Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jul. 31, 2014 | Sep. 30, 2014 | Jan. 31, 2014 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Jul-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'MLNK | ' | ' |
Entity Registrant Name | 'MODUSLINK GLOBAL SOLUTIONS INC | ' | ' |
Entity Central Index Key | '0000914712 | ' | ' |
Current Fiscal Year End Date | '--07-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 52,111,136 | ' |
Entity Public Float | ' | ' | $164,750,189 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $183,515 | $77,916 |
Trading securities | 22,793 | ' |
Accounts receivable, trade, net of allowance for doubtful accounts of $63 and $64 at July 31, 2014 and July 31, 2013, respectively | 123,948 | 142,098 |
Inventories | 65,269 | 61,322 |
Prepaid expenses and other current assets | 10,243 | 9,750 |
Total current assets | 405,768 | 291,086 |
Property and equipment, net | 25,126 | 34,290 |
Investments in affiliates | 7,172 | 7,970 |
Goodwill | 3,058 | 3,058 |
Other intangible assets, net | 667 | 1,764 |
Other assets | 9,855 | 5,528 |
Total assets | 451,646 | 343,696 |
Current liabilities: | ' | ' |
Accounts payable | 105,045 | 110,148 |
Accrued restructuring | 2,246 | 4,670 |
Accrued expenses | 39,544 | 34,748 |
Other current liabilities | 51,759 | 26,865 |
Total current liabilities | 198,594 | 176,431 |
Long-term portion of accrued restructuring | 39 | 494 |
Notes payable | 73,391 | ' |
Other long-term liabilities | 8,004 | 9,866 |
Long-term liabilities | 81,434 | 10,360 |
Total liabilities | 280,028 | 186,791 |
Commitments and contingencies (Notes 8 and 10) | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value per share. Authorized 5,000,000 shares; zero issued or outstanding shares at July 31, 2014 and July 31, 2013 | 0 | 0 |
Common stock, $0.01 par value per share. Authorized 1,400,000,000 shares; 52,100,763 issued and outstanding shares at July 31, 2014; 51,575,893 issued and outstanding shares at July 31, 2013 | 521 | 516 |
Additional paid-in capital | 7,450,541 | 7,419,806 |
Accumulated deficit | -7,293,412 | -7,277,130 |
Accumulated other comprehensive income | 13,968 | 13,713 |
Total stockholders' equity | 171,618 | 156,905 |
Total liabilities and stockholders' equity | $451,646 | $343,696 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, trade, allowance for doubtful accounts | $63 | $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 | 52,100,763 | 51,575,893 |
Common stock, shares outstanding | 52,100,763 | 51,575,893 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Net revenue | $723,400 | $754,504 | $713,947 |
Cost of revenue | 648,675 | 680,134 | 645,388 |
Gross profit | 74,725 | 74,370 | 68,559 |
Operating expenses | ' | ' | ' |
Selling, general and administrative | 72,020 | 86,972 | 94,737 |
Amortization of intangible assets | 1,097 | 1,133 | 1,139 |
Impairment of long-lived assets | 500 | ' | 1,128 |
Restructuring, net | 6,557 | 14,497 | 6,416 |
Total operating expenses | 80,174 | 102,602 | 103,420 |
Operating loss | -5,449 | -28,232 | -34,861 |
Other income (expense): | ' | ' | ' |
Interest income | 382 | 300 | 380 |
Interest expense | -5,009 | -612 | -373 |
Other gains (losses), net | -50 | -2,642 | 14,390 |
Impairment of investments in affiliates | -1,420 | -2,750 | -2,864 |
Total other income (expense) | -6,097 | -5,704 | 11,533 |
Loss from continuing operations before income taxes | -11,546 | -33,936 | -23,328 |
Income tax expense | 4,682 | 3,779 | 3,035 |
Equity in losses of affiliates, net of tax | 134 | 1,615 | 1,245 |
Income (loss) from continuing operations | -16,362 | -39,330 | -27,608 |
Discontinued operations, net of income taxes: | ' | ' | ' |
Income (loss) from discontinued operations | 80 | -1,025 | -10,500 |
Net loss | ($16,282) | ($40,355) | ($38,108) |
Net loss per share-basic and diluted: | ' | ' | ' |
Loss from continuing operations | ($0.32) | ($0.84) | ($0.63) |
Loss from discontinued operations | $0 | ($0.02) | ($0.24) |
Net loss | ($0.32) | ($0.86) | ($0.87) |
Weighted average common shares outstanding-basic and diluted | 51,582 | 46,654 | 43,565 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Net Loss | ($16,282) | ($40,355) | ($38,108) |
Other comprehensive income: | ' | ' | ' |
Foreign currency translation adjustment | 74 | 3,057 | -10,650 |
Pension liability adjustments, net of tax | 166 | -831 | -3,545 |
Net unrealized holding gain on securities, net of tax | 15 | 46 | ' |
Total adjustments | 255 | 2,272 | -14,195 |
Comprehensive loss | ($16,027) | ($38,083) | ($52,303) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income |
In Thousands, except Share data | |||||
Balance at Jul. 31, 2011 | $214,542 | $438 | $7,387,135 | ($7,198,667) | $25,636 |
Balance, shares at Jul. 31, 2011 | ' | 43,829,097 | ' | ' | ' |
Net Loss | -38,108 | ' | ' | -38,108 | ' |
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises, shares | ' | 45,977 | ' | ' | ' |
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises | 91 | ' | 91 | ' | ' |
Restricted stock grants, shares | ' | 217,359 | ' | ' | ' |
Restricted stock grants | ' | 2 | -2 | ' | ' |
Restricted stock forfeitures, shares | ' | -165,811 | ' | ' | ' |
Restricted stock forfeitures | -188 | -1 | -187 | ' | ' |
Share-based compensation | 2,990 | ' | 2,990 | ' | ' |
Other comprehensive items | -14,195 | ' | ' | ' | -14,195 |
Balance at Jul. 31, 2012 | 165,132 | 439 | 7,390,027 | -7,236,775 | 11,441 |
Balance, shares at Jul. 31, 2012 | ' | 43,926,622 | ' | ' | ' |
Net Loss | -40,355 | ' | ' | -40,355 | ' |
Issuance of common stock to Steel Partners Holdings, L.P., shares | ' | 7,500,000 | ' | ' | ' |
Issuance of common stock to Steel Partners Holdings, L.P., net of transaction costs of $2.3 million | 27,675 | 75 | 27,600 | ' | ' |
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises, shares | ' | 11,986 | ' | ' | ' |
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises | 31 | ' | 31 | ' | ' |
Restricted stock grants, shares | ' | 278,220 | ' | ' | ' |
Restricted stock grants | ' | 3 | -3 | ' | ' |
Restricted stock forfeitures, shares | ' | -140,935 | ' | ' | ' |
Restricted stock forfeitures | -158 | -1 | -157 | ' | ' |
Share-based compensation | 2,308 | ' | 2,308 | ' | ' |
Other comprehensive items | 2,272 | ' | ' | ' | 2,272 |
Balance at Jul. 31, 2013 | 156,905 | 516 | 7,419,806 | -7,277,130 | 13,713 |
Balance, shares at Jul. 31, 2013 | 51,575,893 | 51,575,893 | ' | ' | ' |
Net Loss | -16,282 | ' | ' | -16,282 | ' |
Equity portion of convertible senior notes | 27,163 | ' | 27,163 | ' | ' |
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises, shares | ' | 354,711 | ' | ' | ' |
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises | 1,368 | 3 | 1,365 | ' | ' |
Restricted stock grants, shares | ' | 184,130 | ' | ' | ' |
Restricted stock grants | ' | 2 | -2 | ' | ' |
Restricted stock forfeitures, shares | ' | -13,971 | ' | ' | ' |
Restricted stock forfeitures | -45 | ' | -45 | ' | ' |
Share-based compensation | 2,254 | ' | 2,254 | ' | ' |
Other comprehensive items | 255 | ' | ' | ' | 255 |
Balance at Jul. 31, 2014 | $171,618 | $521 | $7,450,541 | ($7,293,412) | $13,968 |
Balance, shares at Jul. 31, 2014 | 52,100,763 | 52,100,763 | ' | ' | ' |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jul. 31, 2013 |
Issuance of common stock to Steel Partners Holdings, L.P., transaction costs | $2.30 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Cash flows from operating activities of continuing operations: | ' | ' | ' |
Net Loss | ($16,282) | ($40,355) | ($38,108) |
Income (loss) from discontinued operations | 80 | -1,025 | -10,500 |
Loss from continuing operations | -16,362 | -39,330 | -27,608 |
Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities of continuing operations: | ' | ' | ' |
Depreciation | 13,179 | 14,118 | 13,920 |
Amortization of intangible assets | 1,097 | 1,133 | 1,139 |
Amortization of deferred financing costs | 1,255 | 353 | ' |
Accretion of debt discount | 1,489 | ' | ' |
Impairment of long-lived assets | 500 | ' | 1,128 |
Share-based compensation | 2,254 | 2,308 | 2,990 |
Non-operating losses, net | 50 | 2,642 | -14,390 |
Equity in losses of affiliates and impairments | 1,554 | 4,365 | 4,109 |
Changes in operating assets and liabilities: | ' | ' | ' |
Trade accounts receivable, net | 17,698 | 8,583 | -9,783 |
Inventories | -4,403 | 22,434 | -18,084 |
Prepaid expenses and other current assets | -511 | 2,356 | -2,328 |
Accounts payable, accrued restructuring and accrued expenses | -2,513 | -5,851 | 8,800 |
Refundable and accrued income taxes, net | -311 | -3,652 | -5,766 |
Other assets and liabilities | -4,837 | -1,478 | 7,560 |
Net cash provided by (used in) operating activities of continuing operations | 10,139 | 7,981 | -38,313 |
Cash flows from investing activities of continuing operations: | ' | ' | ' |
Additions to property and equipment | -4,489 | -7,296 | -11,118 |
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 | 24 |
Purchase of trading securities | -395 | ' | ' |
Investments in affiliates | -756 | -1,712 | -2,912 |
Net cash used in investing activities of continuing operations | -5,640 | -7,436 | -14,006 |
Cash flows from financing activities of continuing operations: | ' | ' | ' |
Payment of deferred financing costs | -628 | -1,416 | ' |
Repayments on capital lease obligations | -130 | -60 | -124 |
Proceeds from revolving line of credit | 5,127 | ' | 10,000 |
Repayments of revolving line of credit | -674 | ' | -10,000 |
Proceeds from issuance of common stock | 1,368 | ' | 91 |
Proceeds from issuance of convertible notes, net of transaction costs of $3,430 | 96,570 | ' | ' |
Repurchase of common stock | ' | -158 | -188 |
Net cash provided by (used in) financing activities of continuing operations | 101,633 | 26,041 | -221 |
Cash flows from discontinued operations: | ' | ' | ' |
Operating cash flows | -324 | -1,645 | -1,126 |
Investing cash flows | ' | ' | -446 |
Net cash used in discontinued operations | -324 | -1,645 | -1,572 |
Net effect of exchange rate changes on cash and cash equivalents | -209 | 606 | -4,744 |
Net increase (decrease) in cash and cash equivalents | 105,599 | 25,547 | -58,856 |
Cash and cash equivalents at beginning of period | 77,916 | 52,369 | 111,225 |
Cash and cash equivalents at end of period | 183,515 | 77,916 | 52,369 |
Steel Partners Holdings, L.P. | ' | ' | ' |
Cash flows from financing activities of continuing operations: | ' | ' | ' |
Proceeds from issuance of common stock | ' | $27,675 | ' |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 |
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 | 12 Months Ended |
Jul. 31, 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”), is a leader in global supply chain business process management serving clients in markets such as consumer electronics, communications, computing, medical devices, software, and retail. The Company designs and executes critical elements in its clients’ global supply chains to improve speed to market, product customization, flexibility, cost, quality and service. These benefits are delivered through a combination of industry expertise, innovative service solutions, integrated operations, proven business processes, expansive global footprint and world-class technology. | |
The Company has an integrated network of strategically located facilities in various countries, including numerous sites throughout North America, Europe and Asia. The Company previously operated under the names CMGI, Inc. and CMG Information Services, Inc. and was incorporated in Delaware in 1986. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
The accompanying consolidated financial statements reflect the application of certain significant accounting policies described below. | |||||||||||||
Principles of Consolidation | |||||||||||||
The accompanying consolidated financial statements of the Company include the results of its wholly-owned and majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The Company accounts for investments in businesses in which it owns between 20% and 50% of the voting interest using the equity method, if the Company has the ability to exercise significant influence over the investee company. All other investments over which the Company does not have the ability to exercise significant influence, or for which there is not a readily determinable market value, are accounted for under the cost method of accounting. | |||||||||||||
Reclassification | |||||||||||||
Certain reclassifications have been made to prior periods to conform with current reporting. On the Statements of Operations the Equity in losses of affiliates are classified after the Loss from continuing operations before income taxes. | |||||||||||||
Use of Estimates | |||||||||||||
The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis the Company evaluates its estimates including those related to revenue recognition, allowance for doubtful accounts, inventories, fair value of its trading and available-for-sale securities, intangible assets, income taxes, restructuring, valuation of long-lived assets, impairments, contingencies, restructuring charges, litigation and the fair value of stock options and share bonus awards granted under the Company’s stock based compensation plans. Accounting estimates are based on historical experience and various assumptions that are considered reasonable under the circumstances. However, because these estimates inherently involve judgments and uncertainties, actual results could differ materially from those estimated. | |||||||||||||
Revenue Recognition | |||||||||||||
The Company’s revenue primarily comes from the sale of supply chain management services to our clients. Amounts billed to clients under these arrangements include revenue attributable to the services performed as well as for materials procured on our clients’ behalf as part of our service to them. Other sources of revenue include the sale of products and other services. Revenue is recognized for services when the services are performed and for product sales when the products are shipped or in certain cases when products are built and title had transferred, if the client has also contracted with us for warehousing and/or logistics services for a separate fee, assuming all other applicable revenue recognition criteria are met. | |||||||||||||
The Company recognizes revenue in accordance with the provisions of the Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition” (“ASC Topic 605”). Specifically, the Company recognizes revenue when persuasive evidence of an arrangement exists, title and risk of loss have passed or services have been rendered, the sales price is fixed or determinable and collection of the related receivable is reasonably assured. The Company’s shipping terms vary by client and can include FOB shipping point, which means that risk of loss passes to the client when it is shipped from the Company’s location, as well as other terms such as ex-works, meaning that title and risk of loss transfer upon delivery of product to the customer’s designated carrier. The Company also evaluates the terms of each major client contract relative to a number of criteria that management considers in making its determination with respect to gross versus net reporting of revenue for transactions with its clients. Management’s criteria for making these judgments place particular emphasis on determining the primary obligor in a transaction and which party bears general inventory risk. The Company records all shipping and handling fees billed to clients as revenue, and related costs as cost of sales, when incurred. | |||||||||||||
The Company applies the provisions of ASC Topic 985, “Software” (“ASC Topic 985”), with respect to certain transactions involving the sale of software products by our e-Business operations. | |||||||||||||
The Company also follows the guidance of ASC Topic 605 for determining whether an arrangement involving more than one deliverable contains more than one unit of accounting and how the arrangement consideration should be measured and allocated to the separate units of accounting. Under this guidance, when vendor specific objective evidence or third party evidence for deliverables in an arrangement cannot be determined, a best estimate of the selling price is required to separate deliverables and allocate arrangement consideration using the relative selling price method. For those contracts which contain multiple deliverables, management must first determine whether each service, or deliverable, meets the separation criteria. In general, a deliverable (or a group of deliverables) meets the separation criteria if the deliverable has standalone value to the client. Each deliverable that meets the separation criteria is considered a “separate unit of accounting.” Management allocates the total arrangement consideration to each separate unit of accounting based on the relative selling price of each separate unit of accounting. After the arrangement consideration has been allocated to each separate unit of accounting, management applies the appropriate revenue recognition method for each separate unit of accounting as described previously based on the nature of the arrangement. In general, revenue is recognized upon completion of the last deliverable. All deliverables that do not meet the separation criteria are combined into one unit of accounting and the appropriate revenue recognition method is applied. | |||||||||||||
Foreign Currency Translation | |||||||||||||
All assets and liabilities of the Company’s foreign subsidiaries, whose functional currency is the local currency, are translated to U.S. dollars at the rates in effect at the balance sheet date. All amounts in the Consolidated Statements of Operations are translated using the average exchange rates in effect during the year. Resulting translation adjustments are reflected in the accumulated other comprehensive income (loss) component of stockholders’ equity. Settlement of receivables and payables in a foreign currency that is not the functional currency result in foreign currency transaction gains and losses. Foreign currency transaction gains and losses are included in “Other gains (losses), net” in the Consolidated Statements of Operations. | |||||||||||||
Cash, Cash Equivalents and Short-term Investments | |||||||||||||
The Company considers all highly liquid investments with original maturities of 90 days or less at the time of purchase to be cash equivalents. Investments with maturities greater than 90 days to twelve months at the time of purchase are considered short-term investments. Cash and cash equivalents consisted of the following: | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Cash and bank deposits | $ | 32,889 | $ | 77,916 | |||||||||
Money market funds | 150,626 | — | |||||||||||
$ | 183,515 | $ | 77,916 | ||||||||||
Fair Value of Financial Instruments | |||||||||||||
The carrying value of cash and cash equivalents, accounts receivable, accounts payable, current liabilities and the revolving line of credit approximate fair value because of the short maturity of these instruments. The carrying value of capital lease obligations approximates fair value, as estimated by using discounted future cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The fair values of the Company’s Trading Securities are estimated using quoted market prices. The fair value of our Notes payable is $93.8 million, which represents the value at which our lenders could trade our debt with in the financial markets, and does not represent the settlement value of these long-term debt liabilities to us. The fair value of the Notes payable could vary each period based on fluctuations in market interest rates, as well as changes to our credit ratings. The Notes payable are traded and their fair values are based upon traded prices as of the reporting dates. | |||||||||||||
The defined benefit plans have 100% of their assets invested in bank-managed portfolios of debt securities and other assets. Conservation of capital with some conservative growth potential is the strategy for the plans. The Company’s pension plans are outside the United States, where asset allocation decisions are typically made by an independent board of trustees. Investment objectives are aligned to generate returns that will enable the plans to meet their future obligations. The Company acts in a consulting and governance role in reviewing investment strategy and providing a recommended list of investment managers for each plan, with final decisions on asset allocation and investment manager made by local trustees. | |||||||||||||
ASC Topic 820 provides that fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. ASC Topic 820 requires the Company to use valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: | |||||||||||||
Level 1: | Observable inputs such as quoted prices for identical assets or liabilities in active markets | ||||||||||||
Level 2: | Other inputs that are observable directly or indirectly, such as quoted prices for similar assets or liabilities or market-corroborated inputs | ||||||||||||
Level 3: | Unobservable inputs for which there is little or no market data and which require the Company to develop its own assumptions about how market participants would price the assets or liabilities | ||||||||||||
Investments | |||||||||||||
Marketable securities held by the Company which meet the criteria for classification as trading securities or available-for-sale are carried at fair value. Gains and losses on securities classified as trading are reflected in other income (expense) in the Company’s Consolidated Statements of Operations. Unrealized holding gains and losses on securities classified as available-for-sale are carried net of income taxes, when applicable, as a component of accumulated other comprehensive income (loss) in the Consolidated Statements of Stockholders’ Equity. | |||||||||||||
The Company maintains interests in several privately held companies primarily through its various venture capital funds. The Company’s venture capital investment portfolio, @Ventures, invests in early-stage technology companies. These investments are generally made in connection with a round of financing with other third-party investors. 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 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. The Company’s share of net income or losses of the investee are reflected in “Equity in losses of affiliates, net of tax” in the Company’s Consolidated Statements of Operations. | |||||||||||||
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 equity investment’s net realizable value is less than its carrying cost requires a significant amount of judgment. This valuation process is based primarily on information that the Company obtains from these privately held companies who are not subject to the same disclosure and audit requirements as the reports required of U.S. public companies. As such, the timeliness and completeness of the data may vary. Based on the Company’s evaluation, it recorded impairment charges related to its investments in privately held companies of approximately $1.4 million, $2.8 million, and $2.9 million for the fiscal years ended July 31, 2014, 2013 and 2012, respectively. These impairment losses are reflected in “Impairment of investments in affiliates” in the Company’s Consolidated Statements of Operations. | |||||||||||||
At the time an equity method investee issues its stock to unrelated parties, the Company accounts for that share issuance as if the Company has sold a proportionate share of its investment. The Company records any gain or loss resulting from an equity method investee’s share issuance in its Consolidated Statements of Operations. | |||||||||||||
Inventory | |||||||||||||
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 typically procures on behalf of its clients that are included in inventory include materials such as compact discs, printed materials, manuals, labels, hardware accessories, hard disk drives, consumer packaging, shipping boxes and labels, power cords and cables for client-owned electronic devices. | |||||||||||||
Inventories consisted of the following: | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Raw materials | $ | 51,179 | $ | 46,920 | |||||||||
Work-in-process | 910 | 1,256 | |||||||||||
Finished goods | 13,180 | 13,146 | |||||||||||
$ | 65,269 | $ | 61,322 | ||||||||||
The Company continuously monitors inventory balances and records inventory provisions 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 demands. 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 and market conditions. 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 client requirements, additional inventory provisions 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. Accordingly, if inventory previously written down to its net realizable value is subsequently sold, gross profit margins would be favorably impacted. | |||||||||||||
Long-Lived Assets, Goodwill and Other Intangible Assets | |||||||||||||
The Company follows ASC Topic 360, “Property, Plant, and Equipment” (“ASC Topic 360”). Under ASC Topic 360, the Company tests certain long-lived assets or group of assets for recoverability whenever events or changes in circumstances indicate that the Company may not be able to recover the asset’s carrying amount. ASC Topic 360 defines impairment as the condition that exists when the carrying amount of a long-lived asset or group, including property and equipment and other definite-lived intangible assets, exceeds its fair value. The Company evaluates recoverability by determining whether the undiscounted cash flows expected to result from the use and eventual disposition of that asset or group cover the carrying value at the evaluation date. If the undiscounted cash flows are not sufficient to cover the carrying value, the Company measures an impairment loss as the excess of the carrying amount of the long-lived asset or group over its fair value. Management may use third party valuation experts to assist in its determination of fair value. | |||||||||||||
The Company is required to test goodwill for impairment annually or if a triggering event occurs in accordance with the provisions of ASC Topic 350, “Goodwill and Other” (“ASC Topic 350”). The Company’s policy is to perform its annual impairment testing for all reporting units, determined to be the Americas, Europe, Asia, e-Business, and ModusLink PTS operating segments, on July 31 of each fiscal year. | |||||||||||||
The Company’s valuation methodology for assessing impairment of long-lived assets, goodwill and other intangible assets requires management to make judgments and assumptions based on historical experience and on projections of future operating performance. Management may use third party valuation advisors to assist in its determination of the fair value of reporting units subject to impairment testing. The Company operates in highly competitive environments and projections of future operating results and cash flows may vary significantly from actual results. If our assumptions used in estimating our valuations of the Company’s reporting units for purposes of impairment testing differ materially from actual future results, the Company may record impairment charges in the future and our financial results may be materially adversely affected. | |||||||||||||
Restructuring Expenses | |||||||||||||
The Company follows the provisions of ASC Topic 420, “Exit or Disposal Cost Obligations”, which addresses financial accounting and reporting for costs associated with exit or disposal activities. The statement requires companies to recognize costs associated with exit or disposal activities when a liability has been incurred rather than at the date of a commitment to an exit or disposal plan. The Company records liabilities that primarily include estimated severance and other costs related to employee benefits and certain estimated costs related to equipment and facility lease obligations and other service contracts. These contractual obligations principally represent future obligations under non-cancelable real estate leases. Restructuring estimates relating to real estate leases involve consideration of a number of factors including: potential sublet rental rates, estimated vacancy period for the property, brokerage commissions and certain other costs. Estimates relating to potential sublet rates and expected vacancy periods are most likely to have a material impact on the Company’s results of operations in the event that actual amounts differ significantly from estimates. These estimates involve judgment and uncertainties, and the settlement of these liabilities could differ materially from recorded amounts. | |||||||||||||
Property and Equipment | |||||||||||||
Property, plant and equipment are stated at cost. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. Depreciation and amortization is provided on the straight-line basis over the estimated useful lives of the respective assets. The Company capitalizes certain computer software development costs when incurred in connection with developing or obtaining computer software for internal use. The estimated useful lives are as follows: | |||||||||||||
