseph M. O’Donnell, William R.McLennan, Thomas H. Johnson, And Anthony J. Bay, Defendants, And ModusLink Global Solutions, Inc., A Delaware Corporation, Nominal Defendant, Civil Action No. 12-CV-11399 (DJC) (collectively, the “Derivative Actions”). The Derivative Actions further assert that as a result of the individual defendants’ alleged actions and course of conduct, the Company is now the subject of the Securities Actions and will incur related expenses and a possible judgment against it. These litigation matters also arise from the issues raised in the June 11, 2012 Announcement and allege that the individual defendants breached their duty of loyalty to the Company by allowing defendants to cause, or by themselves causing, the Company to make improper statements regarding its business prospects and/or by failing to prevent the other Individual Defendants from taking such purportedly illegal actions. The plaintiffs filed a consolidated amended complaint in the Derivative Actions on March 4, 2013, and the Company moved to dismiss the Amended Complaint on April 4, 2013. On March 26, 2014, following a November 8, 2013 hearing, the Court granted the Company’s motion to dismiss with prejudice, and, on May 1, 2014, the Court entered final judgment dismissing this action. | ||||
On October 10, 2012, a sixth stockholder, Donald Reith, served upon the Company’s Board of Directors a demand to institute litigation and take other purportedly necessary, but unidentified, remedial measures to redress and prevent a recurrence of purported breaches of fiduciary duties on the part of the Board and unspecified corporate officers allegedly arising from the same facts and circumstances asserted in the Derivative Actions. On February 4, 2013, the Company’s Board of Directors voted unanimously to reject Mr. Reith’s demand. | ||||
Because the SEC has not asserted any formal claims, and because, with respect to the pending Securities Actions, no discovery has been conducted, we are unable at this time to provide a calculation of potential damages or litigation loss that is probable or estimable. Although there can be no assurance as to the ultimate outcome, the Company believes it has meritorious defenses, will deny liability, and intends to defend the Securities Actions vigorously. |
Other_Gains_Losses_Net
Other Gains (Losses), Net | 9 Months Ended | ||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||
Other Gains (Losses), Net | ' | ||||||||||||||||
(11) OTHER GAINS (LOSSES), NET | |||||||||||||||||
The following table reflects the components of “Other gains (losses), net” (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
April 30, | April 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Foreign currency exchange gain (losses) | $ | (537 | ) | $ | (289 | ) | $ | (707 | ) | $ | (2,349 | ) | |||||
Gain (loss) on disposal of assets | — | 39 | 467 | (23 | ) | ||||||||||||
Other, net | 30 | (167 | ) | (76 | ) | (343 | ) | ||||||||||
$ | (507 | ) | $ | (417 | ) | $ | (316 | ) | $ | (2,715 | ) | ||||||
The Company recorded foreign exchange losses of approximately $0.5 million and $0.3 million during the three months ended April 30, 2014 and 2013, respectively. For the three months ended April 30, 2014, the net losses primarily related to realized and unrealized gains (losses) from foreign currency exposures and settled transactions of approximately $0.2 million, ($0.2 million) and ($0.5 million) in the Americas, Asia and Europe, respectively. For the three months ended April 30, 2013, the net losses primarily related to realized and unrealized losses from foreign currency exposures and settled transactions of approximately $0.6 million and $0.5 million in America and Asia, respectively, offset by realized and unrealized gains of approximately $0.8 million in Europe. | |||||||||||||||||
The Company recorded foreign exchange losses of approximately $0.7 million and $2.3 million during the nine months ended April 30, 2014 and 2013, respectively. For the nine months ended April 30, 2014, the net losses primarily related to realized and unrealized gains (losses) from foreign currency exposures and settled transactions of approximately $0.1 million, ($0.5 million) and ($0.3 million) in the Americas, Asia and Europe, respectively. For the nine months ended April 30, 2013, the net losses primarily related to realized and unrealized losses from foreign currency exposures and settled transactions of approximately $1.6 million in both Europe and Asia, offset by net gains of $0.9 million in the Americas. |
Income_Taxes
Income Taxes | 9 Months Ended |
Apr. 30, 2014 | |
Income Taxes | ' |
(12) INCOME TAXES | |
The Company operates in multiple taxing jurisdictions, both within and outside of the United States. For the three and nine months ended April 30, 2014, the Company was profitable in certain jurisdictions, resulting in an income tax expense using enacted rates in those jurisdictions. As of April 30, 2014 and July 31, 2013, the total amount of the liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $1.1 million and $1.0 million, respectively. | |
Uncertain Tax Positions | |
In accordance with the Company’s accounting policy, interest related to unrecognized tax benefits is included in the provision of income taxes line of the Consolidated Statement of Operations. As of April 30, 2014 and July 31, 2013, the liabilities for interest expense related to uncertain tax positions were immaterial. The Company did not accrue for penalties related to income tax positions as there were no income tax positions that required the Company to accrue penalties. The Company does not expect any unrecognized tax benefits to reverse in the next twelve months. The Company is subject to U.S. federal income tax and various state, local and international income taxes in numerous jurisdictions. The federal and state tax returns are generally subject to tax examinations for the tax years ended July 31, 2009 through July 31, 2013. To the extent the Company has tax attribute carryforwards, the tax year in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service or state tax authorities to the extent utilized in a future period. In addition, a number of tax years remain subject to examination by the appropriate government agencies for certain countries in the Europe and Asia regions. In Europe, the Company’s 2006 through 2013 tax years remain subject to examination in most locations, while the Company’s 2002 through 2013 tax years remain subject to examination in most Asia locations. | |
Net Operating Loss | |
