Steel Connect (STCN) 10-Q 6 Mar 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jan. 31, 2017	Feb. 28, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Trading Symbol	MLNK
Entity Registrant Name	MODUSLINK GLOBAL SOLUTIONS INC
Entity Central Index Key	914,712
Current Fiscal Year End Date	--07-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		55,553,041

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 31, 2017	Jul. 31, 2016
Current assets:
Cash and cash equivalents	$ 114,334	$ 130,790
Trading securities	11,029	16,768
Accounts receivable, trade, net of allowance for doubtful accounts of $481 and $489 at January 31, 2017 and July 31, 2016, respectively	104,214	111,336
Inventories	36,927	40,270
Funds held for clients	11,487	12,549
Prepaid expenses and other current assets	7,701	8,178
Total current assets	285,692	319,891
Property and equipment, net	20,983	22,271
Other assets	5,523	5,770
Total assets	312,198	347,932
Current liabilities:
Accounts payable	91,145	114,432
Accrued restructuring	1,151	2,936
Accrued expenses	39,617	37,740
Funds held for clients	11,487	12,549
Other current liabilities	28,487	27,109
Total current liabilities	171,887	194,766
Long-term portion of accrued restructuring		93
Notes payable	57,603	57,169
Other long-term liabilities	9,212	9,964
Long-term liabilities	66,815	67,226
Total liabilities	238,702	261,992
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock, $0.01 par value per share. Authorized 5,000,000 shares; zero issued or outstanding shares at January 31, 2017 and July 31, 2016
Common stock, $0.01 par value per share. Authorized 1,400,000,000 shares; 55,553,041 issued and outstanding shares at January 31, 2017; 55,249,076 issued and outstanding shares at July 31, 2016	556	553
Additional paid-in capital	7,456,745	7,456,490
Accumulated deficit	(7,384,571)	(7,373,122)
Accumulated other comprehensive income	766	2,019
Total stockholders' equity	73,496	85,940
Total liabilities and stockholders' equity	$ 312,198	$ 347,932

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jan. 31, 2017	Jul. 31, 2016
Accounts receivable, trade, allowance for doubtful accounts	$ 481	$ 489
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	55,553,041	55,249,076
Common stock, shares outstanding	55,553,041	55,249,076

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016
Net revenue	$ 117,568	$ 119,966	$ 238,895	$ 261,055
Cost of revenue	106,370	116,311	218,364	244,948
Gross profit	11,198	3,655	20,531	16,107
Operating expenses
Selling, general and administrative	11,926	14,773	25,527	27,787
Impairment of long-lived assets		305		305
Restructuring, net	776	240	2,150	1,247
Total operating expenses	12,702	15,318	27,677	29,339
Operating loss	(1,504)	(11,663)	(7,146)	(13,232)
Other income (expense):
Interest income	15	114	180	202
Interest expense	(2,109)	(2,777)	(4,138)	(5,506)
Other gains (losses), net	1,019	325	531	(9,346)
Impairment of investments in affiliates				(42)
Total other expense	(1,075)	(2,338)	(3,427)	(14,692)
Loss before income taxes	(2,579)	(14,001)	(10,573)	(27,924)
Income tax expense	723	206	1,772	1,056
Gains on investments in affiliates, net of tax	(396)	(259)	(896)	(259)
Net loss	$ (2,906)	$ (13,948)	$ (11,449)	$ (28,721)
Basic and diluted net loss per share	$ (0.05)	$ (0.27)	$ (0.21)	$ (0.55)
Weighted average common shares used in basic and diluted earnings per share	55,083	51,879	55,031	52,039

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016
Net loss	$ (2,906)	$ (13,948)	$ (11,449)	$ (28,721)
Other comprehensive loss:
Foreign currency translation adjustment	(734)	(1,077)	(2,003)	(1,946)
Pension liability adjustments, net of tax	353		750
Net unrealized holding gain (loss) on securities, net of tax	(10)	3		31
Other comprehensive income (loss)	(391)	(1,074)	(1,253)	(1,915)
Comprehensive loss	$ (3,297)	$ (15,022)	$ (12,702)	$ (30,636)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2017	Jan. 31, 2016
Cash flows from operating activities:
Net loss	$ (11,449)	$ (28,721)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	4,090	3,874
Amortization of deferred financing costs	281	364
Accretion of debt discount	1,940	2,473
Impairment of long-lived assets		305
Share-based compensation	381	958
Non-cash (gains) losses, net	(531)	8,108
(Gains) losses on investments in affiliates and impairments	(896)	(217)
Changes in operating assets and liabilities:
Trade accounts receivable, net	5,169	(33,592)
Inventories	2,349	(609)
Prepaid expenses and other current assets	1,330	(22,334)
Accounts payable, accrued restructuring and accrued expenses	(19,358)	43,136
Refundable and accrued income taxes, net	(372)	1,918
Other assets and liabilities	(35)	5,388
Net cash used in operating activities	(17,101)	(18,949)
Cash flows from investing activities:
Additions to property and equipment	(3,301)	(3,234)
Proceeds from the disposition of property and equipment		1,318
Proceeds from the sale of Trading Securities	5,832	43,698
Investments in affiliates		(42)
Proceeds from investments in affiliates	896	259
Net cash provided by investing activities	3,427	41,999
Cash flows from financing activities:
Purchase of the Company's Convertible Notes	(1,763)
Repayments on capital lease obligations	(126)	(114)
Proceeds from issuance of common stock	12
Repurchase of common stock		(78)
Net cash used in financing activities	(1,877)	(192)
Net effect of exchange rate changes on cash and cash equivalents	(905)	(855)
Net increase (decrease) in cash and cash equivalents	(16,456)	22,003
Cash and cash equivalents at beginning of period	130,790	119,431
Cash and cash equivalents at end of period	$ 114,334	$ 141,434

NATURE OF OPERATIONS

NATURE OF OPERATIONS	6 Months Ended
	Jan. 31, 2017
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, and integrated operations, proven business processes, expansive global footprint and world-class technology. The Company also produces and licenses an entitlement management solution powered by its enterprise-class Poetic software, which offers a complete solution for activation, provisioning, entitlement subscription and data collection from physical goods (connected products) and digital products. The Company has an integrated network of strategically located facilities with 21 sites operating in 21 languages 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.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jan. 31, 2017
BASIS OF PRESENTATION	(2) BASIS OF PRESENTATION The accompanying condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q S-X. 10-K year-end All significant intercompany transactions and balances have been eliminated in consolidation. The Company considers events or transactions that occur after the balance sheet date but before the issuance of financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. For the period ended January 31, 2017, the Company evaluated subsequent events for potential recognition and disclosure through the date these financial statements were filed.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jan. 31, 2017
RECENT ACCOUNTING PRONOUNCEMENTS	(3) RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09, In August 2014, the FASB issued ASU No. 2014-15 205-40), In April 2015, the FASB issued ASU No. 2015-03, 835-30)—Simplifying In July 2015, the FASB issued ASU No. 2015-11, In November 2015, the FASB issued ASU No. 2015-17, In February 2016, the FASB issued ASU No. 2016-02, In March 2016, the FASB issued ASU No. 2016-08, In March 2016, the FASB issued ASU No. 2016-09, In November 2016, the FASB issued ASU No. 2016-18,

INVENTORIES

INVENTORIES	6 Months Ended
	Jan. 31, 2017
INVENTORIES	(4) INVENTORIES Inventories are stated at the lower of cost or market. Cost is determined by both the moving average and the first-in, first-out Inventories consisted of the following: January 31, July 31, (In thousands) Raw materials $ 27,281 $ 28,506 Work-in-process 647 590 Finished goods 8,999 11,174 $ 36,927 $ 40,270 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, contractual provisions with our clients, 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 may be favorably impacted.

