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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jan. 31, 2014	Feb. 26, 2014
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Trading Symbol	MLNK
Entity Registrant Name	MODUSLINK GLOBAL SOLUTIONS INC
Entity Central Index Key	0000914712
Current Fiscal Year End Date	--07-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		51,629,593

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 31, 2014	Jul. 31, 2013
Current assets:
Cash and cash equivalents	$ 75,274	$ 77,916
Accounts receivable, trade, net of allowance for doubtful accounts of $76 and $64 at January 31, 2014 and July 31, 2013, respectively	145,480	142,098
Inventories	68,890	61,322
Prepaid expenses and other current assets	10,774	9,750
Total current assets	300,418	291,086
Property and equipment, net	28,911	34,290
Investments in affiliates	8,071	7,970
Goodwill	3,058	3,058
Other intangible assets, net	1,204	1,764
Other assets	5,389	5,528
Total assets	347,051	343,696
Current liabilities:
Accounts payable	112,236	110,148
Accrued restructuring	1,686	4,670
Accrued expenses	37,840	34,748
Other current liabilities	25,735	26,865
Total current liabilities	177,497	176,431
Long-term portion of accrued restructuring	273	494
Other long-term liabilities	9,243	9,866
Long-term liabilities	9,516	10,360
Total liabilities	187,013	186,791
Stockholders' equity:
Preferred stock, $0.01 par value per share. Authorized 5,000,000 shares; zero issued or outstanding shares at January 31, 2014 and July 31, 2013
Common stock, $0.01 par value per share. Authorized 1,400,000,000 shares; 51,607,186 issued and outstanding shares at January 31, 2014; 51,575,893 issued and outstanding shares at July 31, 2013	516	516
Additional paid-in capital	7,421,070	7,419,806
Accumulated deficit	(7,275,449)	(7,277,130)
Accumulated other comprehensive income	13,901	13,713
Total stockholders' equity	160,038	156,905
Total liabilities and stockholders' equity	$ 347,051	$ 343,696

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jan. 31, 2014	Jul. 31, 2013
Accounts receivable, trade, allowance for doubtful accounts	$ 76	$ 64
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares Authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares Authorized	1,400,000,000	1,400,000,000
Common stock, shares issued	51,607,186	51,575,893
Common stock, shares outstanding	51,607,186	51,575,893

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Net revenue	$ 194,011	$ 203,436	$ 385,426	$ 400,487
Cost of revenue	171,431	183,158	340,851	361,585
Gross profit	22,580	20,278	44,575	38,902
Operating expenses
Selling, general and administrative	19,572	23,721	37,687	47,862
Amortization of intangible assets	280	285	560	569
Impairment of long-lived assets	500		500
Restructuring, net	993	4,798	1,972	6,268
Total operating expenses	21,345	28,804	40,719	54,699
Operating income (loss)	1,235	(8,526)	3,856	(15,797)
Other income (expense):
Interest income	65	88	167	166
Interest expense	(199)	(101)	(412)	(199)
Other gains (losses), net	892	(978)	191	(2,299)
Impairment of investments in affiliates	(177)	(1,500)	(177)	(1,500)
Total other income (expense)	581	(2,491)	(231)	(3,832)
Income (loss) from continuing operations before income taxes	1,816	(11,017)	3,625	(19,629)
Income tax expense	753	674	1,890	1,583
Equity in losses of affiliates, net of tax		726	134	1,036
Income (loss) from continuing operations	1,063	(12,417)	1,601	(22,248)
Discontinued operations, net of income taxes:
Income (loss) from discontinued operations	1	(133)	80	(960)
Net income (loss)	$ 1,064	$ (12,550)	$ 1,681	$ (23,208)
Basic net income (loss) per share:
Income (loss) from continuing operations	$ 0.02	$ (0.29)	$ 0.03	$ (0.51)
Income (loss) from discontinued operations	0.00	0.00	0.00	(0.02)
Net income (loss)	0.02	(0.29)	0.03	(0.53)
Diluted net income (loss) per share:
Income (loss) from continuing operations	0.02	(0.29)	0.03	(0.51)
Income (loss) from discontinued operations	0.00	0.00	0.00	(0.02)
Net income (loss)	$ 0.02	$ (0.29)	$ 0.03	$ (0.53)
Weighted average number of common shares used in:
Basic earnings per share	51,498	43,654	51,467	43,629
Diluted earnings per share	51,811	43,654	51,539	43,629

Condensed Consolidated Statements of Comprehensive (Income) Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Net income (loss)	$ 1,064	$ (12,550)	$ 1,681	$ (23,208)
Other comprehensive income:
Foreign currency translation adjustment	(2,137)	1,757	(58)	5,016
Pension liability adjustments, net of tax	250		250
Net unrealized holding gain (loss) on securities	2		(4)	(1)
Total adjustments	(1,885)	1,757	188	5,015
Comprehensive income (loss)	$ (821)	$ (10,793)	$ 1,869	$ (18,193)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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-Article 5

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+ Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Cash flows from operating activities of continuing operations:
Net income (loss)	$ (12,550)	$ 1,681	$ (23,208)
Income (loss) from discontinued operations	(133)	80	(960)
Income (loss) from continuing operations	(12,417)	1,601	(22,248)
Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities of continuing operations:
Depreciation		6,571	6,849
Amortization of intangible assets	285	560	569
Amortization of deferred financing costs		236	117
Impairment of long-lived assets		500
Loss on the sale of available-for-sale securities			19
Share-based compensation		1,150	915
Non-operating (gains) losses, net	978	(191)	2,299
Equity in losses of affiliates and impairments		311	2,536
Changes in operating assets and liabilities:
Trade accounts receivable, net		(3,659)	1,622
Inventories		(7,705)	2,026
Prepaid expenses and other current assets		(1,022)	(1,138)
Accounts payable, accrued restructuring and accrued expenses		229	12,184
Refundable and accrued income taxes, net		1,923	(2,605)
Other assets and liabilities		29	619
Net cash provided by operating activities of continuing operations		533	3,764
Cash flows from investing activities of continuing operations:
Additions to property and equipment		(1,682)	(3,570)
Change in restricted cash			(691)
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			174
Investments in affiliates		(412)	(1,450)
Net cash used in investing activities of continuing operations		(2,094)	(4,172)
Cash flows from financing activities of continuing operations:
Repayments on capital lease obligations		(49)	(30)
Proceeds from issuance of common stock		117
Repurchase of common stock		(37)	(152)
Net cash provided by (used in) financing activities of continuing operations		31	(182)
Cash flows from discontinued operations:
Operating cash flows		(579)	(1,357)
Net cash used in discontinued operations		(579)	(1,357)
Net effect of exchange rate changes on cash and cash equivalents		(533)	1,448
Net decrease in cash and cash equivalents		(2,642)	(499)
Cash and cash equivalents at beginning of period		77,916	52,369
Cash held in discontinued operations at end of the period	(80)		(80)
Cash and cash equivalents at end of period	$ 51,790	$ 75,274	$ 51,790

Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands	6 Months Ended
	Jan. 31, 2014 USD ($)
Proceeds from the disposition of the TFL business, transaction costs	$ 81

Nature of Operations

6 Months Ended

Jan. 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”), executes comprehensive supply chain and logistics services (the “Supply Chain Business”) that are designed to improve clients’ revenue, cost, sustainability and customer experience objectives. ModusLink Global Solutions provides services to leading companies in consumer electronics, communications, computing, medical devices, software, and retail. The Company’s operations are supported by a global footprint that includes more than 25 sites across North America, Europe and the Asia Pacific region

The Company previously operated under the names CMGI, Inc. and CMG Information Services, Inc. and was incorporated in Delaware in 1986.

