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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jan. 31, 2015	Feb. 28, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 31, 2015
Document Fiscal Year Focus	2015
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		52,248,465

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 31, 2015	Jul. 31, 2014
Current assets:
Cash and cash equivalents	$ 122,872	$ 183,515
Trading securities	71,608	22,793
Accounts receivable, trade, net of allowance for doubtful accounts of $56 and $63 at January 31, 2015 and July 31, 2014, respectively	133,027	123,948
Inventories	66,887	65,269
Prepaid expenses and other current assets	21,435	10,243
Total current assets	415,829	405,768
Property and equipment, net	22,571	25,126
Investments in affiliates	7,188	7,172
Goodwill	3,058	3,058
Other intangible assets, net	131	667
Other assets	8,245	9,855
Total assets	457,022	451,646
Current liabilities:
Accounts payable	132,201	105,045
Accrued restructuring	1,233	2,246
Accrued expenses	40,473	39,544
Other current liabilities	36,273	51,759
Total current liabilities	210,180	198,594
Long-term portion of accrued restructuring		39
Notes payable	75,560	73,391
Other long-term liabilities	8,090	8,004
Long-term liabilities	83,650	81,434
Total liabilities	293,830	280,028
Stockholders' equity:
Preferred stock, $0.01 par value per share. Authorized 5,000,000 shares; zero issued or outstanding shares at January 31, 2015 and July 31, 2014
Common stock, $0.01 par value per share. Authorized 1,400,000,000 shares; 52,220,127 issued and outstanding shares at January 31, 2015; 52,100,763 issued and outstanding shares at July 31, 2014	522	521
Additional paid-in capital	7,451,419	7,450,541
Accumulated deficit	(7,294,746)	(7,293,412)
Accumulated other comprehensive income	5,997	13,968
Total stockholders' equity	163,192	171,618
Total liabilities and stockholders' equity	$ 457,022	$ 451,646

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jan. 31, 2015	Jul. 31, 2014
Accounts receivable, trade, allowance for doubtful accounts	$ 56	$ 63
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares Authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares Authorized	1,400,000,000	1,400,000,000
Common stock, shares issued	52,220,127	52,100,763
Common stock, shares outstanding	52,220,127	52,100,763

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Net revenue	$ 148,310	$ 194,011	$ 335,754	$ 385,426
Cost of revenue	131,716	171,431	300,322	340,851
Gross profit	16,594	22,580	35,432	44,575
Operating expenses
Selling, general and administrative	14,639	19,572	30,161	37,687
Amortization of intangible assets	268	280	536	560
Impairment of long-lived assets		500		500
Restructuring, net	1,041	993	2,942	1,972
Total operating expenses	15,948	21,345	33,639	40,719
Operating income	646	1,235	1,793	3,856
Other income (expense):
Interest income	355	65	419	167
Interest expense	(2,619)	(199)	(5,286)	(412)
Other gains, net	411	892	3,238	191
Impairment of investments in affiliates		(177)		(177)
Total other income (expense)	(1,853)	581	(1,629)	(231)
Income (loss) from continuing operations before income taxes	(1,207)	1,816	164	3,625
Income tax expense	549	753	1,706	1,890
Equity in (gains) losses of affiliates, net of tax	(200)		(208)	134
Income (loss) from continuing operations	(1,556)	1,063	(1,334)	1,601
Discontinued operations, net of income taxes:
Income from discontinued operations		1		80
Net income (loss)	$ (1,556)	$ 1,064	$ (1,334)	$ 1,681
Basic net income per share:
Income (loss) from continuing operations	$ (0.03)	$ 0.02	$ (0.03)	$ 0.03
Income from discontinued operations	0.00	0.00	0.00	0.00
Net income (loss)	(0.03)	0.02	(0.03)	0.03
Diluted net income per share:
Income (loss) from continuing operations	(0.03)	0.02	(0.03)	0.03
Income from discontinued operations	0.00	0.00	0.00	0.00
Net income (loss)	$ (0.03)	$ 0.02	$ (0.03)	$ 0.03
Weighted average common shares used in:
Basic earnings per share	51,646	51,498	51,888	51,467
Diluted earnings per share	51,646	51,811	51,888	51,539