INVESTMENTS

INVESTMENTS	6 Months Ended
	Jan. 31, 2017
INVESTMENTS	(5) INVESTMENTS Trading securities During the three months ended January 31, 2017, the Company received $4.9 million in proceeds associated with the sale of publicly traded securities (“Trading Securities”), which included a $0.6 million cash gain. During the three months ended January 31, 2017, the Company recognized $0.4 million in net non-cash non-cash During the three months ended January 31, 2016, the Company sold $15.5 million in Trading Securities, with a realized gain of $1.2 million. However, the cash associated with $0.8 million of these trades was received subsequent to January 31, 2016. During the three months ended January 31, 2016, the Company received $14.8 million in proceeds associated with the sale of Trading Securities. During the three months ended January 31, 2016, the Company recognized $0.1 million in net non-cash non-cash As of January 31, 2017, the Company had $11.0 million in investments in Trading Securities. As of July 31, 2016, the Company had $16.8 million in investments in Trading Securities, $12.6 million of which were the publicly traded convertible debentures. The Company’s purchases of the publicly traded convertible debentures were on the open market. The chairman of the board of the company issuing the publicly traded convertible debentures is also the chairman of the board of ModusLink Global Solutions, Inc. The Trading Securities were classified within Level 1 of the fair value hierarchy.

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	6 Months Ended
	Jan. 31, 2017
OTHER CURRENT LIABILITIES	(6) OTHER CURRENT LIABILITIES The following table reflects the components of “Accrued expenses” and “Other current liabilities”: January 31, July 31, (In thousands) Accrued taxes $ 2,509 $ 3,068 Accrued compensation 7,970 9,590 Accrued interest 1,293 1,346 Accrued audit, tax and legal 2,884 2,544 Accrued contract labor 3,768 2,966 Accrued other 21,193 18,226 $ 39,617 $ 37,740 January 31, July 31, (In thousands) Accrued pricing liabilities $ 18,882 $ 18,882 Other 9,605 8,227 $ 28,487 $ 27,109 As of January 31, 2017 and July 31, 2016, the Company had accrued pricing liabilities of approximately $18.9 million for both periods. As previously reported by the Company, several adjustments were made to its historic financial statements for periods ending on or before January 31, 2012, the most significant of which related to the treatment of vendor rebates in its pricing policies. Where the retention of a rebate or a mark-up

RESTRUCTURING, NET

RESTRUCTURING, NET	6 Months Ended
	Jan. 31, 2017
RESTRUCTURING, NET	(7) RESTRUCTURING, NET Restructuring and other costs for the three and six months ended January 31, 2017 primarily included continuing charges for personnel reductions and facility consolidations in an effort to streamline operations across our global supply chain operations. It is expected that the payments of employee-related charges will be substantially completed during the fiscal year ended July 31, 2017. The remaining contractual obligations primarily relate to facility lease obligations for vacant space resulting from the previous restructuring activities of the Company. The Company anticipates that these contractual obligations will be substantially fulfilled by the end of December 2017. The $0.8 million restructuring charge recorded during the three months ended January 31, 2017 primarily consisted of $0.2 million, $0.3 million $0.1 million and $0.1 million of employee-related costs in the Americas, Asia, Europe and e-Business, The $0.2 million restructuring charge recorded during the three months ended January 31, 2016 primarily consisted of $0.1 million and $0.1 million of contractual charges in the Americas and Europe, respectively. The $1.0 million restructuring charge recorded during the three months ended October 31, 2015 primarily consisted of $0.8 million and $0.3 million employee-related costs in the Americas and Asia, respectively, related to the workforce reduction of 55 employees in our global supply chain. The following tables summarize the activities related to the restructuring accrual by expense category and by reportable segment for the six months ended January 31, 2017: Employee Related Expenses Contractual Obligations Total (In thousands) Accrued restructuring balance at July 31, 2016 $ 2,074 $ 955 $ 3,029 Restructuring charges 1,723 397 2,120 Restructuring adjustments 42 (12 ) 30 Cash paid (2,997 ) (1,019 ) (4,016 ) Non-cash (18 ) 6 (12 ) Accrued restructuring balance at January 31, 2017 $ 824 $ 327 $ 1,151 Americas Asia Europe e - Business Consolidated Total (In thousands) Accrued restructuring balance at July 31, 2016 $ 862 $ 894 $ 398 $ 875 $ 3,029 Restructuring charges 480 854 668 118 2,120 Restructuring adjustments 6 — 25 (1 ) 30 Cash paid (907 ) (1,464 ) (854 ) (791 ) (4,016 ) Non-cash — (4 ) (8 ) — (12 ) Accrued restructuring balance at January 31, 2017 $ 441 $ 280 $ 229 $ 201 $ 1,151 The net restructuring charges for the three and six months ended January 31, 2017 and 2016 would have been allocated as follows had the Company recorded the expense and adjustments within the functional department of the restructured activities: Three Months Ended January 31, Six Months Ended January 31, 2017 2016 2017 2016 (In thousands) Cost of revenue $ 154 $ 83 $ 735 $ 898 Selling, general and administrative 622 157 1,415 349 $ 776 $ 240 $ 2,150 $ 1,247

DEBT

DEBT	6 Months Ended
	Jan. 31, 2017
DEBT	(8) DEBT Notes Payable On March 18, 2014, the Company entered into an indenture (the “Indenture”) with Wells Fargo Bank, National Association, as 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 stockholders, 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. As of January 31, 2017, the if-converted 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 quarter ended January 31, 2017. 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. Per the Indenture, if the Notes are assigned a restricted CUSIP or the Notes are not otherwise freely tradable by holders at any time during the three months immediately preceding as of the 365th day after the last date of original issuance of the Notes, the Company shall pay additional interest on the Notes at a rate equal to 0.50% per annum of the principal amount of Notes outstanding until the restrictive legend on the Notes has been removed. The restrictive legend was removed on August 26, 2015 and, as such, the Company paid $0.2 million in additional interest associated with this restriction. 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 No. 2015-03. paid-in During the quarter ended January 31, 2017, the Company purchased $2.0 million in face value of the Notes in the open market at a purchase price of $1.7 million. During the quarter ended January 31, 2016, there were no purchases of the Notes. The fair value of the Company’s Notes payable, calculated as of the closing price of the traded securities, was $60.4 million and $51.0 million as of January 31, 2017 and July 31, 2016, respectively. This value does not represent the settlement value of these long-term debt liabilities to the Company. 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. As of January 31, 2017 and July 31, 2016, the net carrying value of the Notes was $57.6 million and $57.2 million, respectively. January 31, 2017 July 31, 2016 (In thousands) Carrying amount of equity component (net of allocated debt issuance costs) $ 26,961 $ 27,099 Principal amount of Notes $ 67,625 $ 69,625 Unamortized debt discount (9,207 ) (11,443 ) Unamortized debt issuance costs (815 ) (1,013 ) Net carrying amount $ 57,603 $ 57,169 As of January 31, 2017, the remaining period over which the unamortized discount will be amortized is 25 months. Three Months Ended January 31, Six Months Ended January 31, 2017 2016 2017 2016 (In thousands) Interest expense related to contractual interest coupon $ 888 $ 1,323 $ 1,823 $ 2,646 Interest expense related to accretion of the discount 999 1,258 1,940 2,473 Interest expense related to debt issuance costs 89 111 172 219 $ 1,976 $ 2,692 $ 3,935 $ 5,338 During the three and six months ended January 31, 2017, the Company recognized interest expense of $2.0 million and $3.9 million, respectively. During the three and six months ended January 31, 2016, the Company recognized interest expense of $2.7 million and $5.3 million, respectively. The effective interest rate on the Notes, including amortization of debt issuance costs and accretion of the discount, is 13.9%. The notes bear interest of 5.25%. 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 (as amended, the “Credit Agreement”), as borrowers and guarantors, with PNC Bank and National Association, as lender and as agent, respectively. The Credit Agreement has a five (5) year term which expires on June 30, 2019. It 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. 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 three months ended January 31, 2017, the Company did not meet the criteria that would cause its financial covenants to be applicable. As of January 31, 2017 and July 31, 2016, the Company did not have a balance outstanding on the PNC Bank credit facility.

CONTINGENCIES

CONTINGENCIES	6 Months Ended
	Jan. 31, 2017
CONTINGENCIES	(9) CONTINGENCIES On June 8, 2015, Sean Peters, a former employee filed a complaint (the “Complaint”) against ModusLink Corporation in Superior Court of California asserting claims, among other things, for failure to pay wages, breach of contract, wrongful retaliation and termination, fraud, violations of California Business and Professions Code Section 17200, et seq., and civil penalties pursuant to California Labor Code Sections and pursuant to the California Private Attorney General Act, seeking over $1.0 million in damages, attorneys’ fees and costs and penalties. ModusLink filed an Answer to the Complaint making a general denial and asserting various affirmative defenses. The parties have scheduled a mediation for May 2017, and are currently engaged in discovery. Although there can be no assurance as to the ultimate outcome, ModusLink believes it has meritorious defenses and intends to defend the allegations vigorously.