Basis of Presentation

6 Months Ended

Jan. 31, 2014

Basis of Presentation

(2) BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of a normal recurring nature) considered necessary for fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and related notes for the year ended July 31, 2013, which are contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on October 15, 2013. The results for the three and six months ended January 31, 2014 are not necessarily indicative of the results to be expected for the full fiscal year. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.

All significant intercompany transactions and balances have been eliminated in consolidation.

The Company considers events or transactions that occur after the balance sheet date but before the issuance of financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. For the period ended January 31, 2014, the Company evaluated subsequent events for potential recognition and disclosure through the date these financial statements were filed.

Recent Accounting Pronouncements

6 Months Ended

Jan. 31, 2014

Recent Accounting Pronouncements

(3) RECENT ACCOUNTING PRONOUNCEMENTS

In July 2013, the Financial Accounting Standards Board (“FASB”) issued ASU 2-13-11, “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.

- Definition

The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

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-URI http://asc.fasb.org/extlink&oid=6507316

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+ Details

Inventories

6 Months Ended

Jan. 31, 2014

Inventories

(4) INVENTORIES

Inventories are stated at the lower of cost or market. Cost is determined by both the moving average and the first-in, first-out methods. Materials that the Company procures on behalf of its clients that are included in inventory typically include materials such as compact discs, printed materials, manuals, labels, hardware accessories, flash memory, consumer packaging, shipping boxes and labels, power cords and cables for client-owned electronic devices.

Inventories consisted of the following:


	January 31,		July 31,
	2014		2013
	(In thousands)
Raw materials	$	61,185	$	46,920
Work-in-process		812		1,256
Finished goods		6,893		13,146

	$	68,890	$	61,322

The Company continuously monitors inventory balances and records inventory write-downs for any excess of the cost of the inventory over its estimated market value. The Company also monitors inventory balances for obsolescence and excess quantities as compared to projected demand. The Company’s inventory methodology is based on assumptions about average shelf life of inventory, forecasted volumes, forecasted selling prices, write-down history of inventory, market conditions and contractual arrangements with clients. While such assumptions may change from period to period, in determining the net realizable value of its inventories, the Company uses the best information available as of the balance sheet date. If actual market conditions are less favorable than those projected, or the Company experiences a higher incidence of inventory obsolescence because of rapidly changing technology and customer requirements, additional inventory write-downs may be required. Once established, write-downs of inventory are considered permanent adjustments to the cost basis of inventory and cannot be reversed due to subsequent increases in demand forecasts.

Investments in Affiliates

6 Months Ended

Jan. 31, 2014

Investments in Affiliates

(5) INVESTMENTS IN AFFILIATES

The Company maintains interests in several early-stage privately held technology companies primarily through its interests in two venture capital funds which invest as “@Ventures.” These investments are generally made in connection with a round of financing with other third-party investors.

During the three and six months ended January 31, 2014, approximately $0.4 million was invested by @Ventures in privately held companies. During the three and six months ended January 31, 2013, approximately $0.9 million and $1.5 million was invested by @Ventures in privately held companies, respectively. During the three and six months ended January 31, 2014, the Company recorded $0.2 million in impairment charges related to an investment in the @Ventures portfolio of companies. During the three and six months ended January 31, 2013, the Company recorded a $1.5 million impairment charge related to an investment in the @Ventures portfolio of companies. During the three and six month periods ended January 31, 2013, the Company received distributions from its investments of $0.2 million. The Company did not receive any distributions from its investments during the current year. At January 31, 2014 and July 31, 2013, the Company’s carrying value of investments in privately held companies was approximately $8.1 million and $8.0 million, respectively.

Investments in which the Company’s interest is less than 20% and which are not classified as available-for-sale securities are carried at the lower of cost or net realizable value (the “cost method”) unless it is determined that the Company exercises significant influence over the investee company, in which case the equity method of accounting is used. For those investments in which the Company’s voting interest is between 20% and 50%, the equity method of accounting is generally used. Under this method, the investment balance, originally recorded at cost, is adjusted to recognize the Company’s share of net earnings or losses of the investee company as they occur, limited to the extent of the Company’s investment in, advances to and commitments for the investee. These adjustments are reflected in “Equity in losses of affiliates and impairments” in the Company’s Consolidated Statement of Operations. As of January 31, 2014 all of the investments in affiliates held by the Company are being accounted for under the cost method.

The Company assesses the need to record impairment losses on its investments and records such losses when the impairment of an investment is determined to be other than temporary in nature. The process of assessing whether a particular investment’s net realizable value is less than its carrying cost requires a significant amount of judgment. In making this judgment, the Company carefully considers the investee’s cash position, projected cash flows (both short and long-term), financing needs, recent financing rounds, most recent valuation data, the current investing environment, management/ownership changes and competition. The valuation process is based primarily on information that the Company requests from these privately held companies which are not subject to the same disclosure and audit requirements as those of U.S. public companies. As such, the reliability and the accuracy of the data may vary.

Goodwill

6 Months Ended

Jan. 31, 2014

Goodwill

(6) GOODWILL

The Company conducts its goodwill impairment test on July 31 of each fiscal year. In addition, if and when events or circumstances change that could reduce the fair value of any of its reporting units below its carrying value, an interim test is performed. In making this assessment, the Company relies on a number of factors including operating results, business plans, economic projections, anticipated future cash flows, and transactions and marketplace data. The Company’s reporting units are the same as its operating segments: Americas, Asia, Europe, e-Business, and ModusLink PTS.

The Company’s remaining goodwill of $3.1 million as of January 31, 2014 and July 31, 2013 relates to the Company’s e-Business reporting unit. There were no indicators of impairment identified related to the Company’s e-Business reporting unit during the three and six months ended January 31, 2014.