Buildings | 32 years | ||||||||||||
Machinery & equipment | 3 to 5 years | ||||||||||||
Furniture & fixtures | 5 to 7 years | ||||||||||||
Automobiles | 5 years | ||||||||||||
Software | 3 to 8 years | ||||||||||||
Leasehold improvements | Shorter of the remaining lease term or the estimated | ||||||||||||
useful life of the asset | |||||||||||||
Income Taxes | |||||||||||||
Income taxes are accounted for under the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”), using the asset and liability method whereby deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC Topic 740 also requires that the deferred tax assets be reduced by a valuation allowance, if based on the weight of available evidence, it is more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. This methodology is subjective and requires significant estimates and judgments in the determination of the recoverability of deferred tax assets and in the calculation of certain tax liabilities. | |||||||||||||
In accordance with ASC Topic 740, the Company applies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company’s financial statements. ASC Topic 740 prescribes a recognition threshold of more-likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. In accordance with the Company’s accounting policy, interest and penalties related to uncertain tax positions is included in the “income tax expense” line of the Consolidated Statements of Operations. See Note 14, “Income Taxes,” for additional information. | |||||||||||||
Earnings (Loss) Per Share | |||||||||||||
The following table reconciles earnings per share for the fiscal years ended July 31, 2014, 2013 and 2012. | |||||||||||||
Years Ended | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands, except per share data) | |||||||||||||
Loss from continuing operations | $ | (16,362 | ) | $ | (39,330 | ) | $ | (27,608 | ) | ||||
Income (loss) from discontinued operations | 80 | (1,025 | ) | (10,500 | ) | ||||||||
Net Loss | $ | (16,282 | ) | $ | (40,355 | ) | $ | (38,108 | ) | ||||
Weighted average common shares outstanding | 51,582 | 46,654 | 43,565 | ||||||||||
Weighted average common equivalent shares arising from dilutive stock options and restricted stock | — | — | — | ||||||||||
Weighted average number of common and potential common shares | 51,582 | 46,654 | 43,565 | ||||||||||
Basic and diluted net income (loss) per common share from: | |||||||||||||
Continuing operations | $ | (0.32 | ) | $ | (0.84 | ) | $ | (0.63 | ) | ||||
Discontinued operations | 0 | (0.02 | ) | (0.24 | ) | ||||||||
$ | (0.32 | ) | $ | (0.86 | ) | $ | (0.87 | ) | |||||
Approximately 3.0 million, 3.4 million, and 2.9 million common stock equivalent shares relating to the effects of outstanding stock options and restricted stock were excluded from the denominator in the calculation of diluted earnings per share for the fiscal years ended July 31, 2014, 2013, and 2012, respectively, as their effect would be anti-dilutive due to the fact that the Company recorded a net loss for those periods. Approximately 6.2 million common shares outstanding associated with the convertible Notes, using the if-converted method, were excluded from the denominator in the calculation of diluted earnings per share for the fiscal years ended July 31, 2014. | |||||||||||||
Share-Based Compensation Plans | |||||||||||||
The Company recognizes share-based compensation in accordance with the provisions of ASC Topic 718, “Compensation— Stock Compensation” (“ASC Topic 718”) which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options and employee stock purchases based on estimated fair values. | |||||||||||||
The Company estimates the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods. The Company estimates forfeitures at the time of grant and revises those estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||
The Company uses a binomial-lattice option-pricing model (“binomial-lattice model”) for valuation of share-based awards with time-based vesting. The Company believes that the binomial-lattice model is an accurate model for valuing employee stock options since it reflects the impact of stock price changes on option exercise behavior. For share-based awards based on market conditions, specifically, the Company’s stock price, the compensation cost and derived service periods are estimated using the Monte Carlo valuation method. The Company uses third party analyses to assist in developing the assumptions used in its binomial-lattice model and Monte Carlo valuations and the resulting fair value used to record compensation expense. The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. Any significant changes in these assumptions may materially affect the estimated fair value of the share-based award. | |||||||||||||
Major Clients and Concentration of Credit Risk | |||||||||||||
Sales to one client, Hewlett-Packard, accounted for approximately 29%, 29% and 31% of the Company’s consolidated net revenue for the fiscal years ended July 31, 2014, 2013, and 2012, respectively. Hewlett-Packard accounted for approximately 17% and 23% of the Company’s Net Accounts Receivable balance as of July 31, 2014 and 2013, respectively. To manage risk, the Company performs ongoing credit evaluations of its clients’ financial condition. The Company generally does not require collateral on accounts receivable. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable. | |||||||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk are cash, cash equivalents, available-for-sale securities and accounts receivable. The Company’s cash equivalent portfolio is diversified and consists primarily of short-term investment grade securities placed with high credit quality financial institutions. | |||||||||||||
Recent Accounting Pronouncements | |||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, “Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income,” which amends Accounting Standards Codification (“ASC”) 220, “Comprehensive Income.” The amended guidance requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. Additionally, entities are required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amended guidance does not change the current requirements for reporting net income or other comprehensive income. The amendment is effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2012. The adoption of this new guidance did not have a material impact on the Company’s financial statements as these updates have an impact on presentation only. | |||||||||||||
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 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 will 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 is evaluating the potential effects on the consolidated financial statements. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Accounts Receivable | ' | ||||||||||||
(3) ACCOUNTS RECEIVABLE | |||||||||||||
The Company’s unsecured accounts receivable are stated at original invoice amount less an estimate made for doubtful receivables based on a monthly review of all outstanding amounts. Management determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering each customer’s financial condition, credit history and current economic conditions. The Company writes off accounts receivable when management deems them uncollectible and records recoveries of accounts receivable previously written off when received. When accounts receivable are considered past due, the Company generally does not charge interest on past due balances. The allowance for doubtful accounts consisted of the following: | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year | $ | 64 | $ | 344 | $ | 473 | |||||||
Provisions charged to expense | 59 | 146 | 15 | ||||||||||
Accounts written off—continued operations | (60 | ) | (120 | ) | (144 | ) | |||||||
Accounts written off—discontinued operations | — | (222 | ) | — | |||||||||
Balance reclassified to discountinued operations | — | (84 | ) | — | |||||||||
$ | 63 | $ | 64 | $ | 344 | ||||||||
During the fourth quarter of fiscal 2013, as a part of its working capital management, the Company entered into a factoring agreement with a third party financial institution for the sale of certain accounts receivables without recourse. The activity under this agreement is accounted for as a sale of accounts receivable under ASC 860 “Transfers and Servicing”. This agreement relates exclusively to the accounts receivables of one of the Company’s significant clients. The amount sold varies each month based on the amount of underlying receivables and cash flow requirements of the Company. The factoring agreement is permitted under the Company’s Credit Facility agreement. | |||||||||||||
The total amount of accounts receivable factored was $27.3 million and $7.7 million for the years ended July 31, 2014 and 2013, respectively. The cost incurred on the sale of these receivables was $14 thousand and $6 thousand for the years ended July 31, 2014 and 2013, respectively. The cost of selling these receivable is dependent upon the number of days between the sale date of the receivable and the date the client’s invoice is due and the interest rate. The interest rate associated with the sale of these receivables is equal to LIBOR plus 0.85%. The expense associated with the sale of these receivables is recorded as a component of selling, general and administrative expense in the accompanying consolidated statements of operations. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Jul. 31, 2014 | |||||||||
Property and Equipment | ' | ||||||||
(4) PROPERTY AND EQUIPMENT | |||||||||
Property and equipment at cost, consists of the following: | |||||||||
July 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Buildings | $ | 31,430 | $ | 21,020 | |||||
Machinery and equipment | 45,910 | 17,012 | |||||||
Leasehold improvements | 17,026 | 18,327 | |||||||
Software | 42,554 | 43,905 | |||||||
Other | 33,789 | 4,473 | |||||||
170,709 | 104,737 | ||||||||
Less: Accumulated depreciation and amortization | (145,583 | ) | (70,447 | ) | |||||
Property and equipment, net | $ | 25,126 | $ | 34,290 | |||||
Assets under capital leases which are included in the amounts above are summarized as follows: | |||||||||
July 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Machinery and equipment | $ | 383 | $ | 343 | |||||
Other | 259 | 178 | |||||||
642 | 521 | ||||||||
Less: Accumulated depreciation and amortization | (451 | ) | (455 | ) | |||||
$ | 191 | $ | 66 | ||||||
The Company recorded depreciation expense of $13.2 million, $14.1 million and $13.9 million for the fiscal years ended July 31, 2014, 2013, and 2012, respectively. Depreciation expense within the Americas, Asia, Europe, and All Other was $3.4 million, $4.8 million, $4.2 million, and $0.8 million, respectively, for fiscal year 2014, $4.0 million, $4.8 million, $4.6 million, and $0.7 million, respectively, for fiscal year 2013, $4.3 million, $4.4 million, $4.5 million, and $0.8 million, respectively, for fiscal year 2012. Amortization of assets recorded under capital leases is included in the depreciation expense amounts. | |||||||||
During the second quarter of fiscal year 2014, the Company determined that the carrying value of its Kildare facility in the Europe region was not fully recoverable from future cash flows. The Company recorded an impairment charge of $0.5 million to adjust the carrying value to its estimated fair value. This charge is reflected in “impairment of long-lived assets” in the Consolidated Statements of Operations for the fiscal year ended July 31, 2014. |
Investments
Investments | 12 Months Ended |
Jul. 31, 2014 | |
Investments | ' |
(5) INVESTMENTS | |
Trading securities | |
Near the end of the quarter ended July 31, 2014, the Company acquired $12.9 million in 4.0625% convertible debentures of a publicly traded entity. At this time the Company is uncertain to the holding period of these securities, therefore these securities are classified at trading. These securities offer higher yields than currently being achieved in money market securities or other equivalent investments. As of July 31, 2014, the trades associates with these securities had not settled and, as such, the payment associated with the acquisition of these securities had not been made. The liability associated with this payment is classified under other current liabilities on our balance sheet. Near the end of the quarter ended July 31, 2014 the Company acquired $9.9 million in common stock of a publicly traded entity. As of July 31, 2014, most of the trades associated with these securities had not settled and, as such, $9.4 million of the payment associated with the acquisition of these securities had not been made. The liability associated with this payment is classified under other current liabilities on our balance sheet. Unrealized gains and losses associated with these securities were immaterial for the fiscal year ended July 31, 2014. | |
Subsequent to July 31, 2014 the Company continued its investing activities and acquired additional 4.0625% convertible debentures of a publicly traded entity and acquired additional common stock of a publicly traded entity. As of the date of the filing of this Form 10-K the Company had acquired 4.0625% convertible debentures for a cost basis of $34.0 million and common stock at a cost basis of $35.5 million. | |
@Ventures | |
The Company maintains interests in several privately held companies primarily through its interests in two venture capital funds which invest as “@Ventures.” The Company invests in early stage technology companies. These investments are generally made in connection with a round of financing with other third-party investors. | |
During the fiscal years ended July 31, 2014, 2013 and 2012, $0.8 million, $1.7 million and $2.9 million, respectively, was invested by @Ventures in privately held companies. At July 31, 2014 and 2013, the Company’s carrying value of investments in privately held companies was $7.2 million and $8.0 million, respectively. During the fiscal years ended July 31, 2014, 2013, and 2012, the Company recorded $1.4 million, $2.8 million and $2.9 million, respectively, of impairment charges related to certain investments in the @Ventures portfolio of companies. During the fiscal year ended July 31, 2014, @Ventures did not receive any distributions from its investments. During the fiscal years ended July 31, 2013, @Ventures received distributions of approximately $0.2 million. During the fiscal year ended July 31, 2012, @Ventures did not receive any distributions from its investments. | |
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 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, net of tax” in the Company’s Consolidated Statements of Operations. For the fiscal years ended July 31, 2014, 2013, and 2012, the Company recorded its proportionate share of the affiliates’ losses of $0.1 million, $1.6 million and $1.2 million, respectively. | |
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 and is not subject to the same disclosure and audit requirements as the reports required of U.S. public companies. As such, the reliability and the accuracy of the data may vary. | |
During the year ended July 31, 2014, the Company became aware in various quarters that there may be indicators of impairment for a certain investment in the @Ventures portfolio of companies. The Company completed evaluations for impairment in connection with the preparation of the financial statements for those periods and determined that the investment was impaired. As a result, the Company recorded impairment charges of $1.4 million during the year ended July 31, 2014. | |
During the year ended July 31, 2013, the Company became aware in various quarters that there may be indicators of impairment for a certain investment in the @Ventures portfolio of companies. The Company completed evaluations for impairment in connection with the preparation of the financial statements for those periods and determined that the investment was impaired. As a result, the Company recorded impairment charges of $2.8 million during the year ended July 31, 2013. | |
During the year ended July 31, 2012, the Company became aware that there may be indicators of impairment for a certain investment in the @Ventures portfolio of companies. The Company completed its evaluation for impairment in connection with the preparation of the financial statements and determined that the investment was impaired. As a result, the Company recorded an impairment charge of approximately $2.9 million during the year ended July 31, 2012. | |
As of July 31, 2014, the Company, through @Ventures, held investments in four portfolio companies, although investments in these companies are individually nominal. From time to time, the Company may make new and follow-on venture capital investments and may from time to time receive distributions from investee companies. As of July 31, 2014, the Company is not committed to fund any follow-on investments in any of the @Ventures portfolio companies. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||||||||||
(6) GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||||||||||||||
The Company conducts its annual goodwill impairment test on July 31 of each fiscal year. In addition, if and when events or circumstances change that would more likely than not reduce the fair value of any of its reporting units below its carrying value, an interim test would be performed. In making this assessment, the Company relies on a number of factors including operating results, business plans, economic projections, anticipated future cash flows, transactions and marketplace data. The Company’s reporting units are the same as the operating segments: Americas, Asia, Europe, e-Business, and ModusLink PTS. As disclosed in Note 18, the Company disposed of its TFL operating segment during the second quarter of fiscal year 2013. Impairment charges related to TFL for all periods presented have been classified within discontinued operations within the accompanying consolidated statements of operations. | |||||||||||||||||||||||||||||||||
The Company’s remaining goodwill of $3.1 million as of July 31, 2014 and 2013, relates to the Company’s e-Business reporting unit. During the fourth quarter of fiscal year 2014, the Company completed its annual impairment analysis of goodwill. The Company concluded that its goodwill was not impaired as of July 31, 2014. | |||||||||||||||||||||||||||||||||
The estimated fair values of our reporting units for the goodwill impairment test were evaluated using an income approach by calculating the present value of estimated future cash flows. We believe the use of the income approach is appropriate due to lack of comparability to guideline companies and the lack of comparable transactions under the market approach. The income approach incorporates many assumptions including future growth rates, discount factors, expected capital expenditures and income tax cash flows. In developing an appropriate discount rate to apply in its estimated cash flow models the Company developed an estimate of its weighted-average cost of capital. | |||||||||||||||||||||||||||||||||
The changes in the carrying amount of goodwill allocated to the Company’s operating segments are as follows: | |||||||||||||||||||||||||||||||||
Americas | Asia | Europe | All | Consolidated | |||||||||||||||||||||||||||||
Other | Total | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Balance as of July 31, 2012 | |||||||||||||||||||||||||||||||||
Goodwill | $ | 94,477 | $ | 73,948 | $ | 30,108 | $ | 5,857 | $ | 204,390 | |||||||||||||||||||||||
Accumulated impairment charges | (94,477 | ) | (73,948 | ) | (30,108 | ) | (2,799 | ) | (201,332 | ) | |||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | 3,058 | $ | 3,058 | ||||||||||||||||||||||||
Balance as of July 31, 2013 | |||||||||||||||||||||||||||||||||
Goodwill | $ | 94,477 | $ | 73,948 | $ | 30,108 | $ | 5,857 | $ | 204,390 | |||||||||||||||||||||||
Accumulated impairment charges | (94,477 | ) | (73,948 | ) | (30,108 | ) | (2,799 | ) | (201,332 | ) | |||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | 3,058 | $ | 3,058 | ||||||||||||||||||||||||
Balance as of July 31, 2014 | |||||||||||||||||||||||||||||||||
Goodwill | $ | 94,477 | $ | 73,948 | $ | 30,108 | $ | 5,857 | $ | 204,390 | |||||||||||||||||||||||
Accumulated impairment charges | (94,477 | ) | (73,948 | ) | (30,108 | ) | (2,799 | ) | (201,332 | ) | |||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | 3,058 | $ | 3,058 | ||||||||||||||||||||||||
The components of intangible assets are as follows: | |||||||||||||||||||||||||||||||||
July 31, 2014 | July 31, 2013 | ||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Weighted | Gross | Accumulated | Net | Weighted | ||||||||||||||||||||||||||
Carrying | Amortization/ | Book | Average | Carrying | Amortization/ | Book | Average | ||||||||||||||||||||||||||
Amount | Impairment | Value | Amortization | Amount | Impairment | Value | Amortization | ||||||||||||||||||||||||||
Period | Period | ||||||||||||||||||||||||||||||||
Client Relationships | $ | 4,399 | $ | 4,002 | $ | 397 | 7 years | $ | 4,399 | $ | 3,374 | $ | 1,025 | 7 years | |||||||||||||||||||
Developed Technology | 5,092 | 4,859 | 233 | 3 to 7 years | 5,092 | 4,475 | 617 | 3 to 7 years | |||||||||||||||||||||||||
Trade Names | 1,515 | 1,478 | 37 | 3 to 7 years | 1,515 | 1,393 | 122 | 3 to 7 years | |||||||||||||||||||||||||
Non-Competes | 83 | 83 | — | 1 to 5 years | 83 | 83 | — | 1 to 5 years | |||||||||||||||||||||||||
Total | $ | 11,089 | $ | 10,422 | $ | 667 | $ | 11,089 | $ | 9,325 | $ | 1,764 | |||||||||||||||||||||
Amortization expense for intangible assets for the fiscal years ended July 31, 2014, 2013, and 2012 totaled $1.1 million, $1.1 million and $1.1 million, respectively. | |||||||||||||||||||||||||||||||||
Estimated annual amortization expense for intangible assets in future periods, is as follows: | |||||||||||||||||||||||||||||||||
Fiscal Year | Amount | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
2015 | $ | 667 |
Restructuring
Restructuring | 12 Months Ended | ||||||||||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||||||||||
Restructuring | ' | ||||||||||||||||||||||||
(7) RESTRUCTURING | |||||||||||||||||||||||||
The following tables summarize the activity in the restructuring accrual for the fiscal years ended July 31, 2014, 2013, and 2012: | |||||||||||||||||||||||||
Employee | Contractual | Total | |||||||||||||||||||||||
Related | Obligations | ||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Accrued restructuring balance at July 31, 2011 | $ | 296 | $ | 1,168 | $ | 1,464 | |||||||||||||||||||
Restructuring charges | 5,274 | 1,442 | 6,716 | ||||||||||||||||||||||
Restructuring adjustments | (439 | ) | 139 | (300 | ) | ||||||||||||||||||||
Cash paid | (4,645 | ) | (1,759 | ) | (6,404 | ) | |||||||||||||||||||
Non-cash adjustments | (44 | ) | 108 | 64 | |||||||||||||||||||||
Restructuring charges, discontinued operations | 944 | 95 | 1,039 | ||||||||||||||||||||||
Cash paid, discontinued operations | (760 | ) | (95 | ) | (855 | ) | |||||||||||||||||||
Accrued restructuring balance at July 31, 2012 | 626 | 1,098 | 1,724 | ||||||||||||||||||||||
Restructuring charges | 13,638 | 1,112 | 14,750 | ||||||||||||||||||||||
Restructuring adjustments | (232 | ) | (21 | ) | (253 | ) | |||||||||||||||||||
Cash paid | (9,947 | ) | (999 | ) | (10,946 | ) | |||||||||||||||||||
Non-cash adjustments | 133 | — | 133 | ||||||||||||||||||||||
Restructuring charges, discontinued operations | 42 | 112 | 154 | ||||||||||||||||||||||
Cash paid, discontinued operations | (243 | ) | (97 | ) | (340 | ) | |||||||||||||||||||
Reclassification of restructuring charges of discontinued operations | (43 | ) | (15 | ) | (58 | ) | |||||||||||||||||||
Accrued restructuring balance at July 31, 2013 | 3,974 | 1,190 | 5,164 | ||||||||||||||||||||||
Restructuring charges | 6,111 | 294 | 6,405 | ||||||||||||||||||||||
Restructuring adjustments | 161 | (9 | ) | 152 | |||||||||||||||||||||
Cash paid | (8,640 | ) | (817 | ) | (9,457 | ) | |||||||||||||||||||
Non-cash adjustments | 81 | (60 | ) | 21 | |||||||||||||||||||||
Accrued restructuring balance at July 31, 2014 | $ | 1,687 | $ | 598 | $ | 2,285 | |||||||||||||||||||
It is expected that the payments of employee-related charges will be substantially completed during the fiscal year ending July 31, 2015. 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 contractual obligations will be substantially fulfilled by August 2015. | |||||||||||||||||||||||||
During the fiscal year ended July 31, 2014, the Company recorded a net restructuring charge of $6.6 million. Of this amount, $6.3 million primarily related to the workforce reduction of 181 employees across all operating segments, and $0.3 million related to contractual obligations. | |||||||||||||||||||||||||
During the fiscal year ended July 31, 2013, the Company recorded a net restructuring charge of $14.5 million. Of this amount, $13.4 million primarily related to the workforce reduction of 465 employees across all operating segments, and $1.1 million related to contractual obligations related to a facility closure in Hungary. | |||||||||||||||||||||||||
During the fiscal year ended July 31, 2012 the Company recorded a net restructuring charge of approximately $6.4 million. Of this amount, $4.8 million primarily related to the workforce reduction of 270 employees in the Americas, Asia, and Europe, $1.6 million related to contractual obligations related to facility closure at the Raleigh facility. These restructuring charges are net of $0.3 million in reductions to initial estimates for recorded employee-related expenses and facilities lease obligations primarily based on changes in underlying assumptions. | |||||||||||||||||||||||||
The net restructuring charges for the fiscal years ended July 31, 2014, 2013, and 2012 would have been allocated as follows had the Company recorded the expense and adjustments within the functional department of the restructured activities: | |||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||
July 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(In thousands ) | |||||||||||||||||||||||||
Cost of revenue | $ | 4,283 | $ | 10,625 | $ | 3,960 | |||||||||||||||||||
Selling, general and administrative | 2,274 | 3,872 | 2,456 | ||||||||||||||||||||||
$ | 6,557 | $ | 14,497 | $ | 6,416 | ||||||||||||||||||||
The following tables summarize the restructuring accrual by operating segment, the All Other category for the fiscal years ended July 31, 2014, 2013, and 2012: | |||||||||||||||||||||||||
Americas | Asia | Europe | All | Discontinued | Consolidated | ||||||||||||||||||||
Other | Operations | Total | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Accrued restructuring balance at July 31, 2011 | $ | 1,346 | $ | — | $ | 118 | $ | — | $ | — | $ | 1,464 | |||||||||||||
Restructuring charges | 1,706 | 702 | 3,766 | 542 | — | 6,716 | |||||||||||||||||||
Restructuring adjustments | (94 | ) | (56 | ) | (85 | ) | (65 | ) | — | (300 | ) | ||||||||||||||
Cash paid | (1,933 | ) | (647 | ) | (3,690 | ) | (134 | ) | — | (6,404 | ) | ||||||||||||||
Non-cash adjustments | 61 | 1 | (58 | ) | — | 60 | 64 | ||||||||||||||||||
Restructuring charges, discontinued operations | — | — | — | 1,039 | 1,039 | ||||||||||||||||||||
Cash paid, discontinued operations | — | — | — | — | (855 | ) | (855 | ) | |||||||||||||||||
Accrued restructuring balance at July 31, 2012 | 1,086 | — | 51 | 343 | 244 | 1,724 | |||||||||||||||||||
Restructuring charges | 1,614 | 2,516 | 9,610 | 1,010 | — | 14,750 | |||||||||||||||||||
Restructuring adjustments | (21 | ) | (89 | ) | 27 | (170 | ) | — | (253 | ) | |||||||||||||||
Cash paid | (2,284 | ) | (1,899 | ) | (5,517 | ) | (1,246 | ) | — | (10,946 | ) | ||||||||||||||
Non-cash adjustments | (13 | ) | (8 | ) | 85 | 69 | — | 133 | |||||||||||||||||
Restructuring charges, discontinued operations | — | — | — | — | 154 | 154 | |||||||||||||||||||
Cash paid, discontinued operations | — | — | — | — | (340 | ) | (340 | ) | |||||||||||||||||
Reclassification of restructuring charges of discontinued operations | — | — | — | — | (58 | ) | (58 | ) | |||||||||||||||||
Accrued restructuring balance at July 31, 2013 | 382 | 520 | 4,256 | 6 | — | 5,164 | |||||||||||||||||||
Restructuring charges | 918 | 944 | 4,235 | 308 | — | 6,405 | |||||||||||||||||||
Restructuring adjustments | (49 | ) | (11 | ) | 102 | 110 | — | 152 | |||||||||||||||||
Cash paid | (975 | ) | (1,161 | ) | (6,957 | ) | (364 | ) | — | (9,457 | ) | ||||||||||||||
Non-cash adjustments | (81 | ) | (18 | ) | 114 | 6 | — | 21 | |||||||||||||||||
Accrued restructuring balance at July 31, 2014 | $ | 195 | $ | 274 | $ | 1,750 | $ | 66 | $ | — | $ | 2,285 | |||||||||||||
Other_Current_Liabilities
Other Current Liabilities | 12 Months Ended | ||||||||
Jul. 31, 2014 | |||||||||
Other Current Liabilities | ' | ||||||||
(8) OTHER CURRENT LIABILITIES | |||||||||
The following schedule reflects the components of “Other Current Liabilities”: | |||||||||
July 31, | July 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Accrued pricing liabilities | $ | 19,301 | $ | 20,854 | |||||