OTHER GAINS (LOSSES), NET

OTHER GAINS (LOSSES), NET	6 Months Ended
	Jan. 31, 2017
OTHER GAINS (LOSSES), NET	(10) OTHER GAINS (LOSSES), NET The following table reflects the components of “Other gains (losses), net”: Three Months Ended January 31, Six Months Ended January 31, 2017 2016 2017 2016 (In thousands) Foreign currency exchange gain (losses) $ 29 $ (179 ) $ 426 $ (753 ) Gains (losses) on Trading Securities 1,011 1,115 94 (8,348 ) Other, net (21 ) (611 ) 11 (245 ) $ 1,019 $ 325 $ 531 $ (9,346 ) The Company recorded foreign exchange gains (losses) of approximately $29 thousand and $(0.2) million during the three months ended January 31, 2017 and 2016, respectively. For the three months ended January 31, 2017, the net gains primarily related to realized and unrealized gains (losses) from foreign currency exposures and settled transactions of approximately $0.6 million, $(0.5) million and $(0.1) million in Corporate, Asia and Europe, respectively. For the three months ended January 31, 2016, the net losses primarily related to realized and unrealized losses from foreign currency exposures and settled transactions of approximately $0.4 million and $0.2 million in the Asia and Europe, respectively, offset by net gains of $0.4 million in Corporate. During the three months ended January 31, 2017 and 2016, the Company recognized $1.0 million and $1.1 million in net gains associated with its Trading Securities. During the three months ended January 31, 2016, the Company recognized $0.4 million in net losses associated with short-term foreign currency contracts. The Company recorded foreign exchange gains (losses) of approximately $0.4 million and $(0.8) million during the six months ended January 31, 2017 and 2016, respectively. For the six months ended January 31, 2017, the net gains primarily related to realized and unrealized gains (losses) from foreign currency exposures and settled transactions of approximately $1.3 million, $(0.4) million and $(0.4) million in Corporate, Asia and Europe, respectively. For the six months ended January 31, 2016, the net gains primarily related to realized and unrealized losses from foreign currency exposures and settled transactions of approximately $1.1 million and $0.5 million in the Asia and Europe, respectively, offset by net gains of $0.8 million in Corporate. During the six months ended January 31, 2017 and 2016, the Company recognized $0.1 million and $(8.3) million in net gains (losses) associated with its Trading Securities. During the six months ended January 31, 2016, the Company recognized $0.1 million in net losses associated with short-term foreign currency contracts.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jan. 31, 2017
INCOME TAXES	(11) INCOME TAXES The Company operates in multiple taxing jurisdictions, both within and outside of the United States. For the three months ended January 31, 2017, the Company was profitable in certain jurisdictions, resulting in an income tax expense using enacted rates in those jurisdictions. As of January 31, 2017 and July 31, 2016, the total amount of the liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $0.7 million and $1.2 million, respectively. Uncertain Tax Positions In accordance with the Company’s accounting policy, interest related to unrecognized tax benefits is included in the provision of income taxes line of the Consolidated Statements of Operations. As of January 31, 2017 and July 31, 2016, the liabilities for interest expense related to uncertain tax positions were immaterial. The Company did not accrue for penalties related to income tax positions as there were no income tax positions that required the Company to accrue penalties. The Company does not expect any unrecognized tax benefits to reverse in the next twelve months. The Company is subject to U.S. federal income tax and various state, local and international income taxes in numerous jurisdictions. The federal and state tax returns are generally subject to tax examinations for the tax years ended July 31, 2012 through July 31, 2016. To the extent the Company has tax attribute carry forwards, 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 2009 through 2016 tax years remain subject to examination in most locations, while the Company’s 2005 through 2016 tax years remain subject to examination in most Asia locations. Net Operating Loss The Company has certain deferred tax benefits, including those generated by net operating losses and certain other tax attributes (collectively, the “Tax Benefits”). The Company’s ability to use these Tax Benefits could be substantially limited if it were to experience an “ownership change,” as defined under Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). In general, an ownership change would occur if there is a greater than 50-percentage Tax Benefit Preservation Plan On October 17, 2011, the Company’s Board of Directors adopted a Tax Benefit Preservation Plan between the Company and American Stock Transfer & Trust Company, LLC, as rights agent (as amended from time to time, the “Tax Plan”). The Tax Plan reduces the likelihood that changes in the Company’s investor base would have the unintended effect of limiting the Company’s use of its Tax Benefits. The Tax Plan is intended to require any person acquiring shares of the Company’s securities equal to or exceeding 4.99% of the Company’s outstanding shares to obtain the approval of the Board of Directors. This would protect the Tax Benefits because changes in ownership by a person owning less than 4.99% of the Company’s stock are considered and included in one or more public groups in the calculation of “ownership change” for purposes of Section 382 of the Code. On October 9, 2014, the Tax Plan was amended by our Board of Directors to extend the expiration of the Tax Plan until October 17, 2017. Following the stockholders’ approval of the Protective Amendment (as described below) at the Company’s 2014 Annual Meeting, the Tax Plan was further amended so that it expired at the close of business on December 31, 2014. Protective Amendment On December 29, 2014, the Company filed an Amendment to its Restated Certificate of Incorporation (the “Protective Amendment”) with the Delaware Secretary of State to protect the significant potential long-term tax benefits presented by its net operating losses and other tax benefits (collectively, the “NOLs”). The Protective Amendment was approved by the Company’s stockholders at the Company’s 2014 Annual Meeting of Stockholders held on December 9, 2014. As a result of the filing of the Protective Amendment with the Delaware Secretary of State, the Company amended its Tax Benefit Preservation Plan so that it expired at the close of business on December 31, 2014. The Protective Amendment limits certain transfers of the Company’s common stock, to assist the Company in protecting the long-term value of its accumulated NOLs. The Protective Amendment’s transfer restrictions generally restrict any direct or indirect transfers of the common stock if the effect would be to increase the direct or indirect ownership of the common stock by any person (as defined in the Protective Amendment) from less than 4.99% to 4.99% or more of the common stock, or increase the percentage of the common stock owned directly or indirectly by a Person owning or deemed to own 4.99% or more of the common stock. Any direct or indirect transfer attempted in violation of the Protective Amendment will be void as of the date of the prohibited transfer as to the purported transferee. The Board of Directors of the Company has discretion to grant waivers to permit transfers otherwise restricted by the Protective Amendment. In accordance with the Protective Amendment, Handy & Harman (“HNH”), a related party, requested, and the Company granted HNH and its affiliates, a waiver under the Protective Amendment to permit their acquisition of up to 45% of the Company’s outstanding shares of common stock in the aggregate (subject to proportionate adjustment, the “45% Cap”), in addition to acquisitions of common stock in connection with the exercise of certain warrants of the Company (the “Warrants”) held by Steel Partners Holdings L.P. (“SPH”), an affiliate of HNH, as well as a limited waiver under Section 203 of the Delaware General Corporation Law for this purpose. Notwithstanding the foregoing, HNH and its affiliates (and any group of which HNH or any of its affiliates is a member) are not permitted to acquire securities that would result in an “ownership change” of the Company for purposes of Section 382 of the Internal Revenue Code of 1986, as amended, that would have the effect of impairing any of the Company’s NOLs. The foregoing waiver was approved by the independent directors of the Company.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jan. 31, 2017
EARNINGS PER SHARE	(12) EARNINGS PER SHARE The Company calculates earnings per share in accordance with ASC Topic 260, “Earnings per Share.” The following table reconciles earnings per share for the three and six months ended January 31, 2017 and 2016: Three Months Six Months Ended January 31, January 31, 2017 2016 2017 2016 (In thousands, except per share data) Net loss $ (2,906 ) $ (13,948 ) $ (11,449 ) $ (28,721 ) Weighted average common shares outstanding 55,083 51,879 55,031 52,039 Weighted average common equivalent shares arising from dilutive stock options and restricted stock — — — — Weighted average number of common and potential common shares 55,083 51,879 55,031 52,039 Basic and diluted net loss per share $ (0.05 ) $ (0.27 ) $ (0.21 ) $ (0.55 ) Basic earnings per common share is calculated using the weighted-average number of common shares outstanding during the period. Diluted earnings per common share, if any, gives effect to diluted stock options (calculated based on the treasury stock method), non-vested as-if For the three and six months ended January 31, 2017, approximately 14.2 million and 14.5 million, respectively, common stock equivalent shares were excluded from the denominator in the calculation of diluted earnings per share as their inclusion would have been antidilutive. For the three and six months ended January 31, 2016, approximately 21.9 million and 21.8 million, respectively, common stock equivalent shares were excluded from the denominator in the calculation of diluted earnings per share as their inclusion would have been antidilutive.