The Company has certain deferred tax benefits, including those generated by net operating losses and certain other tax attributes (collectively, the “Tax Benefits”). The Company’s ability to use these Tax Benefits could be substantially limited if it were to experience an “ownership change,” as defined under Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). In general, an ownership change would occur if there is a greater than 50-percentage point change in ownership of securities by stockholders owning (or deemed to own under Section 382 of the Code) five percent or more of a corporation’s securities over a rolling three-year period. | |
Tax Benefit Preservation Plan | |
On October 17, 2011, the Company’s Board of Directors adopted a Tax Benefit Preservation Plan between the Company and American Stock Transfer & Trust Company, LLC, as rights agent (as amended from time to time, the “Tax Plan”). The Tax Plan reduces the likelihood that changes in the Company’s investor base would have the unintended effect of limiting the Company’s use of its Tax Benefits. The Tax Plan is intended to require any person acquiring shares of the Company’s securities equal to or exceeding 4.99% of the Company’s outstanding shares to obtain the approval of the Board of Directors. This would protect the Tax Benefits because changes in ownership by a person owning less than 4.99% of the Company’s stock are considered and included in one or more public groups in the calculation of “ownership change” for purposes of Section 382 of the Code. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 9 Months Ended | ||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||
Earnings (Loss) Per Share | ' | ||||||||||||||||
(13) EARNINGS (LOSS) PER SHARE | |||||||||||||||||
The Company calculates earnings (loss) per share in accordance with ASC Topic 260, “Earnings per Share.” The following table reconciles earnings (loss) per share for the three and nine months ended April 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
April 30, | April 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Loss from continuing operations | $ | (9,478 | ) | $ | (8,247 | ) | $ | (7,877 | ) | $ | (30,495 | ) | |||||
Income (loss) from discontinued operations | — | (59 | ) | 80 | (1,019 | ) | |||||||||||
Net Loss | $ | (9,478 | ) | $ | (8,306 | ) | $ | (7,797 | ) | $ | (31,514 | ) | |||||
Weighted average common shares outstanding | 51,498 | 47,968 | 51,502 | 45,046 | |||||||||||||
Weighted average common equivalent shares arising from dilutive stock options and restrictive stock | — | — | — | — | |||||||||||||
Weighted average number of common and potential common shares | 51,498 | 47,968 | 51,502 | 45,046 | |||||||||||||
Basic and diluted net income (loss) per common share from: | |||||||||||||||||
Continuing operations | $ | (0.18 | ) | $ | (0.17 | ) | $ | (0.15 | ) | $ | (0.68 | ) | |||||
Discontinued operations | — | — | — | (0.02 | ) | ||||||||||||
$ | (0.18 | ) | $ | (0.17 | ) | $ | (0.15 | ) | $ | (0.70 | ) | ||||||
Basic earnings per common share is calculated using the weighted-average number of common shares outstanding during the period. Diluted earnings per common share, if any, gives effect to diluted stock options (calculated based on the treasury stock method), non-vested restricted stock shares purchased under the employee stock purchase plan and share issuable upon debt conversion (calculated using an as-if converted method). | |||||||||||||||||
For the three and nine months ended April 30, 2014, approximately 4.2 million and 4.8 million, respectively, common stock equivalent shares were excluded from the denominator in the calculation of diluted earnings per share as their inclusion would have been antidilutive. For the three and nine months ended April 30, 2013, approximately 3.9 million and 2.9 million, respectively, common stock equivalent shares were excluded from the denominator in the calculation of diluted earnings per share as their inclusion would have been antidilutive. | |||||||||||||||||
During the periods of net loss, certain potential common shares that would otherwise be included in the diluted earnings per share calculation are excluded because they effect would be anti-dilutive. The following table sets forth common stock equivalents that were excluded from the diluted earnings per share calculation due to the net loss for the relevant period (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
April 30, | April 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Options | 225 | — | 20 | — | |||||||||||||
Non-vested restricted stock | 111 | 209 | 85 | 373 | |||||||||||||
Shares issuable upon debt conversion | 8,220 | — | 2,680 | — | |||||||||||||
8,556 | 209 | 2,785 | 373 | ||||||||||||||
ShareBased_Payments
Share-Based Payments | 9 Months Ended | ||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||
Share-Based Payments | ' | ||||||||||||||||
(14) SHARE-BASED PAYMENTS | |||||||||||||||||
The following table summarizes share-based compensation expense related to employee stock options, employee stock purchases and non-vested shares for the three and nine months ended April 30, 2014 and 2013, which was allocated as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
April 30, | April 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of revenue | $ | 110 | $ | 74 | $ | 343 | $ | 185 | |||||||||
Selling, general and administrative | 403 | 851 | 1,320 | 1,656 | |||||||||||||
$ | 513 | $ | 925 | $ | 1,663 | $ | 1,841 | ||||||||||
At April 30, 2014, there was approximately $3.9 million of total unrecognized compensation cost related to non-vested share-based compensation awards under the Company’s plans. |
Comprehensive_Income_Loss
Comprehensive Income (Loss) | 9 Months Ended | ||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||
Comprehensive Income (Loss) | ' | ||||||||||||||||
(15) COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||
Comprehensive income (loss) combines net income (loss) and other comprehensive items. Other comprehensive items represent certain amounts that are reported as components of shareholder’s equity in the accompanying condensed consolidated balance sheets. | |||||||||||||||||
Accumulated other comprehensive items consist of the following (in thousands): | |||||||||||||||||
Foreign | Pension | Unrealized | Total | ||||||||||||||
currency | items | gains | |||||||||||||||
items | (losses) on | ||||||||||||||||
securities | |||||||||||||||||
Accumulated other comprehensive income at July 31, 2013 | $ | 15,759 | $ | (2,066 | ) | $ | 20 | $ | 13,713 | ||||||||