Other Current Liabilities

6 Months Ended

Jan. 31, 2014

Other Current Liabilities

(7) OTHER CURRENT LIABILITIES

The following table reflects the components of “Other Current Liabilities”:


	January 31,		July 31,
	2014		2013
	(In thousands)
Accrued pricing liabilities	$	20,434	$	20,854
Other		5,301		6,011

	$	25,735	$	26,865

As of January 31, 2014 and July 31, 2013, the Company had accrued pricing liabilities of approximately $20.4 million and $20.9 million, respectively. 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 January 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.

Restructuring, Net

6 Months Ended

Jan. 31, 2014

Restructuring, Net

(8) RESTRUCTURING, NET

Restructuring and other costs for the three and six months ended January 31, 2014 primarily included continuing charges for personnel reductions and facility consolidations in an effort to streamline operations across our global supply chain operations. It is expected that the payments of employee-related charges will be substantially completed during the fiscal year ended July 31, 2014. The remaining contractual obligations primarily relate to facility lease obligations for vacant space resulting from the previous restructuring activities of the Company. The Company anticipates that contractual obligations will be substantially fulfilled by August 2015. The $1.0 million restructuring charge recorded during the three months ended January 31, 2014 primarily consisted of $0.4 million, $0.3 million and $0.3 million of employee-related costs in the Americas, Asia and Europe, respectively, related to the workforce reduction of 35 employees in our global supply chain operations. The $0.9 million restructuring charge recorded during the three months ended October 31, 2013 consisted of $0.2 million, $0.1 million and $0.6 million of employee-related costs in the Americas, Asia and Europe, respectively, related to the workforce reduction of 49 employees in our global supply chain operations. The estimated savings on an annualized basis expected to result from these actions is approximately $1.6 million.

The $4.8 million restructuring charge recorded during the three months ended January 31, 2013 primarily consisted of approximately $1.0 million, $1.3 million and $1.7 million of employee-related costs in Americas, Asia and Europe, respectively, related to the workforce reduction of 140 employees in our global supply chain operations. In addition, the Company recorded $0.8 million of employee-related costs related to the workforce reduction of 15 employees in e-Business.

During the first quarter of fiscal 2013, the Company recorded restructuring charges of approximately $1.5 million, primarily consisting of $0.3 million, $0.7 million and $0.5 million of employee-related costs in Americas, Asia and Europe, respectively, related to the workforce reduction of 62 employees in our global supply chain operations.

The following tables summarize the activities related to the restructuring accrual by expense category and by reportable segment for the three and six months ended January 31, 2014:


	Employee
	Related			Contractual
	Expenses			Obligations			Total
	(In thousands)
Accrued restructuring balance at July 31, 2013	$	3,974		$	1,190		$	5,164

Restructuring charges		1,600			294			1,894
Restructuring adjustments		91			(13	)		78
Cash paid		(4,726	)		(552	)		(5,278	)
Non-cash adjustments		36			65			101

Accrued restructuring balance at January 31, 2014	$	975		$	984		$	1,959


										All			Consolidated
	Americas			Asia			Europe			Other			Total
	(In thousands)
Accrued restructuring balance at July 31, 2013	$	382		$	520		$	4,256		$	6		$	5,164

Restructuring charges		643			429			792			30			1,894
Restructuring adjustments		(46	)		(4	)		128			—			78
Cash paid		(387	)		(727	)		(4,134	)		(30	)		(5,278	)
Non-cash adjustments		3			5			93			—			101

Accrued restructuring balance at January 31, 2014	$	595		$	223		$	1,135		$	6		$	1,959

The net restructuring charges for the three and six months ended January 31, 2014 and 2013 would have been allocated as follows had the Company recorded the expense and adjustments within the functional department of the restructured activities:


	Three Months Ended				Six Months Ended
	January 31,				January 31,
	2014		2013		2014		2013
	(In thousands)
Cost of revenue	$	693	$	3,529	$	1,373	$	4,298
Selling, general and administrative		300		1,269		599		1,970

	$	993	$	4,798	$	1,972	$	6,268

Contingencies

6 Months Ended

Jan. 31, 2014

Contingencies

(9) CONTINGENCIES

On February 15, 2012, the staff of the Division of Enforcement of the SEC initiated with the Company an informal inquiry, and later a formal action, regarding the Company’s treatment of rebates associated with volume discounts provided by vendors. To date, the SEC has not asserted any formal claims.

On June 11, 2012, we announced the pending restatement of the Company’s financial statements for the periods ending on or before January 31, 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 November 8, 2013, the Court held a hearing on the Company’s motion, but it has not yet issued a decision.

On July 13, 2012, a fourth stockholder commenced a purported derivative action in United States District Court for the District of Massachusetts against the Company (as nominal defendants), and certain of its current and former directors and officers, entitled, Samuel Montini, Derivatively On Behalf Of ModusLink Global Solutions, Inc. v. Joseph C. Lawler, Steven G. Crane, Francis J. Jules, Virginia G. Breen, Michael J. Mardy, Edward E. Lucente, Jeffrey J. Fenton, Joseph M. O’Donnell, William R. McLennan, Thomas H. Johnson, And Anthony J. Bay, Defendants, And ModusLink Global Solutions, Inc., A Delaware Corporation, Nominal Defendant , Case 1:12-CV-11296-DJC and on July 31, 2012, a fifth stockholder commenced a purported derivative action in United States District Court for the District of Massachusetts against the Company (as nominal defendants), and certain of its current and former directors and officers, entitled, Edward Tansey, Derivatively On Behalf Of ModusLink Global Solutions, Inc. v. Joseph C. Lawler, Steven G. Crane, Francis J. Jules, Virginia G. Breen, Michael J. Mardy, Edward E. Lucente, Jeffrey J. Fenton, Joseph M. O’Donnell, William R.McLennan, Thomas H. Johnson, And Anthony J. Bay, Defendants, And ModusLink Global Solutions, Inc., A Delaware Corporation, Nominal Defendant, Civil Action No. 12-CV-11399 (DJC) (collectively, the “Derivative Actions”). The Derivative Actions further assert that as a result of the individual defendants’ alleged actions and course of conduct, the Company is now the subject of the Securities Actions and will incur related expenses and a possible judgment against it. These litigation matters also arise from the issues raised in the June 11, 2012 Announcement and allege that the individual defendants breached their duty of loyalty to the Company by allowing defendants to cause, or by themselves causing, the Company to make improper statements regarding its business prospects and/or by failing to prevent the other Individual Defendants from taking such purportedly illegal actions. The plaintiffs filed a consolidated amended complaint in the Derivative Actions on March 4, 2013, and the Company moved to dismiss the Amended Complaint on April 4, 2013. On November 8, 2013, the Court held a hearing on the Company’s motion, but it has not yet issued a decision.