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Net income (loss)	$ (1,556)	$ 1,064	$ (1,334)	$ 1,681
Other comprehensive income:
Foreign currency translation adjustment	(4,515)	(2,137)	(7,154)	(58)
Pension liability adjustments, net of tax	(450)	250	(811)	250
Net unrealized holding gain (loss) on securities, net of tax	1	2	(6)	(4)
Total adjustments	(4,964)	(1,885)	(7,971)	188
Comprehensive income (loss)	$ (6,520)	$ (821)	$ (9,305)	$ 1,869

- Definition

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

+ References + Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Cash flows from operating activities of continuing operations:
Net income (loss)	$ (1,334)	$ 1,681
Income from discontinued operations		80
Income (loss) from continuing operations	(1,334)	1,601
Adjustments to reconcile income from continuing operations to net cash used in operating activities of continuing operations:
Depreciation	4,729	6,571
Amortization of intangible assets	536	560
Amortization of deferred financing costs	277	236
Accretion of debt discount	2,169
Impairment of long-lived assets		500
Share-based compensation	855	1,150
Non-operating gains, net	(3,238)	(191)
Equity in (gains) losses of affiliates and impairments	(208)	311
Changes in operating assets and liabilities:
Trade accounts receivable, net	(15,819)	(3,659)
Inventories	(5,316)	(7,705)
Prepaid expenses and other current assets	(12,166)	(1,022)
Accounts payable, accrued restructuring and accrued expenses	31,430	229
Refundable and accrued income taxes, net	2,044	1,923
Other assets and liabilities	15,528	29
Net cash provided by operating activities of continuing operations	19,487	533
Cash flows from investing activities of continuing operations:
Additions to property and equipment	(3,823)	(1,682)
Purchase of trading securities	(69,221)
Investments in affiliates	(216)	(412)
Proceeds from investments in affiliates	408
Net cash used in investing activities of continuing operations	(72,852)	(2,094)
Cash flows from financing activities of continuing operations:
Repayments on capital lease obligations	(93)	(49)
Proceeds from revolving line of credit	21,265
Repayments of revolving line of credit	(25,718)
Proceeds from issuance of common stock	24	117
Repurchase of common stock		(37)
Net cash provided by (used in) financing activities of continuing operations	(4,522)	31
Cash flows from discontinued operations:
Operating cash flows		(579)
Net cash used in discontinued operations		(579)
Net effect of exchange rate changes on cash and cash equivalents	(2,756)	(533)
Net decrease in cash and cash equivalents	(60,643)	(2,642)
Cash and cash equivalents at beginning of period	183,515	77,916
Cash and cash equivalents at end of period	$ 122,872	$ 75,274

Nature Of Operations

6 Months Ended

Jan. 31, 2015

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, 2015

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, 2014, which are contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on October 14, 2014. The results for the three and six months ended January 31, 2015 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, 2015, the Company evaluated subsequent events for potential recognition and disclosure through the date these financial statements were filed.

During the quarter ended January 31, 2015, the Company commenced a reverse split of the Company’s common stock, immediately followed by a forward stock split of the Company’s common stock, which are intended to reduce the costs associated with servicing stockholder accounts holding relatively small numbers of shares of the Company’s common stock. The ratio for the reverse stock split as approved by the Company’s Board of Directors, and by the Company’s Stockholders at the December 9, 2014 Annual Meeting of Stockholders, was fixed at 1-for-100 and the ratio for the forward stock split was fixed at 100-for-1. The Reverse/Forward Split did not change the authorized number of shares of Common Stock or in the par value of such shares. No fractional shares were issued in connection with the Reverse/Forward Split.