Foreign currency translation adjustment | 1,219 | — | — | 1,219 | |||||||||||||
Pension liability adjustments | — | (914 | ) | — | (914 | ) | |||||||||||
Net unrealized holding gain on securities | — | — | 7 | 7 | |||||||||||||
Net current-period other comprehensive income | 1,219 | (914 | ) | 7 | 312 | ||||||||||||
Accumulated other comprehensive income at April 30, 2014 | $ | 16,978 | $ | (2,980 | ) | $ | 27 | $ | 14,025 | ||||||||
For the nine months ended April 30, 2014, the Company recorded approximately $0.3 million in taxes related to its defined benefit pension plan. |
Discontinued_Operations_and_Di
Discontinued Operations and Divestitures | 9 Months Ended |
Apr. 30, 2014 | |
Discontinued Operations and Divestitures | ' |
(16) DISCONTINUED OPERATIONS AND DIVESTITURES | |
On January 11, 2013, the Company’s wholly-owned subsidiary, Tech for Less LLC (“TFL”) sold substantially all of its assets to Encore Holdings, LLC (“Encore”). The consideration paid by Encore for the assets was $1.6 million, which consisted of a gross purchase price of $1.9 million less certain adjustments. At the time of sale, the Company received $1.4 million of the purchase price, with the remaining $0.2 million held in escrow for the satisfaction of any post-closing claims. During the fourth quarter of fiscal 2013, the Company reached a settlement agreement with Encore whereby the Company received $0.1 million of the escrow amount, with the remainder reverting to Encore. As a result of the settlement of the escrow amount, the Company’s gain on the sale of TFL was reduced by $0.1 million from $0.7 million to $0.6 million. In conjunction with the asset sale agreement, the Company entered into a transition support agreement with Encore to provide certain administrative services for a period of 90 days from the closing date of the transaction. The Company’s obligations under the transition support agreement were completed during the third quarter of fiscal year 2013. The Company did not generate significant continuing cash flows from the transition support agreement. | |
The Company’s other discontinued operations relate to a lease obligation associated with a previously vacated facility. During the year ended July 31, 2006, the Company sold a marketing distribution business run by a wholly-owned subsidiary to an unrelated third party. In July 2013, the Company reached an agreement with its landlord for the early termination of a lease agreement associated with that business. As part of the lease termination agreement, the Company paid $0.4 million to the landlord on August 1, 2013 and was released from any future obligations associated with the leased facility. The Company also assigned its interest in its sublease rental income to the landlord. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
(17) SEGMENT INFORMATION | |||||||||||||||||
The Company has five operating segments: Americas; Asia; Europe; e-Business; and ModusLink PTS. Based on the information provided to the Company’s chief operating decision-maker (“CODM”) for purposes of making decisions about allocating resources and assessing performance and quantitative thresholds, the Company has determined that it has three reportable segments: Americas, Asia and Europe. The Company reports the ModusLink PTS operating segment in aggregation with the Americas operating segment as part of the Americas reportable segment. In addition to its three reportable segments, the Company reports an All Other category. The All Other category primarily represents the e-Business operating segment. The Company also has Corporate-level activity, which consists primarily of costs associated with certain corporate administrative functions such as legal and finance, which are not allocated to the Company’s reportable segments. The Corporate-level balance sheet information includes cash and cash equivalents, investments and other assets, which are not identifiable to the operations of the Company’s operating segments. All significant intra-segment amounts have been eliminated. | |||||||||||||||||
Summarized financial information of the Company’s continuing operations by operating segment is as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
April 30, | April 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net revenue: | |||||||||||||||||
Americas | $ | 74,429 | $ | 64,496 | $ | 229,791 | $ | 196,137 | |||||||||
Asia | 41,387 | 48,133 | 134,307 | 164,864 | |||||||||||||
Europe | 48,423 | 51,952 | 165,790 | 188,700 | |||||||||||||
All Other | 9,035 | 8,435 | 28,812 | 23,802 | |||||||||||||
$ | 173,274 | $ | 173,016 | $ | 558,700 | $ | 573,503 | ||||||||||
Operating income (loss): | |||||||||||||||||
Americas | $ | 2,736 | $ | 679 | $ | 8,304 | $ | (1,820 | ) | ||||||||
Asia | 2,342 | 3,614 | 14,001 | 16,379 | |||||||||||||
Europe | (4,439 | ) | (5,868 | ) | (8,934 | ) | (13,579 | ) | |||||||||
All Other | (411 | ) | 301 | 98 | (256 | ) | |||||||||||
Total Segment operating income (loss) | 228 | (1,274 | ) | 13,469 | 724 | ||||||||||||
Corporate-level activity | (5,366 | ) | (5,486 | ) | (14,751 | ) | (23,281 | ) | |||||||||
Total operating loss | (5,138 | ) | (6,760 | ) | (1,282 | ) | (22,557 | ) | |||||||||
Total other expense | (3,640 | ) | (677 | ) | (3,871 | ) | (4,510 | ) | |||||||||
Loss from continuing operations before income taxes | $ | (8,778 | ) | $ | (7,437 | ) | $ | (5,153 | ) | $ | (27,067 | ) | |||||
April 30, | July 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Total assets: | |||||||||||||||||
Americas | $ | 71,579 | $ | 65,790 | |||||||||||||
Asia | 80,381 | 93,547 | |||||||||||||||
Europe | 96,969 | 97,524 | |||||||||||||||
All Other | 14,767 | 17,369 | |||||||||||||||
Sub-total - segment assets | 263,696 | 274,230 | |||||||||||||||
Corporate | 165,290 | 69,466 | |||||||||||||||
$ | 428,986 | $ | 343,696 | ||||||||||||||
As of April 30, 2014, approximately 54%, 19% and 27% of the Company’s long-lived assets were located in the Americas, Asia and Europe, respectively. As of July 31, 2013, approximately 58%, 18% and 24% of the Company’s long-lived assets were located in the Americas, Asia and Europe, respectively. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Apr. 30, 2014 | |
Subsequent Events | ' |
(18) SUBSEQUENT EVENTS | |