Unsettled trading securities liabilities | 22,430 | — | |||||||
Credit facility liability | 4,453 | — | |||||||
Other | 5,575 | 6,011 | |||||||
$ | 51,759 | $ | 26,865 | ||||||
As of July 31, 2014 and 2013, the Company had accrued pricing liabilities of approximately $19.3 million and $20.9 million. As previously reported by the Company, several principal 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 July 31, 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. |
Debt
Debt | 12 Months Ended | ||||
Jul. 31, 2014 | |||||
Debt | ' | ||||
(9) DEBT | |||||
Notes Payable | |||||
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. | |||||
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. If the Company has received stockholder approval, and it elects to settle conversions through the payment of cash or payment or delivery of a combination of cash and shares, the Company’s conversion obligation will be based on the volume weighted average prices (“VWAP”) of its common stock for each VWAP trading day in a 40 VWAP trading day observation period. 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 fiscal year ended July 31, 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. | |||||
The Company has 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 prior to the allocation of debt issuance costs. 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 the 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 components 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 July 31, 2014, the net carrying value of the Notes was $73.4 million. | |||||
July 31, | |||||
2014 | |||||
(In thousands) | |||||
Carrying amount of equity component (net of allocated debt issuance costs) | $ | 27,177 | |||
Principal amount of Notes | $ | 100,000 | |||
Unamortized debt discount | (26,609 | ) | |||
Net carrying amount | $ | 73,391 | |||
As of July 31, 2014, the remaining period over which the unamortized discount will be amortized is 55 months. | |||||
Year ended | |||||
31-Jul-14 | |||||
(In thousands) | |||||
Interest expense related to contractual interest coupon | $ | 1,940 | |||
Interest expense related to accretion of the discount | 1,489 | ||||
Interest expense related to debt issuance costs | 183 | ||||
$ | 3,612 | ||||
During the year ended July 31, 2014, we recognized interest expense of $3.6 million associated with the Notes. The effective interest rate on the Notes, including amortization of debt issuance costs and accretion of the discount, is 14.04%. The notes bear interest of 5.25%. | |||||
Wells Fargo Bank 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 July 31, 2014. | |||||
PNC Bank Credit Facility | |||||
On June 30, 2014, two direct and wholly owned subsidiaries of the Company (the “Borrowers”) entered into a revolving credit and security agreement (the “Credit Agreement”), as borrowers and guarantors, with PNC Bank and National Association, as lender and as agent, respectively. | |||||
The Credit Agreement which has a five (5) year term, includes a maximum credit commitment of $50.0 million, is available for letters of credit (with a sublimit of $5.0 million) and has a $20.0 million uncommitted accordion feature. The actual maximum credit available under the Credit Agreement varies from time to time and is determined by calculating the applicable borrowing base, which is based upon applicable percentages of the values of eligible accounts receivable and eligible inventory minus reserves determined by the Agent (including other reserves that the Agent may establish from time to time in its permitted discretion), all as specified in the Credit Agreement. Amounts borrowed under the Credit Agreement are due and payable, together with all unpaid interest, fees and other obligations, on June 30, 2019. | |||||
Generally, borrowings under the Credit Agreement bear interest at a rate per annum equal to, at the Borrowers’ option, either (a) LIBOR (adjusted to reflect any required bank reserves) for an interest period equal to one, two or three months (as selected by the Borrowers) plus a margin of 2.25% per annum or (b) a base rate determined by reference to the highest of (1) the base commercial lending rate publicly announced from time to time by PNC Bank, National Association, (2) the sum of the Federal Funds Open Rate in effect on such day plus one half of one percent (0.5%) per annum, or (3) the LIBOR rate (adjusted to reflect any required bank reserves) in effect on such day plus 1.00% per annum. In addition to paying interest on outstanding principal under the Credit Agreement, the Borrowers are required to pay a commitment fee, in respect of the unutilized commitments thereunder, of 0.25% per annum, paid quarterly in arrears. The Borrowers are also required to pay a customary letter of credit fee equal to the applicable margin on revolving credit LIBOR loans and fronting fees. | |||||
Obligations under the Credit Agreement are guaranteed by the Borrowers’ existing and future direct and indirect wholly-owned domestic subsidiaries, subject to certain limited exceptions; and the Credit Agreement is secured by security interests in substantially all the Borrowers’ assets and the assets of each subsidiary guarantor, whether owned as of the closing or thereafter acquired, including a pledge of 100.0% of the equity interests of each subsidiary guarantor that is a domestic entity (subject to certain limited exceptions) and 65.0% of the voting equity interests of any direct first tier foreign entity owned by either Borrower or by a subsidiary guarantor. The Company is not a borrower or a guarantor under the Credit Agreement. | |||||
The Credit Agreement contains certain customary negative covenants, which include limitations on mergers and acquisitions, the sale of assets, liens, guarantees, investments, loans, capital expenditures, dividends, indebtedness, changes in the nature of business, transactions with affiliates, the creation of subsidiaries, changes in fiscal year and accounting practices, changes to governing documents, compliance with certain statutes, and prepayments of certain indebtedness. The Credit Agreement also contains certain customary affirmative covenants (including periodic reporting obligations) and events of default, including upon a change of control. The Credit Agreement requires compliance with certain financial covenants providing for maintenance of specified liquidity, maintenance of a minimum fixed charge coverage ratio and/or maintenance of a maximum leverage ratio following the occurrence of certain events and/or prior to taking certain actions, all as more fully described in the Credit Agreement. The Company believes that the Credit Agreement provides greater financial flexibility to the Company and the Borrowers and may enhance their ability to consummate one or several larger and/or more attractive acquisitions and should provide our clients and/or potential clients with greater confidence in the Company’s and the Borrowers’ liquidity. During the fiscal year ended July 31, 2014, the Company did not meet the criteria that would cause its financial covenants to be effective. As of July 31, 2014, the Company had $4.5 million outstanding on the PNC Bank credit facility which is included in other current liabilities on the consolidated balance sheet. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||||
(10) COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||||||
The Company leases facilities and certain other machinery and equipment under various non-cancelable operating leases and executory contracts expiring through December 2021. Certain non-cancelable leases are classified as capital leases and the leased assets are included in property, plant and equipment, at cost. Future annual minimum payments, including restructuring related obligations as of July 31, 2014, are as follows: | |||||||||||||||||||||||||
Operating | Stadium | Capital | Purchase | Convertible | Total | ||||||||||||||||||||
Leases | Obligation | Lease | Obligations | Notes | |||||||||||||||||||||
Obligations | Interest & | ||||||||||||||||||||||||
Principal | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
For the fiscal years ended July 31: | |||||||||||||||||||||||||
2015 | 17,702 | 1,600 | 168 | 44,564 | 5,002 | 69,036 | |||||||||||||||||||
2016 | 13,297 | — | 167 | — | 5,250 | 18,714 | |||||||||||||||||||
2017 | 7,719 | — | 204 | — | 5,250 | 13,173 | |||||||||||||||||||
2018 | 4,947 | — | — | — | 5,250 | 10,197 | |||||||||||||||||||
2019 | 3,536 | — | — | — | 105,250 | 108,786 | |||||||||||||||||||
Thereafter | 7,514 | — | — | — | — | 7,514 | |||||||||||||||||||
54,715 | 1,600 | 539 | 44,564 | 126,002 | 227,420 | ||||||||||||||||||||
Total rent and equipment lease expense charged to continuing operations was $21.3 million, $25.2 million and $26.5 million for the fiscal years ended July 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||||||||||
In August 2000, the Company announced it had acquired the exclusive naming and sponsorship rights to the New England Patriots’ new stadium, for a period of fifteen years. In August 2002, the Company finalized an agreement with the owner of the stadium to amend the sponsorship agreement. Under the terms of the amended agreement, the Company relinquished the stadium naming rights and remains obligated for a series of annual payments of $1.6 million per year through 2015. The Company applied a discount rate to the future payment stream to reflect the present value of its obligation on the Consolidated Balance Sheets. | |||||||||||||||||||||||||
From time to time, the Company agrees to provide indemnification to its clients in the ordinary course of business. Typically, the Company agrees to indemnify its clients for losses caused by the Company. As of July 31, 2014, the Company had no recorded liabilities with respect to these arrangements. | |||||||||||||||||||||||||
Legal Proceedings | |||||||||||||||||||||||||
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. In October 2014, the parties agreed to a stipulation for a proposed $4 million class settlement to be covered by insurance proceeds, subject to Court approval. The settlement will be presented for preliminary approval at a hearing to be scheduled by the Court. |
Defined_Benefit_Pension_Plans
Defined Benefit Pension Plans | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Defined Benefit Pension Plans | ' | ||||||||||||
(11) DEFINED BENEFIT PENSION PLANS | |||||||||||||
The Company sponsors two defined benefit pension plans covering certain of its employees in its Netherlands facility, one defined benefit pension plan covering certain of its employees in its Taiwan facility and one unfunded defined benefit pension plan covering certain of its employees in Japan. Pension costs are actuarially determined. | |||||||||||||
The aggregate change in benefit obligation and plan assets related to these plans was as follows: | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Change in benefit obligation | |||||||||||||
Benefit obligation at beginning of year | $ | 20,095 | $ | 17,159 | |||||||||
Service cost | 521 | 644 | |||||||||||
Interest cost | 743 | 728 | |||||||||||
Actuarial (gain) loss | 5,291 | 2,564 | |||||||||||
Employee contributions | 182 | 296 | |||||||||||
Amendments | (187 | ) | — | ||||||||||
Benefits and administrative expenses paid | (445 | ) | (260 | ) | |||||||||
Adjustments | 310 | — | |||||||||||
Effect of curtailment | (371 | ) | (2,258 | ) | |||||||||
Currency translation | 187 | 1,222 | |||||||||||
Benefit obligation at end of year | 26,326 | 20,095 | |||||||||||
Change in plan assets | |||||||||||||
Fair value of plan assets at beginning of year | 16,498 | 14,151 | |||||||||||
Actual return on plan assets | 5,316 | 172 | |||||||||||
Employee contributions | 175 | 296 | |||||||||||
Employer contributions | 844 | 1,079 | |||||||||||
Benefits and administrative expenses paid | (445 | ) | (260 | ) | |||||||||
Currency translation | 155 | 1,060 | |||||||||||
Fair value of plan assets at end of year | 22,543 | 16,498 | |||||||||||
Funded status | |||||||||||||
Assets | — | — | |||||||||||
Current liability | — | (1 | ) | ||||||||||
Noncurrent liability | (3,783 | ) | (3,596 | ) | |||||||||
Net amount recognized in statement of financial position as a noncurrent asset (liability) | $ | (3,783 | ) | $ | (3,597 | ) | |||||||
The accumulated benefit obligation was approximately $22.5 million and $17.3 million at July 31, 2014, and 2013, respectively. | |||||||||||||
Information for pension plans with an accumulated benefit obligation in excess of plan assets was as follows: | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Projected benefit obligation | $ | 24,352 | $ | 18,664 | |||||||||
Accumulated benefit obligation | $ | 21,675 | $ | 16,454 | |||||||||
Fair value of plan assets | $ | 21,425 | $ | 15,423 | |||||||||
Components of net periodic pension cost were as follows: | |||||||||||||
Years Ended | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Service cost | $ | 521 | $ | 644 | $ | 368 | |||||||
Interest costs | 743 | 728 | 589 | ||||||||||
Expected return on plan assets | (577 | ) | (538 | ) | (473 | ) | |||||||
Amortization of net actuarial (gain) loss | 62 | 38 | (88 | ) | |||||||||
Curtailment gain | — | (504 | ) | — | |||||||||
Net periodic pension costs | $ | 749 | $ | 368 | $ | 396 | |||||||
The amount included in accumulated other comprehensive income expected to be recognized as a component of net periodic pension costs in fiscal year 2015 is approximately $0.1 million related to amortization of a net actuarial loss and prior service cost. | |||||||||||||
Assumptions: | |||||||||||||
Weighted-average assumptions used to determine benefit obligations was as follows: | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Discount rate | 2.95 | % | 3.61 | % | 3.95 | % | |||||||
Rate of compensation increase | 2.05 | % | 2.07 | % | 2.12 | % | |||||||
Weighted-average assumptions used to determine net periodic pension cost was as follows: | |||||||||||||
Years Ended July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Discount rate | 3.73 | % | 4.13 | % | 5.5 | % | |||||||
Expected long-term rate of return on plan assets | 3.54 | % | 3.43 | % | 3.34 | % | |||||||
Rate of compensation increase | 2.01 | % | 2.05 | % | 2 | % | |||||||
The discount rate reflects our best estimate of the interest rate at which pension benefits could be effectively settled as of the valuation date. It is based on the Mercer Yield Curve for the Eurozone as per July 31, 2015 for the appropriate duration of the plan. | |||||||||||||
To develop the expected long-term rate of return on assets assumptions consideration is given to the current level of expected returns on risk free investments, the historical level of risk premium associated with the other asset classes in which the portfolio is invested and the expectations for the future returns of each asset class. The expected return for each asset class was then weighted based on the target asset allocation to develop the expected long-term rate of return on assets assumption for the portfolio. | |||||||||||||
Benefit payments: | |||||||||||||
The following table summarizes expected benefit payments from the plans through fiscal year 2023. Actual benefit payments may differ from expected benefit payments. The minimum required contributions to the plan are expected to be approximately $0.9 million in fiscal year 2015. | |||||||||||||
Pension | |||||||||||||
Benefit | |||||||||||||
Payments | |||||||||||||
(in thousands) | |||||||||||||
For the fiscal years ended July 31: | |||||||||||||
2015 | 102 | ||||||||||||
2016 | 123 | ||||||||||||
2017 | 164 | ||||||||||||
2018 | 185 | ||||||||||||
2019 | 214 | ||||||||||||
Next 5 years | 1,588 | ||||||||||||
The current target allocations for plan assets are 100% for debt securities. The market value of plan assets using Level 2 inputs is approximately $22.5 million. | |||||||||||||
Valuation Technique: | |||||||||||||
Benefit obligations are computed using the projected unit credit method. Benefits are attributed to service based on the plan’s benefit formula. Cumulative gains and losses in excess of 10% of the greater of the pension benefit obligation or market-related value of plan assets are amortized over the expected average remaining future service of the current active membership. |
Other_Gains_Losses_Net
Other Gains (Losses), Net | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Other Gains (Losses), Net | ' | ||||||||||||
(12) OTHER GAINS (LOSSES), NET | |||||||||||||
The following schedule reflects the components of “Other gains (losses), net”: | |||||||||||||
Years Ended | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Derecognition of accrued pricing liabilities | $ | — | $ | — | $ | 11,811 | |||||||
Foreign currency exchange gain (losses) | (480 | ) | (2,050 | ) | 2,948 | ||||||||
Gain on disposal of assets | 475 | 97 | — | ||||||||||
Other, net | (45 | ) | (689 | ) | (369 | ) | |||||||
$ | (50 | ) | $ | (2,642 | ) | $ | 14,390 | ||||||
During the fiscal years ended July 31, 2012 the Company recorded gains from the derecognition of accrued pricing liabilities of $11.8 million (see Note (8)). The Company recorded foreign exchange gains (losses) of $0.5 million, $(2.1) million and $2.9 million during the fiscal year ended July 31, 2014, 2013, and 2012, respectively. These net gains and losses related primarily to realized and unrealized gains losses from foreign currency exposures and settled transactions in the Americas, Asia and Europe. |
ShareBased_Payments
Share-Based Payments | 12 Months Ended | ||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||
Share-Based Payments | ' | ||||||||||||||||
(13) SHARE-BASED PAYMENTS | |||||||||||||||||
Stock Option Plans | |||||||||||||||||
During the fiscal year ended July 31, 2014, the Company had outstanding awards for stock options under five plans: the 2010 Incentive Award Plan (the “2010 Plan”), the 2005 Non-Employee Director Plan (the “2005 Plan”), the 2004 Stock Incentive Plan (the “2004 Plan”), the 2002 Non-Officer Employee Stock Incentive Plan (the “2002 Plan”), and the 2000 Stock Incentive Plan (the “2000 Plan”). Options granted under the 2010 Plan, 2004 Plan, 2002 Plan and the 2000 Plan are generally exercisable as to 25% of the shares underlying the options beginning one year after the date of grant, with the option being exercisable as to the remaining shares in equal monthly installments over the next three years. The Company may also grant awards other than stock options under the 2010 Plan. | |||||||||||||||||
Options granted under the 2005 plan are exercisable in equal monthly installments over three years, and have a term of ten years. As of December 2010, no additional grants may be issued under this plan. Stock options granted under all other plans have contractual terms of seven years. | |||||||||||||||||
During the fiscal year ended July 31, 2013 the Company issued to certain officers options that vest based on market conditions, specifically, the performance of the Company’s stock (the “Market Options”). The Market Options have a seven-year term and vest and become exercisable as to 20% of the total number of shares subject to the Market Option on each of the first five anniversaries of the grant date, subject to a minimum average share price being achieved as of each such vesting date (the “Price Performance Threshold”), which shall be (i) 1.5 times the exercise price, (ii) 2 times the exercise price, (iii) 2.5 times the exercise price, (iv) 3 times the exercise price and (v) 3.5 times the exercise price, respectively. If the specified minimum average share price for the applicable anniversary date is not achieved, 20% of the total number of shares subject to the Market Option shall not vest and become exercisable but may vest on the subsequent anniversary date if the minimum average share price related to the earlier anniversary date is achieved or exceeded on the subsequent anniversary date. | |||||||||||||||||
During the fiscal year ended July 31, 2014 the Company granted to certain officers contingently issuable restricted stock awards that will only be granted to the extent that the Company achieves a certain Adjusted EBITDA metric as defined in the award plan (the “Performance Shares”). The Performance Shares have a seven-year term and, if awarded, vest and become exercisable as to 33.3% of the total number of shares subject to the Performance Shares on each of the first three anniversaries of the grant date. | |||||||||||||||||
Under the 2010 Plan, pursuant to which the Company may grant stock options, stock appreciation rights, restricted stock awards and other equity-based awards for the issuance of (i) 5,000,000 shares of common stock of the Company plus (ii) the number of shares subject to outstanding awards under the Company’s 2000 Plan, 2002 Plan and 2004 Plan (collectively, the “Prior Plans”) that expire or are forfeited following December 8, 2010, the effective date of the 2010 Plan. As of December 8, 2010, the Company ceased making any further awards under its Prior Plans. As of December 8, 2010, the effective date of the 2010 Plan, there were an additional 2,922,258 shares of Common Stock underlying equity awards issued under the Company’s Prior Plans. This amount represents the maximum number of additional shares that may be added to the 2010 Plan should these awards expire or be forfeited subsequent to December 8, 2010. Any awards that were outstanding under the Prior Plans as of the effective date continued to be subject to the terms and conditions of such Prior Plan. As of July 31, 2014, 3,743,904 shares were available for future issuance under the 2010 Plan. | |||||||||||||||||
Board of Directors administers all stock plans, approves the individuals to whom options will be granted, and determines the number of shares and exercise price of each option and may delegate this authority to a committee of the Board or to certain officers of the Company in accordance with SEC regulations and applicable Delaware law. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
The Company offers to its employees an Employee Stock Purchase Plan, (the “ESPP”) under which an aggregate of 600,000 shares of the Company’s stock may be issued. Employees who elect to participate in the ESPP instruct the Company to withhold a specified amount through payroll deductions during each quarterly period. On the last business day of each applicable quarterly payment period, the amount withheld is used to purchase the Company’s common stock at a purchase price equal to 85% of the lower of the market price on the first or last business day of the quarterly period. During the fiscal years ended July 31, 2014, 2013, and 2012, the Company issued approximately 18,000, 12,000 and 23,000, shares, respectively, under the ESPP. Approximately 192,000 shares are available for future issuance as of July 31, 2014. | |||||||||||||||||
Stock Option Valuation and Expense Information | |||||||||||||||||
The following table summarizes share-based compensation expense related to employee stock options, employee stock purchases and nonvested shares for the fiscal years ended July 31, 2014, 2013, and 2012: | |||||||||||||||||
Years Ended | |||||||||||||||||
July 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Cost of revenue | $ | 434 | $ | 263 | $ | 344 | |||||||||||
Selling, general and administrative | 1,820 | 2,045 | 2,646 | ||||||||||||||
$ | 2,254 | $ | 2,308 | $ | 2,990 | ||||||||||||
The Company estimates the fair value of stock option awards on the date of grant using a binomial-lattice model. The weighted-average grant date fair value of employee stock options granted during the fiscal years ended July 31, 2014, 2013, and 2012 was $1.89, $1.56 and $1.98, respectively, using the binomial-lattice model with the following weighted-average assumptions: | |||||||||||||||||
Years Ended July 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected volatility | 57.32 | % | 60.53 | % | 59.56 | % | |||||||||||
Risk-free interest rate | 1.16 | % | 0.78 | % | 0.84 | % | |||||||||||
Expected term (in years) | 4.41 | 4.6 | 4.66 | ||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
The volatility assumption for fiscal years 2014, 2013 and 2012 is based on the weighted-average of the historical volatility of the Company’s common shares for a period equal to the expected term of the stock option awards. | |||||||||||||||||
The weighted-average risk-free interest rate assumption is based upon the interpolation of various U.S. Treasury rates, as of the month of the grants. | |||||||||||||||||
The expected term of employee stock options represents the weighted-average period the stock options are expected to remain outstanding and is based on historical option activity. The determination of the expected term of employee stock options assumes that employees’ exercise behavior is comparable to historical option activity. The binomial-lattice model estimates the probability of exercise as a function of time based on the entire history of exercises and cancellations on all past option grants made by the Company. The expected term generated by these probabilities reflects actual and anticipated exercise behavior of options granted historically. | |||||||||||||||||
As share-based compensation expense recognized in the Consolidated Statements of Operations for the fiscal years ended July 31, 2014, 2013, and 2012 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. ASC Topic 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Forfeitures were estimated based on historical experience. | |||||||||||||||||
Stock Options | |||||||||||||||||
A summary of option activity for the fiscal year ended July 31, 2014 is as follows: | |||||||||||||||||
Number of | Weighted- | Weighted-Average | Aggregate | ||||||||||||||
Shares | Average | Remaining | Intrinsic | ||||||||||||||
Exercise | Contractual Term | Value | |||||||||||||||
Price | (Years ) | ||||||||||||||||
(in thousands, except exercise price and years) | |||||||||||||||||
Stock options outstanding, July 31, 2013 | 3,437 | $ | 5.28 | ||||||||||||||
Granted | 968 | 4.19 | |||||||||||||||
Exercised | (337 | ) | 3.42 | ||||||||||||||
Forfeited or expired | (1,124 | ) | 6.52 | ||||||||||||||
Stock options outstanding, July 31, 2014 | 2,944 | 4.66 | 5.21 | $ | 532 | ||||||||||||
Stock options exercisable, July 31, 2014 | 947 | $ | 6.55 | 3.83 | $ | 143 | |||||||||||
As of July 31, 2014, unrecognized share-based compensation related to stock options was approximately $2.3 million. This cost is expected to be expensed over a weighted average period of 2.8 years. The aggregate intrinsic value of options exercised during the fiscal year ended July 31, 2014 was $0.2 million. The aggregate intrinsic value of options exercised during the fiscal years ended July 31, 2013, and 2012 was immaterial. | |||||||||||||||||
As of July 31, 2014, there were 2.8 million stock options that were vested and expected to vest in the future with a weighted- average remaining contractual term of 5.17 years. The aggregate intrinsic value of these awards is $0.5 million. | |||||||||||||||||
Nonvested Stock | |||||||||||||||||
Nonvested stock consists of shares of common stock that are subject to restrictions on transfer and risk of forfeiture until the fulfillment of specified conditions. Nonvested stock is expensed ratably over the term of the restriction period, ranging from one to five years unless there are performance restrictions placed on the nonvested stock, in which case the nonvested stock is expensed using graded vesting. Nonvested stock compensation expense for the fiscal years ended July 31, 2014, 2013, and 2012 was $0.7 million, $1.1 million and $1.6 million, respectively. | |||||||||||||||||
A summary of the activity of our nonvested stock for the fiscal year ended July 31, 2014, is as follows: | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
(share amounts in thousands) | |||||||||||||||||
Nonvested stock outstanding, July 31, 2013 | 149 | $ | 3.94 | ||||||||||||||
Granted | 184 | 3.05 | |||||||||||||||
Vested | (85 | ) | 4.18 | ||||||||||||||
Forfeited | (9 | ) | 4.2 | ||||||||||||||
Nonvested stock outstanding, July 31, 2014 | 239 | $ | 3.16 | ||||||||||||||
The fair value of nonvested shares is determined based on the market price of the Company’s common stock on the grant date. The total grant date fair value of nonvested stock that vested during the fiscal years ended July 31, 2014, 2013, and 2012 was approximately $0.3 million, $2.2 million and $2.1 million, respectively. As of July 31, 2014, there was approximately $1.0 million of total unrecognized compensation cost related to nonvested stock to be recognized over a weighted-average period of 2.5 years. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
(14) INCOME TAXES | |||||||||||||||||||||||||
The components of loss from continuing operations before provision for income taxes are as follows: | |||||||||||||||||||||||||
Years Ended July 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes: | |||||||||||||||||||||||||
U.S. | $ | (21,437 | ) | $ | (41,257 | ) | $ | (26,794 | ) | ||||||||||||||||
Foreign | 9,891 | 7,321 | 3,466 | ||||||||||||||||||||||