Recent Accounting Pronouncements

6 Months Ended

Jan. 31, 2015

Recent Accounting Pronouncements

(3) RECENT ACCOUNTING PRONOUNCEMENTS

In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which amends ASC 205, Presentation of Financial Statements, and ASC 360, Property, Plant and Equipment. This ASU defines a discontinued operation as a component or group of components that is disposed of or meets the criteria as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. This ASU requires additional disclosures about discontinued operations and new disclosures for components of an entity that are held for sale or disposed of and are individually significant but do not qualify for presentation as a discontinued operation. The requirements are effective prospectively starting with our first quarter of fiscal year 2016, and is related to presentation only. The adoption will not have a material effect on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The effective date will be the first quarter of fiscal year 2018 using one of two retrospective application methods or a cumulative effect approach. The Company is evaluating the potential effects on the consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15 Presentation of Financial Statements — Going Concern (Subtopic 205-40), which amends the accounting guidance related to the evaluation of an entity’s ability to continue as a going concern. The amendment establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern in connection with preparing financial statements for each annual and interim reporting period. The update also gives guidance to determine whether to disclose information about relevant conditions and events when there is substantial doubt about an entity’s ability to continue as a going concern. This guidance will be effective for the Company as of December 15, 2016. The new guidance will not have an effect on the Company’s consolidated financial statements.

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6507316

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Direct Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6510796

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22583-107794

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Indirect Effects of a Change in Accounting Principle
-URI http://asc.fasb.org/extlink&oid=6515603

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22580-107794

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.10-01.(b)(6))
-URI http://asc.fasb.org/extlink&oid=27015980&loc=d3e46468-122699

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accounting Change
-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22499-107794

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Retrospective Application
-URI http://asc.fasb.org/extlink&oid=6523989

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 270
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 01
-Paragraph b
-Subparagraph 6
-Article 10

+ Details

Inventories

6 Months Ended

Jan. 31, 2015

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, 2015		July 31, 2014
	(In thousands)
Raw materials	$	57,487	$	51,179
Work-in-process		571		910
Finished goods		8,829		13,180

	$	66,887	$	65,269

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, 2015

Investments in Affiliates

(5) INVESTMENTS IN AFFILIATES

Trading securities

Near the end of the quarter ended July 31, 2014, the Company acquired $12.9 million in convertible debentures of a publicly traded entity. At this time the Company is uncertain with respect to the holding period of these securities, therefore these securities are classified as trading securities. These trading securities offer higher yields than are currently available from money market securities or other equivalent investments. As of July 31, 2014, the trades associated with these securities had not settled and, as such, the payment associated with the acquisition of these securities had not been made. As of July 31, 2014, the liability associated with this payment is classified under other current liabilities on our balance sheet. Additionally, near the end of the quarter ended July 31, 2014 the Company acquired $9.9 million in common stock of a publicly traded entity. As of July 31, 2014, most of the trades associated with these securities had not settled and, as such, $9.4 million of the payment associated with the acquisition of these securities had not been made. The liability associated with these payments is classified under other current liabilities on our balance sheet as of July 31, 2014. Unrealized gains and losses associated with these securities were immaterial for the fiscal year ended July 31, 2014.

During the quarter ended October 31, 2014, the Company continued its investing activities and acquired additional convertible debentures of a publicly traded entity and acquired additional common stock of a publicly traded entity. No acquisition of trading securities was made during the quarter ended January 31, 2015. As of January 31, 2015, the Company had $71.6 million in investments in trading securities, $31.5 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.

@Ventures

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, 2015, approximately $0.2 million was invested by the Company in privately held companies. During the three and six months ended January 31, 2014, approximately $0.4 million was invested by the Company in privately held companies. During the three and six months ended January 31, 2015, the Company did not record any impairment charges related to an investment in the @Ventures portfolio of companies. 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. The Company had $0.4 million in distributions from its investments during the three and six month periods ended January 31, 2015. The Company did not receive any distributions from its investments during the three and six month periods ended January 31, 2014. At January 31, 2015 and July 31, 2014, the Company’s carrying value of investments in privately held companies was approximately $7.2 million.

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

The Company assesses the need to record impairment losses on its investments and records such losses when the impairment of an investment is determined to be other than temporary in nature. The process of assessing whether a particular 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, 2015

Goodwill

(6) GOODWILL

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

The Company’s remaining goodwill of $3.1 million as of January 31, 2015 and July 31, 2014 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, 2015.