The Company was recently informed by a major client in the computing market that due to a further change in the client’s supply chain strategy, a number of programs currently sourced with the Company primarily in the Americas will conclude by October 30, 2014. Combined, these programs currently account for approximately $150 million to $160 million of annual net revenue and approximately $2.5 million to $3.5 million of operating income due to the historically low margins we have realized from these programs. We are currently working with this client to establish a comprehensive plan to transition the programs, which when fully completed, is expected to yield working capital in the range of $20 million to $25 million. The Company does not expect that the exit of these programs will have a significant impact on results of operations for the current fiscal year and the Company will continue to support a number of additional programs for this client. We are seeking and will continue to seek to offset the loss of net revenue and the associated operating income through increased revenues from new client program wins along with increased business with existing clients, ongoing productivity increases and cost reduction initiatives. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Components of Inventories | ' | ||||||||
Inventories consisted of the following: | |||||||||
April 30, | July 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Raw materials | $ | 47,153 | $ | 46,920 | |||||
Work-in-process | 821 | 1,256 | |||||||
Finished goods | 14,301 | 13,146 | |||||||
$ | 62,275 | $ | 61,322 | ||||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 9 Months Ended | ||||||||
Apr. 30, 2014 | |||||||||
Components of Other Current Liabilities | ' | ||||||||
The following table reflects the components of “Other Current Liabilities”: | |||||||||
April 30, | July 31, | ||||||||
2014 | 2013 | ||||||||
Accrued pricing liabilities | $ | 20,015 | $ | 20,854 | |||||
Other | 5,473 | 6,011 | |||||||
$ | 25,488 | $ | 26,865 | ||||||
Restructuring_Net_Tables
Restructuring, Net (Tables) | 9 Months Ended | ||||||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||||||
Summary of Restructuring Accrual by Expense Category and by Reportable Segment | ' | ||||||||||||||||||||
The following tables summarize the activities related to the restructuring accrual by expense category and by reportable segment for the three and nine months ended April 30, 2014 (in thousands): | |||||||||||||||||||||
Employee | |||||||||||||||||||||
Related | Contractual | ||||||||||||||||||||
Expenses | Obligations | Total | |||||||||||||||||||
Accrued restructuring balance at July 31, 2013 | $ | 3,974 | $ | 1,190 | $ | 5,164 | |||||||||||||||
Restructuring charges | 5,162 | 294 | 5,456 | ||||||||||||||||||
Restructuring adjustments | (3 | ) | (13 | ) | (16 | ) | |||||||||||||||
Cash paid | (7,214 | ) | (686 | ) | (7,900 | ) | |||||||||||||||
Non-cash adjustments | 52 | 17 | 69 | ||||||||||||||||||
Accrued restructuring balance at April 30, 2014 | $ | 1,971 | $ | 802 | $ | 2,773 | |||||||||||||||
All | Consolidated | ||||||||||||||||||||
Americas | Asia | Europe | Other | Total | |||||||||||||||||
Accrued restructuring balance at July 31, 2013 | $ | 382 | $ | 520 | $ | 4,256 | $ | 6 | $ | 5,164 | |||||||||||
Restructuring charges | 918 | 718 | 3,512 | 308 | 5,456 | ||||||||||||||||
Restructuring adjustments | (53 | ) | (12 | ) | 57 | (8 | ) | (16 | ) | ||||||||||||
Cash paid | (714 | ) | (1,020 | ) | (6,050 | ) | (116 | ) | (7,900 | ) | |||||||||||
Non-cash adjustments | (81 | ) | (17 | ) | 161 | 6 | 69 | ||||||||||||||
Accrued restructuring balance at April 30, 2014 | $ | 452 | $ | 189 | $ | 1,936 | $ | 196 | $ | 2,773 | |||||||||||
Net Restrucuring Charges | ' | ||||||||||||||||||||
The net restructuring charges for the three and nine months ended April 30, 2014 and 2013 would have been allocated as follows had the Company recorded the expense and adjustments within the functional department of the restructured activities (in thousands): | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
April 30, | April 30, | ||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Cost of revenue | $ | 2,207 | $ | 2,358 | $ | 3,580 | $ | 6,656 | |||||||||||||
Selling, general and administrative | 1,261 | 207 | 1,860 | 2,177 | |||||||||||||||||
$ | 3,468 | $ | 2,565 | $ | 5,440 | $ | 8,833 | ||||||||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||
Apr. 30, 2014 | |||||
Issuance Costs Allocated to Equity Component | ' | ||||
The issuance costs allocated to the equity component is recorded as a reduction to additional paid-in capital. As of April 30, 2014, the net carrying value of the Notes was $72.3 million. | |||||
April 30, | |||||
2014 | |||||
Carrying amount of equity component (net of allocated debt issuance costs) | $ | 27,148 | |||
Principal amount of Notes | 100,000 | ||||
Unamortized debt discount | (27,680 | ) | |||
Net carrying amount | $ | 72,320 | |||
Summary of Interest Expense Related to Convertible Notes | ' | ||||
As of April 30, 2014, the remaining period over which the unamortized discount will be amortized is 58 months. | |||||
Three months | |||||
ended | |||||
April 30, 2014 | |||||
Interest expense related to contractual interest coupon | $ | 680 | |||
Interest expense related to accretion of the discount | 418 | ||||
Interest expense related to debt issuance costs | 51 | ||||
$ | 1,149 | ||||
Other_Gains_Losses_Net_Tables
Other Gains (Losses), Net (Tables) | 9 Months Ended | ||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||
Components of Other Gains (Losses), Net | ' | ||||||||||||||||
The following table reflects the components of “Other gains (losses), net” (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
April 30, | April 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Foreign currency exchange gain (losses) | $ | (537 | ) | $ | (289 | ) | $ | (707 | ) | $ | (2,349 | ) | |||||
Gain (loss) on disposal of assets | — | 39 | 467 | (23 | ) | ||||||||||||
Other, net | 30 | (167 | ) | (76 | ) | (343 | ) | ||||||||||
$ | (507 | ) | $ | (417 | ) | $ | (316 | ) | $ | (2,715 | ) | ||||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||
Reconciliation of Earnings (Loss) Per Share | ' | ||||||||||||||||
The following table reconciles earnings (loss) per share for the three and nine months ended April 30, 2014 and 2013 (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
April 30, | April 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Loss from continuing operations | $ | (9,478 | ) | $ | (8,247 | ) | $ | (7,877 | ) | $ | (30,495 | ) | |||||
Income (loss) from discontinued operations | — | (59 | ) | 80 | (1,019 | ) | |||||||||||
Net Loss | $ | (9,478 | ) | $ | (8,306 | ) | $ | (7,797 | ) | $ | (31,514 | ) | |||||