Total loss from continuing operations before income taxes | $ | (11,546 | ) | $ | (33,936 | ) | $ | (23,328 | ) | ||||||||||||||||
The components of income tax expense have been recorded in the Company’s consolidated financial statements as follows: | |||||||||||||||||||||||||
Years Ended July 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Income tax expense from continuing operations | $ | 4,682 | $ | 3,779 | $ | 3,035 | |||||||||||||||||||
Total income tax expense | $ | 4,682 | $ | 3,779 | $ | 3,035 | |||||||||||||||||||
The components of income tax expense from continuing operations consist of the following: | |||||||||||||||||||||||||
July 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Current provision: | |||||||||||||||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||||||||||||||
State | — | — | — | ||||||||||||||||||||||
Foreign | 4,916 | 4,307 | 2,632 | ||||||||||||||||||||||
4,916 | 4,307 | 2,632 | |||||||||||||||||||||||
Deferred provision: | |||||||||||||||||||||||||
Federal | — | — | — | ||||||||||||||||||||||
State | — | — | — | ||||||||||||||||||||||
Foreign | (234 | ) | (528 | ) | 403 | ||||||||||||||||||||
(234 | ) | (528 | ) | 403 | |||||||||||||||||||||
Total tax provision | $ | 4,682 | $ | 3,779 | $ | 3,035 | |||||||||||||||||||
Deferred income tax assets and liabilities have been classified on the Consolidated Balance Sheets in accordance with the nature of the item giving rise to the temporary differences. As of July 31, 2014, the Company recorded a current deferred tax asset of $1.3 million, a non-current deferred tax asset of $2.9 million and a non-current deferred tax liability of $1.2 million in other current assets, other assets and Other long-term liabilities, respectively. As of July 31, 2013, the Company recorded a current deferred tax asset of $1.1 million, non-current deferred tax assets of $2.2 million and a non-current deferred tax liability of $0.4 million in other current assets, other assets and other long-term liabilities, respectively. The components of deferred tax assets and liabilities are as follows: | |||||||||||||||||||||||||
31-Jul-14 | 31-Jul-13 | ||||||||||||||||||||||||
Current | Non-current | Total | Current | Non-current | Total | ||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Accruals and reserves | 9,634 | 4,981 | 14,615 | 9,304 | 6,409 | 15,713 | |||||||||||||||||||
Tax basis in excess of financial basis for intangible and fixed assets | — | 17,251 | 17,251 | — | 15,413 | 15,413 | |||||||||||||||||||
Tax basis in excess of financial basis of investments in affiliates | — | 9,699 | 9,699 | — | 8,002 | 8,002 | |||||||||||||||||||
Net operating loss and capital loss carry forwards | — | 747,038 | 747,038 | — | 749,501 | 749,501 | |||||||||||||||||||
Total gross deferred tax assets | 9,634 | 778,969 | 788,603 | 9,304 | 779,325 | 788,629 | |||||||||||||||||||
Less: valuation allowance | (8,364 | ) | (749,961 | ) | (758,325 | ) | (8,159 | ) | (758,199 | ) | (766,358 | ) | |||||||||||||
Net deferred tax assets | 1,270 | 29,008 | 30,278 | 1,145 | 21,126 | 22,271 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Accruals and reserves | (31 | ) | — | (31 | ) | (39 | ) | — | (39 | ) | |||||||||||||||
Financial basis in excess of tax basis for intangible and fixed assets | — | (1,210 | ) | (1,210 | ) | — | (1,343 | ) | (1,343 | ) | |||||||||||||||
Convertible Debt | — | (11,302 | ) | (11,302 | ) | — | — | — | |||||||||||||||||
Undistributed accumulated earnings of foreign subsidiaries | — | (14,680 | ) | (14,680 | ) | — | (18,010 | ) | (18,010 | ) | |||||||||||||||
Total gross deferred tax liabilities | (31 | ) | (27,192 | ) | (27,223 | ) | (39 | ) | (19,353 | ) | (19,392 | ) | |||||||||||||
Net deferred tax asset (liability) | 1,239 | 1,816 | 3,055 | 1,106 | 1,773 | 2,879 | |||||||||||||||||||
Subsequently reported tax benefits relating to the valuation allowance for deferred tax assets as of July 31, 2014 will be allocated as follows (in thousands): | |||||||||||||||||||||||||
Income tax benefit recognized in the consolidated statement of operations | $ | (742,864 | ) | ||||||||||||||||||||||
Additional paid in capital | (15,461 | ) | |||||||||||||||||||||||
$ | (758,325 | ) | |||||||||||||||||||||||
The net change in the total valuation allowance for the fiscal year ended July 31, 2014 was a decrease of approximately $8.0 million. This decrease is primarily due to a decrease in the U.S. valuation allowance due to the utilization of net operating losses. A valuation allowance has been recorded against the gross deferred tax asset in the U.S and certain foreign subsidiaries since management believes that after considering all the available objective evidence, both positive and negative, historical and prospective, it is more likely than not that certain assets will not be realized. The net change in the total valuation allowance for the fiscal year ended July 31, 2013 was an increase of approximately $9.7 million. | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
Accordingly, 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 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 not included in the calculation of “ownership change” for purposes of Section 382 of the Code. | |||||||||||||||||||||||||
The Company has net operating loss carryforwards for federal and state tax purposes of approximately $2.0 billion and $459.7 million, respectively, at July 31, 2014. The federal net operating losses will expire from fiscal year 2021 through 2033 and the state net operating losses will expire from fiscal year 2014 through 2033. The Company has a foreign net operating loss carryforward of approximately $72.2 million, of which $54.7 million has an indefinite carryforward period. In addition, the Company has capital loss carryforwards for federal and state tax purposes of approximately $16.3 million and $16.3 million, respectively. The federal and state capital losses will expire in fiscal year 2015 and 2016, respectively. | |||||||||||||||||||||||||
The Company’s ModusLink Corporation subsidiary has undistributed earnings from its foreign subsidiaries of approximately $52.0 million at July 31, 2014, of which approximately $10.1 million is considered to be permanently reinvested due to certain restrictions under local laws as well as the Company’s plans to reinvest such earnings for future expansion in certain foreign jurisdictions. The amount of taxes attributable to the permanently undistributed earnings is estimated at $13.3 million. The Company has recorded a deferred tax liability of $14.7 million on the remaining $41.9 million of undistributed earnings that are not considered to be permanently reinvested. | |||||||||||||||||||||||||
Income tax expense attributable to income from continuing operations differs from the expense computed by applying the U.S. federal income tax rate of 35% to income (loss) from continuing operations before income taxes as a result of the following: | |||||||||||||||||||||||||
Years Ended July 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Computed “expected” income tax expense (benefit) | $ | (3,907 | ) | $ | (12,443 | ) | $ | (12,447 | ) | ||||||||||||||||
Increase (decrease) in income tax expense resulting from: | |||||||||||||||||||||||||
Losses not benefited | 3,282 | 13,413 | 11,112 | ||||||||||||||||||||||
Foreign dividends | 5,737 | 2,956 | 3,298 | ||||||||||||||||||||||
Foreign tax rate differential | (750 | ) | (316 | ) | 1,133 | ||||||||||||||||||||
Capitalized costs | (54 | ) | 100 | 179 | |||||||||||||||||||||
Nondeductible expenses | (49 | ) | 254 | 355 | |||||||||||||||||||||
Foreign withholding taxes | 423 | 218 | 542 | ||||||||||||||||||||||
Reversal of uncertain tax position reserves | — | (403 | ) | (1,137 | ) | ||||||||||||||||||||
Actual income tax expense | $ | 4,682 | $ | 3,779 | $ | 3,035 | |||||||||||||||||||
The calculation of the Company’s tax liabilities involves dealing with uncertainties in the application of complex tax regulations in several tax jurisdictions. The Company is periodically reviewed by domestic and foreign tax authorities regarding the amount of taxes due. These reviews include questions regarding the timing and amount of deductions and the allocation of income among various tax jurisdictions. In evaluating the exposure associated with various filing positions, we record estimated reserves when necessary. Based on our evaluation of current tax positions, the Company believes it has appropriately accrued for exposures. | |||||||||||||||||||||||||
The Company operates in multiple taxing jurisdictions, both within and outside of the United States. At July 31, 2014, 2013, and 2012, the total amount of the liability for unrecognized tax benefits, including interest, related to federal, state and foreign taxes was approximately $1.1 million, $1.0 million and $1.3 million, respectively. To the extent the unrecognized tax benefits are recognized, the entire amount would impact income tax expense. | |||||||||||||||||||||||||
The Company files income tax returns in the U.S., various states and in foreign jurisdictions. The federal and state income tax returns are generally subject to tax examinations for the tax years ended July 31, 2010 through July 31, 2014. 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. | |||||||||||||||||||||||||
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: | |||||||||||||||||||||||||
Years Ended July 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Balance as of beginning of year | $ | 1,015 | $ | 1,230 | $ | 2,273 | |||||||||||||||||||
Additions for current year tax positions | 13 | 79 | 73 | ||||||||||||||||||||||
Additions for prior year tax positions | — | — | 564 | ||||||||||||||||||||||
Currency translation | — | 33 | — | ||||||||||||||||||||||
Reductions for lapses in statute of limitations | — | (212 | ) | (1,680 | ) | ||||||||||||||||||||
Reductions of prior year tax positions | — | (115 | ) | — | |||||||||||||||||||||
Balance as of end of year | $ | 1,028 | $ | 1,015 | $ | 1,230 | |||||||||||||||||||
In accordance with the Company’s accounting policy, interest related to income taxes is included in the provision of income taxes line of the Consolidated Statements of Operations. For the fiscal year ended July 31, 2014, the Company has not recognized any material interest expense related to uncertain tax positions. As of July 31, 2014, 2013, and 2012, the Company had recorded liabilities for interest expense related to uncertain tax positions in the amount of $48,000, $10,000 and $78,000, respectively. 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 that any unrecognized tax benefits will reverse in the next twelve months. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||
(15) ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||
The components of accumulated other comprehensive income, net of income taxes, are as follows: | |||||||||||||||||
Foreign | Pension | Unrealized | Total | ||||||||||||||
currency | items | gains | |||||||||||||||
items | (losses) on | ||||||||||||||||
securities | |||||||||||||||||
(In thousands) | |||||||||||||||||
Accumulated other comprehensive income at July 31, 2013 | $ | 15,759 | $ | (2,066 | ) | $ | 20 | $ | 13,713 | ||||||||
Foreign currency translation adjustment | 74 | — | — | 74 | |||||||||||||
Net unrealized holding gain on securities, net of tax | — | — | 15 | 15 | |||||||||||||
Pension liability adjustments, net of tax | — | 166 | — | 166 | |||||||||||||
Net current-period other comprehensive income | 74 | 166 | 15 | 255 | |||||||||||||
Accumulated other comprehensive income at July 31, 2014 | $ | 15,833 | $ | (1,900 | ) | $ | 35 | $ | 13,968 | ||||||||
In each of the fiscal years ended July 31, 2014, 2013, and 2012, the Company recorded an immaterial amount in taxes related to other comprehensive income. |
Statement_of_Cash_Flows_Supple
Statement of Cash Flows Supplemental Information | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Statement of Cash Flows Supplemental Information | ' | ||||||||||||
(16) STATEMENT OF CASH FLOWS SUPPLEMENTAL INFORMATION | |||||||||||||
Cash used for operating activities reflect cash payments for interest and income taxes as follows: | |||||||||||||
Years Ended July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Cash paid for interest | $ | 33 | $ | 30 | $ | 26 | |||||||
Cash paid for income taxes | $ | 3,838 | $ | 4,632 | $ | 3,538 | |||||||
Cash paid for taxes can be higher than income tax expense as shown on the Company’s consolidated statements of operations due to prepayments made in certain jurisdictions as well as to the timing of required payments in relation to recorded expense, which can cross fiscal years. | |||||||||||||
Non-cash Activities | |||||||||||||
Non-cash financing activities during the fiscal years ended July 31, 2014, 2013, and 2012 included the issuance of approximately 0.2 million, 0.3 million and 0.2 million shares, respectively, of nonvested common stock, valued at approximately $1.0 million, $0.8 million and $1.1 million, respectively, to certain employees of the Company. | |||||||||||||
Non-cash investing activities during the fiscal year ended July 31, 2014 included unsettled trades associated with the acquisition of $12.9 million in 4.0625% convertible debentures of a publicly traded entity and $9.4 million in common stock of a publicly traded entity. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||
Jul. 31, 2014 | ||||
Stockholders' Equity | ' | |||
(17) STOCKHOLDERS’ EQUITY | ||||
Preferred Stock | ||||
Our board of directors has the authority, subject to any limitations prescribed by Delaware law, to issue shares of preferred stock in one or more series and to fix and determine the designation, privileges, preferences and rights and the qualifications, limitations and restrictions of those shares, including dividend rights, conversion rights, voting rights, redemption rights, terms of sinking funds, liquidation preferences and the number of shares constituting any series or the designation of the series, without any further vote or action by the stockholders. Any shares of our preferred stock so issued may have priority over our common stock with respect to dividend, liquidation and other rights. Our board of directors may authorize the issuance of preferred stock with voting rights or conversion features that could adversely affect the voting power or other rights of the holders of our common stock. Although the issuance of preferred stock could provide us with flexibility in connection with possible acquisitions and other corporate purposes, under some circumstances, it could have the effect of delaying, deferring or preventing a change of control. | ||||
Common Stock | ||||
Each holder of our common stock is entitled to: | ||||
• | one vote per share on all matters submitted to a vote of the stockholders, subject to the rights of any preferred stock that may be outstanding; | |||
• | dividends as may be declared by our board of directors out of funds legally available for that purpose, subject to the rights of any preferred stock that may be outstanding; and | |||
• | a pro rata share in any distribution of our assets after payment or providing for the payment of liabilities and the liquidation preference of any outstanding preferred stock in the event of liquidation. | |||
Holders of our common stock have no cumulative voting rights, redemption rights or preemptive rights to purchase or subscribe for any shares of our common stock or other securities. All of the outstanding shares of common stock are fully paid and nonassessable. The rights, preferences and privileges of holders of our common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any existing series of preferred stock and any series of preferred stock that we may designate and issue in the future. There are no redemption or sinking fund provisions applicable to our common stock. | ||||
On March 12, 2013, stockholders of the Company approved the sale of 7,500,000 shares of newly issued common stock to Steel Partners Holdings L.P. (“Steel Partners”) at a price of $4.00 per share, resulting in aggregate proceeds of $30.0 million before transaction costs. The Company incurred $2.3 million of transaction costs, which consisted primarily of investment banking and legal fees, resulting in net proceeds from the sale of $27.7 million. In addition, as part of the transaction, the Company issued Steel Partners a warrant to acquire an additional 2,000,000 shares at an exercise price of $5.00 per share. | ||||
Pursuant to the investment agreement, the Company agreed to grant Steel Partners certain registration rights. The Company agreed to file a resale registration statement on Form S-3 as soon as practicable after it is eligible to do so, covering the shares of common stock purchased by Steel Partners and the shares of common stock issuable upon exercise of the warrants. The Company is required to keep the resale registration statement effective for three years following the date it is declared effective. Steel Partners also has the right, until such time as it owns less than one-third of the common stock originally issued to it under the investment agreement, to require that the Company file a prospectus supplement or amendment to cover sales of common stock through a firm commitment underwritten public offering. The underwriters of any underwritten offering have the right to limit the number of shares to be included in any such offering. In addition, the Company has agreed to certain “piggyback registration rights.” If the Company registers any securities for public sale, Steel Partners has the right to include its shares in the registration, subject to certain exceptions. The underwriters of any underwritten offering have the right to limit the number of Steel Partners’ shares to be included in any such offering for marketing reasons. The Company has agreed to pay the expenses of Steel Partners in connection with any registration of the securities issued in the Steel Partners investment and to provide customary indemnification to Steel Partners in connection with such registration. |
Discontinued_Operations_and_Di
Discontinued Operations and Divestitures | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Discontinued Operations and Divestitures | ' | ||||||||||||
(18) 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. In July 2013, the Company reached an agreement with its landlord for the early termination of the lease agreement. 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. | |||||||||||||
Summarized financial information for the discontinued operations of the Company are as follows: | |||||||||||||
Years Ended July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Results of operations: | |||||||||||||
Net revenue | $ | — | $ | 4,592 | $ | 25,944 | |||||||
Other gains (losses), net | 80 | 582 | 627 | ||||||||||
Total expenses | — | (6,199 | ) | (37,071 | ) | ||||||||
Income (loss) from discontinued operations | $ | 80 | $ | (1,025 | ) | $ | (10,500 | ) | |||||
July 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Financial position: | |||||||||||||
Current liabilities | $ | — | $ | (610 | ) | ||||||||
Non-current liabilities | — | — | |||||||||||
Net liabilities of discontinued operations | $ | — | $ | (610 | ) | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
(19) FAIR VALUE MEASUREMENTS | |||||||||||||||||
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis | |||||||||||||||||
The following tables presents the Company’s financial assets measured at fair value on a recurring basis as of July 31, 2014 and July 31, 2013, classified by fair value hierarchy: | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(In thousands) | July 31, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Marketable equity securities | 9,856 | 9,856 | — | — | |||||||||||||
Marketable corporate bonds | 12,937 | 12,937 | — | — | |||||||||||||
Money market funds | 150,626 | 150,626 | — | — | |||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(In thousands) | July 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
Marketable equity securities | — | — | — | — | |||||||||||||
Marketable corporate bonds | — | — | — | — | |||||||||||||
Money market funds | — | — | — | — | |||||||||||||
There were no transfers between Levels 1, 2 or 3 during any of the periods presented. | |||||||||||||||||
When available, quoted prices were used to determine fair value. When quoted prices in active markets were available, investments were classified within Level 1 of the fair value hierarchy. When quoted prices in active markets were not available, fair values were determined using pricing models, and the inputs to those pricing models were based on observable market inputs. The inputs to the pricing models were typically benchmark yields, reported trades, broker-dealer quotes, issuer spreads and benchmark securities, among others. | |||||||||||||||||
Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
For the years ended July 31, 2014 and July 31, 2013, the Company’s only significant assets or liabilities measured at fair value on a nonrecurring basis subsequent to their initial recognition were the Company’s @Ventures investments, goodwill and certain assets subject to long-lived asset impairment. | |||||||||||||||||
The Company reviews the carrying amounts of these assets whenever certain events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company also performs an impairment evaluation of goodwill on an annual basis. An impairment loss is recognized when the carrying amount of the asset group or reporting unit is not recoverable and exceeds its fair value. The Company estimated the fair values of assets subject to impairment based on the Company’s own judgments about the assumptions that market participants would use in pricing the assets and on observable market data, when available. The Company uses the income approach when determining the fair value of its reporting units. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The Company’s financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable, accounts payable and long-term debt and are reflected in the financial statements at cost. With the exception of long-term debt, cost approximates fair value for these items due to their short-term nature. Included in trading securities in the accompanying balance sheet are marketable equity securities and marketable corporate bonds. These instruments are valued at quoted market prices in active markets. Included in cash and cash equivalents in the accompanying balance sheet are money market funds. These are valued at quoted market prices in active markets. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Segment Information | ' | ||||||||||||
(20) 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 and administration costs related to the Company’s venture capital activities. The Corporate-level balance sheet information includes cash and cash equivalents, available-for-sale securities, investments and other assets, which are not identifiable to the operations of the Company’s operating segments. | |||||||||||||
Management evaluates segment performance based on segment net revenue, operating income (loss) and “adjusted operating income (loss)”, which is defined as the operating income (loss) excluding net charges related to depreciation, amortization of intangible assets, goodwill and long-lived asset impairment, share-based compensation and restructuring. These items are excluded because they may be considered to be of a non-operational or non-cash nature. Historically, the Company has recorded significant impairment and restructuring charges and therefore management uses adjusted operating income to assist in evaluating the performance of the Company’s core operations. | |||||||||||||
Summarized financial information of the Company’s continuing operations by operating segment is as follows: | |||||||||||||
Years Ended July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Net revenue: | |||||||||||||
Americas | $ | 299,026 | $ | 268,490 | $ | 249,940 | |||||||
Asia | 176,592 | 212,963 | 218,880 | ||||||||||
Europe | 209,550 | 237,222 | 211,319 | ||||||||||
All Other | 38,232 | 35,829 | 33,808 | ||||||||||
$ | 723,400 | $ | 754,504 | $ | 713,947 | ||||||||
Operating income (loss): | |||||||||||||
Americas | $ | 9,456 | $ | (230 | ) | $ | (14,108 | ) | |||||
Asia | 17,335 | 22,841 | 21,450 | ||||||||||
Europe | (12,319 | ) | (22,091 | ) | (15,718 | ) | |||||||
All Other | (249 | ) | 349 | 634 | |||||||||
Total Segment operating income (loss) | 14,223 | 869 | (7,742 | ) | |||||||||
Corporate-level activity | (19,672 | ) | (29,101 | ) | (27,119 | ) | |||||||
Total operating loss | (5,449 | ) | (28,232 | ) | (34,861 | ) | |||||||
Total other income (expense) | (6,097 | ) | (5,704 | ) | 11,533 | ||||||||
Loss from continuing operations before income taxes | $ | (11,546 | ) | $ | (33,936 | ) | $ | (23,328 | ) | ||||
July 31, | July 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Total assets: | |||||||||||||
Americas | $ | 73,254 | $ | 65,790 | |||||||||
Asia | 78,749 | 93,547 | |||||||||||
Europe | 81,327 | 97,524 | |||||||||||
All Other | 14,221 | 17,369 | |||||||||||
Sub-total—segment assets | 247,551 | 274,230 | |||||||||||
Corporate | 204,095 | 69,466 | |||||||||||
$ | 451,646 | $ | 343,696 | ||||||||||
Summarized financial information of the Company’s net revenue from external customers by group of services is as follows: | |||||||||||||
Years Ended July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Supply chain services | $ | 635,503 | $ | 676,709 | $ | 646,564 | |||||||
Aftermarket services | 49,665 | 41,966 | 33,575 | ||||||||||
e-Business services | 38,232 | 35,829 | 33,808 | ||||||||||
$ | 723,400 | $ | 754,504 | $ | 713,947 | ||||||||
As of July 31, 2014, approximately $19.3 million, $4.4 million and $4.7 million of the Company’s long-lived assets were located in the U.S.A., Singapore and Ireland, respectively. As of July 31, 2013, approximately $21.8 million, $5.2 million and $5.0 million of the Company’s long-lived assets were located in the U.S.A., Singapore and Ireland, respectively. For the fiscal year ended July 31, 2014, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $297.3 million, $131.3 million, $101.9 million and $91.9 million, respectively. For the fiscal year ended July 31, 2013, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $277.4 million, $147.3 million, $91.8 million and $97.9 million, respectively. For the fiscal year ended July 31, 2012, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $282.1 million, $141.9 million, $106.5 million and $60.4 million, respectively |
Selected_Quarterly_Financial_I
Selected Quarterly Financial Information | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||||||||||||||||||
Selected Quarterly Financial Information | ' | ||||||||||||||||||||||||||||||||
(21) SELECTED QUARTERLY FINANCIAL INFORMATION (Unaudited) | |||||||||||||||||||||||||||||||||
The following table sets forth selected quarterly financial information for the fiscal years ended July 31, 2014 and 2013. The operating results for any given quarter are not necessarily indicative of results for any future period. | |||||||||||||||||||||||||||||||||
Years Ended | Years Ended | ||||||||||||||||||||||||||||||||
Oct. 31, ‘13 | Jan. 31, ‘14 | Apr. 30, ‘14 | Jul. 31, ‘14 | Oct. 31, ‘12 | Jan. 31, ‘13 | Apr. 30, ‘13 | Jul. 31, ‘13 | ||||||||||||||||||||||||||
(In thousands, except per share data) | (In thousands, except per share data) | ||||||||||||||||||||||||||||||||
Net revenue | $ | 191,415 | $ | 194,011 | $ | 173,274 | $ | 164,700 | $ | 197,051 | $ | 203,436 | $ | 173,016 | $ | 181,001 | |||||||||||||||||
Cost of revenue | 169,420 | 171,431 | 157,575 | 150,249 | 178,427 | 183,158 | 157,641 | 160,908 | |||||||||||||||||||||||||
Gross profit | 21,995 | 22,580 | 15,699 | 14,451 | 18,624 | 20,278 | 15,375 | 20,093 | |||||||||||||||||||||||||
Total operating expenses | 19,374 | 21,345 | 20,837 | 18,618 | 25,895 | 28,804 | 22,135 | 25,768 | |||||||||||||||||||||||||
Operating income (loss) | 2,621 | 1,235 | (5,138 | ) | (4,167 | ) | (7,271 | ) | (8,526 | ) | (6,760 | ) | (5,675 | ) | |||||||||||||||||||
Total other income (expense) | (812 | ) | 581 | (3,640 | ) | (2,226 | ) | (1,340 | ) | (2,491 | ) | (677 | ) | (1,196 | ) | ||||||||||||||||||
Income tax expense (benefit) | 1,137 | 753 | 700 | 2,092 | 909 | 674 | 392 | 1,804 | |||||||||||||||||||||||||
Equity in losses of affiliates, net of tax | (134 | ) | — | — | — | (311 | ) | (726 | ) | (418 | ) | (160 | ) | ||||||||||||||||||||
Income (loss) from continuing operations | 538 | 1,063 | (9,478 | ) | (8,485 | ) | (9,831 | ) | (12,417 | ) | (8,247 | ) | (8,835 | ) | |||||||||||||||||||
Income (Loss) from discontinued operations | 79 | 1 | — | — | (827 | ) | (133 | ) | (59 | ) | (6 | ) | |||||||||||||||||||||
Net income (loss) | $ | 617 | $ | 1,064 | $ | (9,478 | ) | $ | (8,485 | ) | $ | (10,658 | ) | $ | (12,550 | ) | $ | (8,306 | ) | $ | (8,841 | ) | |||||||||||
Basic and diluted earnings -loss) per share: | |||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.01 | $ | 0.02 | $ | (0.18 | ) | $ | (0.16 | ) | $ | (0.22 | ) | $ | (0.29 | ) | $ | (0.17 | ) | $ | (0.17 | ) | |||||||||||