On October 10, 2012, a sixth stockholder, Donald Reith, served upon the Company’s Board of Directors a demand to institute litigation and take other purportedly necessary, but unidentified, remedial measures to redress and prevent a recurrence of purported breaches of fiduciary duties on the part of the Board and unspecified corporate officers allegedly arising from the same facts and circumstances asserted in the Derivative Actions. On February 4, 2013, the Company’s Board of Directors voted unanimously to reject Mr. Reith’s demand.

Because the SEC has not asserted any formal claims, and because, with respect to the pending litigation, there has been no decision by the Court with regard to the sufficiency of the complaint(s) and no discovery has been conducted, we are unable at this time to provide a calculation of potential damages or litigation loss that is probable or estimable. Although there can be no assurance as to the ultimate outcome, the Company believes it has meritorious defenses, will deny liability, and intends to defend this litigation vigorously.

Other Gains (Losses), Net

6 Months Ended

Jan. 31, 2014

Other Gains (Losses), Net

(10) OTHER GAINS (LOSSES), NET

The following table reflects the components of “Other gains (losses), net”:


	Three Months Ended						Six Months Ended
	January 31,						January 31,
	2014			2013			2014			2013
	(in thousands)
Foreign currency exchange gain (losses)	$	1,002		$	(1,034	)	$	(170	)	$	(2,060	)
Gain (loss) on disposal of assets		161			(58	)		467			(62	)
Other, net		(271	)		114			(106	)		(177	)

	$	892		$	(978	)	$	191		$	(2,299	)

The Company recorded foreign exchange gains of approximately $1.0 million during the three months ended January 31, 2014, as compared to foreign exchange losses of approximately $1.0 million during the three months ended January 31, 2013. For the three months ended January 31, 2014, the net gains primarily related to realized and unrealized gains from foreign currency exposures and settled transactions of approximately $0.2 million and $1.0 million in the Americas and Europe, respectively. For the three months ended January 31, 2013, the net losses primarily related to realized and unrealized losses from foreign currency exposures and settled transactions of approximately $0.6 million and $1.0 million in Asia and Europe, respectively, offset by realized and unrealized gains of approximately $0.6 million in the Americas.

The Company recorded foreign exchange losses of approximately $0.2 million and $2.1 million during the six months ended January 31, 2014 and 2013, respectively. For the six months ended January 31, 2014, the net losses primarily related to realized and unrealized losses from foreign currency exposures and settled transactions of approximately $0.5 million in Asia, offset by realized and unrealized gains of approximately $0.2 million and $0.3 million in the Americas and Europe, respectively. For the six months ended January 31, 2013, the net losses primarily related to realized and unrealized losses from foreign currency exposures and settled transactions of approximately $1.1 million and $1.5 million in Asia and Europe, respectively, offset by realized and unrealized gains of approximately $0.6 million in the Americas.

Income Taxes

6 Months Ended

Jan. 31, 2014

Income Taxes

(11) INCOME TAXES

The Company operates in multiple taxing jurisdictions, both within and outside of the United States. For the three and six months ended January 31, 2014, the Company was profitable in certain jurisdictions, resulting in an income tax expense using enacted rates in those jurisdictions. As of January 31, 2014 and July 31, 2013, the total amount of the liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $2.0 million and $1.0 million, respectively.

Uncertain Tax Positions

In accordance with the Company’s accounting policy, interest related to unrecognized tax benefits is included in the provision of income taxes line of the Consolidated Statement of Operations. As of January 31, 2014 and July 31, 2013, the liabilities for interest expense related to uncertain tax positions were immaterial. The Company did not accrue for penalties related to income tax positions as there were no income tax positions that required the Company to accrue penalties. The Company does not expect any unrecognized tax benefits to reverse in the next twelve months. The Company is subject to U.S. federal income tax and various state, local and international income taxes in numerous jurisdictions. The federal and state tax returns are generally subject to tax examinations for the tax years ended July 31, 2009 through July 31, 2013. To the extent the Company has tax attribute carryforwards, the tax year in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service or state tax authorities to the extent utilized in a future period. In addition, a number of tax years remain subject to examination by the appropriate government agencies for certain countries in the Europe and Asia regions. In Europe, the Company’s 2006 through 2013 tax years remain subject to examination in most locations, while the Company’s 2002 through 2013 tax years remain subject to examination in most Asia locations.

Net Operating Loss

The Company has certain deferred tax benefits, including those generated by net operating losses and certain other tax attributes (collectively, the “Tax Benefits”). The Company’s ability to use these Tax Benefits could be substantially limited if it were to experience an “ownership change,” as defined under Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”). In general, an ownership change would occur if there is a greater than 50-percentage point change in ownership of securities by stockholders owning (or deemed to own under Section 382 of the Code) five percent or more of a corporation’s securities over a rolling three-year period.

Tax Benefit Preservation Plan

On October 17, 2011, the Company’s Board of Directors adopted a Tax Benefit Preservation Plan between the Company and American Stock Transfer & Trust Company, LLC, as rights agent (as amended from time to time, the “Tax Plan”). The Tax Plan reduces the likelihood that changes in the Company’s investor base would have the unintended effect of limiting the Company’s use of its Tax Benefits. The Tax Plan is intended to require any person acquiring shares of the Company’s securities equal to or exceeding 4.99% of the Company’s outstanding shares to obtain the approval of the Board of Directors. This would protect the Tax Benefits because changes in ownership by a person owning less than 4.99% of the Company’s stock are considered and included in one or more public groups in the calculation of “ownership change” for purposes of Section 382 of the Code.

Earnings (Loss) Per Share

6 Months Ended

Jan. 31, 2014

Earnings (Loss) Per Share

(12) EARNINGS (LOSS) PER SHARE

The Company calculates earnings (loss) per share in accordance with ASC Topic 260, “Earnings per Share.” The following table reconciles earnings (loss) per share for the three and six months ended January 31, 2014 and 2013.


	Three Months Ended					Six Months Ended
	January 31,					January 31,
	2014		2013			2014		2013
	(In thousands)
Income (loss) from continuing operations	$	1,063	$	(12,417	)	$	1,601	$	(22,248	)
Income (loss) from discontinued operations		1		(133	)		80		(960	)

Net income (loss)	$	1,064	$	(12,550	)	$	1,681	$	(23,208	)

Weighted average common shares outstanding		51,498		43,654			51,467		43,629
Weighted average common equivalent shares arising from dilutive stock options and restrictive stock		313		—			72		—

Weighted average number of common and potential common shares		51,811		43,654			51,539		43,629

Basic net income (loss) per common share from:
Continuing operations	$	0.02	$	(0.29	)	$	0.03	$	(0.51	)
Discontinued operations		0.00		(0.00	)		0.00		(0.02	)

	$	0.02	$	(0.29	)	$	0.03	$	(0.53	)

Diluted net income (loss) per common share from:
Continuing operations	$	0.02	$	(0.29	)	$	0.03	$	(0.51	)
Discontinued operations		0.00		(0.00	)		0.00		(0.02	)

	$	0.02	$	(0.29	)	$	0.03	$	(0.53	)

For the three and six months ended January 31, 2014, approximately 3.6 million and 5.5 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, 2013, approximately 2.2 million and 2.3 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

6 Months Ended

Jan. 31, 2014

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 shares for the three and six months ended January 31, 2014 and 2013, which was allocated as follows:


	Three Months Ended				Six Months Ended
	January 31,				January 31,
	2014		2013		2014		2013
	(In thousands)
Cost of revenue	$	117	$	61	$	233	$	111
Selling, general and administrative		521		361		917		804

	$	638	$	422	$	1,150	$	915

At January 31, 2014, there was approximately $4.3 million of total unrecognized compensation cost related to non-vested share-based compensation awards under the Company’s plans.