Weighted average common shares outstanding | 51,498 | 47,968 | 51,502 | 45,046 | |||||||||||||
Weighted average common equivalent shares arising from dilutive stock options and restrictive stock | — | — | — | — | |||||||||||||
Weighted average number of common and potential common shares | 51,498 | 47,968 | 51,502 | 45,046 | |||||||||||||
Basic and diluted net income (loss) per common share from: | |||||||||||||||||
Continuing operations | $ | (0.18 | ) | $ | (0.17 | ) | $ | (0.15 | ) | $ | (0.68 | ) | |||||
Discontinued operations | — | — | — | (0.02 | ) | ||||||||||||
$ | (0.18 | ) | $ | (0.17 | ) | $ | (0.15 | ) | $ | (0.70 | ) | ||||||
Common Stock Equivalents Excluded from Diluted Earnings Per Share Calculation | ' | ||||||||||||||||
The following table sets forth common stock equivalents that were excluded from the diluted earnings per share calculation due to the net loss for the relevant period (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
April 30, | April 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Options | 225 | — | 20 | — | |||||||||||||
Non-vested restricted stock | 111 | 209 | 85 | 373 | |||||||||||||
Shares issuable upon debt conversion | 8,220 | — | 2,680 | — | |||||||||||||
8,556 | 209 | 2,785 | 373 | ||||||||||||||
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 9 Months Ended | ||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||
Summary of Share-Based Compensation Expense Related to Employee Stock Options, Employee Stock Purchases and Nonvested Shares | ' | ||||||||||||||||
The following table summarizes share-based compensation expense related to employee stock options, employee stock purchases and non-vested shares for the three and nine months ended April 30, 2014 and 2013, which was allocated as follows (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
April 30, | April 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Cost of revenue | $ | 110 | $ | 74 | $ | 343 | $ | 185 | |||||||||
Selling, general and administrative | 403 | 851 | 1,320 | 1,656 | |||||||||||||
$ | 513 | $ | 925 | $ | 1,663 | $ | 1,841 | ||||||||||
Comprehensive_Income_Loss_Tabl
Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Items | ' | ||||||||||||||||
Accumulated other comprehensive items consist of the following (in thousands): | |||||||||||||||||
Foreign | Pension | Unrealized | Total | ||||||||||||||
currency | items | gains | |||||||||||||||
items | (losses) on | ||||||||||||||||
securities | |||||||||||||||||
Accumulated other comprehensive income at July 31, 2013 | $ | 15,759 | $ | (2,066 | ) | $ | 20 | $ | 13,713 | ||||||||
Foreign currency translation adjustment | 1,219 | — | — | 1,219 | |||||||||||||
Pension liability adjustments | — | (914 | ) | — | (914 | ) | |||||||||||
Net unrealized holding gain on securities | — | — | 7 | 7 | |||||||||||||
Net current-period other comprehensive income | 1,219 | (914 | ) | 7 | 312 | ||||||||||||
Accumulated other comprehensive income at April 30, 2014 | $ | 16,978 | $ | (2,980 | ) | $ | 27 | $ | 14,025 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Apr. 30, 2014 | |||||||||||||||||
Summarized Financial Information of Continuing Operations by Operating Segment and Corporate-Level Activity | ' | ||||||||||||||||
Summarized financial information of the Company’s continuing operations by operating segment is as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
April 30, | April 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net revenue: | |||||||||||||||||
Americas | $ | 74,429 | $ | 64,496 | $ | 229,791 | $ | 196,137 | |||||||||
Asia | 41,387 | 48,133 | 134,307 | 164,864 | |||||||||||||
Europe | 48,423 | 51,952 | 165,790 | 188,700 | |||||||||||||
All Other | 9,035 | 8,435 | 28,812 | 23,802 | |||||||||||||
$ | 173,274 | $ | 173,016 | $ | 558,700 | $ | 573,503 | ||||||||||
Operating income (loss): | |||||||||||||||||
Americas | $ | 2,736 | $ | 679 | $ | 8,304 | $ | (1,820 | ) | ||||||||
Asia | 2,342 | 3,614 | 14,001 | 16,379 | |||||||||||||
Europe | (4,439 | ) | (5,868 | ) | (8,934 | ) | (13,579 | ) | |||||||||
All Other | (411 | ) | 301 | 98 | (256 | ) | |||||||||||
Total Segment operating income (loss) | 228 | (1,274 | ) | 13,469 | 724 | ||||||||||||
Corporate-level activity | (5,366 | ) | (5,486 | ) | (14,751 | ) | (23,281 | ) | |||||||||
Total operating loss | (5,138 | ) | (6,760 | ) | (1,282 | ) | (22,557 | ) | |||||||||
Total other expense | (3,640 | ) | (677 | ) | (3,871 | ) | (4,510 | ) | |||||||||
Loss from continuing operations before income taxes | $ | (8,778 | ) | $ | (7,437 | ) | $ | (5,153 | ) | $ | (27,067 | ) | |||||
Total Assets of Continuing Operations | ' | ||||||||||||||||
April 30, | July 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Total assets: | |||||||||||||||||
Americas | $ | 71,579 | $ | 65,790 | |||||||||||||
Asia | 80,381 | 93,547 | |||||||||||||||
Europe | 96,969 | 97,524 | |||||||||||||||
All Other | 14,767 | 17,369 | |||||||||||||||
Sub-total - segment assets | 263,696 | 274,230 | |||||||||||||||
Corporate | 165,290 | 69,466 | |||||||||||||||
$ | 428,986 | $ | 343,696 | ||||||||||||||
Nature_of_Operations_Additiona
Nature of Operations - Additional Information (Detail) (Minimum) | Apr. 30, 2014 |
Location | |
Minimum | ' |
Nature Of Operations [Line Items] | ' |
Number of sites | 25 |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Apr. 30, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials | $47,153 | $46,920 |
Work-in-process | 821 | 1,256 |
Finished goods | 14,301 | 13,146 |
Inventories, net | $62,275 | $61,322 |
Investments_in_Affiliates_Addi
Investments in Affiliates - Additional information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | Jul. 31, 2013 | |
Investment In Unconsolidated Affiliates [Line Items] | ' | ' | ' | ' | ' |
Investments in privately held companies | $200,000 | $200,000 | $584,000 | $1,637,000 | ' |
Carrying value of investment | 7,000,000 | ' | 7,000,000 | ' | 7,970,000 |
Impairment charges | 1,243,000 | ' | 1,420,000 | 1,500,000 | ' |
Investment distribution income | ' | $200,000 | ' | $200,000 | ' |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | Apr. 30, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill [Line Items] | ' | ' |
Goodwill | $3,058 | $3,058 |
e-Business reporting unit | ' | ' |
Goodwill [Line Items] | ' | ' |
Goodwill | $3,100 | $3,100 |
Components_of_Other_Current_Li
Components of Other Current Liabilities (Detail) (USD $) | Apr. 30, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Current Liabilities [Line Items] | ' | ' |
Accrued pricing liabilities | $20,015 | $20,854 |