SHARE-BASED PAYMENTS

SHARE-BASED PAYMENTS	6 Months Ended
	Jan. 31, 2017
SHARE-BASED PAYMENTS	(13) SHARE-BASED PAYMENTS The following table summarizes share-based compensation expense related to employee stock options, employee stock purchases and non-vested Three Months Ended Six Months Ended January 31, January 31, 2017 2016 2017 2016 (In thousands) Cost of revenue $ 15 $ 25 $ 31 $ 56 Selling, general and administrative 174 477 350 902 $ 189 $ 502 $ 381 $ 958 At January 31, 2017, there was approximately $0.1 million of total unrecognized compensation cost related to Stock Options issued under the Company’s plans. At January 31, 2017, there was approximately $0.4 million of total unrecognized compensation cost related to non-vested

COMPREHENSIVE INCOME (LOSS)

COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jan. 31, 2017
COMPREHENSIVE INCOME (LOSS)	(14) COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) combines net income (loss) and other comprehensive items. Other comprehensive items represent certain amounts that are reported as components of stockholder’s equity in the accompanying condensed consolidated balance sheets. Accumulated other comprehensive items consist of the following: Foreign currency items Pension items Unrealized gains Total (In thousands) Accumulated other comprehensive income (loss) at July 31, 2016 $ 6,131 $ (4,206 ) $ 94 $ 2,019 Foreign currency translation adjustment (2,003 ) — — (2,003 ) Pension liability adjustments — 750 — 750 Net current-period other comprehensive income (loss) (2,003 ) 750 — (1,253 ) Accumulated other comprehensive income (loss) at January 31, 2017 $ 4,128 $ (3,456 ) $ 94 $ 766

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jan. 31, 2017
SEGMENT INFORMATION	(15) SEGMENT INFORMATION The Company has four operating segments: Americas; Asia; Europe; and e-Business. e-Business. e-Business Summarized financial information of the Company’s continuing operations by operating segment is as follows: Three Months Ended Six Months Ended January 31, January 31, 2017 2016 2017 2016 (In thousands) Net revenue: Americas $ 27,183 $ 28,208 $ 53,061 $ 61,419 Asia 38,861 44,476 81,734 98,407 Europe 44,910 38,656 90,091 83,399 e-Business 6,614 8,626 14,009 17,830 $ 117,568 $ 119,966 $ 238,895 $ 261,055 Operating income (loss): Americas $ (1,721 ) $ (4,911 ) $ (5,577 ) $ (7,997 ) Asia 2,311 (325 ) 4,088 3,046 Europe 41 (4,239 ) (2,550 ) (4,032 ) e-Business (888 ) (397 ) (544 ) (901 ) Total Segment operating income (loss) (257 ) (9,872 ) (4,583 ) (9,884 ) Corporate-level activity (1,247 ) (1,791 ) (2,563 ) (3,348 ) Total operating loss (1,504 ) (11,663 ) (7,146 ) (13,232 ) Total other expense 1,075 2,338 3,427 14,692 Loss before income taxes $ (2,579 ) $ (14,001 ) $ (10,573 ) $ (27,924 ) January 31, July 31, 2017 2016 (In thousands) Total assets: Americas $ 29,289 $ 28,280 Asia 75,079 89,242 Europe 71,996 75,952 e-Business 18,666 22,884 Sub-total 195,030 216,358 Corporate 117,168 131,574 $ 312,198 $ 347,932 Summarized financial information of the Company’s net revenue from external customers by group of services is as follows: Three Months Ended Six Months Ended January 31, January 31, 2017 2016 2017 2016 (In thousands) Supply chain services $ 110,954 $ 111,340 $ 224,886 $ 243,225 e-Business 6,614 8,626 14,009 17,830 $ 117,568 $ 119,966 $ 238,895 $ 261,055 As of January 31, 2017, approximately $11.5 million, $3.2 million, $3.3 million, $2.5 million and $2.8 million of the Company’s long-lived assets were located in the U.S.A., Netherlands, Ireland, China and Singapore, respectively. As of July 31, 2016, approximately $12.3 million, $3.0 million, $3.5 million, $3.0 million and $2.9 million of the Company’s long-lived assets were located in the U.S.A., Netherlands, Ireland, China and Singapore, respectively. For the three months ended January 31, 2017, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $27.5 million, $31.9 million, $20.0 million and $21.7 million, respectively. For the three months ended January 31, 2016, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $30.1 million, $37.5 million, $16.9 million and $18.7 million, respectively. For the six months ended January 31, 2017, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $54.3 million, $68.1 million, $36.8 million and $48.0 million, respectively. For the six months ended January 31, 2016, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $65.1 million, $83.8 million, $37.6 million and $41.0 million, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jan. 31, 2017
RELATED PARTY TRANSACTIONS	(16) RELATED PARTY TRANSACTIONS On December 24, 2014, the Company entered into a Management Services Agreement with SP Corporate Services LLC (“SP Corporate”), effective as of January 1, 2015 (as amended, the “Management Services Agreement”). SP Corporate is an indirect wholly owned subsidiary of Steel Partners Holdings L.P. (“Steel Holdings”) and is a related party. Pursuant to the Management Services Agreement, SP Corporate provided the Company and its subsidiaries with the services of certain employees, including certain executive officers, and other corporate services. The Management Services Agreement had an initial term of six months. On June 30, 2015, the Company entered into an amendment that extended the term of the Management Services Agreement to December 31, 2015 and provided for automatic renewal for successive one year periods, unless and until terminated.in accordance with the terms set forth therein, which include, under certain circumstances, the payment by the Company of certain termination fees to SP Corporate. On March 10, 2016, the Company entered into a Second Amendment to the Management Services Agreement with SPH Services, Inc. (“SPH Services”) pursuant to which SPH Services assumed rights and responsibilities of SP Corporate and the services provided by SPH Services to the Company were modified pursuant to the terms of the amendment. SPH Services is the parent of SP Corporate and an affiliate of SPH Group Holdings LLC. On March 10, 2016, the Company entered into a Transfer Agreement with SPH Services pursuant to which the parties agreed to transfer to the Company certain individuals who provide corporate services to the Company. Pursuant to the Management Services Agreement, the Company pays a fixed monthly fee of $175,000 in consideration for the services and incremental costs as incurred. The fees payable under the Management Services Agreement are subject to review and such adjustments as may be agreed upon by the parties. Total expenses incurred related to the Management Services Agreement for the three months ended January 31, 2017 and 2016 were $0.5 million and $0.6 million, respectively. Total expenses incurred related to the Management Services Agreement for the six months ended January 31, 2017 and 2016 were $1.1 million and $1.1 million, respectively. As of January 31, 2017, $0.2 million was due to SPH Services. As of July 31, 2016, amounts due to SP Corporate SPH Services were $0.5 million. The Related Party Transactions Committee of the Board (the “Related Party Transactions Committee”) approved the entry into the Management Services Agreement (and the amendment thereto) and the Transfer Agreement. The Related Party Transactions Committee held the responsibility to review, approve and ratify related party transactions from November 20, 2014, until October 11, 2016. On October 11, 2016, the Board adopted a Related Person Transaction Policy that is administered by the Audit Committee and applies to all related party transactions. As of October 11, 2016, the Audit Committee of the Board reviews all related party transactions on an ongoing basis and all such transactions must be approved or ratified by the Audit Committee. Mutual Securities, Inc. (“Mutual Securities”) serves as the broker and record-keeper for all the transactions associated with the Trading Securities. An officer of SP Corporate and of the General Partner of Steel Partners Holdings L.P., is a registered principal of Mutual Securities. Commissions charged by Mutual Securities are generally commensurate with commissions charged by other institutional brokers, and the Company believes its use of Mutual Securities is consistent with its desire to obtain best price and execution. During the three months ended January 31, 2017, Mutual Securities received an immaterial amount in commissions associated with these transactions.