Income (loss) from discontinued operations | — | — | — | — | (0.02 | ) | — | — | — | ||||||||||||||||||||||||
Net income (loss) | $ | 0.01 | $ | 0.02 | $ | (0.18 | ) | $ | (0.16 | ) | $ | (0.24 | ) | $ | (0.29 | ) | $ | (0.17 | ) | $ | (0.17 | ) | |||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Principles of Consolidation | ' | ||||||||||||
Principles of Consolidation | |||||||||||||
The accompanying consolidated financial statements of the Company include the results of its wholly-owned and majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The Company accounts for investments in businesses in which it owns between 20% and 50% of the voting interest using the equity method, if the Company has the ability to exercise significant influence over the investee company. All other investments over which the Company does not have the ability to exercise significant influence, or for which there is not a readily determinable market value, are accounted for under the cost method of accounting. | |||||||||||||
Reclassification | ' | ||||||||||||
Reclassification | |||||||||||||
Certain reclassifications have been made to prior periods to conform with current reporting. On the Statements of Operations the Equity in losses of affiliates are classified after the Loss from continuing operations before income taxes. | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates | |||||||||||||
The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis the Company evaluates its estimates including those related to revenue recognition, allowance for doubtful accounts, inventories, fair value of its trading and available-for-sale securities, intangible assets, income taxes, restructuring, valuation of long-lived assets, impairments, contingencies, restructuring charges, litigation and the fair value of stock options and share bonus awards granted under the Company’s stock based compensation plans. Accounting estimates are based on historical experience and various assumptions that are considered reasonable under the circumstances. However, because these estimates inherently involve judgments and uncertainties, actual results could differ materially from those estimated. | |||||||||||||
Revenue Recognition | ' | ||||||||||||
Revenue Recognition | |||||||||||||
The Company’s revenue primarily comes from the sale of supply chain management services to our clients. Amounts billed to clients under these arrangements include revenue attributable to the services performed as well as for materials procured on our clients’ behalf as part of our service to them. Other sources of revenue include the sale of products and other services. Revenue is recognized for services when the services are performed and for product sales when the products are shipped or in certain cases when products are built and title had transferred, if the client has also contracted with us for warehousing and/or logistics services for a separate fee, assuming all other applicable revenue recognition criteria are met. | |||||||||||||
The Company recognizes revenue in accordance with the provisions of the Accounting Standards Codification (“ASC”) Topic 605, “Revenue Recognition” (“ASC Topic 605”). Specifically, the Company recognizes revenue when persuasive evidence of an arrangement exists, title and risk of loss have passed or services have been rendered, the sales price is fixed or determinable and collection of the related receivable is reasonably assured. The Company’s shipping terms vary by client and can include FOB shipping point, which means that risk of loss passes to the client when it is shipped from the Company’s location, as well as other terms such as ex-works, meaning that title and risk of loss transfer upon delivery of product to the customer’s designated carrier. The Company also evaluates the terms of each major client contract relative to a number of criteria that management considers in making its determination with respect to gross versus net reporting of revenue for transactions with its clients. Management’s criteria for making these judgments place particular emphasis on determining the primary obligor in a transaction and which party bears general inventory risk. The Company records all shipping and handling fees billed to clients as revenue, and related costs as cost of sales, when incurred. | |||||||||||||
The Company applies the provisions of ASC Topic 985, “Software” (“ASC Topic 985”), with respect to certain transactions involving the sale of software products by our e-Business operations. | |||||||||||||
The Company also follows the guidance of ASC Topic 605 for determining whether an arrangement involving more than one deliverable contains more than one unit of accounting and how the arrangement consideration should be measured and allocated to the separate units of accounting. Under this guidance, when vendor specific objective evidence or third party evidence for deliverables in an arrangement cannot be determined, a best estimate of the selling price is required to separate deliverables and allocate arrangement consideration using the relative selling price method. For those contracts which contain multiple deliverables, management must first determine whether each service, or deliverable, meets the separation criteria. In general, a deliverable (or a group of deliverables) meets the separation criteria if the deliverable has standalone value to the client. Each deliverable that meets the separation criteria is considered a “separate unit of accounting.” Management allocates the total arrangement consideration to each separate unit of accounting based on the relative selling price of each separate unit of accounting. After the arrangement consideration has been allocated to each separate unit of accounting, management applies the appropriate revenue recognition method for each separate unit of accounting as described previously based on the nature of the arrangement. In general, revenue is recognized upon completion of the last deliverable. All deliverables that do not meet the separation criteria are combined into one unit of accounting and the appropriate revenue recognition method is applied. | |||||||||||||
Foreign Currency Translation | ' | ||||||||||||
Foreign Currency Translation | |||||||||||||
All assets and liabilities of the Company’s foreign subsidiaries, whose functional currency is the local currency, are translated to U.S. dollars at the rates in effect at the balance sheet date. All amounts in the Consolidated Statements of Operations are translated using the average exchange rates in effect during the year. Resulting translation adjustments are reflected in the accumulated other comprehensive income (loss) component of stockholders’ equity. Settlement of receivables and payables in a foreign currency that is not the functional currency result in foreign currency transaction gains and losses. Foreign currency transaction gains and losses are included in “Other gains (losses), net” in the Consolidated Statements of Operations. | |||||||||||||
Cash, Cash Equivalents and Short-term Investments | ' | ||||||||||||
Cash, Cash Equivalents and Short-term Investments | |||||||||||||
The Company considers all highly liquid investments with original maturities of 90 days or less at the time of purchase to be cash equivalents. Investments with maturities greater than 90 days to twelve months at the time of purchase are considered short-term investments. Cash and cash equivalents consisted of the following: | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Cash and bank deposits | $ | 32,889 | $ | 77,916 | |||||||||
Money market funds | 150,626 | — | |||||||||||
$ | 183,515 | $ | 77,916 | ||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||
Fair Value of Financial Instruments | |||||||||||||
The carrying value of cash and cash equivalents, accounts receivable, accounts payable, current liabilities and the revolving line of credit approximate fair value because of the short maturity of these instruments. The carrying value of capital lease obligations approximates fair value, as estimated by using discounted future cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. The fair values of the Company’s Trading Securities are estimated using quoted market prices. The fair value of our Notes payable is $93.8 million, which represents the value at which our lenders could trade our debt with in the financial markets, and does not represent the settlement value of these long-term debt liabilities to us. The fair value of the Notes payable could vary each period based on fluctuations in market interest rates, as well as changes to our credit ratings. The Notes payable are traded and their fair values are based upon traded prices as of the reporting dates. | |||||||||||||
The defined benefit plans have 100% of their assets invested in bank-managed portfolios of debt securities and other assets. Conservation of capital with some conservative growth potential is the strategy for the plans. The Company’s pension plans are outside the United States, where asset allocation decisions are typically made by an independent board of trustees. Investment objectives are aligned to generate returns that will enable the plans to meet their future obligations. The Company acts in a consulting and governance role in reviewing investment strategy and providing a recommended list of investment managers for each plan, with final decisions on asset allocation and investment manager made by local trustees. | |||||||||||||
ASC Topic 820 provides that fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. ASC Topic 820 requires the Company to use valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: | |||||||||||||
Level 1: | Observable inputs such as quoted prices for identical assets or liabilities in active markets | ||||||||||||
Level 2: | Other inputs that are observable directly or indirectly, such as quoted prices for similar assets or liabilities or market-corroborated inputs | ||||||||||||
Level 3: | Unobservable inputs for which there is little or no market data and which require the Company to develop its own assumptions about how market participants would price the assets or liabilities | ||||||||||||
Investments | ' | ||||||||||||
Investments | |||||||||||||
Marketable securities held by the Company which meet the criteria for classification as trading securities or available-for-sale are carried at fair value. Gains and losses on securities classified as trading are reflected in other income (expense) in the Company’s Consolidated Statements of Operations. Unrealized holding gains and losses on securities classified as available-for-sale are carried net of income taxes, when applicable, as a component of accumulated other comprehensive income (loss) in the Consolidated Statements of Stockholders’ Equity. | |||||||||||||
The Company maintains interests in several privately held companies primarily through its various venture capital funds. The Company’s venture capital investment portfolio, @Ventures, invests in early-stage technology companies. These investments are generally made in connection with a round of financing with other third-party investors. 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 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. The Company’s share of net income or losses of the investee are reflected in “Equity in losses of affiliates, net of tax” in the Company’s Consolidated Statements of Operations. | |||||||||||||
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 equity investment’s net realizable value is less than its carrying cost requires a significant amount of judgment. This valuation process is based primarily on information that the Company obtains from these privately held companies who are not subject to the same disclosure and audit requirements as the reports required of U.S. public companies. As such, the timeliness and completeness of the data may vary. Based on the Company’s evaluation, it recorded impairment charges related to its investments in privately held companies of approximately $1.4 million, $2.8 million, and $2.9 million for the fiscal years ended July 31, 2014, 2013 and 2012, respectively. These impairment losses are reflected in “Impairment of investments in affiliates” in the Company’s Consolidated Statements of Operations. | |||||||||||||
At the time an equity method investee issues its stock to unrelated parties, the Company accounts for that share issuance as if the Company has sold a proportionate share of its investment. The Company records any gain or loss resulting from an equity method investee’s share issuance in its Consolidated Statements of Operations. | |||||||||||||
Inventory | ' | ||||||||||||
Inventory | |||||||||||||
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 typically procures on behalf of its clients that are included in inventory include materials such as compact discs, printed materials, manuals, labels, hardware accessories, hard disk drives, consumer packaging, shipping boxes and labels, power cords and cables for client-owned electronic devices. | |||||||||||||
Inventories consisted of the following: | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Raw materials | $ | 51,179 | $ | 46,920 | |||||||||
Work-in-process | 910 | 1,256 | |||||||||||
Finished goods | 13,180 | 13,146 | |||||||||||
$ | 65,269 | $ | 61,322 | ||||||||||
The Company continuously monitors inventory balances and records inventory provisions 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 demands. 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 and market conditions. 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 client requirements, additional inventory provisions 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. Accordingly, if inventory previously written down to its net realizable value is subsequently sold, gross profit margins would be favorably impacted. | |||||||||||||
Long-Lived Assets, Goodwill and Other Intangible Assets | ' | ||||||||||||
Long-Lived Assets, Goodwill and Other Intangible Assets | |||||||||||||
The Company follows ASC Topic 360, “Property, Plant, and Equipment” (“ASC Topic 360”). Under ASC Topic 360, the Company tests certain long-lived assets or group of assets for recoverability whenever events or changes in circumstances indicate that the Company may not be able to recover the asset’s carrying amount. ASC Topic 360 defines impairment as the condition that exists when the carrying amount of a long-lived asset or group, including property and equipment and other definite-lived intangible assets, exceeds its fair value. The Company evaluates recoverability by determining whether the undiscounted cash flows expected to result from the use and eventual disposition of that asset or group cover the carrying value at the evaluation date. If the undiscounted cash flows are not sufficient to cover the carrying value, the Company measures an impairment loss as the excess of the carrying amount of the long-lived asset or group over its fair value. Management may use third party valuation experts to assist in its determination of fair value. | |||||||||||||
The Company is required to test goodwill for impairment annually or if a triggering event occurs in accordance with the provisions of ASC Topic 350, “Goodwill and Other” (“ASC Topic 350”). The Company’s policy is to perform its annual impairment testing for all reporting units, determined to be the Americas, Europe, Asia, e-Business, and ModusLink PTS operating segments, on July 31 of each fiscal year. | |||||||||||||
The Company’s valuation methodology for assessing impairment of long-lived assets, goodwill and other intangible assets requires management to make judgments and assumptions based on historical experience and on projections of future operating performance. Management may use third party valuation advisors to assist in its determination of the fair value of reporting units subject to impairment testing. The Company operates in highly competitive environments and projections of future operating results and cash flows may vary significantly from actual results. If our assumptions used in estimating our valuations of the Company’s reporting units for purposes of impairment testing differ materially from actual future results, the Company may record impairment charges in the future and our financial results may be materially adversely affected. | |||||||||||||
Restructuring Expenses | ' | ||||||||||||
Restructuring Expenses | |||||||||||||
The Company follows the provisions of ASC Topic 420, “Exit or Disposal Cost Obligations”, which addresses financial accounting and reporting for costs associated with exit or disposal activities. The statement requires companies to recognize costs associated with exit or disposal activities when a liability has been incurred rather than at the date of a commitment to an exit or disposal plan. The Company records liabilities that primarily include estimated severance and other costs related to employee benefits and certain estimated costs related to equipment and facility lease obligations and other service contracts. These contractual obligations principally represent future obligations under non-cancelable real estate leases. Restructuring estimates relating to real estate leases involve consideration of a number of factors including: potential sublet rental rates, estimated vacancy period for the property, brokerage commissions and certain other costs. Estimates relating to potential sublet rates and expected vacancy periods are most likely to have a material impact on the Company’s results of operations in the event that actual amounts differ significantly from estimates. These estimates involve judgment and uncertainties, and the settlement of these liabilities could differ materially from recorded amounts. | |||||||||||||
Property and Equipment | ' | ||||||||||||
Property and Equipment | |||||||||||||
Property, plant and equipment are stated at cost. The costs of additions and improvements are capitalized, while maintenance and repairs are charged to expense as incurred. Depreciation and amortization is provided on the straight-line basis over the estimated useful lives of the respective assets. The Company capitalizes certain computer software development costs when incurred in connection with developing or obtaining computer software for internal use. The estimated useful lives are as follows: | |||||||||||||
Buildings | 32 years | ||||||||||||
Machinery & equipment | 3 to 5 years | ||||||||||||
Furniture & fixtures | 5 to 7 years | ||||||||||||
Automobiles | 5 years | ||||||||||||
Software | 3 to 8 years | ||||||||||||
Leasehold improvements | Shorter of the remaining lease term or the estimated | ||||||||||||
useful life of the asset | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | |||||||||||||
Income taxes are accounted for under the provisions of ASC Topic 740, “Income Taxes” (“ASC Topic 740”), using the asset and liability method whereby deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. ASC Topic 740 also requires that the deferred tax assets be reduced by a valuation allowance, if based on the weight of available evidence, it is more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. This methodology is subjective and requires significant estimates and judgments in the determination of the recoverability of deferred tax assets and in the calculation of certain tax liabilities. | |||||||||||||
In accordance with ASC Topic 740, the Company applies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company’s financial statements. ASC Topic 740 prescribes a recognition threshold of more-likely-than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. In accordance with the Company’s accounting policy, interest and penalties related to uncertain tax positions is included in the “income tax expense” line of the Consolidated Statements of Operations. See Note 14, “Income Taxes,” for additional information. | |||||||||||||
Earnings (Loss) Per Share | ' | ||||||||||||
Earnings (Loss) Per Share | |||||||||||||
The following table reconciles earnings per share for the fiscal years ended July 31, 2014, 2013 and 2012. | |||||||||||||
Years Ended | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands, except per share data) | |||||||||||||
Loss from continuing operations | $ | (16,362 | ) | $ | (39,330 | ) | $ | (27,608 | ) | ||||
Income (loss) from discontinued operations | 80 | (1,025 | ) | (10,500 | ) | ||||||||
Net Loss | $ | (16,282 | ) | $ | (40,355 | ) | $ | (38,108 | ) | ||||
Weighted average common shares outstanding | 51,582 | 46,654 | 43,565 | ||||||||||
Weighted average common equivalent shares arising from dilutive stock options and restricted stock | — | — | — | ||||||||||
Weighted average number of common and potential common shares | 51,582 | 46,654 | 43,565 | ||||||||||
Basic and diluted net income (loss) per common share from: | |||||||||||||
Continuing operations | $ | (0.32 | ) | $ | (0.84 | ) | $ | (0.63 | ) | ||||
Discontinued operations | 0 | (0.02 | ) | (0.24 | ) | ||||||||
$ | (0.32 | ) | $ | (0.86 | ) | $ | (0.87 | ) | |||||
Approximately 3.0 million, 3.4 million, and 2.9 million common stock equivalent shares relating to the effects of outstanding stock options and restricted stock were excluded from the denominator in the calculation of diluted earnings per share for the fiscal years ended July 31, 2014, 2013, and 2012, respectively, as their effect would be anti-dilutive due to the fact that the Company recorded a net loss for those periods. Approximately 6.2 million common shares outstanding associated with the convertible Notes, using the if-converted method, were excluded from the denominator in the calculation of diluted earnings per share for the fiscal years ended July 31, 2014. | |||||||||||||
Share-Based Compensation Plans | ' | ||||||||||||
Share-Based Compensation Plans | |||||||||||||
The Company recognizes share-based compensation in accordance with the provisions of ASC Topic 718, “Compensation— Stock Compensation” (“ASC Topic 718”) which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options and employee stock purchases based on estimated fair values. | |||||||||||||
The Company estimates the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods. The Company estimates forfeitures at the time of grant and revises those estimates, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||||||
The Company uses a binomial-lattice option-pricing model (“binomial-lattice model”) for valuation of share-based awards with time-based vesting. The Company believes that the binomial-lattice model is an accurate model for valuing employee stock options since it reflects the impact of stock price changes on option exercise behavior. For share-based awards based on market conditions, specifically, the Company’s stock price, the compensation cost and derived service periods are estimated using the Monte Carlo valuation method. The Company uses third party analyses to assist in developing the assumptions used in its binomial-lattice model and Monte Carlo valuations and the resulting fair value used to record compensation expense. The Company’s determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to the Company’s expected stock price volatility over the term of the awards, and actual and projected employee stock option exercise behaviors. Any significant changes in these assumptions may materially affect the estimated fair value of the share-based award. | |||||||||||||
Major Clients and Concentration of Credit Risk | ' | ||||||||||||
Major Clients and Concentration of Credit Risk | |||||||||||||
Sales to one client, Hewlett-Packard, accounted for approximately 29%, 29% and 31% of the Company’s consolidated net revenue for the fiscal years ended July 31, 2014, 2013, and 2012, respectively. Hewlett-Packard accounted for approximately 17% and 23% of the Company’s Net Accounts Receivable balance as of July 31, 2014 and 2013, respectively. To manage risk, the Company performs ongoing credit evaluations of its clients’ financial condition. The Company generally does not require collateral on accounts receivable. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable. | |||||||||||||
Financial instruments which potentially subject the Company to concentrations of credit risk are cash, cash equivalents, available-for-sale securities and accounts receivable. The Company’s cash equivalent portfolio is diversified and consists primarily of short-term investment grade securities placed with high credit quality financial institutions. | |||||||||||||
Recent Accounting Pronouncements | ' | ||||||||||||
Recent Accounting Pronouncements | |||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-02, “Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income,” which amends Accounting Standards Codification (“ASC”) 220, “Comprehensive Income.” The amended guidance requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. Additionally, entities are required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amended guidance does not change the current requirements for reporting net income or other comprehensive income. The amendment is effective prospectively for annual periods, and interim periods within those annual periods, beginning after December 15, 2012. The adoption of this new guidance did not have a material impact on the Company’s financial statements as these updates have an impact on presentation only. | |||||||||||||
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 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 will 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 is evaluating the potential effects on the consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and cash equivalents consisted of the following: | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Cash and bank deposits | $ | 32,889 | $ | 77,916 | |||||||||
Money market funds | 150,626 | — | |||||||||||
$ | 183,515 | $ | 77,916 | ||||||||||
Components of Inventories | ' | ||||||||||||
Inventories consisted of the following: | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Raw materials | $ | 51,179 | $ | 46,920 | |||||||||
Work-in-process | 910 | 1,256 | |||||||||||
Finished goods | 13,180 | 13,146 | |||||||||||
$ | 65,269 | $ | 61,322 | ||||||||||
Estimated Useful Lives of Property and Equipment | ' | ||||||||||||
The estimated useful lives are as follows: | |||||||||||||
Buildings | 32 years | ||||||||||||
Machinery & equipment | 3 to 5 years | ||||||||||||
Furniture & fixtures | 5 to 7 years | ||||||||||||
Automobiles | 5 years | ||||||||||||
Software | 3 to 8 years | ||||||||||||
Leasehold improvements | Shorter of the remaining lease term or the estimated | ||||||||||||
useful life of the asset | |||||||||||||
Reconciliation of Earnings Per Share | ' | ||||||||||||
The following table reconciles earnings per share for the fiscal years ended July 31, 2014, 2013 and 2012. | |||||||||||||
Years Ended | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands, except per share data) | |||||||||||||
Loss from continuing operations | $ | (16,362 | ) | $ | (39,330 | ) | $ | (27,608 | ) | ||||
Income (loss) from discontinued operations | 80 | (1,025 | ) | (10,500 | ) | ||||||||
Net Loss | $ | (16,282 | ) | $ | (40,355 | ) | $ | (38,108 | ) | ||||
Weighted average common shares outstanding | 51,582 | 46,654 | 43,565 | ||||||||||
Weighted average common equivalent shares arising from dilutive stock options and restricted stock | — | — | — | ||||||||||
Weighted average number of common and potential common shares | 51,582 | 46,654 | 43,565 | ||||||||||
Basic and diluted net income (loss) per common share from: | |||||||||||||
Continuing operations | $ | (0.32 | ) | $ | (0.84 | ) | $ | (0.63 | ) | ||||
Discontinued operations | 0 | (0.02 | ) | (0.24 | ) | ||||||||
$ | (0.32 | ) | $ | (0.86 | ) | $ | (0.87 | ) | |||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Allowance for Doubtful Accounts | ' | ||||||||||||
The allowance for doubtful accounts consisted of the following: | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Balance at beginning of year | $ | 64 | $ | 344 | $ | 473 | |||||||
Provisions charged to expense | 59 | 146 | 15 | ||||||||||
Accounts written off—continued operations | (60 | ) | (120 | ) | (144 | ) | |||||||
Accounts written off—discontinued operations | — | (222 | ) | — | |||||||||
Balance reclassified to discountinued operations | — | (84 | ) | — | |||||||||
$ | 63 | $ | 64 | $ | 344 | ||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Jul. 31, 2014 | |||||||||
Property and Equipment at Cost | ' | ||||||||
Property and equipment at cost, consists of the following: | |||||||||
July 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Buildings | $ | 31,430 | $ | 21,020 | |||||
Machinery and equipment | 45,910 | 17,012 | |||||||
Leasehold improvements | 17,026 | 18,327 | |||||||
Software | 42,554 | 43,905 | |||||||
Other | 33,789 | 4,473 | |||||||
170,709 | 104,737 | ||||||||
Less: Accumulated depreciation and amortization | (145,583 | ) | (70,447 | ) | |||||
Property and equipment, net | $ | 25,126 | $ | 34,290 | |||||
Assets under Capital Leases | ' | ||||||||