Other | 5,473 | 6,011 |
Other current liabilities | $25,488 | $26,865 |
Other_Current_Liabilities_Addi
Other Current Liabilities - Additional Information (Detail) (USD $) | Apr. 30, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities [Line Items] | ' | ' |
Accrued pricing liabilities | $20,015 | $20,854 |
Restructuring_Net_Additional_I
Restructuring, Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | |
Employee | Employee | Employee | Employee | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charge | $3,468,000 | $2,565,000 | $5,440,000 | $8,833,000 |
Number of workforce reduction | 55 | 75 | 139 | 277 |
e-Business reporting unit | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charge related to workforce reduction | 300,000 | 100,000 | ' | 800,000 |
Americas | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charge related to workforce reduction | 300,000 | 300,000 | 900,000 | 1,300,000 |
Asia | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charge related to workforce reduction | 300,000 | ' | 700,000 | 2,000,000 |
Europe | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring charge related to workforce reduction | $2,600,000 | $2,500,000 | $3,600,000 | $4,700,000 |
Summary_of_Restructuring_Accru
Summary of Restructuring Accrual by Expense Category and by Reportable Segment (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Apr. 30, 2014 |
Restructuring Cost and Reserve [Line Items] | ' |
Accrued restructuring, beginning balance | $5,164 |
Restructuring charges | 5,456 |
Restructuring adjustments | -16 |
Cash paid | -7,900 |
Non-cash adjustments | 69 |
Accrued restructuring, ending balance | 2,773 |
Employee Related Expenses | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Accrued restructuring, beginning balance | 3,974 |
Restructuring charges | 5,162 |
Restructuring adjustments | -3 |
Cash paid | -7,214 |
Non-cash adjustments | 52 |
Accrued restructuring, ending balance | 1,971 |
Contract Termination | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Accrued restructuring, beginning balance | 1,190 |
Restructuring charges | 294 |
Restructuring adjustments | -13 |
Cash paid | -686 |
Non-cash adjustments | 17 |
Accrued restructuring, ending balance | 802 |
Americas | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Accrued restructuring, beginning balance | 382 |
Restructuring charges | 918 |
Restructuring adjustments | -53 |
Cash paid | -714 |
Non-cash adjustments | -81 |
Accrued restructuring, ending balance | 452 |
Asia | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Accrued restructuring, beginning balance | 520 |
Restructuring charges | 718 |
Restructuring adjustments | -12 |
Cash paid | -1,020 |
Non-cash adjustments | -17 |
Accrued restructuring, ending balance | 189 |
Europe | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Accrued restructuring, beginning balance | 4,256 |
Restructuring charges | 3,512 |
Restructuring adjustments | 57 |
Cash paid | -6,050 |
Non-cash adjustments | 161 |
Accrued restructuring, ending balance | 1,936 |
All Other | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Accrued restructuring, beginning balance | 6 |
Restructuring charges | 308 |
Restructuring adjustments | -8 |
Cash paid | -116 |
Non-cash adjustments | 6 |
Accrued restructuring, ending balance | $196 |
Net_Restructuring_Charges_Deta
Net Restructuring Charges (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring, net | $3,468 | $2,565 | $5,440 | $8,833 |
Cost of revenue | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring, net | 2,207 | 2,358 | 3,580 | 6,656 |
Selling, general and administrative | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring, net | $1,261 | $207 | $1,860 | $2,177 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Apr. 30, 2014 | Oct. 31, 2012 | Apr. 30, 2014 | Jul. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Mar. 18, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | |
Secured Revolving Credit Facility | Secured Revolving Credit Facility | Secured Revolving Credit Facility | Secured Revolving Credit Facility | Secured Revolving Credit Facility | Federal | State | Foreign | 5.25% Convertible Senior Notes due 2019 | 5.25% Convertible Senior Notes due 2019 | 5.25% Convertible Senior Notes due 2019 | 5.25% Convertible Senior Notes due 2019 | ||
London Interbank Offered Rate (LIBOR) | Base Rate | D | Noncurrent Assets | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument issued | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $100,000,000 | $1,000 | $1,000 | ' |
Debt instrument, stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.25% | ' | ' | ' |
Net operating loss carry forward | ' | ' | ' | ' | ' | ' | 2,000,000,000 | 450,900,000 | 60,100,000 | ' | ' | ' | ' |
Debt instrument convertible conversion shares per 1000 principal amount of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 166.2593 | 166.2593 | ' |
Initial Conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.01 | $6.01 | ' |
Debt instrument, redemption price percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' |
Debt instrument, convertible, earliest date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6-Mar-17 | ' |
Debt instrument, convertible, threshold percentage of stock price trigger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130.00% | ' |
Debt instrument, convertible, threshold trading days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' |
Debt instrument conversion option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,100,000 | ' |
Debt instrument issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | 2,500,000 |
Debt instrument, carrying amount | 72,320,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,300,000 | 72,300,000 | ' |
Convertible debt, remaining discount amortization period | '58 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,149,000 | ' | ' |
Debt instrument, interest rate, effective percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.30% | 14.30% | ' |
Line of credit facility, initial aggregate principal amount | ' | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, calculated borrowing base | ' | ' | ' | $29,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility expiry date | ' | 31-Oct-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, percentage points added to the reference rate | ' | ' | ' | ' | 2.50% | 1.50% | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, covenant description | ' | ' | 'The Credit Facility includes one restrictive financial covenant, which is minimum EBITDA, and restrictions that limit the ability of the Company, to among other things, create liens, incur additional indebtedness, make investments, or dispose of assets or property without prior approval from the lenders. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance_Costs_Allocated_to_Eq