FAIR VALUE MEASUREMENT OF ASSET

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES	6 Months Ended
	Jan. 31, 2017
FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES	(17) FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES 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 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 Company values foreign exchange forward contracts using observable inputs which primarily consist of an income approach based on the present value of the forward rate less the contract rate multiplied by the notional amount. 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. 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 January 31, 2017 and July 31, 2016, classified by fair value hierarchy: Fair Value Measurements at Reporting Date Using (In thousands) January 31, 2017 Level 1 Level 2 Level 3 Assets: Marketable equity securities $ 11,029 $ 11,029 $ — $ — Money market funds 86,898 86,898 — — Fair Value Measurements at Reporting Date Using (In thousands) July 31, 2016 Level 1 Level 2 Level 3 Assets: Marketable equity securities $ 4,209 $ 4,209 $ — $ — Marketable corporate bonds 12,559 12,559 — — Money market funds 101,224 101,224 — — 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 The Company’s only significant assets or liabilities measured at fair value on a nonrecurring basis subsequent to their initial recognition were 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. 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. The following table presents the Company’s debt not carried at fair value: January 31, 2017 July 31, 2016 Carrying Fair Value Carrying Fair Value Fair Value Hierarchy (In thousands) Notes payable $ 57,603 $ 60,440 $ 57,169 $ 50,957 Level 1 The fair value of our Notes payable represents the value at which our lenders could trade our debt within 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.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	6 Months Ended
	Jan. 31, 2017
SUBSEQUENT EVENT	(18) SUBSEQUENT EVENT In February 2017, an Irish subsidiary of the Company signed a memorandum of agreement to sell its building in Kildare, Ireland. The sale price is €3.9 million, and will result in net proceeds of approximately €2.7 million, after subtracting the purchase price of certain property liens, which the Irish subsidiary acquired from an Irish governmental authority in order to remove the liens as part of the sale, and other transaction-related cost. The Irish subsidiary of the Company will continue to occupy a portion of the building as a tenant post-sale. The memorandum of agreement remains subject to execution by the Irish governmental authority and, assuming final execution, will be subject to certain closing conditions, including completion of improvements to the building. Final closing is anticipated to occur by May 2017 after the required tenant improvements are made.

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jan. 31, 2017
Components of Inventories	Inventories consisted of the following: January 31, July 31, (In thousands) Raw materials $ 27,281 $ 28,506 Work-in-process 647 590 Finished goods 8,999 11,174 $ 36,927 $ 40,270

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Jan. 31, 2017
Components of Accrued Expenses	January 31, July 31, (In thousands) Accrued taxes $ 2,509 $ 3,068 Accrued compensation 7,970 9,590 Accrued interest 1,293 1,346 Accrued audit, tax and legal 2,884 2,544 Accrued contract labor 3,768 2,966 Accrued other 21,193 18,226 $ 39,617 $ 37,740
Components of Other Current Liabilities	January 31, July 31, (In thousands) Accrued pricing liabilities $ 18,882 $ 18,882 Other 9,605 8,227 $ 28,487 $ 27,109

RESTRUCTURING, NET (Tables)

RESTRUCTURING, NET (Tables)	6 Months Ended
	Jan. 31, 2017
Summary of Restructuring Accrual by Expense Category and by Reportable Segment	The following tables summarize the activities related to the restructuring accrual by expense category and by reportable segment for the six months ended January 31, 2017: Employee Related Expenses Contractual Obligations Total (In thousands) Accrued restructuring balance at July 31, 2016 $ 2,074 $ 955 $ 3,029 Restructuring charges 1,723 397 2,120 Restructuring adjustments 42 (12 ) 30 Cash paid (2,997 ) (1,019 ) (4,016 ) Non-cash (18 ) 6 (12 ) Accrued restructuring balance at January 31, 2017 $ 824 $ 327 $ 1,151 Americas Asia Europe e - Business Consolidated Total (In thousands) Accrued restructuring balance at July 31, 2016 $ 862 $ 894 $ 398 $ 875 $ 3,029 Restructuring charges 480 854 668 118 2,120 Restructuring adjustments 6 — 25 (1 ) 30 Cash paid (907 ) (1,464 ) (854 ) (791 ) (4,016 ) Non-cash — (4 ) (8 ) — (12 ) Accrued restructuring balance at January 31, 2017 $ 441 $ 280 $ 229 $ 201 $ 1,151
Net Restructuring Charges	The net restructuring charges for the three and six months ended January 31, 2017 and 2016 would have been allocated as follows had the Company recorded the expense and adjustments within the functional department of the restructured activities: Three Months Ended January 31, Six Months Ended January 31, 2017 2016 2017 2016 (In thousands) Cost of revenue $ 154 $ 83 $ 735 $ 898 Selling, general and administrative 622 157 1,415 349 $ 776 $ 240 $ 2,150 $ 1,247

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jan. 31, 2017
Net Carrying Value of the Notes	January 31, 2017 July 31, 2016 (In thousands) Carrying amount of equity component (net of allocated debt issuance costs) $ 26,961 $ 27,099 Principal amount of Notes $ 67,625 $ 69,625 Unamortized debt discount (9,207 ) (11,443 ) Unamortized debt issuance costs (815 ) (1,013 ) Net carrying amount $ 57,603 $ 57,169
Summary of Interest Expense Related to Convertible Notes	Three Months Ended January 31, Six Months Ended January 31, 2017 2016 2017 2016 (In thousands) Interest expense related to contractual interest coupon $ 888 $ 1,323 $ 1,823 $ 2,646 Interest expense related to accretion of the discount 999 1,258 1,940 2,473 Interest expense related to debt issuance costs 89 111 172 219 $ 1,976 $ 2,692 $ 3,935 $ 5,338

OTHER GAINS (LOSSES), NET (Tabl

OTHER GAINS (LOSSES), NET (Tables)	6 Months Ended
	Jan. 31, 2017
Components of Other Gains (Losses), Net	The following table reflects the components of “Other gains (losses), net”: Three Months Ended January 31, Six Months Ended January 31, 2017 2016 2017 2016 (In thousands) Foreign currency exchange gain (losses) $ 29 $ (179 ) $ 426 $ (753 ) Gains (losses) on Trading Securities 1,011 1,115 94 (8,348 ) Other, net (21 ) (611 ) 11 (245 ) $ 1,019 $ 325 $ 531 $ (9,346 )

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jan. 31, 2017
Reconciliation of Earnings Per Share	“Earnings per Share.” The following table reconciles earnings per share for the three and six months ended January 31, 2017 and 2016: Three Months Six Months Ended January 31, January 31, 2017 2016 2017 2016 (In thousands, except per share data) Net loss $ (2,906 ) $ (13,948 ) $ (11,449 ) $ (28,721 ) Weighted average common shares outstanding 55,083 51,879 55,031 52,039 Weighted average common equivalent shares arising from dilutive stock options and restricted stock — — — — Weighted average number of common and potential common shares 55,083 51,879 55,031 52,039 Basic and diluted net loss per share $ (0.05 ) $ (0.27 ) $ (0.21 ) $ (0.55 )

SHARE-BASED PAYMENTS (Tables)

SHARE-BASED PAYMENTS (Tables)	6 Months Ended
	Jan. 31, 2017
Summary of Share-Based Compensation Expense Related to Employee Stock Options, Employee Stock Purchases and Nonvested Shares	The following table summarizes share-based compensation expense related to employee stock options, employee stock purchases and non-vested Three Months Ended Six Months Ended January 31, January 31, 2017 2016 2017 2016 (In thousands) Cost of revenue $ 15 $ 25 $ 31 $ 56 Selling, general and administrative 174 477 350 902 $ 189 $ 502 $ 381 $ 958