Assets under capital leases which are included in the amounts above are summarized as follows: | |||||||||
July 31, | |||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Machinery and equipment | $ | 383 | $ | 343 | |||||
Other | 259 | 178 | |||||||
642 | 521 | ||||||||
Less: Accumulated depreciation and amortization | (451 | ) | (455 | ) | |||||
$ | 191 | $ | 66 | ||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill Allocated to Operating Segments | ' | ||||||||||||||||||||||||||||||||
The changes in the carrying amount of goodwill allocated to the Company’s operating segments are as follows: | |||||||||||||||||||||||||||||||||
Americas | Asia | Europe | All | Consolidated | |||||||||||||||||||||||||||||
Other | Total | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Balance as of July 31, 2012 | |||||||||||||||||||||||||||||||||
Goodwill | $ | 94,477 | $ | 73,948 | $ | 30,108 | $ | 5,857 | $ | 204,390 | |||||||||||||||||||||||
Accumulated impairment charges | (94,477 | ) | (73,948 | ) | (30,108 | ) | (2,799 | ) | (201,332 | ) | |||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | 3,058 | $ | 3,058 | ||||||||||||||||||||||||
Balance as of July 31, 2013 | |||||||||||||||||||||||||||||||||
Goodwill | $ | 94,477 | $ | 73,948 | $ | 30,108 | $ | 5,857 | $ | 204,390 | |||||||||||||||||||||||
Accumulated impairment charges | (94,477 | ) | (73,948 | ) | (30,108 | ) | (2,799 | ) | (201,332 | ) | |||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | 3,058 | $ | 3,058 | ||||||||||||||||||||||||
Balance as of July 31, 2014 | |||||||||||||||||||||||||||||||||
Goodwill | $ | 94,477 | $ | 73,948 | $ | 30,108 | $ | 5,857 | $ | 204,390 | |||||||||||||||||||||||
Accumulated impairment charges | (94,477 | ) | (73,948 | ) | (30,108 | ) | (2,799 | ) | (201,332 | ) | |||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | 3,058 | $ | 3,058 | ||||||||||||||||||||||||
Components of Intangible Assets | ' | ||||||||||||||||||||||||||||||||
The components of intangible assets are as follows: | |||||||||||||||||||||||||||||||||
July 31, 2014 | July 31, 2013 | ||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Weighted | Gross | Accumulated | Net | Weighted | ||||||||||||||||||||||||||
Carrying | Amortization/ | Book | Average | Carrying | Amortization/ | Book | Average | ||||||||||||||||||||||||||
Amount | Impairment | Value | Amortization | Amount | Impairment | Value | Amortization | ||||||||||||||||||||||||||
Period | Period | ||||||||||||||||||||||||||||||||
Client Relationships | $ | 4,399 | $ | 4,002 | $ | 397 | 7 years | $ | 4,399 | $ | 3,374 | $ | 1,025 | 7 years | |||||||||||||||||||
Developed Technology | 5,092 | 4,859 | 233 | 3 to 7 years | 5,092 | 4,475 | 617 | 3 to 7 years | |||||||||||||||||||||||||
Trade Names | 1,515 | 1,478 | 37 | 3 to 7 years | 1,515 | 1,393 | 122 | 3 to 7 years | |||||||||||||||||||||||||
Non-Competes | 83 | 83 | — | 1 to 5 years | 83 | 83 | — | 1 to 5 years | |||||||||||||||||||||||||
Total | $ | 11,089 | $ | 10,422 | $ | 667 | $ | 11,089 | $ | 9,325 | $ | 1,764 | |||||||||||||||||||||
Estimated Annual Amortization Expense for Intangible Assets | ' | ||||||||||||||||||||||||||||||||
Estimated annual amortization expense for intangible assets in future periods, is as follows: | |||||||||||||||||||||||||||||||||
Fiscal Year | Amount | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
2015 | $ | 667 |
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||||||||||
Activity in Restructuring Accrual | ' | ||||||||||||||||||||||||
The following tables summarize the activity in the restructuring accrual for the fiscal years ended July 31, 2014, 2013, and 2012: | |||||||||||||||||||||||||
Employee | Contractual | Total | |||||||||||||||||||||||
Related | Obligations | ||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Accrued restructuring balance at July 31, 2011 | $ | 296 | $ | 1,168 | $ | 1,464 | |||||||||||||||||||
Restructuring charges | 5,274 | 1,442 | 6,716 | ||||||||||||||||||||||
Restructuring adjustments | (439 | ) | 139 | (300 | ) | ||||||||||||||||||||
Cash paid | (4,645 | ) | (1,759 | ) | (6,404 | ) | |||||||||||||||||||
Non-cash adjustments | (44 | ) | 108 | 64 | |||||||||||||||||||||
Restructuring charges, discontinued operations | 944 | 95 | 1,039 | ||||||||||||||||||||||
Cash paid, discontinued operations | (760 | ) | (95 | ) | (855 | ) | |||||||||||||||||||
Accrued restructuring balance at July 31, 2012 | 626 | 1,098 | 1,724 | ||||||||||||||||||||||
Restructuring charges | 13,638 | 1,112 | 14,750 | ||||||||||||||||||||||
Restructuring adjustments | (232 | ) | (21 | ) | (253 | ) | |||||||||||||||||||
Cash paid | (9,947 | ) | (999 | ) | (10,946 | ) | |||||||||||||||||||
Non-cash adjustments | 133 | — | 133 | ||||||||||||||||||||||
Restructuring charges, discontinued operations | 42 | 112 | 154 | ||||||||||||||||||||||
Cash paid, discontinued operations | (243 | ) | (97 | ) | (340 | ) | |||||||||||||||||||
Reclassification of restructuring charges of discontinued operations | (43 | ) | (15 | ) | (58 | ) | |||||||||||||||||||
Accrued restructuring balance at July 31, 2013 | 3,974 | 1,190 | 5,164 | ||||||||||||||||||||||
Restructuring charges | 6,111 | 294 | 6,405 | ||||||||||||||||||||||
Restructuring adjustments | 161 | (9 | ) | 152 | |||||||||||||||||||||
Cash paid | (8,640 | ) | (817 | ) | (9,457 | ) | |||||||||||||||||||
Non-cash adjustments | 81 | (60 | ) | 21 | |||||||||||||||||||||
Accrued restructuring balance at July 31, 2014 | $ | 1,687 | $ | 598 | $ | 2,285 | |||||||||||||||||||
Net Restructuring Charges | ' | ||||||||||||||||||||||||
The net restructuring charges for the fiscal years ended July 31, 2014, 2013, and 2012 would have been allocated as follows had the Company recorded the expense and adjustments within the functional department of the restructured activities: | |||||||||||||||||||||||||
Years Ended | |||||||||||||||||||||||||
July 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(In thousands ) | |||||||||||||||||||||||||
Cost of revenue | $ | 4,283 | $ | 10,625 | $ | 3,960 | |||||||||||||||||||
Selling, general and administrative | 2,274 | 3,872 | 2,456 | ||||||||||||||||||||||
$ | 6,557 | $ | 14,497 | $ | 6,416 | ||||||||||||||||||||
Summary of Restructuring Accrual by Reportable Segment | ' | ||||||||||||||||||||||||
The following tables summarize the restructuring accrual by operating segment, the All Other category for the fiscal years ended July 31, 2014, 2013, and 2012: | |||||||||||||||||||||||||
Americas | Asia | Europe | All | Discontinued | Consolidated | ||||||||||||||||||||
Other | Operations | Total | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Accrued restructuring balance at July 31, 2011 | $ | 1,346 | $ | — | $ | 118 | $ | — | $ | — | $ | 1,464 | |||||||||||||
Restructuring charges | 1,706 | 702 | 3,766 | 542 | — | 6,716 | |||||||||||||||||||
Restructuring adjustments | (94 | ) | (56 | ) | (85 | ) | (65 | ) | — | (300 | ) | ||||||||||||||
Cash paid | (1,933 | ) | (647 | ) | (3,690 | ) | (134 | ) | — | (6,404 | ) | ||||||||||||||
Non-cash adjustments | 61 | 1 | (58 | ) | — | 60 | 64 | ||||||||||||||||||
Restructuring charges, discontinued operations | — | — | — | 1,039 | 1,039 | ||||||||||||||||||||
Cash paid, discontinued operations | — | — | — | — | (855 | ) | (855 | ) | |||||||||||||||||
Accrued restructuring balance at July 31, 2012 | 1,086 | — | 51 | 343 | 244 | 1,724 | |||||||||||||||||||
Restructuring charges | 1,614 | 2,516 | 9,610 | 1,010 | — | 14,750 | |||||||||||||||||||
Restructuring adjustments | (21 | ) | (89 | ) | 27 | (170 | ) | — | (253 | ) | |||||||||||||||
Cash paid | (2,284 | ) | (1,899 | ) | (5,517 | ) | (1,246 | ) | — | (10,946 | ) | ||||||||||||||
Non-cash adjustments | (13 | ) | (8 | ) | 85 | 69 | — | 133 | |||||||||||||||||
Restructuring charges, discontinued operations | — | — | — | — | 154 | 154 | |||||||||||||||||||
Cash paid, discontinued operations | — | — | — | — | (340 | ) | (340 | ) | |||||||||||||||||
Reclassification of restructuring charges of discontinued operations | — | — | — | — | (58 | ) | (58 | ) | |||||||||||||||||
Accrued restructuring balance at July 31, 2013 | 382 | 520 | 4,256 | 6 | — | 5,164 | |||||||||||||||||||
Restructuring charges | 918 | 944 | 4,235 | 308 | — | 6,405 | |||||||||||||||||||
Restructuring adjustments | (49 | ) | (11 | ) | 102 | 110 | — | 152 | |||||||||||||||||
Cash paid | (975 | ) | (1,161 | ) | (6,957 | ) | (364 | ) | — | (9,457 | ) | ||||||||||||||
Non-cash adjustments | (81 | ) | (18 | ) | 114 | 6 | — | 21 | |||||||||||||||||
Accrued restructuring balance at July 31, 2014 | $ | 195 | $ | 274 | $ | 1,750 | $ | 66 | $ | — | $ | 2,285 | |||||||||||||
Other_Current_Liabilities_Tabl
Other Current Liabilities (Tables) | 12 Months Ended | ||||||||
Jul. 31, 2014 | |||||||||
Components of Other Current Liabilities | ' | ||||||||
The following schedule reflects the components of “Other Current Liabilities”: | |||||||||
July 31, | July 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Accrued pricing liabilities | $ | 19,301 | $ | 20,854 | |||||
Unsettled trading securities liabilities | 22,430 | — | |||||||
Credit facility liability | 4,453 | — | |||||||
Other | 5,575 | 6,011 | |||||||
$ | 51,759 | $ | 26,865 | ||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||
Jul. 31, 2014 | |||||
Net Carrying Value 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 July 31, 2014, the net carrying value of the Notes was $73.4 million. | |||||
July 31, | |||||
2014 | |||||
(In thousands) | |||||
Carrying amount of equity component (net of allocated debt issuance costs) | $ | 27,177 | |||
Principal amount of Notes | $ | 100,000 | |||
Unamortized debt discount | (26,609 | ) | |||
Net carrying amount | $ | 73,391 | |||
Summary of Interest Expense Related to Convertible Notes | ' | ||||
As of July 31, 2014, the remaining period over which the unamortized discount will be amortized is 55 months. | |||||
Year ended | |||||
31-Jul-14 | |||||
(In thousands) | |||||
Interest expense related to contractual interest coupon | $ | 1,940 | |||
Interest expense related to accretion of the discount | 1,489 | ||||
Interest expense related to debt issuance costs | 183 | ||||
$ | 3,612 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||||||||||
Future Annual Minimum Payments | ' | ||||||||||||||||||||||||
Future annual minimum payments, including restructuring related obligations as of July 31, 2014, are as follows: | |||||||||||||||||||||||||
Operating | Stadium | Capital | Purchase | Convertible | Total | ||||||||||||||||||||
Leases | Obligation | Lease | Obligations | Notes | |||||||||||||||||||||
Obligations | Interest & | ||||||||||||||||||||||||
Principal | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
For the fiscal years ended July 31: | |||||||||||||||||||||||||
2015 | 17,702 | 1,600 | 168 | 44,564 | 5,002 | 69,036 | |||||||||||||||||||
2016 | 13,297 | — | 167 | — | 5,250 | 18,714 | |||||||||||||||||||
2017 | 7,719 | — | 204 | — | 5,250 | 13,173 | |||||||||||||||||||
2018 | 4,947 | — | — | — | 5,250 | 10,197 | |||||||||||||||||||
2019 | 3,536 | — | — | — | 105,250 | 108,786 | |||||||||||||||||||
Thereafter | 7,514 | — | — | — | — | 7,514 | |||||||||||||||||||
54,715 | 1,600 | 539 | 44,564 | 126,002 | 227,420 | ||||||||||||||||||||
Defined_Benefit_Pension_Plans_
Defined Benefit Pension Plans (Tables) | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Aggregate Change in Benefit Obligation and Plan Assets | ' | ||||||||||||
The aggregate change in benefit obligation and plan assets related to these plans was as follows: | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Change in benefit obligation | |||||||||||||
Benefit obligation at beginning of year | $ | 20,095 | $ | 17,159 | |||||||||
Service cost | 521 | 644 | |||||||||||
Interest cost | 743 | 728 | |||||||||||
Actuarial (gain) loss | 5,291 | 2,564 | |||||||||||
Employee contributions | 182 | 296 | |||||||||||
Amendments | (187 | ) | — | ||||||||||
Benefits and administrative expenses paid | (445 | ) | (260 | ) | |||||||||
Adjustments | 310 | — | |||||||||||
Effect of curtailment | (371 | ) | (2,258 | ) | |||||||||
Currency translation | 187 | 1,222 | |||||||||||
Benefit obligation at end of year | 26,326 | 20,095 | |||||||||||
Change in plan assets | |||||||||||||
Fair value of plan assets at beginning of year | 16,498 | 14,151 | |||||||||||
Actual return on plan assets | 5,316 | 172 | |||||||||||
Employee contributions | 175 | 296 | |||||||||||
Employer contributions | 844 | 1,079 | |||||||||||
Benefits and administrative expenses paid | (445 | ) | (260 | ) | |||||||||
Currency translation | 155 | 1,060 | |||||||||||
Fair value of plan assets at end of year | 22,543 | 16,498 | |||||||||||
Funded status | |||||||||||||
Assets | — | — | |||||||||||
Current liability | — | (1 | ) | ||||||||||
Noncurrent liability | (3,783 | ) | (3,596 | ) | |||||||||
Net amount recognized in statement of financial position as a noncurrent asset (liability) | $ | (3,783 | ) | $ | (3,597 | ) | |||||||
Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets | ' | ||||||||||||
Information for pension plans with an accumulated benefit obligation in excess of plan assets was as follows: | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Projected benefit obligation | $ | 24,352 | $ | 18,664 | |||||||||
Accumulated benefit obligation | $ | 21,675 | $ | 16,454 | |||||||||
Fair value of plan assets | $ | 21,425 | $ | 15,423 | |||||||||
Components of Net Periodic Pension Cost | ' | ||||||||||||
Components of net periodic pension cost were as follows: | |||||||||||||
Years Ended | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Service cost | $ | 521 | $ | 644 | $ | 368 | |||||||
Interest costs | 743 | 728 | 589 | ||||||||||
Expected return on plan assets | (577 | ) | (538 | ) | (473 | ) | |||||||
Amortization of net actuarial (gain) loss | 62 | 38 | (88 | ) | |||||||||
Curtailment gain | — | (504 | ) | — | |||||||||
Net periodic pension costs | $ | 749 | $ | 368 | $ | 396 | |||||||
Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Pension Cost | ' | ||||||||||||
Weighted-average assumptions used to determine benefit obligations was as follows: | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Discount rate | 2.95 | % | 3.61 | % | 3.95 | % | |||||||
Rate of compensation increase | 2.05 | % | 2.07 | % | 2.12 | % | |||||||
Weighted-average assumptions used to determine net periodic pension cost was as follows: | |||||||||||||
Years Ended July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Discount rate | 3.73 | % | 4.13 | % | 5.5 | % | |||||||
Expected long-term rate of return on plan assets | 3.54 | % | 3.43 | % | 3.34 | % | |||||||
Rate of compensation increase | 2.01 | % | 2.05 | % | 2 | % | |||||||
Summary of Expected Benefit Payments from the Plans through Fiscal 2023 | ' | ||||||||||||
The following table summarizes expected benefit payments from the plans through fiscal year 2023. | |||||||||||||
Pension | |||||||||||||
Benefit | |||||||||||||
Payments | |||||||||||||
(in thousands) | |||||||||||||
For the fiscal years ended July 31: | |||||||||||||
2015 | 102 | ||||||||||||
2016 | 123 | ||||||||||||
2017 | 164 | ||||||||||||
2018 | 185 | ||||||||||||
2019 | 214 | ||||||||||||
Next 5 years | 1,588 |
Other_Gains_Losses_Net_Tables
Other Gains (Losses), Net (Tables) | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Components of Other Gains (Losses), Net | ' | ||||||||||||
The following schedule reflects the components of “Other gains (losses), net”: | |||||||||||||
Years Ended | |||||||||||||
July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Derecognition of accrued pricing liabilities | $ | — | $ | — | $ | 11,811 | |||||||
Foreign currency exchange gain (losses) | (480 | ) | (2,050 | ) | 2,948 | ||||||||
Gain on disposal of assets | 475 | 97 | — | ||||||||||
Other, net | (45 | ) | (689 | ) | (369 | ) | |||||||
$ | (50 | ) | $ | (2,642 | ) | $ | 14,390 | ||||||
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 12 Months Ended | ||||||||||||||||
Jul. 31, 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 nonvested shares for the fiscal years ended July 31, 2014, 2013, and 2012: | |||||||||||||||||
Years Ended | |||||||||||||||||
July 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||
Cost of revenue | $ | 434 | $ | 263 | $ | 344 | |||||||||||
Selling, general and administrative | 1,820 | 2,045 | 2,646 | ||||||||||||||
$ | 2,254 | $ | 2,308 | $ | 2,990 | ||||||||||||
Weighted-Average Grant Date Fair Value of Employee Stock Options Granted | ' | ||||||||||||||||
The weighted-average grant date fair value of employee stock options granted during the fiscal years ended July 31, 2014, 2013, and 2012 was $1.89, $1.56 and $1.98, respectively, using the binomial-lattice model with the following weighted-average assumptions: | |||||||||||||||||
Years Ended July 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected volatility | 57.32 | % | 60.53 | % | 59.56 | % | |||||||||||
Risk-free interest rate | 1.16 | % | 0.78 | % | 0.84 | % | |||||||||||
Expected term (in years) | 4.41 | 4.6 | 4.66 | ||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Summary of Option Activity | ' | ||||||||||||||||
A summary of option activity for the fiscal year ended July 31, 2014 is as follows: | |||||||||||||||||
Number of | Weighted- | Weighted-Average | Aggregate | ||||||||||||||
Shares | Average | Remaining | Intrinsic | ||||||||||||||
Exercise | Contractual Term | Value | |||||||||||||||
Price | (Years ) | ||||||||||||||||
(in thousands, except exercise price and years) | |||||||||||||||||
Stock options outstanding, July 31, 2013 | 3,437 | $ | 5.28 | ||||||||||||||
Granted | 968 | 4.19 | |||||||||||||||
Exercised | (337 | ) | 3.42 | ||||||||||||||
Forfeited or expired | (1,124 | ) | 6.52 | ||||||||||||||
Stock options outstanding, July 31, 2014 | 2,944 | 4.66 | 5.21 | $ | 532 | ||||||||||||
Stock options exercisable, July 31, 2014 | 947 | $ | 6.55 | 3.83 | $ | 143 | |||||||||||
Summary of Activity of Nonvested Stock | ' | ||||||||||||||||
A summary of the activity of our nonvested stock for the fiscal year ended July 31, 2014, is as follows: | |||||||||||||||||
Number of | Weighted- | ||||||||||||||||
Shares | Average | ||||||||||||||||
Grant Date | |||||||||||||||||
Fair Value | |||||||||||||||||
(share amounts in thousands) | |||||||||||||||||
Nonvested stock outstanding, July 31, 2013 | 149 | $ | 3.94 | ||||||||||||||
Granted | 184 | 3.05 | |||||||||||||||
Vested | (85 | ) | 4.18 | ||||||||||||||
Forfeited | (9 | ) | 4.2 | ||||||||||||||
Nonvested stock outstanding, July 31, 2014 | 239 | $ | 3.16 | ||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||||||||||
Components of Loss from Continuing Operations before Provision for Income Taxes | ' | ||||||||||||||||||||||||
The components of loss from continuing operations before provision for income taxes are as follows: | |||||||||||||||||||||||||
Years Ended July 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes: | |||||||||||||||||||||||||
U.S. | $ | (21,437 | ) | $ | (41,257 | ) | $ | (26,794 | ) | ||||||||||||||||
Foreign | 9,891 | 7,321 | 3,466 | ||||||||||||||||||||||
Total loss from continuing operations before income taxes | $ | (11,546 | ) | $ | (33,936 | ) | $ | (23,328 | ) | ||||||||||||||||
Components of Income Tax Expense | ' | ||||||||||||||||||||||||
The components of income tax expense have been recorded in the Company’s consolidated financial statements as follows: | |||||||||||||||||||||||||
Years Ended July 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Income tax expense from continuing operations | $ | 4,682 | $ | 3,779 | $ | 3,035 | |||||||||||||||||||
Total income tax expense | $ | 4,682 | $ | 3,779 | $ | 3,035 | |||||||||||||||||||
Components of Income Tax Expense from Continuing Operations | ' | ||||||||||||||||||||||||
The components of income tax expense from continuing operations consist of the following: | |||||||||||||||||||||||||
July 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Current provision: | |||||||||||||||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||||||||||||||
State | — | — | — | ||||||||||||||||||||||
Foreign | 4,916 | 4,307 | 2,632 | ||||||||||||||||||||||
4,916 | 4,307 | 2,632 | |||||||||||||||||||||||
Deferred provision: | |||||||||||||||||||||||||
Federal | — | — | — | ||||||||||||||||||||||
State | — | — | — | ||||||||||||||||||||||
Foreign | (234 | ) | (528 | ) | 403 | ||||||||||||||||||||
(234 | ) | (528 | ) | 403 | |||||||||||||||||||||
Total tax provision | $ | 4,682 | $ | 3,779 | $ | 3,035 | |||||||||||||||||||
Components of Deferred Tax Assets and Liabilities | ' | ||||||||||||||||||||||||
The components of deferred tax assets and liabilities are as follows: | |||||||||||||||||||||||||
31-Jul-14 | 31-Jul-13 | ||||||||||||||||||||||||
Current | Non-current | Total | Current | Non-current | Total | ||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Accruals and reserves | 9,634 | 4,981 | 14,615 | 9,304 | 6,409 | 15,713 | |||||||||||||||||||
Tax basis in excess of financial basis for intangible and fixed assets | — | 17,251 | 17,251 | — | 15,413 | 15,413 | |||||||||||||||||||
Tax basis in excess of financial basis of investments in affiliates | — | 9,699 | 9,699 | — | 8,002 | 8,002 | |||||||||||||||||||
Net operating loss and capital loss carry forwards | — | 747,038 | 747,038 | — | 749,501 | 749,501 | |||||||||||||||||||
Total gross deferred tax assets | 9,634 | 778,969 | 788,603 | 9,304 | 779,325 | 788,629 | |||||||||||||||||||
Less: valuation allowance | (8,364 | ) | (749,961 | ) | (758,325 | ) | (8,159 | ) | (758,199 | ) | (766,358 | ) | |||||||||||||
Net deferred tax assets | 1,270 | 29,008 | 30,278 | 1,145 | 21,126 | 22,271 | |||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Accruals and reserves | (31 | ) | — | (31 | ) | (39 | ) | — | (39 | ) | |||||||||||||||
Financial basis in excess of tax basis for intangible and fixed assets | — | (1,210 | ) | (1,210 | ) | — | (1,343 | ) | (1,343 | ) | |||||||||||||||
Convertible Debt | — | (11,302 | ) | (11,302 | ) | — | — | — | |||||||||||||||||
Undistributed accumulated earnings of foreign subsidiaries | — | (14,680 | ) | (14,680 | ) | — | (18,010 | ) | (18,010 | ) | |||||||||||||||
Total gross deferred tax liabilities | (31 | ) | (27,192 | ) | (27,223 | ) | (39 | ) | (19,353 | ) | (19,392 | ) | |||||||||||||
Net deferred tax asset (liability) | 1,239 | 1,816 | 3,055 | 1,106 | 1,773 | 2,879 | |||||||||||||||||||
Subsequently Reported Tax Benefits Relating to Valuation Allowance for Deferred Tax Assets | ' | ||||||||||||||||||||||||
Subsequently reported tax benefits relating to the valuation allowance for deferred tax assets as of July 31, 2014 will be allocated as follows (in thousands): | |||||||||||||||||||||||||
Income tax benefit recognized in the consolidated statement of operations | $ | (742,864 | ) | ||||||||||||||||||||||
Additional paid in capital | (15,461 | ) | |||||||||||||||||||||||
$ | (758,325 | ) | |||||||||||||||||||||||
Reconciliation of Income Tax Expense Attributable to Income from Continuing Operations | ' | ||||||||||||||||||||||||
Income tax expense attributable to income from continuing operations differs from the expense computed by applying the U.S. federal income tax rate of 35% to income (loss) from continuing operations before income taxes as a result of the following: | |||||||||||||||||||||||||
Years Ended July 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Computed “expected” income tax expense (benefit) | $ | (3,907 | ) | $ | (12,443 | ) | $ | (12,447 | ) | ||||||||||||||||
Increase (decrease) in income tax expense resulting from: | |||||||||||||||||||||||||
Losses not benefited | 3,282 | 13,413 | 11,112 | ||||||||||||||||||||||
Foreign dividends | 5,737 | 2,956 | 3,298 | ||||||||||||||||||||||
Foreign tax rate differential | (750 | ) | (316 | ) | 1,133 | ||||||||||||||||||||
Capitalized costs | (54 | ) | 100 | 179 | |||||||||||||||||||||
Nondeductible expenses | (49 | ) | 254 | 355 | |||||||||||||||||||||
Foreign withholding taxes | 423 | 218 | 542 | ||||||||||||||||||||||
Reversal of uncertain tax position reserves | — | (403 | ) | (1,137 | ) | ||||||||||||||||||||
Actual income tax expense | $ | 4,682 | $ | 3,779 | $ | 3,035 | |||||||||||||||||||
Reconciliation of Beginning and Ending Balances of Total Amounts of Gross Unrecognized Tax Benefits | ' | ||||||||||||||||||||||||
A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: | |||||||||||||||||||||||||
Years Ended July 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Balance as of beginning of year | $ | 1,015 | $ | 1,230 | $ | 2,273 | |||||||||||||||||||
Additions for current year tax positions | 13 | 79 | 73 | ||||||||||||||||||||||
Additions for prior year tax positions | — | — | 564 | ||||||||||||||||||||||
Currency translation | — | 33 | — | ||||||||||||||||||||||
Reductions for lapses in statute of limitations | — | (212 | ) | (1,680 | ) | ||||||||||||||||||||
Reductions of prior year tax positions | — | (115 | ) | — | |||||||||||||||||||||
Balance as of end of year | $ | 1,028 | $ | 1,015 | $ | 1,230 | |||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Items | ' | ||||||||||||||||
The components of accumulated other comprehensive income, net of income taxes, are as follows: | |||||||||||||||||
Foreign | Pension | Unrealized | Total | ||||||||||||||
currency | items | gains | |||||||||||||||
items | (losses) on | ||||||||||||||||
securities | |||||||||||||||||
(In thousands) | |||||||||||||||||
Accumulated other comprehensive income at July 31, 2013 | $ | 15,759 | $ | (2,066 | ) | $ | 20 | $ | 13,713 | ||||||||
Foreign currency translation adjustment | 74 | — | — | 74 | |||||||||||||
Net unrealized holding gain on securities, net of tax | — | — | 15 | 15 | |||||||||||||
Pension liability adjustments, net of tax | — | 166 | — | 166 | |||||||||||||
Net current-period other comprehensive income | 74 | 166 | 15 | 255 | |||||||||||||
Accumulated other comprehensive income at July 31, 2014 | $ | 15,833 | $ | (1,900 | ) | $ | 35 | $ | 13,968 | ||||||||
Statement_of_Cash_Flows_Supple1
Statement of Cash Flows Supplemental Information (Tables) | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Cash Used for Operating Activities Reflect Cash Payments for Interest and Income Taxes | ' | ||||||||||||
Cash used for operating activities reflect cash payments for interest and income taxes as follows: | |||||||||||||
Years Ended July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Cash paid for interest | $ | 33 | $ | 30 | $ | 26 | |||||||
Cash paid for income taxes | $ | 3,838 | $ | 4,632 | $ | 3,538 |
Discontinued_Operations_and_Di1
Discontinued Operations and Divestitures (Tables) | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | |||||||||||||
Summarized Financial Information for Discontinued Operations | ' | ||||||||||||
Summarized financial information for the discontinued operations of the Company are as follows: | |||||||||||||
Years Ended July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Results of operations: | |||||||||||||
Net revenue | $ | — | $ | 4,592 | $ | 25,944 | |||||||
Other gains (losses), net | 80 | 582 | 627 | ||||||||||
Total expenses | — | (6,199 | ) | (37,071 | ) | ||||||||
Income (loss) from discontinued operations | $ | 80 | $ | (1,025 | ) | $ | (10,500 | ) | |||||
July 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Financial position: | |||||||||||||
Current liabilities | $ | — | $ | (610 | ) | ||||||||
Non-current liabilities | — | — | |||||||||||
Net liabilities of discontinued operations | $ | — | $ | (610 | ) | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||
Financial Assets Measured at Fair Value on Recurring Basis and Classified by Fair Value Hierarchy | ' | ||||||||||||||||
The following tables presents the Company’s financial assets measured at fair value on a recurring basis as of July 31, 2014 and July 31, 2013, classified by fair value hierarchy: | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(In thousands) | July 31, 2014 | Level 1 | Level 2 | Level 3 | |||||||||||||
Marketable equity securities | 9,856 | 9,856 | — | — | |||||||||||||
Marketable corporate bonds | 12,937 | 12,937 | — | — | |||||||||||||
Money market funds | 150,626 | 150,626 | — | — | |||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
(In thousands) | July 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
Marketable equity securities | — | — | — | — | |||||||||||||
Marketable corporate bonds | — | — | — | — | |||||||||||||
Money market funds | — | — | — | — |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Jul. 31, 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: | |||||||||||||
Years Ended July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Net revenue: | |||||||||||||
Americas | $ | 299,026 | $ | 268,490 | $ | 249,940 | |||||||
Asia | 176,592 | 212,963 | 218,880 | ||||||||||
Europe | 209,550 | 237,222 | 211,319 | ||||||||||
All Other | 38,232 | 35,829 | 33,808 | ||||||||||
$ | 723,400 | $ | 754,504 | $ | 713,947 | ||||||||
Operating income (loss): | |||||||||||||
Americas | $ | 9,456 | $ | (230 | ) | $ | (14,108 | ) | |||||
Asia | 17,335 | 22,841 | 21,450 | ||||||||||
Europe | (12,319 | ) | (22,091 | ) | (15,718 | ) | |||||||
All Other | (249 | ) | 349 | 634 | |||||||||
Total Segment operating income (loss) | 14,223 | 869 | (7,742 | ) | |||||||||