Issuance Costs Allocated to Equity Component (Detail) (USD $) | Apr. 30, 2014 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | ' |
Carrying amount of equity component (net of allocated debt issuance costs) | $27,148 |
Principal amount of Notes | 100,000 |
Unamortized debt discount | -27,680 |
Net carrying amount | $72,320 |
Summary_of_Interest_Expense_Re
Summary of Interest Expense Related to Convertible Notes (Detail) (5.25% Convertible Senior Notes due 2019, USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Apr. 30, 2014 |
Non Cash Convertible Debt Related Expense [Line Items] | ' |
Debt instrument, interest expense | $1,149 |
Coupon interest rate | ' |
Non Cash Convertible Debt Related Expense [Line Items] | ' |
Debt instrument, interest expense | 680 |
Accretion of debt discount | ' |
Non Cash Convertible Debt Related Expense [Line Items] | ' |
Debt instrument, interest expense | 418 |
Amortization of debt issue cost | ' |
Non Cash Convertible Debt Related Expense [Line Items] | ' |
Debt instrument, interest expense | $51 |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) | 12 Months Ended |
Jul. 31, 2012 | |
LegalMatter | |
Contingencies And Commitments [Line Items] | ' |
Number of purported class actions filed following the announcement | 3 |
Components_of_Other_Gains_Loss
Components of Other Gains (Losses), Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' | ' |
Foreign currency exchange gain (losses) | ($537) | ($289) | ($707) | ($2,349) |
Gain (loss) on disposal of assets | ' | 39 | 467 | -23 |
Other, net | 30 | -167 | -76 | -343 |
Other losses, net | ($507) | ($417) | ($316) | ($2,715) |
Other_Gains_Losses_Net_Additio
Other Gains (Losses), Net - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' | ' |
Foreign currency exchange gain (losses) | ($537,000) | ($289,000) | ($707,000) | ($2,349,000) |
Americas | Gain Loss On Foreign Currency Transactions | ' | ' | ' | ' |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' | ' |
Realized and unrealized gains (losses) from foreign currency exposures and settled transactions | 200,000 | -600,000 | 100,000 | 900,000 |
Europe | Gain Loss On Foreign Currency Transactions | ' | ' | ' | ' |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' | ' |
Realized and unrealized gains (losses) from foreign currency exposures and settled transactions | -500,000 | 800,000 | -300,000 | -1,600,000 |
Asia | Gain Loss On Foreign Currency Transactions | ' | ' | ' | ' |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' | ' |
Realized and unrealized gains (losses) from foreign currency exposures and settled transactions | ($200,000) | ($500,000) | ($500,000) | ($1,600,000) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Apr. 30, 2014 | Jul. 31, 2013 |
Income Taxes [Line Items] | ' | ' |
Unrecognized tax benefits related to federal, state and foreign taxes | $1.10 | $1 |
Income tax positions penalties accrued | 0 | ' |
Expected any unrecognized tax benefits to reverse in the next twelve months | $0 | ' |
Stockholder owning ownership on corporation's securities percentage | 5.00% | ' |
Stockholder owning ownership on corporation's securities rolling period | '3 years | ' |
Tax Benefit Preservation Plan, adoption date | '2011-10-17 | ' |
Any person acquiring shares of the Company's securities holding percentage as amended by Tax Plan which protects Tax Benefits | 4.99% | ' |
UNITED STATES | Federal | ' | ' |
Income Taxes [Line Items] | ' | ' |
Tax examinations tax period | 'Tax years ended July 31, 2009 through July 31, 2013 | ' |
Europe | Foreign | ' | ' |
Income Taxes [Line Items] | ' | ' |
Tax examinations tax period | '2006 through 2013 tax years | ' |
Asia | Foreign | ' | ' |
Income Taxes [Line Items] | ' | ' |
Tax examinations tax period | '2002 through 2013 tax years | ' |
Reconciliation_of_Earnings_Los
Reconciliation of Earnings (Loss) Per Share (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ' | ' | ' | ' |
Loss from continuing operations | ($9,478) | ($8,247) | ($7,877) | ($30,495) |
Income (loss) from discontinued operations | ' | -59 | 80 | -1,019 |
Net loss | ($9,478) | ($8,306) | ($7,797) | ($31,514) |
Weighted average common shares outstanding | 51,498 | 47,968 | 51,502 | 45,046 |
Weighted average common equivalent shares arising from dilutive stock options and restrictive stock | ' | ' | ' | ' |
Weighted average number of common and potential common shares | 51,498 | 47,968 | 51,502 | 45,046 |
Basic and diluted net income (loss) per common share from: | ' | ' | ' | ' |
Continuing operations | ($0.18) | ($0.17) | ($0.15) | ($0.68) |
Discontinued operations | ' | ' | ' | ($0.02) |
Basic and diluted net loss per common share | ($0.18) | ($0.17) | ($0.15) | ($0.70) |
Earnings_Loss_Per_Share_Additi
Earnings (Loss) Per Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Computation Of Earnings Per Share Line Items | ' | ' | ' | ' |
Common stock equivalent shares excluded from the denominator in the calculation of diluted earnings per share | 8,556 | 209 | 2,785 | 373 |
Common_Stock_Equivalents_Exclu
Common Stock Equivalents Excluded from Diluted Earnings Per Share Calculation (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Common stock equivalent shares excluded from the denominator in the calculation of diluted earnings per share | 8,556 | 209 | 2,785 | 373 |
Stock Option | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Common stock equivalent shares excluded from the denominator in the calculation of diluted earnings per share | 225 | ' | 20 | ' |
Non-vested restricted stock | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Common stock equivalent shares excluded from the denominator in the calculation of diluted earnings per share | 111 | 209 | 85 | 373 |
Shares issuable upon debt conversion | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Common stock equivalent shares excluded from the denominator in the calculation of diluted earnings per share | 8,220 | ' | 2,680 | ' |
Summary_of_ShareBased_Compensa
Summary of Share-Based Compensation Expense Related to Employee Stock Options, Employee Stock Purchases and Non-Vested Shares (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $513 | $925 | $1,663 | $1,841 |
Cost of revenue | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 110 | 74 | 343 | 185 |