Comprehensive Income (Loss)

6 Months Ended

Jan. 31, 2014

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 shareholder’s equity in the accompanying condensed consolidated balance sheets.

Accumulated other comprehensive items consist of the following:


	Foreign currency items			Pension items			Unrealized gains (losses) on securities			Total
	(In thousands)
Accumulated other comprehensive income at July 31, 2013	$	15,759		$	(2,066	)	$	20		$	13,713

Foreign currency translation adjustment		(58	)		—			—			(58	)
Net unrealized holding gain on securities		—			—			(4	)		(4	)
Pension liability adjustments, net of tax		—			250			—			250

Net current-period other comprehensive income		(58	)		250			(4	)		188

Accumulated other comprehensive income at January 31, 2014	$	15,701		$	(1,816	)	$	16		$	13,901

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

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+ Details

Discontinued Operations and Divestitures

6 Months Ended

Jan. 31, 2014

Discontinued Operations and Divestitures

(15) DISCONTINUED OPERATIONS AND DIVESTITURES

On January 11, 2013, the Company’s wholly-owned subsidiary, Tech for Less LLC (“TFL”) sold substantially all of its assets to Encore Holdings, LLC (“Encore”). The consideration paid by Encore for the assets was $1.6 million, which consisted of a gross purchase price of $1.9 million less certain adjustments. At the time of sale, the Company received $1.4 million of the purchase price, with the remaining $0.2 million held in escrow for the satisfaction of any post-closing claims. During the fourth quarter of fiscal 2013, the Company reached a settlement agreement with Encore whereby the Company received $0.1 million of the escrow amount, with the remainder reverting to Encore. As a result of the settlement of the escrow amount, the Company’s gain on the sale of TFL was reduced by $0.1 million from $0.7 million to $0.6 million. In conjunction with the asset sale agreement, the Company entered into a transition support agreement with Encore to provide certain administrative services for a period of 90 days from the closing date of the transaction. The Company’s obligations under the transition support agreement were completed during the third quarter of fiscal year 2013. The Company did not generate significant continuing cash flows from the transition support agreement.

The Company’s other discontinued operations relate to a lease obligation associated with a previously vacated facility. During the year ended July 31, 2006, the Company sold a marketing distribution business run by a wholly-owned subsidiary to an unrelated third party. In July 2013, the Company reached an agreement with its landlord for the early termination of a lease agreement associated with that business. As part of the lease termination agreement, the Company paid $0.4 million to the landlord on August 1, 2013 and was released from any future obligations associated with the leased facility. The Company also assigned its interest in its sublease rental income to the landlord.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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+ Details

Segment Information

6 Months Ended

Jan. 31, 2014

Segment Information

(16) SEGMENT INFORMATION

The Company has five operating segments: Americas; Asia; Europe; e-Business; and ModusLink PTS. Based on the information provided to the Company’s chief operating decision-maker (“CODM”) for purposes of making decisions about allocating resources and assessing performance and quantitative thresholds, the Company has determined that it has three reportable segments: Americas,; Asia and Europe. The Company reports the ModusLink PTS operating segment in aggregation with the Americas operating segment as part of the Americas reportable segment. In addition to its three reportable segments, the Company reports an All Other category. The All Other category primarily represents the e-Business operating segment. The Company also has Corporate-level activity, which consists primarily of costs associated with certain corporate administrative functions such as legal and finance, which are not allocated to the Company’s reportable segments The Corporate-level balance sheet information includes cash and cash equivalents, investments and other assets, which are not identifiable to the operations of the Company’s operating segments. All significant intra-segment amounts have been eliminated.

Summarized financial information of the Company’s continuing operations by operating segment is as follows:


	Three Months Ended						Six Months Ended
	January 31,						January 31,
	2014			2013			2014			2013
	(In thousands)
Net revenue:
Americas	$	78,787		$	67,731		$	155,362		$	131,641
Asia		47,530			60,356			92,920			116,731
Europe		56,751			67,818			117,367			136,748
All Other		10,943			7,531			19,777			15,367

	$	194,011		$	203,436		$	385,426		$	400,487

Operating income (loss):
Americas	$	2,080		$	(446	)	$	5,568		$	(2,470	)
Asia		5,808			5,585			11,659			12,754
Europe		(2,149	)		(3,900	)		(4,495	)		(7,748	)
All Other		(76	)		(955	)		509			(538	)

Total Segment operating income		5,663			284			13,241			1,998
Corporate-level activity		(4,428	)		(8,810	)		(9,385	)		(17,795	)

Total operating income (loss)		1,235			(8,526	)		3,856			(15,797	)

Total other income (expense)		581			(2,491	)		(231	)		(3,832	)

Income (loss) from continuing operations before income taxes	$	1,816		$	(11,017	)	$	3,625		$	(19,629	)


	January 31,		July 31,
	2014		2013
	(In thousands)
Total assets:
Americas	$	77,637	$	65,790
Asia		85,485		93,547
Europe		100,992		97,524
All Other		19,529		17,369

Sub-total - segment assets		283,643		274,230
Corporate		63,408		69,466

	$	347,051	$	343,696

As of January 31, 2014, approximately 56%, 18 % and 26 % of the Company’s long-lived assets were located in the Americas, Asia and Europe, respectively. As of July 31, 2013, approximately 58%, 18% and 24% of the Company’s long-lived assets were located in the Americas, Asia and Europe, respectively.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

+ Details

Inventories (Tables)

6 Months Ended

Jan. 31, 2014

Components of Inventories

Inventories consisted of the following:


	January 31,		July 31,
	2014		2013
	(In thousands)
Raw materials	$	61,185	$	46,920
Work-in-process		812		1,256
Finished goods		6,893		13,146

	$	68,890	$	61,322

Other Current Liabilities (Tables)

6 Months Ended

Jan. 31, 2014

Components of Other Current Liabilities

The following table reflects the components of “Other Current Liabilities”:


	January 31,		July 31,
	2014		2013
	(In thousands)
Accrued pricing liabilities	$	20,434	$	20,854
Other		5,301		6,011

	$	25,735	$	26,865

Restructuring, Net (Tables)

6 Months Ended

Jan. 31, 2014

Summary of Restructuring Accrual by Expense Category and by Reportable Segment

The following tables summarize the activities related to the restructuring accrual by expense category and by reportable segment for the three and six months ended January 31, 2014:


	Employee
	Related			Contractual
	Expenses			Obligations			Total
	(In thousands)
Accrued restructuring balance at July 31, 2013	$	3,974		$	1,190		$	5,164

Restructuring charges		1,600			294			1,894
Restructuring adjustments		91			(13	)		78
Cash paid		(4,726	)		(552	)		(5,278	)
Non-cash adjustments		36			65			101

Accrued restructuring balance at January 31, 2014	$	975		$	984		$	1,959


										All			Consolidated
	Americas			Asia			Europe			Other			Total
	(In thousands)
Accrued restructuring balance at July 31, 2013	$	382		$	520		$	4,256		$	6		$	5,164

Restructuring charges		643			429			792			30			1,894
Restructuring adjustments		(46	)		(4	)		128			—			78
Cash paid		(387	)		(727	)		(4,134	)		(30	)		(5,278	)
Non-cash adjustments		3			5			93			—			101

Accrued restructuring balance at January 31, 2014	$	595		$	223		$	1,135		$	6		$	1,959

Net Restrucuring Charges


	Three Months Ended				Six Months Ended
	January 31,				January 31,
	2014		2013		2014		2013
	(In thousands)
Cost of revenue	$	693	$	3,529	$	1,373	$	4,298
Selling, general and administrative		300		1,269		599		1,970

	$	993	$	4,798	$	1,972	$	6,268

Other Gains (Losses), Net (Tables)

6 Months Ended

Jan. 31, 2014

Components of Other Gains (Losses), Net

The following table reflects the components of “Other gains (losses), net”:


	Three Months Ended						Six Months Ended
	January 31,						January 31,
	2014			2013			2014			2013
	(in thousands)
Foreign currency exchange gain (losses)	$	1,002		$	(1,034	)	$	(170	)	$	(2,060	)
Gain (loss) on disposal of assets		161			(58	)		467			(62	)
Other, net		(271	)		114			(106	)		(177	)

	$	892		$	(978	)	$	191		$	(2,299	)

Earnings (Loss) Per Share (Tables)

6 Months Ended

Jan. 31, 2014

Reconciliation of Earnings (Loss) Per Share

The following table reconciles earnings (loss) per share for the three and six months ended January 31, 2014 and 2013.


	Three Months Ended					Six Months Ended
	January 31,					January 31,
	2014		2013			2014		2013
	(In thousands)
Income (loss) from continuing operations	$	1,063	$	(12,417	)	$	1,601	$	(22,248	)
Income (loss) from discontinued operations		1		(133	)		80		(960	)

Net income (loss)	$	1,064	$	(12,550	)	$	1,681	$	(23,208	)

Weighted average common shares outstanding		51,498		43,654			51,467		43,629
Weighted average common equivalent shares arising from dilutive stock options and restrictive stock		313		—			72		—

Weighted average number of common and potential common shares		51,811		43,654			51,539		43,629

Basic net income (loss) per common share from:
Continuing operations	$	0.02	$	(0.29	)	$	0.03	$	(0.51	)
Discontinued operations		0.00		(0.00	)		0.00		(0.02	)

	$	0.02	$	(0.29	)	$	0.03	$	(0.53	)

Diluted net income (loss) per common share from:
Continuing operations	$	0.02	$	(0.29	)	$	0.03	$	(0.51	)
Discontinued operations		0.00		(0.00	)		0.00		(0.02	)

	$	0.02	$	(0.29	)	$	0.03	$	(0.53	)

Share-Based Payments (Tables)

6 Months Ended

Jan. 31, 2014

Summary of Share-Based Compensation Expense Related to Employee Stock Options, Employee Stock Purchases and Nonvested Shares


	Three Months Ended				Six Months Ended
	January 31,				January 31,
	2014		2013		2014		2013
	(In thousands)
Cost of revenue	$	117	$	61	$	233	$	111
Selling, general and administrative		521		361		917		804

	$	638	$	422	$	1,150	$	915

Comprehensive Income (Loss) (Tables)

6 Months Ended

Jan. 31, 2014

Accumulated Other Comprehensive Items

Accumulated other comprehensive items consist of the following:


	Foreign currency items			Pension items			Unrealized gains (losses) on securities			Total
	(In thousands)
Accumulated other comprehensive income at July 31, 2013	$	15,759		$	(2,066	)	$	20		$	13,713

Foreign currency translation adjustment		(58	)		—			—			(58	)
Net unrealized holding gain on securities		—			—			(4	)		(4	)
Pension liability adjustments, net of tax		—			250			—			250

Net current-period other comprehensive income		(58	)		250			(4	)		188

Accumulated other comprehensive income at January 31, 2014	$	15,701		$	(1,816	)	$	16		$	13,901

Segment Information (Tables)

6 Months Ended

Jan. 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:


	Three Months Ended						Six Months Ended
	January 31,						January 31,
	2014			2013			2014			2013
	(In thousands)
Net revenue:
Americas	$	78,787		$	67,731		$	155,362		$	131,641
Asia		47,530			60,356			92,920			116,731
Europe		56,751			67,818			117,367			136,748
All Other		10,943			7,531			19,777			15,367

	$	194,011		$	203,436		$	385,426		$	400,487

Operating income (loss):
Americas	$	2,080		$	(446	)	$	5,568		$	(2,470	)
Asia		5,808			5,585			11,659			12,754
Europe		(2,149	)		(3,900	)		(4,495	)		(7,748	)
All Other		(76	)		(955	)		509			(538	)

Total Segment operating income		5,663			284			13,241			1,998
Corporate-level activity		(4,428	)		(8,810	)		(9,385	)		(17,795	)

Total operating income (loss)		1,235			(8,526	)		3,856			(15,797	)

Total other income (expense)		581			(2,491	)		(231	)		(3,832	)

Income (loss) from continuing operations before income taxes	$	1,816		$	(11,017	)	$	3,625		$	(19,629	)

Total Assets of Continuing Operations


	January 31,		July 31,
	2014		2013
	(In thousands)
Total assets:
Americas	$	77,637	$	65,790
Asia		85,485		93,547
Europe		100,992		97,524
All Other		19,529		17,369

Sub-total - segment assets		283,643		274,230
Corporate		63,408		69,466

	$	347,051	$	343,696

Nature of Operations - Additional Information (Detail)	Jan. 31, 2014 Location
Minimum
Nature Of Operations [Line Items]
Number of sites	25