COMPREHENSIVE INCOME (LOSS) (Ta

COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jan. 31, 2017
Accumulated Other Comprehensive Items	Accumulated other comprehensive items consist of the following: Foreign currency items Pension items Unrealized gains Total (In thousands) Accumulated other comprehensive income (loss) at July 31, 2016 $ 6,131 $ (4,206 ) $ 94 $ 2,019 Foreign currency translation adjustment (2,003 ) — — (2,003 ) Pension liability adjustments — 750 — 750 Net current-period other comprehensive income (loss) (2,003 ) 750 — (1,253 ) Accumulated other comprehensive income (loss) at January 31, 2017 $ 4,128 $ (3,456 ) $ 94 $ 766

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jan. 31, 2017
Summarized Financial Information of Continuing Operations by Operating Segment and Corporate-Level Activity	Summarized financial information of the Company’s continuing operations by operating segment is as follows: Three Months Ended Six Months Ended January 31, January 31, 2017 2016 2017 2016 (In thousands) Net revenue: Americas $ 27,183 $ 28,208 $ 53,061 $ 61,419 Asia 38,861 44,476 81,734 98,407 Europe 44,910 38,656 90,091 83,399 e-Business 6,614 8,626 14,009 17,830 $ 117,568 $ 119,966 $ 238,895 $ 261,055 Operating income (loss): Americas $ (1,721 ) $ (4,911 ) $ (5,577 ) $ (7,997 ) Asia 2,311 (325 ) 4,088 3,046 Europe 41 (4,239 ) (2,550 ) (4,032 ) e-Business (888 ) (397 ) (544 ) (901 ) Total Segment operating income (loss) (257 ) (9,872 ) (4,583 ) (9,884 ) Corporate-level activity (1,247 ) (1,791 ) (2,563 ) (3,348 ) Total operating loss (1,504 ) (11,663 ) (7,146 ) (13,232 ) Total other expense 1,075 2,338 3,427 14,692 Loss before income taxes $ (2,579 ) $ (14,001 ) $ (10,573 ) $ (27,924 )
Total Assets of Continuing Operations	January 31, July 31, 2017 2016 (In thousands) Total assets: Americas $ 29,289 $ 28,280 Asia 75,079 89,242 Europe 71,996 75,952 e-Business 18,666 22,884 Sub-total 195,030 216,358 Corporate 117,168 131,574 $ 312,198 $ 347,932
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: Three Months Ended Six Months Ended January 31, January 31, 2017 2016 2017 2016 (In thousands) Supply chain services $ 110,954 $ 111,340 $ 224,886 $ 243,225 e-Business 6,614 8,626 14,009 17,830 $ 117,568 $ 119,966 $ 238,895 $ 261,055

FAIR VALUE MEASUREMENT OF ASS34

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Tables)	6 Months Ended
	Jan. 31, 2017
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 January 31, 2017 and July 31, 2016, classified by fair value hierarchy: Fair Value Measurements at Reporting Date Using (In thousands) January 31, 2017 Level 1 Level 2 Level 3 Assets: Marketable equity securities $ 11,029 $ 11,029 $ — $ — Money market funds 86,898 86,898 — — Fair Value Measurements at Reporting Date Using (In thousands) July 31, 2016 Level 1 Level 2 Level 3 Assets: Marketable equity securities $ 4,209 $ 4,209 $ — $ — Marketable corporate bonds 12,559 12,559 — — Money market funds 101,224 101,224 — —
Debt not Carried at Fair Value	The following table presents the Company’s debt not carried at fair value: January 31, 2017 July 31, 2016 Carrying Fair Value Carrying Fair Value Fair Value Hierarchy (In thousands) Notes payable $ 57,603 $ 60,440 $ 57,169 $ 50,957 Level 1

Nature of Operations - Addition

Nature of Operations - Additional Information (Detail)	Jan. 31, 2017SiteLanguage
Number of sites | Site	21
Number of Languages | Language	21

Components of Inventories (Deta

Components of Inventories (Detail) - USD ($) $ in Thousands	Jan. 31, 2017	Jul. 31, 2016
Inventory [Line Items]
Raw materials	$ 27,281	$ 28,506
Work-in-process	647	590
Finished goods	8,999	11,174
Inventories, net	$ 36,927	$ 40,270

Investments - Additional Inform

Investments - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016	Jul. 31, 2016
Investment [Line Items]
Sale (purchase) of trading securities	$ 4,900	$ 14,800	$ 5,800	$ 43,700
Gains (losses) in trading securities	1,011	1,115	94	(8,348)
Sale of trading securities		15,500
Unsettled trades associated with the sale of common stock of a publicly traded entity				800
Trading securities	11,029		11,029		$ 16,768
Convertible Debt Securities
Investment [Line Items]
Trading securities					$ 12,600
Non Cash
Investment [Line Items]
Gains (losses) in trading securities	400	100	500	13,800
Cash
Investment [Line Items]
Gains (losses) in trading securities	$ 600	$ 1,200	$ 600	$ 5,500

Components of Accrued Expenses

Components of Accrued Expenses (Detail) - USD ($) $ in Thousands	Jan. 31, 2017	Jul. 31, 2016
Accrued Expenses [Line Items]
Accrued taxes	$ 2,509	$ 3,068
Accrued compensation	7,970	9,590
Accrued interest	1,293	1,346
Accrued audit, tax and legal	2,884	2,544
Accrued contract labor	3,768	2,966
Accrued other	21,193	18,226
Accrued expenses	$ 39,617	$ 37,740

Components of Other Current Lia

Components of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jan. 31, 2017	Jul. 31, 2016
Other Current Liabilities [Line Items]
Accrued pricing liabilities	$ 18,882	$ 18,882
Other	9,605	8,227
Other current liabilities	$ 28,487	$ 27,109

Other Current Liabilities - Add

Other Current Liabilities - Additional Information (Detail) - USD ($) $ in Thousands	Jan. 31, 2017	Jul. 31, 2016
Accrued Expenses and Other Current Liabilities [Line Items]
Accrued pricing liabilities	$ 18,882	$ 18,882

Restructuring, Net - Additional

Restructuring, Net - Additional Information (Detail) $ in Thousands	3 Months Ended				6 Months Ended
	Jan. 31, 2017USD ($)Employee	Oct. 31, 2016USD ($)Employee	Jan. 31, 2016USD ($)	Oct. 31, 2015USD ($)Employee	Jan. 31, 2017USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 800	$ 1,400	$ 200	$ 1,000	$ 2,120
Number of workforce reduction | Employee	18	50		55
Employee-related Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges					1,723
Contractual Obligations
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 100	$ 300			397
Americas
Restructuring Cost and Reserve [Line Items]
Restructuring charges					480
Americas | Employee-related Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	200	200	100	$ 800
Asia
Restructuring Cost and Reserve [Line Items]
Restructuring charges					854
Asia | Employee-related Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	300	400		$ 300
Europe
Restructuring Cost and Reserve [Line Items]
Restructuring charges					668
Europe | Employee-related Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	100	$ 500	$ 100
e-Business Services
Restructuring Cost and Reserve [Line Items]
Restructuring charges					$ 118
e-Business Services | Employee-related Costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 100

Summary of Restructuring Accrua

Summary of Restructuring Accrual by Expense Category and by Reportable Segment (Detail) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jan. 31, 2017	Oct. 31, 2016	Jan. 31, 2016	Oct. 31, 2015	Jan. 31, 2017
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance		$ 3,029			$ 3,029
Restructuring charges	$ 800	1,400	$ 200	$ 1,000	2,120
Restructuring adjustments					30
Cash paid					(4,016)
Non-cash adjustments					(12)
Accrued restructuring, ending balance	1,151				1,151
Americas
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance		862			862
Restructuring charges					480
Restructuring adjustments					6
Cash paid					(907)
Accrued restructuring, ending balance	441				441
Asia
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance		894			894
Restructuring charges					854
Cash paid					(1,464)
Non-cash adjustments					(4)
Accrued restructuring, ending balance	280				280
Europe
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance		398			398
Restructuring charges					668
Restructuring adjustments					25
Cash paid					(854)
Non-cash adjustments					(8)
Accrued restructuring, ending balance	229				229
e-Business Services
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance		875			875
Restructuring charges					118
Restructuring adjustments					(1)
Cash paid					(791)
Accrued restructuring, ending balance	201				201
Employee-related Costs
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance		2,074			2,074
Restructuring charges					1,723
Restructuring adjustments					42
Cash paid					(2,997)
Non-cash adjustments					(18)
Accrued restructuring, ending balance	824				824
Employee-related Costs | Americas
Restructuring Cost and Reserve [Line Items]
Restructuring charges	200	200	100	800
Employee-related Costs | Asia
Restructuring Cost and Reserve [Line Items]
Restructuring charges	300	400		$ 300
Employee-related Costs | Europe
Restructuring Cost and Reserve [Line Items]
Restructuring charges	100	500	$ 100
Employee-related Costs | e-Business Services
Restructuring Cost and Reserve [Line Items]
Restructuring charges	100
Contractual Obligations
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance		955			955
Restructuring charges	100	$ 300			397
Restructuring adjustments					(12)
Cash paid					(1,019)
Non-cash adjustments					6
Accrued restructuring, ending balance	$ 327				$ 327