Selling, general and administrative | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $403 | $851 | $1,320 | $1,656 |
ShareBased_Payments_Additional
Share-Based Payments - Additional Information (Detail) (USD $) | Apr. 30, 2014 |
In Millions, unless otherwise specified | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized compensation cost related to nonvested shares | $3.90 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Items (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated other comprehensive income at beginning of period | ' | ' | $13,713 | ' |
Foreign currency translation adjustment | 1,277 | -918 | 1,219 | 4,098 |
Pension liability adjustments | -1,164 | ' | -914 | ' |
Net unrealized holding gain on securities | 11 | 36 | 7 | 35 |
Net current-period other comprehensive income | 124 | -882 | 312 | 4,133 |
Accumulated other comprehensive income at end of period | 14,025 | ' | 14,025 | ' |
Foreign currency items | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated other comprehensive income at beginning of period | ' | ' | 15,759 | ' |
Foreign currency translation adjustment | ' | ' | 1,219 | ' |
Net current-period other comprehensive income | ' | ' | 1,219 | ' |
Accumulated other comprehensive income at end of period | 16,978 | ' | 16,978 | ' |
Pension items | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated other comprehensive income at beginning of period | ' | ' | -2,066 | ' |
Pension liability adjustments | ' | ' | -914 | ' |
Net current-period other comprehensive income | ' | ' | -914 | ' |
Accumulated other comprehensive income at end of period | -2,980 | ' | -2,980 | ' |
Unrealized gains (losses) on securities | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Accumulated other comprehensive income at beginning of period | ' | ' | 20 | ' |
Net unrealized holding gain on securities | ' | ' | 7 | ' |
Net current-period other comprehensive income | ' | ' | 7 | ' |
Accumulated other comprehensive income at end of period | $27 | ' | $27 | ' |
Comprehensive_Income_Loss_Addi
Comprehensive Income (Loss) - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Apr. 30, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Defined benefit pension plan, tax | $0.30 |
Discontinued_Operations_and_Di1
Discontinued Operations and Divestitures - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jan. 11, 2013 | Apr. 30, 2014 | Jul. 31, 2013 |
Discontinued Operations [Line Items] | ' | ' | ' |
Consideration received from the sale of assets | $1.60 | ' | ' |
Gross amount of assets sold | 1.9 | ' | ' |
Amount received from the sale of assets | 1.4 | ' | ' |
Amount of consideration to be received upon settlement of post closing adjustments | 0.2 | ' | ' |
Proceeds from escrow amount | ' | ' | 0.1 |
Reduction in gain on the sale of assets | ' | ' | 0.1 |
Gain on disposition of asset | 0.7 | ' | 0.6 |
Transition support agreement, period | '90 days | ' | ' |
Lease termination fee | ' | $0.40 | ' |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 9 Months Ended | ||||||
Apr. 30, 2014 | Apr. 30, 2014 | Jul. 31, 2013 | Apr. 30, 2014 | Jul. 31, 2013 | Apr. 30, 2014 | Jul. 31, 2013 | |
Segment | Americas | Americas | Asia | Asia | Europe | Europe | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | 5 | ' | ' | ' | ' | ' | ' |
Number of reportable segments | 3 | ' | ' | ' | ' | ' | ' |
Percentage of long-lived assets located | ' | 54.00% | 58.00% | 19.00% | 18.00% | 27.00% | 24.00% |
Summarized_Financial_Informati
Summarized Financial Information of Continuing Operations by Operating Segment and Corporate-Level Activity (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | $173,274 | $173,016 | $558,700 | $573,503 |
Operating income (loss) | -5,138 | -6,760 | -1,282 | -22,557 |
Other income (expense), net | -3,640 | -677 | -3,871 | -4,510 |
Loss from continuing operations before income taxes | -8,778 | -7,437 | -5,153 | -27,067 |
Operating Segments | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income (loss) | 228 | -1,274 | 13,469 | 724 |
Operating Segments | Americas | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 74,429 | 64,496 | 229,791 | 196,137 |
Operating income (loss) | 2,736 | 679 | 8,304 | -1,820 |
Operating Segments | Asia | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 41,387 | 48,133 | 134,307 | 164,864 |
Operating income (loss) | 2,342 | 3,614 | 14,001 | 16,379 |
Operating Segments | Europe | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 48,423 | 51,952 | 165,790 | 188,700 |
Operating income (loss) | -4,439 | -5,868 | -8,934 | -13,579 |
Operating Segments | All Other | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 9,035 | 8,435 | 28,812 | 23,802 |
Operating income (loss) | -411 | 301 | 98 | -256 |
Corporate-level activity | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating income (loss) | ($5,366) | ($5,486) | ($14,751) | ($23,281) |
Total_Assets_of_Continuing_Ope
Total Assets of Continuing Operations (Detail) (USD $) | Apr. 30, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Total assets | $428,986 | $343,696 |
Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | 263,696 | 274,230 |
Operating Segments | Americas | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | 71,579 | 65,790 |
Operating Segments | Asia | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | 80,381 | 93,547 |
Operating Segments | Europe | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | 96,969 | 97,524 |
Operating Segments | All Other | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | 14,767 | 17,369 |
Corporate-level activity | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | $165,290 | $69,466 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2013 | |
Subsequent Event [Line Items] | ' | ' | ' | ' |
Annual net revenue | $173,274,000 | $173,016,000 | $558,700,000 | $573,503,000 |
Annual operating income | -5,138,000 | -6,760,000 | -1,282,000 | -22,557,000 |
Contract Termination | Major client in the computing market | Minimum | ' | ' | ' | ' |
Subsequent Event [Line Items] | ' | ' | ' | ' |
Annual net revenue | ' | ' | 150,000,000 | ' |
Annual operating income | ' | ' | 2,500,000 | ' |
Expected working capital | 20,000,000 | ' | 20,000,000 | ' |
Contract Termination | Major client in the computing market | Maximum | ' | ' | ' | ' |
Subsequent Event [Line Items] | ' | ' | ' | ' |
Annual net revenue | ' | ' | 160,000,000 | ' |
Annual operating income | ' | ' | 3,500,000 | ' |
Expected working capital | $25,000,000 | ' | $25,000,000 | ' |