Components of Inventories (Detail) - USD ($) $ in Thousands	Jan. 31, 2014	Jul. 31, 2013
Inventory [Line Items]
Raw materials	$ 61,185	$ 46,920
Work-in-process	812	1,256
Finished goods	6,893	13,146
Inventories, net	$ 68,890	$ 61,322

Investments in Affiliates - Additional information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013	Jul. 31, 2013
Investment In Unconsolidated Affiliates [Line Items]
Impairment charges	$ 177	$ 1,500	$ 177	$ 1,500
@Ventures
Investment In Unconsolidated Affiliates [Line Items]
Investments in privately held companies	400	900	400	1,500
Impairment charges	$ 200	1,500	$ 200	1,500
Investment distribution income		$ 200		$ 200
@Ventures \| Maximum
Investment In Unconsolidated Affiliates [Line Items]
Company's voting interest	50.00%		50.00%
@Ventures \| Minimum
Investment In Unconsolidated Affiliates [Line Items]
Company's voting interest	20.00%		20.00%
@Ventures \| Available For Sale Securities \| Maximum
Investment In Unconsolidated Affiliates [Line Items]
Ownership interest on investment, percent			20.00%
@Ventures \| Private Agreements
Investment In Unconsolidated Affiliates [Line Items]
Carrying value of investment	$ 8,100		$ 8,100		$ 8,000

Goodwill - Additional Information (Detail) - USD ($) $ in Thousands	Jan. 31, 2014	Jul. 31, 2013
Goodwill [Line Items]
Goodwill	$ 3,058	$ 3,058
e-Business reporting unit
Goodwill [Line Items]
Goodwill	$ 3,100	$ 3,100

Components of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jan. 31, 2014	Jul. 31, 2013
Other Current Liabilities [Line Items]
Accrued pricing liabilities	$ 20,434	$ 20,854
Other	5,301	6,011
Other current liabilities	$ 25,735	$ 26,865

Other Current Liabilities - Additional Information (Detail) - USD ($) $ in Thousands	Jan. 31, 2014	Jul. 31, 2013
Other Liabilities [Line Items]
Accrued pricing liabilities	$ 20,434	$ 20,854

Restructuring, Net - Additional Information (Detail) $ in Thousands	3 Months Ended				6 Months Ended
	Jan. 31, 2014 USD ($) Employee	Oct. 31, 2013 USD ($) Employee	Jan. 31, 2013 USD ($) Employee	Oct. 31, 2012 USD ($) Employee	Jan. 31, 2014 USD ($)	Jan. 31, 2013 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charge	$ 993	$ 900	$ 4,798	$ 1,500	$ 1,972	$ 6,268
Number of workforce reduction \| Employee	35	49	140	62
Estimated annualized savings	$ 1,600				$ 1,600
e-Business reporting unit
Restructuring Cost and Reserve [Line Items]
Restructuring charge related to workforce reduction			$ 800
Number of workforce reduction \| Employee			15
Americas
Restructuring Cost and Reserve [Line Items]
Restructuring charge related to workforce reduction	400	$ 200	$ 1,000	$ 300
Asia
Restructuring Cost and Reserve [Line Items]
Restructuring charge related to workforce reduction	300	100	1,300	700
Europe
Restructuring Cost and Reserve [Line Items]
Restructuring charge related to workforce reduction	$ 300	$ 600	$ 1,700	$ 500

Summary of Restructuring Accrual by Expense Category and by Reportable Segment (Detail) $ in Thousands	6 Months Ended
	Jan. 31, 2014 USD ($)
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	$ 5,164
Restructuring charges	1,894
Restructuring adjustments	78
Cash paid	(5,278)
Non-cash adjustments	101
Accrued restructuring, ending balance	1,959
Employee Related Expenses
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	3,974
Restructuring charges	1,600
Restructuring adjustments	91
Cash paid	(4,726)
Non-cash adjustments	36
Accrued restructuring, ending balance	975
Contractual Obligations
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	1,190
Restructuring charges	294
Restructuring adjustments	(13)
Cash paid	(552)
Non-cash adjustments	65
Accrued restructuring, ending balance	984
Americas
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	382
Restructuring charges	643
Restructuring adjustments	(46)
Cash paid	(387)
Non-cash adjustments	3
Accrued restructuring, ending balance	595
Asia
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	520
Restructuring charges	429
Restructuring adjustments	(4)
Cash paid	(727)
Non-cash adjustments	5
Accrued restructuring, ending balance	223
Europe
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	4,256
Restructuring charges	792
Restructuring adjustments	128
Cash paid	(4,134)
Non-cash adjustments	93
Accrued restructuring, ending balance	1,135
All Other
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	6
Restructuring charges	30
Cash paid	(30)
Accrued restructuring, ending balance	$ 6

Net Restructuring Charges (Detail) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Net Restructuring Charges (Detail) - USD ($) $ in Thousands	Jan. 31, 2014	Oct. 31, 2013	Jan. 31, 2013	Oct. 31, 2012	Jan. 31, 2014	Jan. 31, 2013
Restructuring Cost and Reserve [Line Items]
Restructuring, net	$ 993	$ 900	$ 4,798	$ 1,500	$ 1,972	$ 6,268
Cost of revenue
Restructuring Cost and Reserve [Line Items]
Restructuring, net	693		3,529		1,373	4,298
Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring, net	$ 300		$ 1,269		$ 599	$ 1,970

Contingencies - Additional Information (Detail)	12 Months Ended
Contingencies - Additional Information (Detail)	Jul. 31, 2012 LegalMatter
Contingencies And Commitments [Line Items]
Number of purported class actions filed following the announcement	3

Components of Other Gains (Losses), Net (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Gain (Loss) on Investments [Line Items]
Foreign currency exchange gain (losses)	$ 1,002	$ (1,034)	$ (170)	$ (2,060)
Gain (loss) on disposal of assets	161	(58)	467	(62)
Other, net	(271)	114	(106)	(177)
Other Operating Income (Expense), Net, Total	$ 892	$ (978)	$ 191	$ (2,299)

Other Gains (Losses), Net - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Gain (Loss) on Investments [Line Items]
Foreign currency exchange gain (losses)	$ 1,002	$ (1,034)	$ (170)	$ (2,060)
Americas \| Gain Loss On Foreign Currency Transactions
Gain (Loss) on Investments [Line Items]
Realized and unrealized gains (losses) from foreign currency exposures and settled transactions	200	600	200	600
Europe \| Gain Loss On Foreign Currency Transactions
Gain (Loss) on Investments [Line Items]
Realized and unrealized gains (losses) from foreign currency exposures and settled transactions	$ 1,000	(1,000)	300	(1,500)
Asia \| Gain Loss On Foreign Currency Transactions
Gain (Loss) on Investments [Line Items]
Realized and unrealized gains (losses) from foreign currency exposures and settled transactions		$ (600)	$ (500)	$ (1,100)