Corporate-level activity | (19,672 | ) | (29,101 | ) | (27,119 | ) | |||||||
Total operating loss | (5,449 | ) | (28,232 | ) | (34,861 | ) | |||||||
Total other income (expense) | (6,097 | ) | (5,704 | ) | 11,533 | ||||||||
Loss from continuing operations before income taxes | $ | (11,546 | ) | $ | (33,936 | ) | $ | (23,328 | ) | ||||
Total Assets of Continuing Operations | ' | ||||||||||||
July 31, | July 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(In thousands) | |||||||||||||
Total assets: | |||||||||||||
Americas | $ | 73,254 | $ | 65,790 | |||||||||
Asia | 78,749 | 93,547 | |||||||||||
Europe | 81,327 | 97,524 | |||||||||||
All Other | 14,221 | 17,369 | |||||||||||
Sub-total—segment assets | 247,551 | 274,230 | |||||||||||
Corporate | 204,095 | 69,466 | |||||||||||
$ | 451,646 | $ | 343,696 | ||||||||||
Summarized Financial Information of Net Revenue From External Customers by Group of Services | ' | ||||||||||||
Summarized financial information of the Company’s net revenue from external customers by group of services is as follows: | |||||||||||||
Years Ended July 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In thousands) | |||||||||||||
Supply chain services | $ | 635,503 | $ | 676,709 | $ | 646,564 | |||||||
Aftermarket services | 49,665 | 41,966 | 33,575 | ||||||||||
e-Business services | 38,232 | 35,829 | 33,808 | ||||||||||
$ | 723,400 | $ | 754,504 | $ | 713,947 | ||||||||
Selected_Quarterly_Financial_I1
Selected Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jul. 31, 2014 | |||||||||||||||||||||||||||||||||
Selected Quarterly Financial Information | ' | ||||||||||||||||||||||||||||||||
The following table sets forth selected quarterly financial information for the fiscal years ended July 31, 2014 and 2013. The operating results for any given quarter are not necessarily indicative of results for any future period. | |||||||||||||||||||||||||||||||||
Years Ended | Years Ended | ||||||||||||||||||||||||||||||||
Oct. 31, ‘13 | Jan. 31, ‘14 | Apr. 30, ‘14 | Jul. 31, ‘14 | Oct. 31, ‘12 | Jan. 31, ‘13 | Apr. 30, ‘13 | Jul. 31, ‘13 | ||||||||||||||||||||||||||
(In thousands, except per share data) | (In thousands, except per share data) | ||||||||||||||||||||||||||||||||
Net revenue | $ | 191,415 | $ | 194,011 | $ | 173,274 | $ | 164,700 | $ | 197,051 | $ | 203,436 | $ | 173,016 | $ | 181,001 | |||||||||||||||||
Cost of revenue | 169,420 | 171,431 | 157,575 | 150,249 | 178,427 | 183,158 | 157,641 | 160,908 | |||||||||||||||||||||||||
Gross profit | 21,995 | 22,580 | 15,699 | 14,451 | 18,624 | 20,278 | 15,375 | 20,093 | |||||||||||||||||||||||||
Total operating expenses | 19,374 | 21,345 | 20,837 | 18,618 | 25,895 | 28,804 | 22,135 | 25,768 | |||||||||||||||||||||||||
Operating income (loss) | 2,621 | 1,235 | (5,138 | ) | (4,167 | ) | (7,271 | ) | (8,526 | ) | (6,760 | ) | (5,675 | ) | |||||||||||||||||||
Total other income (expense) | (812 | ) | 581 | (3,640 | ) | (2,226 | ) | (1,340 | ) | (2,491 | ) | (677 | ) | (1,196 | ) | ||||||||||||||||||
Income tax expense (benefit) | 1,137 | 753 | 700 | 2,092 | 909 | 674 | 392 | 1,804 | |||||||||||||||||||||||||
Equity in losses of affiliates, net of tax | (134 | ) | — | — | — | (311 | ) | (726 | ) | (418 | ) | (160 | ) | ||||||||||||||||||||
Income (loss) from continuing operations | 538 | 1,063 | (9,478 | ) | (8,485 | ) | (9,831 | ) | (12,417 | ) | (8,247 | ) | (8,835 | ) | |||||||||||||||||||
Income (Loss) from discontinued operations | 79 | 1 | — | — | (827 | ) | (133 | ) | (59 | ) | (6 | ) | |||||||||||||||||||||
Net income (loss) | $ | 617 | $ | 1,064 | $ | (9,478 | ) | $ | (8,485 | ) | $ | (10,658 | ) | $ | (12,550 | ) | $ | (8,306 | ) | $ | (8,841 | ) | |||||||||||
Basic and diluted earnings -loss) per share: | |||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.01 | $ | 0.02 | $ | (0.18 | ) | $ | (0.16 | ) | $ | (0.22 | ) | $ | (0.29 | ) | $ | (0.17 | ) | $ | (0.17 | ) | |||||||||||
Income (loss) from discontinued operations | — | — | — | — | (0.02 | ) | — | — | — | ||||||||||||||||||||||||
Net income (loss) | $ | 0.01 | $ | 0.02 | $ | (0.18 | ) | $ | (0.16 | ) | $ | (0.24 | ) | $ | (0.29 | ) | $ | (0.17 | ) | $ | (0.17 | ) | |||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Significant Of Accounting Policies [Line Items] | ' | ' | ' |
Highly liquid investment period to be considered cash equivalent | '90 days | ' | ' |
Fair value of notes payable | $93,800,000 | ' | ' |
Defined benefit plans assets percentage invested in bank-managed portfolios | 100.00% | ' | ' |
Impairment charges related to investments | $1,420,000 | $2,750,000 | $2,864,000 |
Convertible Notes | ' | ' | ' |
Significant Of Accounting Policies [Line Items] | ' | ' | ' |
Common stock equivalent shares excluded from the denominator in calculation of diluted earnings per share | 6.2 | ' | ' |
Hewlett Packard | Sales Revenue, Net | ' | ' | ' |
Significant Of Accounting Policies [Line Items] | ' | ' | ' |
Concentration risk percentage | 29.00% | 29.00% | 31.00% |
Hewlett Packard | Net Accounts Receivable | ' | ' | ' |
Significant Of Accounting Policies [Line Items] | ' | ' | ' |
Concentration risk percentage | 17.00% | 23.00% | ' |
Stock Options And Restricted Stock | ' | ' | ' |
Significant Of Accounting Policies [Line Items] | ' | ' | ' |
Common stock equivalent shares excluded from the denominator in calculation of diluted earnings per share | 3 | 3.4 | 2.9 |
Maximum | ' | ' | ' |
Significant Of Accounting Policies [Line Items] | ' | ' | ' |
Equity method investment ownership percentage | 50.00% | ' | ' |
Highly liquid investment period to be considered short term investments | '12 months | ' | ' |
Minimum | ' | ' | ' |
Significant Of Accounting Policies [Line Items] | ' | ' | ' |
Equity method investment ownership percentage | 20.00% | ' | ' |
Highly liquid investment period to be considered short term investments | '90 days | ' | ' |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Detail) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash and bank deposits | $32,889 | $77,916 | ' | ' |
Money market funds | 150,626 | ' | ' | ' |
Cash and cash equivalents | $183,515 | $77,916 | $52,369 | $111,225 |
Components_of_Inventories_Deta
Components of Inventories (Detail) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Raw materials | $51,179 | $46,920 |
Work-in-process | 910 | 1,256 |
Finished goods | 13,180 | 13,146 |
Inventories, net | $65,269 | $61,322 |
Estimated_Useful_Lives_of_Prop
Estimated Useful Lives of Property Plant and Equipment (Detail) | 12 Months Ended |
Jul. 31, 2014 | |
Buildings | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '32 years |
Automobiles | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '5 years |
Leasehold Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | 'Shorter of the remaining lease term or the estimated useful life of the asset |
Minimum | Machinery and Equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '3 years |
Minimum | Furniture and Fixtures | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '5 years |
Minimum | Software | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '3 years |
Maximum | Machinery and Equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '5 years |
Maximum | Furniture and Fixtures | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '7 years |
Maximum | Software | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '8 years |
Reconciliation_of_Earnings_Per
Reconciliation of Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss from continuing operations | ($8,485) | ($9,478) | $1,063 | $538 | ($8,835) | ($8,247) | ($12,417) | ($9,831) | ($16,362) | ($39,330) | ($27,608) |
Income (loss) from discontinued operations | ' | ' | 1 | 79 | -6 | -59 | -133 | -827 | 80 | -1,025 | -10,500 |
Net Loss | ($8,485) | ($9,478) | $1,064 | $617 | ($8,841) | ($8,306) | ($12,550) | ($10,658) | ($16,282) | ($40,355) | ($38,108) |
Weighted average common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 51,582 | 46,654 | 43,565 |
Weighted average common equivalent shares arising from dilutive stock options and restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Weighted average number of common and potential common shares | ' | ' | ' | ' | ' | ' | ' | ' | 51,582 | 46,654 | 43,565 |
Net loss per share - basic and diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continuing operations | ($0.16) | ($0.18) | $0.02 | $0.01 | ($0.17) | ($0.17) | ($0.29) | ($0.22) | ($0.32) | ($0.84) | ($0.63) |
Discontinued operations | ' | ' | ' | ' | ' | ' | ' | ($0.02) | $0 | ($0.02) | ($0.24) |
Basic and diluted net income (loss) per common share | ($0.16) | ($0.18) | $0.02 | $0.01 | ($0.17) | ($0.17) | ($0.29) | ($0.24) | ($0.32) | ($0.86) | ($0.87) |
Allowance_for_Doubtful_Account
Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Balance at beginning of year | $64 | $344 | $473 |
Provisions charged to expense | 59 | 146 | 15 |
Balance reclassified to discontinued operations | ' | -84 | ' |
Balance at end of year | 63 | 64 | 344 |
Allowance for Doubtful Accounts, Continuing Operations | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts written off | -60 | -120 | -144 |
Allowance for Doubtful Accounts, Discontinued Operations | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Accounts written off | ' | ($222) | ' |
Accounts_Receivable_Additional
Accounts Receivable - Additional Information (Detail) (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Amount of accounts receivable factored | $27,300,000 | $7,700,000 |
Cost incurred on the sale of receivables | $14,000 | $6,000 |
London Interbank Offered Rate (LIBOR) | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Interest rate on the sale of receivables | 0.85% | ' |
Property_and_Equipment_at_Cost
Property and Equipment at Cost (Detail) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Buildings | $31,430 | $21,020 |
Machinery and equipment | 45,910 | 17,012 |
Leasehold improvements | 17,026 | 18,327 |
Software | 42,554 | 43,905 |
Other | 33,789 | 4,473 |
Property plant and equipment, gross | 170,709 | 104,737 |
Less: Accumulated depreciation and amortization | -145,583 | -70,447 |
Property and equipment, net | $25,126 | $34,290 |
Assets_under_Capital_Leases_De
Assets under Capital Leases (Detail) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Capital leased assets gross | $642 | $521 |
Less: Accumulated depreciation and amortization | -451 | -455 |
Capital leased assets net | 191 | 66 |
Machinery and Equipment | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Capital leased assets gross | 383 | 343 |
Other | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Capital leased assets gross | $259 | $178 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation expense | $13,179 | $14,118 | $13,920 |
Impairment of long-lived assets | 500 | ' | 1,128 |
Americas | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation expense | 3,400 | 4,000 | 4,300 |
Asia | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation expense | 4,800 | 4,800 | 4,400 |
Europe | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation expense | 4,200 | 4,600 | 4,500 |
All Other | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation expense | 800 | 700 | 800 |
Kildare | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Impairment of long-lived assets | $500 | ' | ' |
Investments_Additional_informa
Investments - Additional information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2014 | Oct. 14, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Oct. 14, 2014 | |
Co-venturer | Co-venturer | Co-venturer | Co-venturer | Co-venturer | Co-venturer | 4.0625% Convertible debenture | 4.0625% Convertible debenture | Common Stock | Common Stock | Common Stock | |||||||||
Investment | Nominal Investments | Private Agreements | Private Agreements | Subsequent Event | Other Current Liabilities | Subsequent Event | |||||||||||||
Investment | |||||||||||||||||||
Investment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trading Securities, debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12,900,000 | ' | ' | ' | ' |
Convertible debentures, interest rate, stated percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.06% | ' | ' | ' | ' |
Trading Securities, equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,900,000 | ' | ' |
Unsettled trading securities liabilities | ' | ' | ' | ' | ' | 22,430,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,400,000 | ' |
Cost basis investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,000,000 | ' | ' | 35,500,000 |
Investments in privately held companies | ' | ' | ' | ' | ' | 756,000 | 1,712,000 | 2,912,000 | 800,000 | 1,700,000 | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of investment | ' | 7,970,000 | ' | ' | ' | 7,172,000 | 7,970,000 | ' | ' | ' | ' | ' | 7,200,000 | 8,000,000 | ' | ' | ' | ' | ' |
Impairment charges | ' | ' | ' | ' | ' | 1,420,000 | 2,750,000 | 2,864,000 | 1,400,000 | 2,800,000 | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Investment distribution income | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 200,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Share of loss from investment in affiliates | ($134,000) | ($160,000) | ($418,000) | ($726,000) | ($311,000) | ($134,000) | ($1,615,000) | ($1,245,000) | $100,000 | $1,600,000 | $1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of investment portfolios | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $3,058 | $3,058 | $3,058 |
Amortization expense for intangible assets | 1,097 | 1,133 | 1,139 |
e-Business Services | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Goodwill | $3,100 | $3,100 | ' |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Goodwill Allocated to Operating Segments (Detail) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
In Thousands, unless otherwise specified | |||
Goodwill [Line Items] | ' | ' | ' |
Beginning balance | $204,390 | $204,390 | $204,390 |
Accumulated impairment charges | -201,332 | -201,332 | -201,332 |
Ending balance | 3,058 | 3,058 | 3,058 |
Americas | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Beginning balance | 94,477 | 94,477 | 94,477 |
Accumulated impairment charges | -94,477 | -94,477 | -94,477 |
Asia | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Beginning balance | 73,948 | 73,948 | 73,948 |
Accumulated impairment charges | -73,948 | -73,948 | -73,948 |
Europe | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Beginning balance | 30,108 | 30,108 | 30,108 |
Accumulated impairment charges | -30,108 | -30,108 | -30,108 |
All Other | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' |
Beginning balance | 5,857 | 5,857 | 5,857 |
Accumulated impairment charges | -2,799 | -2,799 | -2,799 |
Ending balance | $3,058 | $3,058 | $3,058 |
Components_of_Intangible_Asset
Components of Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $11,089 | $11,089 |
Accumulated amortization/ impairment | 10,422 | 9,325 |
Net Book Value | 667 | 1,764 |
Client Relationships | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 4,399 | 4,399 |
Accumulated amortization/ impairment | 4,002 | 3,374 |
Net Book Value | 397 | 1,025 |
Weighted average amortization period | '7 years | '7 years |
Developed Technology | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 5,092 | 5,092 |
Accumulated amortization/ impairment | 4,859 | 4,475 |
Net Book Value | 233 | 617 |
Trade Names | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 1,515 | 1,515 |
Accumulated amortization/ impairment | 1,478 | 1,393 |
Net Book Value | 37 | 122 |
Non-Competes | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 83 | 83 |
Accumulated amortization/ impairment | $83 | $83 |
Minimum | Developed Technology | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted average amortization period | '3 years | '3 years |
Minimum | Trade Names | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted average amortization period | '3 years | '3 years |
Minimum | Non-Competes | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted average amortization period | '1 year | '1 year |
Maximum | Developed Technology | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted average amortization period | '7 years | '7 years |
Maximum | Trade Names | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted average amortization period | '7 years | '7 years |
Maximum | Non-Competes | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Weighted average amortization period | '5 years | '5 years |
Estimated_Annual_Amortization_
Estimated Annual Amortization Expense for Intangible Assets (Detail) (USD $) | Jul. 31, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets [Line Items] | ' |
2015 | $667 |
Activity_in_Restructuring_Accr
Activity in Restructuring Accrual (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Accrued restructuring, beginning balance | $5,164 | $1,724 | $1,464 |
Restructuring charges | 6,405 | 14,750 | 6,716 |
Restructuring adjustments | 152 | -253 | -300 |
Cash paid | -9,457 | -10,946 | -6,404 |
Non-cash adjustments | 21 | 133 | 64 |
Reclassification of restructuring charges of discontinued operations | ' | -58 | ' |
Accrued restructuring, ending balance | 2,285 | 5,164 | 1,724 |
Discontinued Operations | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 154 | 1,039 |
Cash paid | ' | -340 | -855 |
Employee Related Expenses | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Accrued restructuring, beginning balance | 3,974 | 626 | 296 |
Restructuring charges | 6,111 | 13,638 | 5,274 |
Restructuring adjustments | 161 | -232 | -439 |
Cash paid | -8,640 | -9,947 | -4,645 |
Non-cash adjustments | 81 | 133 | -44 |
Reclassification of restructuring charges of discontinued operations | ' | -43 | ' |
Accrued restructuring, ending balance | 1,687 | 3,974 | 626 |
Employee Related Expenses | Discontinued Operations | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 42 | 944 |
Cash paid | ' | -243 | -760 |
Contractual Obligations | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Accrued restructuring, beginning balance | 1,190 | 1,098 | 1,168 |
Restructuring charges | 294 | 1,112 | 1,442 |
Restructuring adjustments | -9 | -21 | 139 |
Cash paid | -817 | -999 | -1,759 |
Non-cash adjustments | -60 | ' | 108 |
Reclassification of restructuring charges of discontinued operations | ' | -15 | ' |
Accrued restructuring, ending balance | 598 | 1,190 | 1,098 |
Contractual Obligations | Discontinued Operations | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 112 | 95 |
Cash paid | ' | ($97) | ($95) |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Employee | Employee | Employee | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring, net | $6,557,000 | $14,497,000 | $6,416,000 |
Restructuring charge related to workforce reduction | 6,300,000 | 13,400,000 | 4,800,000 |
Restructuring charge related to facility closed | 300,000 | 1,100,000 | 1,600,000 |
Number of workforce reduction | 181 | 465 | 270 |
Restructuring reversal | ($152,000) | $253,000 | $300,000 |
Net_Restructuring_Charges_Deta
Net Restructuring Charges (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring, net | $6,557 | $14,497 | $6,416 |
Cost of revenue | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring, net | 4,283 | 10,625 | 3,960 |
Selling, general and administrative | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring, net | $2,274 | $3,872 | $2,456 |
Summary_of_Restructuring_Accru
Summary of Restructuring Accrual by Reportable Segment (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Accrued restructuring, beginning balance | $5,164 | $1,724 | $1,464 |
Restructuring charges | 6,405 | 14,750 | 6,716 |
Restructuring adjustments | 152 | -253 | -300 |
Cash paid | -9,457 | -10,946 | -6,404 |
Non-cash adjustments | 21 | 133 | 64 |
Reclassification of restructuring charges of discontinued operations | ' | -58 | ' |
Accrued restructuring, ending balance | 2,285 | 5,164 | 1,724 |
Discontinued Operations | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 154 | 1,039 |
Cash paid | ' | -340 | -855 |
Americas | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Accrued restructuring, beginning balance | 382 | 1,086 | 1,346 |
Restructuring charges | 918 | 1,614 | 1,706 |
Restructuring adjustments | -49 | -21 | -94 |
Cash paid | -975 | -2,284 | -1,933 |
Non-cash adjustments | -81 | -13 | 61 |
Accrued restructuring, ending balance | 195 | 382 | 1,086 |
Asia | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Accrued restructuring, beginning balance | 520 | ' | ' |
Restructuring charges | 944 | 2,516 | 702 |
Restructuring adjustments | -11 | -89 | -56 |
Cash paid | -1,161 | -1,899 | -647 |
Non-cash adjustments | -18 | -8 | 1 |
Accrued restructuring, ending balance | 274 | 520 | ' |
Europe | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Accrued restructuring, beginning balance | 4,256 | 51 | 118 |
Restructuring charges | 4,235 | 9,610 | 3,766 |
Restructuring adjustments | 102 | 27 | -85 |
Cash paid | -6,957 | -5,517 | -3,690 |
Non-cash adjustments | 114 | 85 | -58 |
Accrued restructuring, ending balance | 1,750 | 4,256 | 51 |
All Other | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Accrued restructuring, beginning balance | 6 | 343 | ' |
Restructuring charges | 308 | 1,010 | 542 |
Restructuring adjustments | 110 | -170 | -65 |
Cash paid | -364 | -1,246 | -134 |
Non-cash adjustments | 6 | 69 | ' |
Accrued restructuring, ending balance | 66 | 6 | 343 |
Discontinued Operations | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Accrued restructuring, beginning balance | ' | 244 | ' |
Non-cash adjustments | ' | ' | 60 |
Reclassification of restructuring charges of discontinued operations | ' | -58 | ' |
Accrued restructuring, ending balance | ' | ' | 244 |
Discontinued Operations | Discontinued Operations | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 154 | 1,039 |
Cash paid | ' | ($340) | ($855) |
Components_of_Other_Current_Li
Components of Other Current Liabilities (Detail) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Current Liabilities [Line Items] | ' | ' |
Accrued pricing liabilities | $19,301 | $20,854 |
Unsettled trading securities liabilities | 22,430 | ' |
Credit facility liability | 4,453 | ' |
Other | 5,575 | 6,011 |
Other current liabilities | $51,759 | $26,865 |
Other_Current_Liabilities_Addi
Other Current Liabilities - Additional Information (Detail) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities [Line Items] | ' | ' |
Accrued pricing liabilities | $19,301 | $20,854 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||
Jul. 31, 2014 | Oct. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2012 | Jun. 30, 2014 | Jul. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 18, 2014 | Jul. 31, 2014 | Mar. 18, 2014 | Jul. 31, 2014 | |
Wells Fargo Bank Credit Facility | Wells Fargo Bank Credit Facility | Wells Fargo Bank Credit Facility | Wells Fargo Bank Credit Facility | Wells Fargo Bank Credit Facility | Wells Fargo Bank Credit Facility | PNC Bank Credit Facility | PNC Bank Credit Facility | PNC Bank Credit Facility | Scenario 1 | Scenario 2 | Scenario 2 | Domestic Subsidiaries | Foreign Subsidiaries | Letter of Credit Sublimit | Uncommitted Accordion Feature | 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 | PNC Bank Credit Facility | PNC Bank Credit Facility | PNC Bank Credit Facility | PNC Bank Credit Facility | PNC Bank Credit Facility | D | Noncurrent Assets | |||||||||||||
London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Federal Funds Open Rate | |||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument issued | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | $100,000,000 | ' |
Debt instrument, stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.25% | ' |
Debt instrument convertible conversion shares per 1000 principal amount of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 166.2593 | ' | ' |
Initial Conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.01 | ' | ' |
Number of trading days observation period | '40 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | 73,391,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,400,000 | ' | ' |
Convertible debt, remaining discount amortization period | '55 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,612,000 | ' | ' |
Debt instrument, interest rate, effective percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14.04% | ' | ' |
Line of credit facility, maximum credit commitment | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | 5,000,000 | 20,000,000 | ' | ' | ' | ' |
Line of credit facility, calculated borrowing base | ' | ' | ' | 29,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility expiry date | ' | 31-Oct-15 | ' | ' | ' | ' | ' | 30-Jun-19 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, percentage points added to the reference rate | ' | ' | ' | ' | ' | 2.50% | 1.50% | ' | ' | ' | 2.25% | 1.00% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, covenant description | ' | ' | '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. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding indebtedness under the Credit Facility | ' | ' | $0 | ' | ' | ' | ' | ' | $4,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, term | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, unutilized commitment fee percentage | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of equity interests pledged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 65.00% | ' | ' | ' | ' | ' | ' |
Net_Carrying_Value_of_the_Note
Net Carrying Value of the Notes (Detail) (USD $) | Jul. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | ' |
Carrying amount of equity component (net of allocated debt issuance costs) | $27,177 |
Principal amount of Notes | 100,000 |
Unamortized debt discount | -26,609 |
Net carrying amount | $73,391 |
Summary_of_Interest_Expense_Re
Summary of Interest Expense Related to Convertible Notes (Detail) (5.25% Convertible Senior Notes due 2019, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Jul. 31, 2014 |
Non Cash Convertible Debt Related Expense [Line Items] | ' |
Debt instrument, interest expense | $3,612 |
Coupon interest rate | ' |
Non Cash Convertible Debt Related Expense [Line Items] | ' |
Debt instrument, interest expense | 1,940 |
Accretion of debt discount | ' |
Non Cash Convertible Debt Related Expense [Line Items] | ' |
Debt instrument, interest expense | 1,489 |
Amortization of debt issue cost | ' |
Non Cash Convertible Debt Related Expense [Line Items] | ' |
Debt instrument, interest expense | $183 |
Future_Annual_Minimum_Payments
Future Annual Minimum Payments (Detail) (USD $) | Jul. 31, 2014 |
In Thousands, unless otherwise specified | |
Other Commitments [Line Items] | ' |
2015 | $69,036 |
2016 | 18,714 |
2017 | 13,173 |
2018 | 10,197 |
2019 | 108,786 |
Thereafter | 7,514 |
Future Minimum Payments Due, Total | 227,420 |
Operating Leases | ' |
Other Commitments [Line Items] | ' |
2015 | 17,702 |
2016 | 13,297 |
2017 | 7,719 |
2018 | 4,947 |
2019 | 3,536 |
Thereafter | 7,514 |
Future Minimum Payments Due, Total | 54,715 |
Stadium Obligation | ' |
Other Commitments [Line Items] | ' |
2015 | 1,600 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
Thereafter | 0 |
Future Minimum Payments Due, Total | 1,600 |
Capital Lease Obligations | ' |
Other Commitments [Line Items] | ' |
2015 | 168 |
2016 | 167 |
2017 | 204 |
2018 | 0 |
2019 | 0 |
Thereafter | 0 |
Future Minimum Payments Due, Total | 539 |
Purchase Obligation | ' |
Other Commitments [Line Items] | ' |
2015 | 44,564 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
Thereafter | 0 |
Future Minimum Payments Due, Total | 44,564 |
Convertible Notes Interest and Principal | ' |
Other Commitments [Line Items] | ' |
2015 | 5,002 |
2016 | 5,250 |
2017 | 5,250 |
2018 | 5,250 |
2019 | 105,250 |
Thereafter | 0 |
Future Minimum Payments Due, Total | $126,002 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Oct. 31, 2014 | Jul. 31, 2014 |
LegalMatter | Scenario, Forecast | Vendor Agreements | |||
Covered by Insurance Proceeds | |||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' |
Total rent and equipment lease expense charged to continuing operations | $21.30 | $25.20 | $26.50 | ' | ' |
Annual lease payments per year | 1.6 | ' | ' | ' | ' |
Sponsorship period | '15 years | ' | ' | ' | ' |
Outstanding obligations | ' | ' | ' | ' | 0 |
Number of purported class actions filed following the announcement | ' | ' | 3 | ' | ' |
Class settlement amount | ' | ' | ' | $4 | ' |
Defined_Benefit_Pension_Plans_1
Defined Benefit Pension Plans - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Accumulated benefit obligation | $22.50 | $17.30 |
Amount included in accumulated other comprehensive income expected to be recognized as a component of net periodic pension costs in fiscal year 2014 | 0.1 | ' |
Minimum required contributions to the plan | 0.9 | ' |
Current target allocations for plan assets for debt securities | 100.00% | ' |
Market value of plan assets using Level 2 inputs | $22.50 | ' |
Cumulative gains and losses in excess of the greater of the pension benefit obligation | 10.00% | ' |
Netherlands | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Number of pension plans | 2 | ' |
Taiwan | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Number of pension plans | 1 | ' |