Net Restructuring Charges (Deta

Net Restructuring Charges (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring, net	$ 776	$ 240	$ 2,150	$ 1,247
Cost of revenue
Restructuring Cost and Reserve [Line Items]
Restructuring, net	154	83	735	898
Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring, net	$ 622	$ 157	$ 1,415	$ 349

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	Jun. 30, 2014	Mar. 18, 2014	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016	Jul. 31, 2016
Debt Instrument [Line Items]
Debt instrument issued			$ 67,625,000		$ 67,625,000		$ 69,625,000
Debt instrument issuance costs			815,000		815,000		1,013,000
Purchase of the Company's Convertible Notes					1,763,000
Notes payable, Fair Value			60,440,000		60,440,000		50,957,000
Debt instrument, carrying amount			57,603,000		$ 57,603,000		57,169,000
Convertible debt, remaining discount amortization period					25 months
Debt instrument, interest expense					$ 1,940,000	$ 2,473,000
PNC Bank Credit Facility
Debt Instrument [Line Items]
Line of credit facility, term	5 years
Line of credit facility, maximum credit commitment	$ 50,000,000
Credit facility expiry date					Jun. 30, 2019
Line of credit facility, unutilized commitment fee percentage	0.25%
Outstanding indebtedness under the Credit Facility			$ 0		$ 0		$ 0
Domestic Subsidiaries
Debt Instrument [Line Items]
Percentage of equity interests pledged					100.00%
Foreign Subsidiaries
Debt Instrument [Line Items]
Percentage of equity interests pledged					65.00%
Letter of Credit Sublimit | PNC Bank Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment	$ 5,000,000
Uncommitted Accordion Feature | PNC Bank Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment	$ 20,000,000
Scenario 1 | London Interbank Offered Rate (LIBOR) | PNC Bank Credit Facility
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate	2.25%
Scenario 2 | London Interbank Offered Rate (LIBOR) | PNC Bank Credit Facility
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate	1.00%
Scenario 2 | Federal Funds Open Rate | PNC Bank Credit Facility
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate	0.50%
5.25% Convertible Senior Notes due 2019
Debt Instrument [Line Items]
Debt instrument issued		$ 100,000,000
Debt instrument, stated interest rate		5.25%	0.50%		0.50%
Debt instrument, convertible, conversion ratio					166.2593
Initial Conversion price			$ 6.01		$ 6.01
Debt instrument, redemption price percentage		100.00%
Debt instrument, convertible, earliest date					Mar. 6, 2017
Debt instrument, convertible, threshold percentage of stock price trigger					130.00%
Debt instrument, convertible, threshold trading days					20 days
Debt instrument, convertible, threshold consecutive trading days					30 days
Additional interest paid			$ 200,000		$ 200,000
Debt instrument conversion option					28,100,000
Debt instrument issuance costs			3,400,000		3,400,000
Deferred debt instrument issuance costs			2,500,000		2,500,000
Debt instrument, interest expense			$ 1,976,000	$ 2,692,000	$ 3,935,000	5,338,000
Debt instrument, interest rate, effective percentage			13.90%		13.90%
Notes Payable One
Debt Instrument [Line Items]
Face amount of purchased Notes			$ 2,000,000		$ 2,000,000
Purchase of the Company's Convertible Notes			$ 1,700,000
Notes Payable Two
Debt Instrument [Line Items]
Face amount of purchased Notes				$ 0		$ 0

Net Carrying Value of the Notes

Net Carrying Value of the Notes (Detail) - USD ($) $ in Thousands	Jan. 31, 2017	Jul. 31, 2016
Debt Instrument [Line Items]
Carrying amount of equity component (net of allocated debt issuance costs)	$ 26,961	$ 27,099
Principal amount of Notes	67,625	69,625
Unamortized debt discount	(9,207)	(11,443)
Unamortized debt issuance costs	(815)	(1,013)
Net carrying amount	$ 57,603	$ 57,169

Summary of Interest Expense Rel

Summary of Interest Expense Related to Convertible Notes (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016
Non Cash Convertible Debt Related Expense [Line Items]
Debt instrument, interest expense			$ 1,940	$ 2,473
5.25% Convertible Senior Notes due 2019
Non Cash Convertible Debt Related Expense [Line Items]
Debt instrument, interest expense	$ 1,976	$ 2,692	3,935	5,338
5.25% Convertible Senior Notes due 2019 | Coupon Interest
Non Cash Convertible Debt Related Expense [Line Items]
Debt instrument, interest expense	888	1,323	1,823	2,646
5.25% Convertible Senior Notes due 2019 | Accretion of debt discount
Non Cash Convertible Debt Related Expense [Line Items]
Debt instrument, interest expense	999	1,258	1,940	2,473
5.25% Convertible Senior Notes due 2019 | Amortization of debt issue cost
Non Cash Convertible Debt Related Expense [Line Items]
Debt instrument, interest expense	$ 89	$ 111	$ 172	$ 219

Contingencies - Additional Info

Contingencies - Additional Information (Detail) $ in Millions	Jun. 08, 2015USD ($)
Pending Litigation
Commitments and Contingencies [Line Items]
Damages sought	$ 1

Components of Other Gains (Loss

Components of Other Gains (Losses), Net (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016
Component Of Other Expense Income Nonoperating [Line Items]
Foreign currency exchange gain (losses)	$ 29	$ (179)	$ 426	$ (753)
Gains (losses) on Trading Securities	1,011	1,115	94	(8,348)
Other, net	(21)	(611)	11	(245)
Other gains (losses), net	$ 1,019	$ 325	$ 531	$ (9,346)

Other Gains (Losses), Net - Add

Other Gains (Losses), Net - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016
Component Of Other Expense Income Nonoperating [Line Items]
Foreign currency exchange gains (losses)	$ 29	$ (179)	$ 426	$ (753)
Gains (losses) in trading securities	1,011	1,115	94	(8,348)
Foreign Exchange Contract
Component Of Other Expense Income Nonoperating [Line Items]
Foreign currency exchange gains (losses)		400		100
Asia
Component Of Other Expense Income Nonoperating [Line Items]
Realized and unrealized gains (losses) from foreign currency exposures and settled transactions	(500)	400	(400)	1,100
Europe
Component Of Other Expense Income Nonoperating [Line Items]
Realized and unrealized gains (losses) from foreign currency exposures and settled transactions	(100)	200	(400)	500
Corporate Segment
Component Of Other Expense Income Nonoperating [Line Items]
Realized and unrealized gains (losses) from foreign currency exposures and settled transactions	$ 600	$ 400	$ 1,300	$ 800

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	Dec. 29, 2014	Jan. 31, 2017	Jul. 31, 2016
Income Taxes [Line Items]
Unrecognized tax benefits related to federal, state and foreign taxes		$ 700,000	$ 1,200,000
Expected any unrecognized tax benefits to reverse in the next twelve months		$ 0
Stockholder owning ownership on corporation's securities percentage		5.00%
Stockholder owning ownership on corporation's securities rolling period		3 years
Tax Benefit Preservation Plan
Income Taxes [Line Items]
Tax Benefit Preservation Plan, adoption date		Oct. 17, 2011
Minimum | Tax Benefit Preservation Plan
Income Taxes [Line Items]
Percentage of ownership require to obtain approval from board of directors to acquiring shares of the company's securities		4.99%
Maximum | Handy & Harman | Tax Benefit Preservation Plan
Income Taxes [Line Items]
Percentage of common shares outstanding permitted for acquired by HNH and its affiliates	45.00%