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	6 Months Ended
	Jan. 31, 2014	Jul. 31, 2013
Income Taxes [Line Items]
Unrecognized tax benefits related to federal, state and foreign taxes	$ 2.0	$ 1.0
Income tax positions penalties accrued	0.0
Expected any unrecognized tax benefits to reverse in the next twelve months	$ 0.0
Stockholder owning ownership on corporation's securities percentage	5.00%
Stockholder owning ownership on corporation's securities rolling period	3 years
Tax Benefit Preservation Plan, adoption date	Oct. 17, 2011
Any person acquiring shares of the Company's securities holding percentage as amended by Tax Plan which protects Tax Benefits	4.99%
United States Of America \| Domestic Tax Authority
Income Taxes [Line Items]
Tax examinations tax period	Tax years ended July 31, 2009 through July 31, 2013
Europe \| Foreign Tax Authority
Income Taxes [Line Items]
Tax examinations tax period	2006 through 2013 tax years
Asia \| Foreign Tax Authority
Income Taxes [Line Items]
Tax examinations tax period	2002 through 2013 tax years

Reconciliation of Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Income (loss) from continuing operations	$ 1,063	$ (12,417)	$ 1,601	$ (22,248)
Income (loss) from discontinued operations	1	(133)	80	(960)
Net income (loss)	$ 1,064	$ (12,550)	$ 1,681	$ (23,208)
Weighted average common shares outstanding	51,498	43,654	51,467	43,629
Weighted average common equivalent shares arising from dilutive stock options and restrictive stock	313		72
Weighted average number of common and potential common shares	51,811	43,654	51,539	43,629
Basic net income (loss) per common share from:
Continuing operations	$ 0.02	$ (0.29)	$ 0.03	$ (0.51)
Discontinued operations	0.00	0.00	0.00	(0.02)
Basic net loss per common share	0.02	(0.29)	0.03	(0.53)
Diluted net income (loss) per common share from:
Continuing operations	0.02	(0.29)	0.03	(0.51)
Discontinued operations	0.00	0.00	0.00	(0.02)
Diluted net loss per common share	$ 0.02	$ (0.29)	$ 0.03	$ (0.53)

Earnings (Loss) Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Computation Of Earnings Per Share Line Items
Common stock equivalent shares excluded from the denominator in the calculation of diluted earnings per share	3.6	2.2	5.5	2.3

Summary of Share-Based Compensation 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, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 638	$ 422	$ 1,150	$ 915
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	117	61	233	111
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 521	$ 361	$ 917	$ 804

Share-Based Payments - Additional Information (Detail) $ in Millions	Jan. 31, 2014 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to nonvested shares	$ 4.3

Accumulated Other Comprehensive Items (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income at beginning of period			$ 13,713
Foreign currency translation adjustment	$ (2,137)	$ 1,757	(58)	$ 5,016
Net unrealized holding gain on securities	2		(4)	(1)
Pension liability adjustments, net of tax	250		250
Net current-period other comprehensive income	(1,885)	$ 1,757	188	$ 5,015
Accumulated other comprehensive income at end of period	13,901		13,901
Foreign currency items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income at beginning of period			15,759
Foreign currency translation adjustment			(58)
Net current-period other comprehensive income			(58)
Accumulated other comprehensive income at end of period	15,701		15,701
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			250
Net current-period other comprehensive income			250
Accumulated other comprehensive income at end of period	(1,816)		(1,816)
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			(4)
Net current-period other comprehensive income			(4)
Accumulated other comprehensive income at end of period	$ 16		$ 16

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Discontinued Operations and Divestitures - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	6 Months Ended	12 Months Ended
	Jan. 11, 2013	Jan. 31, 2014	Jul. 31, 2013
Discontinued Operations [Line Items]
Consideration received from the sale of assets	$ 1.6
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		$ 0.4

Segment Information - Additional Information (Detail) - Segment	6 Months Ended
	Jan. 31, 2014	Jul. 31, 2013
Segment Reporting Information [Line Items]
Number of operating segments	5
Number of reportable segments	3
Americas
Segment Reporting Information [Line Items]
Percentage of long-lived assets located	56.00%	58.00%
Asia
Segment Reporting Information [Line Items]
Percentage of long-lived assets located	18.00%	18.00%
Europe
Segment Reporting Information [Line Items]
Percentage of long-lived assets located	26.00%	24.00%

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, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013
Segment Reporting Information [Line Items]
Net revenue	$ 194,011	$ 203,436	$ 385,426	$ 400,487
Operating income (loss)	1,235	(8,526)	3,856	(15,797)
Other income (expense), net	581	(2,491)	(231)	(3,832)
Income (loss) from continuing operations before income taxes	1,816	(11,017)	3,625	(19,629)
Operating Segments
Segment Reporting Information [Line Items]
Operating income (loss)	5,663	284	13,241	1,998
Operating Segments \| Americas
Segment Reporting Information [Line Items]
Net revenue	78,787	67,731	155,362	131,641
Operating income (loss)	2,080	(446)	5,568	(2,470)
Operating Segments \| Asia
Segment Reporting Information [Line Items]
Net revenue	47,530	60,356	92,920	116,731
Operating income (loss)	5,808	5,585	11,659	12,754
Operating Segments \| Europe
Segment Reporting Information [Line Items]
Net revenue	56,751	67,818	117,367	136,748
Operating income (loss)	(2,149)	(3,900)	(4,495)	(7,748)
Operating Segments \| All Other
Segment Reporting Information [Line Items]
Net revenue	10,943	7,531	19,777	15,367
Operating income (loss)	(76)	(955)	509	(538)
Corporate-level activity
Segment Reporting Information [Line Items]
Operating income (loss)	$ (4,428)	$ (8,810)	$ (9,385)	$ (17,795)

Total Assets of Continuing Operations (Detail) - USD ($) $ in Thousands	Jan. 31, 2014	Jul. 31, 2013
Segment Reporting Information [Line Items]
Total assets	$ 347,051	$ 343,696
Corporate-Level Activity
Segment Reporting Information [Line Items]
Total assets	63,408	69,466
Operating Segments
Segment Reporting Information [Line Items]
Total assets	283,643	274,230
Operating Segments \| Americas
Segment Reporting Information [Line Items]
Total assets	77,637	65,790
Operating Segments \| Asia
Segment Reporting Information [Line Items]
Total assets	85,485	93,547
Operating Segments \| Europe
Segment Reporting Information [Line Items]
Total assets	100,992	97,524
Operating Segments \| All Other
Segment Reporting Information [Line Items]
Total assets	$ 19,529	$ 17,369