Japan | Unfunded Defined Benefit Pension Plans | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Number of pension plans | 1 | ' |
Aggregate_Change_in_Benefit_Ob
Aggregate Change in Benefit Obligation and Plan Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Change in benefit obligation | ' | ' | ' |
Benefit obligation at beginning of year | $20,095 | $17,159 | ' |
Service cost | 521 | 644 | 368 |
Interest cost | 743 | 728 | 589 |
Actuarial (gain) loss | 5,291 | 2,564 | ' |
Employee contributions | 182 | 296 | ' |
Amendments | -187 | ' | ' |
Benefits and administrative expenses paid | -445 | -260 | ' |
Adjustments | 310 | ' | ' |
Effect of curtailment | -371 | -2,258 | ' |
Currency translation | 187 | 1,222 | ' |
Benefit obligation at end of year | 26,326 | 20,095 | 17,159 |
Change in plan assets | ' | ' | ' |
Fair value of plan assets at beginning of year | 16,498 | 14,151 | ' |
Actual return on plan assets | 5,316 | 172 | ' |
Employee contributions | 175 | 296 | ' |
Employer contributions | 844 | 1,079 | ' |
Benefits and administrative expenses paid | -445 | -260 | ' |
Currency translation | 155 | 1,060 | ' |
Fair value of plan assets at end of year | 22,543 | 16,498 | 14,151 |
Assets | 0 | 0 | ' |
Current liability | ' | -1 | ' |
Noncurrent liability | -3,783 | -3,596 | ' |
Net amount recognized in statement of financial position as a noncurrent asset (liability) | ($3,783) | ($3,597) | ' |
Information_for_Pension_Plans_
Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets (Detail) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Projected benefit obligation | $24,352 | $18,664 |
Accumulated benefit obligation | 21,675 | 16,454 |
Fair value of plan assets | $21,425 | $15,423 |
Components_of_Net_Periodic_Pen
Components of Net Periodic Pension Cost (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $521 | $644 | $368 |
Interest costs | 743 | 728 | 589 |
Expected return on plan assets | -577 | -538 | -473 |
Amortization of net actuarial (gain) loss | 62 | 38 | -88 |
Curtailment gain | ' | -504 | ' |
Net periodic pension costs | $749 | $368 | $396 |
Weighted_Average_Assumptions_U
Weighted Average Assumptions Used to Determine Benefit Obligations (Detail) | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 2.95% | 3.61% | 3.95% |
Rate of compensation increase | 2.05% | 2.07% | 2.12% |
WeightedAverage_Assumptions_Us
Weighted-Average Assumptions Used to Determine Net Periodic Pension Cost (Detail) | 12 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 3.73% | 4.13% | 5.50% |
Expected long-term rate of return on plan assets | 3.54% | 3.43% | 3.34% |
Rate of compensation increase | 2.01% | 2.05% | 2.00% |
Summary_of_Expected_Benefit_Pa
Summary of Expected Benefit Payments from Plans through Fiscal 2023 (Detail) (USD $) | Jul. 31, 2014 |
In Thousands, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | ' |
2015 | $102 |
2016 | 123 |
2017 | 164 |
2018 | 185 |
2019 | 214 |
Next 5 years | $1,588 |
Components_of_Other_Gains_Loss
Components of Other Gains (Losses), Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' |
Derecognition of accrued pricing liabilities | ' | ' | $11,811 |
Foreign currency exchange gain (losses) | -480 | -2,050 | 2,948 |
Gain on disposal of assets | 475 | 97 | ' |
Other, net | -45 | -689 | -369 |
Other losses, net | ($50) | ($2,642) | $14,390 |
Other_Gains_Losses_Net_Additio
Other Gains (Losses), Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' |
Derecognition of accrued pricing liabilities | ' | ' | $11,811 |
Foreign currency exchange gains (losses) | ($480) | ($2,050) | $2,948 |
ShareBased_Payments_Additional
Share-Based Payments - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2014 | Dec. 08, 2010 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2014 | Jul. 31, 2014 | |
2005 Plan | 2010 Plan | 2010 Plan | ESPP | ESPP | ESPP | Stock Option | Stock Option | Performance Shares | Non-vested restricted stock | Market Options | Market Options | Market Options | Market Options | Market Options | Market Options | Minimum | Maximum | ||||
2005 Plan | First Anniversary | Second Anniversary | Third Anniversary | Fourth Anniversary | Fifth Anniversary | ||||||||||||||||
TradingPrice | TradingPrice | TradingPrice | TradingPrice | TradingPrice | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable terms | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '3 years |
Exercisable rate of options granted | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' |
Contractual terms, share options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | '10 years | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' |
Price performance threshold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | 2 | 2.5 | 3 | 3.5 | ' | ' |
Percentage of vesting and become exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2010 Plan number of shares pursuant to stock options granted | 968,000 | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2010 Plan additional shares of Common Stock | ' | ' | ' | ' | ' | 2,922,258 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock shares available for future issuance | ' | ' | ' | ' | 3,743,904 | ' | 192,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares pursuant to stock options granted | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock purchase price as a percentage of market value | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued under plan | ' | ' | ' | ' | ' | ' | 18,000 | 12,000 | 23,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value of employee stock options granted | $1.89 | $1.56 | $1.98 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized share-based compensation related to stock options | $2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period of cost expected to be expensed | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 9 months 18 days | ' | ' | '2 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options exercised | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options vested and expected to vest | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average remaining contractual term | '5 years 2 months 1 day | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of stock options | 532,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non vested stock compensation expense | 700,000 | 1,100,000 | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of restriction period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '5 years |
Grant date fair value of nonvested stock | 300,000 | 2,200,000 | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to nonvested stock | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_ShareBased_Compensa
Summary of Share-Based Compensation Expense Related to Employee Stock Options, Employee Stock Purchases and Non-Vested Shares (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' |
Share-based compensation expense | $2,254 | $2,308 | $2,990 |
Cost of revenue | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' |
Share-based compensation expense | 434 | 263 | 344 |
Selling, general and administrative | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' |
Share-based compensation expense | $1,820 | $2,045 | $2,646 |
WeightedAverage_Grant_Date_Fai
Weighted-Average Grant Date Fair Value of Employee Stock Options Granted (Detail) | 12 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' |
Expected volatility | 57.32% | 60.53% | 59.56% |
Risk-free interest rate | 1.16% | 0.78% | 0.84% |
Expected term (in years) | '4 years 4 months 28 days | '4 years 7 months 6 days | '4 years 7 months 28 days |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Summary_of_Option_Activity_Det
Summary of Option Activity (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jul. 31, 2014 |
Number of shares | ' |
Stock options outstanding, July 31, 2013 | 3,437 |
Granted | 968 |
Exercised | -337 |
Forfeited or expired | -1,124 |
Stock options outstanding, July 31, 2014 | 2,944 |
Stock options exercisable, July 31, 2014 | 947 |
Weighted Average Exercise price | ' |
Stock options outstanding, July 31, 2013 | $5.28 |
Granted | $4.19 |
Exercised | $3.42 |
Forfeited or expired | $6.52 |
Stock options outstanding, July 31, 2014 | $4.66 |
Stock options exercisable, July 31, 2014 | $6.55 |
Weighted average remaining Contractual term (years) | ' |
Stock options outstanding, July 31, 2014 | '5 years 2 months 16 days |
Stock options exercisable, July 31, 2014 | '3 years 9 months 29 days |
Aggregate intrinsic value | ' |
Stock options outstanding, July 31, 2014 | $532 |
Stock options exercisable, July 31, 2014 | $143 |
Summary_of_Activity_of_Nonvest
Summary of Activity of Nonvested Stock (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jul. 31, 2014 |
Number of shares | ' |
Nonvested stock outstanding, July 31, 2013 | 149 |
Granted | 184 |
Vested | -85 |
Forfeited | -9 |
Nonvested stock outstanding, July 31, 2014 | 239 |
Weighted-Average Grant date fair value | ' |
Nonvested stock outstanding, July 31, 2013 | $3.94 |
Granted | $3.05 |
Vested | $4.18 |
Forfeited | $4.20 |
Nonvested stock outstanding, July 31, 2014 | $3.16 |
Components_of_Loss_from_Contin
Components of Loss from Continuing Operations before Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Income (loss) from continuing operations before income taxes: | ' | ' | ' |
U.S. | ($21,437) | ($41,257) | ($26,794) |
Foreign | 9,891 | 7,321 | 3,466 |
Loss from continuing operations before income taxes | ($11,546) | ($33,936) | ($23,328) |
Components_of_Income_Tax_Expen
Components of Income Tax Expense (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Income Tax Expense Benefit [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax expense from continuing operations | $2,092 | $700 | $753 | $1,137 | $1,804 | $392 | $674 | $909 | $4,682 | $3,779 | $3,035 |
Total income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | $4,682 | $3,779 | $3,035 |
Components_of_Income_Tax_Expen1
Components of Income Tax Expense from Continuing Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Current provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 4,916 | 4,307 | 2,632 |
Current Income Tax Expense (Benefit), Total | ' | ' | ' | ' | ' | ' | ' | ' | 4,916 | 4,307 | 2,632 |
Deferred provision | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | -234 | -528 | 403 |
Income tax benefit recognized in the consolidated statement of operations | ' | ' | ' | ' | ' | ' | ' | ' | -234 | -528 | 403 |
Actual income tax expense | $2,092 | $700 | $753 | $1,137 | $1,804 | $392 | $674 | $909 | $4,682 | $3,779 | $3,035 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | |
Income Taxes [Line Items] | ' | ' | ' |
Deferred tax assets, current | $1,300,000 | $1,100,000 | ' |
Deferred tax assets, non-current | 2,900,000 | 2,200,000 | ' |
Deferred tax liability, non-current | 1,200,000 | 400,000 | ' |
Change in valuation allowance | -8,000,000 | 9,700,000 | ' |
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% | ' | ' |
Net operating loss carryforwards for federal tax | 2,000,000,000 | ' | ' |
Net operating loss carryforwards for state tax | 459,700,000 | ' | ' |
Foreign net operating loss carryforward | 72,200,000 | ' | ' |
Undistributed earnings from foreign subsidiaries | 52,000,000 | ' | ' |
Amount of taxes attributable to the permanently undistributed earnings | 13,300,000 | ' | ' |
Deferred tax liability | 27,223,000 | 19,392,000 | ' |
U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
Unrecognized tax benefits, including interest, related to federal, state and foreign taxes | 1,100,000 | 1,000,000 | 1,300,000 |
Liabilities for interest expense related to uncertain tax positions | 48,000 | 10,000 | 78,000 |
Indefinite Carryforward | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Foreign net operating loss carryforward | 54,700,000 | ' | ' |
Federal | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Net operating losses expire date | '2021 through 2033 | ' | ' |
Capital loss carryforwards | 16,300,000 | ' | ' |
Capital losses expiration year | '2015 | ' | ' |
State | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Net operating losses expire date | '2014 through 2033 | ' | ' |
Capital loss carryforwards | 16,300,000 | ' | ' |
Capital losses expiration year | '2016 | ' | ' |
Foreign Subsidiaries | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Undistributed earnings reinvested | 10,100,000 | ' | ' |
Deferred tax liability | 14,700,000 | ' | ' |
Undistributed earnings that are not considered to be permanently reinvested | $41,900,000 | ' | ' |
Components_of_Deferred_Tax_Ass
Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Accruals and reserves | $14,615 | $15,713 |
Tax basis in excess of financial basis for intangible and fixed assets | 17,251 | 15,413 |
Tax basis in excess of financial basis of investments in affiliates | 9,699 | 8,002 |
Net operating loss and capital loss carry forwards | 747,038 | 749,501 |
Total gross deferred tax assets | 788,603 | 788,629 |
Less: valuation allowance | -758,325 | -766,358 |
Net deferred tax assets | 30,278 | 22,271 |
Deferred tax liabilities: | ' | ' |
Accruals and reserves | -31 | -39 |
Financial basis in excess of tax basis for intangible and fixed assets | -1,210 | -1,343 |
Convertible Debt | -11,302 | 0 |
Undistributed accumulated earnings of foreign subsidiaries | -14,680 | -18,010 |
Total gross deferred tax liabilities | -27,223 | -19,392 |
Net deferred tax asset (liability) | 3,055 | 2,879 |
Current | ' | ' |
Deferred tax assets: | ' | ' |
Accruals and reserves | 9,634 | 9,304 |
Tax basis in excess of financial basis for intangible and fixed assets | 0 | 0 |
Tax basis in excess of financial basis of investments in affiliates | 0 | 0 |
Net operating loss and capital loss carry forwards | 0 | 0 |
Total gross deferred tax assets | 9,634 | 9,304 |
Less: valuation allowance | -8,364 | -8,159 |
Net deferred tax assets | 1,270 | 1,145 |
Deferred tax liabilities: | ' | ' |
Accruals and reserves | -31 | -39 |
Financial basis in excess of tax basis for intangible and fixed assets | 0 | 0 |
Convertible Debt | 0 | 0 |
Undistributed accumulated earnings of foreign subsidiaries | 0 | 0 |
Total gross deferred tax liabilities | -31 | -39 |
Net deferred tax asset (liability) | 1,239 | 1,106 |
Non Current | ' | ' |
Deferred tax assets: | ' | ' |
Accruals and reserves | 4,981 | 6,409 |
Tax basis in excess of financial basis for intangible and fixed assets | 17,251 | 15,413 |
Tax basis in excess of financial basis of investments in affiliates | 9,699 | 8,002 |
Net operating loss and capital loss carry forwards | 747,038 | 749,501 |
Total gross deferred tax assets | 778,969 | 779,325 |
Less: valuation allowance | -749,961 | -758,199 |
Net deferred tax assets | 29,008 | 21,126 |
Deferred tax liabilities: | ' | ' |
Accruals and reserves | 0 | 0 |
Financial basis in excess of tax basis for intangible and fixed assets | -1,210 | -1,343 |
Convertible Debt | -11,302 | 0 |
Undistributed accumulated earnings of foreign subsidiaries | -14,680 | -18,010 |
Total gross deferred tax liabilities | -27,192 | -19,353 |
Net deferred tax asset (liability) | $1,816 | $1,773 |
Tax_Benefits_Relating_to_Valua
Tax Benefits Relating to Valuation Allowance for Deferred Tax Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Income Taxes [Line Items] | ' | ' | ' |
Income tax benefit recognized in the consolidated statement of operations | $234 | $528 | ($403) |
Valuation Allowance of Deferred Tax Assets | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' |
Income tax benefit recognized in the consolidated statement of operations | -742,864 | ' | ' |
Additional paid in capital | -15,461 | ' | ' |
Deferred Tax Assets Valuation Allowance Additions | ($758,325) | ' | ' |
Difference_of_Income_Tax_Expen
Difference of Income Tax Expense Attributable to Income from Continuing Operations and Expense Computed using U.S. Federal Income Tax (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Computed "expected" income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ($3,907) | ($12,443) | ($12,447) |
Increase (decrease) in income tax expense resulting from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Losses not benefited | ' | ' | ' | ' | ' | ' | ' | ' | 3,282 | 13,413 | 11,112 |
Foreign dividends | ' | ' | ' | ' | ' | ' | ' | ' | 5,737 | 2,956 | 3,298 |
Foreign tax rate differential | ' | ' | ' | ' | ' | ' | ' | ' | -750 | -316 | 1,133 |
Capitalized costs | ' | ' | ' | ' | ' | ' | ' | ' | -54 | 100 | 179 |
Nondeductible expenses | ' | ' | ' | ' | ' | ' | ' | ' | -49 | 254 | 355 |
Foreign withholding taxes | ' | ' | ' | ' | ' | ' | ' | ' | 423 | 218 | 542 |
Reversal of uncertain tax position reserves | ' | ' | ' | ' | ' | ' | ' | ' | ' | -403 | -1,137 |
Actual income tax expense | $2,092 | $700 | $753 | $1,137 | $1,804 | $392 | $674 | $909 | $4,682 | $3,779 | $3,035 |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Balances of Total Amounts of Gross Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Income Taxes [Line Items] | ' | ' | ' |
Balance as of beginning of year | $1,015 | $1,230 | $2,273 |
Additions for current year tax positions | 13 | 79 | 73 |
Additions for prior year tax positions | ' | ' | 564 |
Currency translation | ' | 33 | ' |
Reductions for lapses in statute of limitations | ' | -212 | -1,680 |
Reductions of prior year tax positions | ' | -115 | ' |
Balance as of end of year | $1,028 | $1,015 | $1,230 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Items (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income at beginning of period | $13,713 | ' | ' |
Foreign currency translation adjustment | 74 | 3,057 | -10,650 |
Net unrealized holding gain on securities, net of tax | 15 | 46 | ' |
Pension liability adjustments, net of tax | 166 | -831 | -3,545 |
Net current-period other comprehensive income | 255 | 2,272 | -14,195 |
Accumulated other comprehensive income at end of period | 13,968 | 13,713 | ' |
Foreign currency items | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income at beginning of period | 15,759 | ' | ' |
Foreign currency translation adjustment | 74 | ' | ' |
Net current-period other comprehensive income | 74 | ' | ' |
Accumulated other comprehensive income at end of period | 15,833 | ' | ' |
Pension items | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Accumulated other comprehensive income at beginning of period | -2,066 | ' | ' |
Pension liability adjustments, net of tax | 166 | ' | ' |
Net current-period other comprehensive income | 166 | ' | ' |
Accumulated other comprehensive income at end of period | -1,900 | ' | ' |
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, net of tax | 15 | ' | ' |
Net current-period other comprehensive income | 15 | ' | ' |
Accumulated other comprehensive income at end of period | $35 | ' | ' |
Cash_Used_for_Operating_Activi
Cash Used for Operating Activities Reflect Cash Payments for Interest and Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Schedule Of Supplemental Cash Flow [Line Items] | ' | ' | ' |
Cash paid for interest | $33 | $30 | $26 |
Cash paid for income taxes | $3,838 | $4,632 | $3,538 |
Statement_of_Cash_Flows_Supple2
Statement of Cash Flows Supplemental Information - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Cash Flow Supplemental Disclosures [Line Items] | ' | ' | ' |
Issuance of nonvested common stock | 0.2 | 0.3 | 0.2 |
Issuance of nonvested common stock, value | $1 | $0.80 | $1.10 |
Shares issuable upon debt conversion | ' | ' | ' |
Cash Flow Supplemental Disclosures [Line Items] | ' | ' | ' |
Non-cash investing activities, unsettled trade liability | 12.9 | ' | ' |
Common Stock | ' | ' | ' |
Cash Flow Supplemental Disclosures [Line Items] | ' | ' | ' |
Non-cash investing activities, unsettled trade liability | $9.40 | ' | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||
Mar. 12, 2013 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 | Mar. 12, 2013 | |
Equity [Line Items] | ' | ' | ' | ' | ' |
Issuance of common stock to Steel Partners Holdings, L.P., shares | 7,500,000 | ' | ' | ' | ' |
Issuance of common stock to Steel Partners Holdings, L.P., price per share | ' | ' | ' | ' | $4 |
Proceeds from issuance of common stock, gross | $30,000,000 | ' | ' | ' | ' |
Common stock issuance, transaction cost | 2,300,000 | ' | 2,325,000 | ' | ' |
Net proceeds from issuance of common stock | $27,700,000 | $1,368,000 | ' | $91,000 | ' |
Issuance of warrants to acquire additional shares, shares | 2,000,000 | ' | ' | ' | ' |
Issuance of warrants to acquire additional shares, exercise price | ' | ' | ' | ' | $5 |
Common stock equity distribution agreement | ' | 'The Company is required to keep the resale registration statement effective for three years following the date it is declared effective. Steel Partners also has the right, until such time as it owns less than one-third of the common stock originally issued to it under the investment agreement, to require that the Company file a prospectus supplement or amendment to cover sales of common stock through a firm commitment underwritten public offering. | ' | ' | ' |
Discontinued_Operations_and_Di2
Discontinued Operations and Divestitures - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Jan. 11, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | Jan. 11, 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 | ' | ' |
Summarized_Financial_Informati
Summarized Financial Information for Discontinued Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | $4,592 | $25,944 |
Other gains (losses), net | ' | ' | ' | ' | ' | ' | 80 | 582 | 627 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | -6,199 | -37,071 |
Income (loss) from discontinued operations | 1 | 79 | -6 | -59 | -133 | -827 | 80 | -1,025 | -10,500 |
Current liabilities | ' | ' | -610 | ' | ' | ' | 0 | -610 | ' |
Non-current liabilities | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' |
Net liabilities of discontinued operations | ' | ' | ($610) | ' | ' | ' | $0 | ($610) | ' |
Financial_Assets_Measured_at_F
Financial Assets Measured at Fair Value on Recurring Basis and Classified by Fair Value Hierarchy (Detail) (Fair Value, Measurements, Recurring, USD $) | Jul. 31, 2014 |
In Thousands, unless otherwise specified | |
Marketable equity securities | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Assets, fair value disclosure, recurring | $9,856 |
Marketable corporate bonds | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Assets, fair value disclosure, recurring | 12,937 |
Money market funds | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Assets, fair value disclosure, recurring | 150,626 |
Fair Value, Inputs, Level 1 | Marketable equity securities | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Assets, fair value disclosure, recurring | 9,856 |
Fair Value, Inputs, Level 1 | Marketable corporate bonds | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Assets, fair value disclosure, recurring | 12,937 |
Fair Value, Inputs, Level 1 | Money market funds | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Assets, fair value disclosure, recurring | $150,626 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | |
Jul. 31, 2014 | Jul. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Transfers between Levels 1, 2 or 3 | $0 | $0 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Segment | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Total assets | $451,646 | ' | ' | ' | $343,696 | ' | ' | ' | $451,646 | $343,696 | ' |
Net revenue | 164,700 | 173,274 | 194,011 | 191,415 | 181,001 | 173,016 | 203,436 | 197,051 | 723,400 | 754,504 | 713,947 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | 19,300 | ' | ' | ' | 21,800 | ' | ' | ' | 19,300 | 21,800 | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 297,300 | 277,400 | 282,100 |
Singapore | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | 4,400 | ' | ' | ' | 5,200 | ' | ' | ' | 4,400 | 5,200 | ' |
Ireland | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | 4,700 | ' | ' | ' | 5,000 | ' | ' | ' | 4,700 | 5,000 | ' |
China | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 131,300 | 147,300 | 141,900 |
Netherlands | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 101,900 | 91,800 | 106,500 |
Czech Republic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | $91,900 | $97,900 | $60,400 |
Summarized_Financial_Informati1
Summarized Financial Information of Continuing Operations by Operating Segment and Corporate-Level Activity (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $164,700 | $173,274 | $194,011 | $191,415 | $181,001 | $173,016 | $203,436 | $197,051 | $723,400 | $754,504 | $713,947 |
Operating income (loss) | -4,167 | -5,138 | 1,235 | 2,621 | -5,675 | -6,760 | -8,526 | -7,271 | -5,449 | -28,232 | -34,861 |
Total other income (expense) | -2,226 | -3,640 | 581 | -812 | -1,196 | -677 | -2,491 | -1,340 | -6,097 | -5,704 | 11,533 |
Loss from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -11,546 | -33,936 | -23,328 |
Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 14,223 | 869 | -7,742 |
Operating Segments | Americas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 299,026 | 268,490 | 249,940 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 9,456 | -230 | -14,108 |
Operating Segments | Asia | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 176,592 | 212,963 | 218,880 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 17,335 | 22,841 | 21,450 |
Operating Segments | Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 209,550 | 237,222 | 211,319 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -12,319 | -22,091 | -15,718 |
Operating Segments | All Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 38,232 | 35,829 | 33,808 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -249 | 349 | 634 |
Corporate-level activity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ($19,672) | ($29,101) | ($27,119) |
Total_Assets_of_Continuing_Ope
Total Assets of Continuing Operations (Detail) (USD $) | Jul. 31, 2014 | Jul. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Total assets | $451,646 | $343,696 |
Operating Segments | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | 247,551 | 274,230 |
Operating Segments | Americas | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | 73,254 | 65,790 |
Operating Segments | Asia | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | 78,749 | 93,547 |
Operating Segments | Europe | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | 81,327 | 97,524 |
Operating Segments | All Other | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | 14,221 | 17,369 |
Corporate-level activity | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | $204,095 | $69,466 |
Summarized_Financial_Informati2
Summarized Financial Information of Net Revenue From External Customers by Group of Services (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $164,700 | $173,274 | $194,011 | $191,415 | $181,001 | $173,016 | $203,436 | $197,051 | $723,400 | $754,504 | $713,947 |
Supply Chain Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 635,503 | 676,709 | 646,564 |
After Market Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | 49,665 | 41,966 | 33,575 |
e-Business Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | ' | ' | ' | ' | ' | ' | ' | ' | $38,232 | $35,829 | $33,808 |
Selected_Quarterly_Financial_I2
Selected Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2014 | Jul. 31, 2013 | Jul. 31, 2012 |
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $164,700 | $173,274 | $194,011 | $191,415 | $181,001 | $173,016 | $203,436 | $197,051 | $723,400 | $754,504 | $713,947 |
Cost of revenue | 150,249 | 157,575 | 171,431 | 169,420 | 160,908 | 157,641 | 183,158 | 178,427 | 648,675 | 680,134 | 645,388 |
Gross profit | 14,451 | 15,699 | 22,580 | 21,995 | 20,093 | 15,375 | 20,278 | 18,624 | 74,725 | 74,370 | 68,559 |
Total operating expenses | 18,618 | 20,837 | 21,345 | 19,374 | 25,768 | 22,135 | 28,804 | 25,895 | 80,174 | 102,602 | 103,420 |
Operating income (loss) | -4,167 | -5,138 | 1,235 | 2,621 | -5,675 | -6,760 | -8,526 | -7,271 | -5,449 | -28,232 | -34,861 |
Total other income (expense) | -2,226 | -3,640 | 581 | -812 | -1,196 | -677 | -2,491 | -1,340 | -6,097 | -5,704 | 11,533 |
Income tax expense (benefit) | 2,092 | 700 | 753 | 1,137 | 1,804 | 392 | 674 | 909 | 4,682 | 3,779 | 3,035 |
Equity in losses of affiliates, net of tax | ' | ' | ' | -134 | -160 | -418 | -726 | -311 | -134 | -1,615 | -1,245 |
Income (loss) from continuing operations | -8,485 | -9,478 | 1,063 | 538 | -8,835 | -8,247 | -12,417 | -9,831 | -16,362 | -39,330 | -27,608 |
Inocme (loss) from discontinued operations | ' | ' | 1 | 79 | -6 | -59 | -133 | -827 | 80 | -1,025 | -10,500 |
Net income (loss) | ($8,485) | ($9,478) | $1,064 | $617 | ($8,841) | ($8,306) | ($12,550) | ($10,658) | ($16,282) | ($40,355) | ($38,108) |
Net loss per share - basic and diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ($0.16) | ($0.18) | $0.02 | $0.01 | ($0.17) | ($0.17) | ($0.29) | ($0.22) | ($0.32) | ($0.84) | ($0.63) |
Income (loss) from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ($0.02) | $0 | ($0.02) | ($0.24) |
Net income (loss) | ($0.16) | ($0.18) | $0.02 | $0.01 | ($0.17) | ($0.17) | ($0.29) | ($0.24) | ($0.32) | ($0.86) | ($0.87) |