Reconciliation of Earnings (Los

Reconciliation of Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Net loss	$ (2,906)	$ (13,948)	$ (11,449)	$ (28,721)
Weighted average common shares outstanding	55,083	51,879	55,031	52,039
Weighted average common equivalent shares arising from dilutive stock options and restricted stock	0	0	0	0
Weighted average number of common and potential common shares	55,083	51,879	55,031	52,039
Basic and diluted net loss per share	$ (0.05)	$ (0.27)	$ (0.21)	$ (0.55)

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016
Computation of Earnings Per Share [Line Items]
Common stock equivalent shares excluded from the denominator in the calculation of diluted earnings per share	14.2	21.9	14.5	21.8

Summary of Share-Based Compensa

Summary of Share-Based Compensation (Benefit) Expense Related to Employee Stock Options, Employee Stock Purchases and Non-Vested Shares (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 189	$ 502	$ 381	$ 958
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	15	25	31	56
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 174	$ 477	$ 350	$ 902

Share-Based Payments - Addition

Share-Based Payments - Additional Information (Detail) $ in Millions	Jan. 31, 2017USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized share-based compensation related to stock options	$ 0.1
Unrecognized compensation cost related to non-vested shares	$ 0.4

Accumulated Other Comprehensive

Accumulated Other Comprehensive Items (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			$ 85,940
Foreign currency translation adjustment	$ (734)	$ (1,077)	(2,003)	$ (1,946)
Pension liability adjustments	353		750
Other comprehensive income (loss)	(391)	$ (1,074)	(1,253)	$ (1,915)
Balance	73,496		73,496
Foreign currency items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			6,131
Foreign currency translation adjustment			(2,003)
Other comprehensive income (loss)			(2,003)
Balance	4,128		4,128
Pension items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			(4,206)
Pension liability adjustments			750
Other comprehensive income (loss)			750
Balance	(3,456)		(3,456)
Unrealized gains (losses) on Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			94
Balance	94		94
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance			2,019
Balance	$ 766		$ 766

Segment Information - Additiona

Segment Information - Additional Information (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2017USD ($)	Jan. 31, 2016USD ($)	Jan. 31, 2017USD ($)Segment	Jan. 31, 2016USD ($)Segment	Jul. 31, 2016USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | Segment			4
Number of reportable segments | Segment			4	3
Total assets	$ 312,198		$ 312,198		$ 347,932
Net revenue	117,568	$ 119,966	238,895	$ 261,055
United States
Segment Reporting Information [Line Items]
Total assets	11,500		11,500		12,300
Net revenue	27,500	30,100	54,300	65,100
Ireland
Segment Reporting Information [Line Items]
Total assets	3,300		3,300		3,500
China
Segment Reporting Information [Line Items]
Total assets	2,500		2,500		3,000
Net revenue	31,900	37,500	68,100	83,800
Netherlands
Segment Reporting Information [Line Items]
Total assets	3,200		3,200		3,000
Net revenue	20,000	16,900	36,800	37,600
Singapore
Segment Reporting Information [Line Items]
Total assets	2,800		2,800		$ 2,900
Czech Republic
Segment Reporting Information [Line Items]
Net revenue	$ 21,700	$ 18,700	$ 48,000	$ 41,000

Summarized Financial Informatio

Summarized Financial Information of Continuing Operations by Operating Segment and Corporate-Level Activity (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016
Segment Reporting Information [Line Items]
Net revenue	$ 117,568	$ 119,966	$ 238,895	$ 261,055
Operating income (loss)	(1,504)	(11,663)	(7,146)	(13,232)
Total other expense	1,075	2,338	3,427	14,692
Loss before income taxes	(2,579)	(14,001)	(10,573)	(27,924)
Operating Segments
Segment Reporting Information [Line Items]
Operating income (loss)	(257)	(9,872)	(4,583)	(9,884)
Operating Segments | Americas
Segment Reporting Information [Line Items]
Net revenue	27,183	28,208	53,061	61,419
Operating income (loss)	(1,721)	(4,911)	(5,577)	(7,997)
Operating Segments | Asia
Segment Reporting Information [Line Items]
Net revenue	38,861	44,476	81,734	98,407
Operating income (loss)	2,311	(325)	4,088	3,046
Operating Segments | Europe
Segment Reporting Information [Line Items]
Net revenue	44,910	38,656	90,091	83,399
Operating income (loss)	41	(4,239)	(2,550)	(4,032)
Operating Segments | e-Business Services
Segment Reporting Information [Line Items]
Net revenue	6,614	8,626	14,009	17,830
Operating income (loss)	(888)	(397)	(544)	(901)
Corporate-level activity
Segment Reporting Information [Line Items]
Operating income (loss)	$ (1,247)	$ (1,791)	$ (2,563)	$ (3,348)

Total Assets of Continuing Oper

Total Assets of Continuing Operations (Detail) - USD ($) $ in Thousands	Jan. 31, 2017	Jul. 31, 2016
Segment Reporting Information [Line Items]
Total assets	$ 312,198	$ 347,932
Operating Segments
Segment Reporting Information [Line Items]
Total assets	195,030	216,358
Operating Segments | Americas
Segment Reporting Information [Line Items]
Total assets	29,289	28,280
Operating Segments | Asia
Segment Reporting Information [Line Items]
Total assets	75,079	89,242
Operating Segments | Europe
Segment Reporting Information [Line Items]
Total assets	71,996	75,952
Operating Segments | e-Business Services
Segment Reporting Information [Line Items]
Total assets	18,666	22,884
Corporate-level activity
Segment Reporting Information [Line Items]
Total assets	$ 117,168	$ 131,574

Summarized Financial Informat59

Summarized Financial Information of Net Revenue from External Customers by Group of Services (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenue	$ 117,568	$ 119,966	$ 238,895	$ 261,055
Supply Chain Services
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenue	110,954	111,340	224,886	243,225
e-Business Services
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenue	$ 6,614	$ 8,626	$ 14,009	$ 17,830

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Detail) - Management Services Agreement - USD ($)	Mar. 10, 2016	Jun. 30, 2015	Dec. 24, 2014	Jan. 31, 2017	Jan. 31, 2016	Jan. 31, 2017	Jan. 31, 2016	Jul. 31, 2016
SP Corporate
Related Party Transaction [Line Items]
Management services agreement, effective date of agreement			Jan. 1, 2015
Management services agreement, amended expiration date of agreement		Dec. 31, 2015
Management services agreement, renew period		1 year
Management services agreement term						6 months
SPH Services
Related Party Transaction [Line Items]
Fixed monthly fee to be paid in consideration of services and incremental cost	$ 175,000
Total expenses incurred related to Management Services Agreement and Transfer Agreement				$ 500,000	$ 600,000	$ 1,100,000	$ 1,100,000
Amount due to related parties				$ 200,000		$ 200,000		$ 500,000

Fair value Measurement of Ass61

Fair value Measurement of Assets and Liabilities - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Jan. 31, 2017	Jul. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Defined benefit plans assets percentage invested in bank-managed portfolios	100.00%
Fair value, assets, Level 1 to Level 2 transfers, amount	$ 0	$ 0
Fair value, assets, Level 2 to Level 1 transfers, amount	0	0
Fair value, assets, transfers into Level 3	0	0
Fair value, assets, transfers out of Level 3	$ 0	$ 0

Financial Assets Measured at Fa

Financial Assets Measured at Fair Value on Recurring Basis and Classified by Fair Value Hierarchy (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jan. 31, 2017	Jul. 31, 2016
Marketable equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 11,029	$ 4,209
Marketable corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring		12,559
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	86,898	101,224
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	11,029	4,209
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		12,559
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	$ 86,898	$ 101,224

Debt not Carried at Fair Value

Debt not Carried at Fair Value (Detail) - USD ($) $ in Thousands	Jan. 31, 2017	Jul. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable	$ 57,603	$ 57,169
Notes payable, Fair Value	$ 60,440	$ 50,957

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) - Kildare - Subsequent Event € in Millions	1 Months Ended
	Feb. 28, 2017EUR (€)
Subsequent Event [Line Items]
Building sale price	€ 3.9
Proceeds from the sale of building	€ 2.7