Other Current Liabilities

6 Months Ended

Jan. 31, 2015

Other Current Liabilities

(7) OTHER CURRENT LIABILITIES

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


	January 31, 2015		July 31, 2014
	(In thousands)
Accrued pricing liabilities	$	18,882	$	19,301
Unsettled trading securities liabilities		—		22,430
Line of credit liability		—		4,453
Funds held for clients		8,017		—
Other		9,374		5,575

	$	36,273	$	51,759

As of January 31, 2015 and July 31, 2014, the Company had accrued pricing liabilities of approximately $18.9 million and $19.3 million, respectively. As previously reported by the Company, several adjustments were made to its historic financial statements for periods ending on or before January 31, 2012, the most significant of which related to the treatment of vendor rebates in its pricing policies. Where the retention of a rebate or a mark-up was determined to have been inconsistent with a client contract (collectively referred to as “pricing adjustments”), the Company concluded that these amounts were not properly recorded as revenue. Accordingly, revenue was reduced by an equivalent amount for the period that the rebate was estimated to have affected. A corresponding liability for the same amount was recorded in that period (referred to as accrued pricing liabilities). The Company believes that it may not ultimately be required to pay all of the accrued pricing liabilities, due in part to the nature of the interactions with its clients. The remaining accrued pricing liabilities at January 31, 2015 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, 2015

Restructuring, Net

(8) RESTRUCTURING, NET

Restructuring and other costs for the three and six months ended January 31, 2015 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, 2015. The remaining contractual obligations primarily relate to facility lease obligations for vacant space resulting from the previous restructuring activities of the Company. The Company anticipates that contractual obligations will be substantially fulfilled by August 2015.

The $1.0 million restructuring charge recorded during the three months ended January 31, 2015 primarily consisted of $0.4 million, $0.1 million and $0.5 million of employee-related costs in the Americas, Asia and Europe, respectively, related to the workforce reduction of 72 employees in our global supply chain operations. The $1.9 million restructuring charge recorded during the three months ended October 31, 2014 primarily consisted of $0.4 million, $0.5 million and $1.0 million of employee-related costs in the Americas, Asia and Europe, respectively, related to the workforce reduction of 93 employees in our global supply chain. The estimated savings on an annualized basis expected to result from these actions is approximately $6.3 million.

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 following tables summarize the activities related to the restructuring accrual by expense category and by reportable segment for the six months ended January 31, 2015:


	Employee Related Expenses			Contractual Obligations			Total
	(In thousands)
Accrued restructuring balance at July 31, 2014	$	1,687		$	598		$	2,285

Restructuring charges		2,727			213			2,940
Restructuring adjustments		57			(55	)		2
Cash paid		(3,314	)		(413	)		(3,727	)
Non-cash adjustments		(192	)		(75	)		(267	)

Accrued restructuring balance at January 31, 2015	$	965		$	268		$	1,233


	Americas			Asia			Europe			All Other			Consolidated Total
	(In thousands)
Accrued restructuring balance at July 31, 2014	$	195		$	274		$	1,750		$	66		$	2,285

Restructuring charges		860			699			1,381			—			2,940
Restructuring adjustments		6			(54	)		50			—			2
Cash paid		(464	)		(805	)		(2,448	)		(10	)		(3,727	)
Non-cash adjustments		—			(13	)		(254	)		—			(267	)

Accrued restructuring balance at January 31, 2015	$	597		$	101		$	479		$	56		$	1,233

The net restructuring charges for the three and six months ended January 31, 2015 and 2014 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,
	2015		2014		2015		2014
	(In thousands)
Cost of revenue	$	769	$	693	$	2,651	$	1,373
Selling, general and administrative		272		300		291		599

	$	1,041	$	993	$	2,942	$	1,972

Debt

6 Months Ended

Jan. 31, 2015

Debt

(9) DEBT

Notes Payable

On March 18, 2014, the Company entered into an indenture (the “Indenture”) with Wells Fargo Bank, National Association, as trustee (the “Trustee”), relating to the Company’s issuance of $100 million of 5.25% Convertible Senior Notes (the “Notes”). The Notes bear interest at the rate of 5.25% per year, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2014. The Notes will mature on March 1, 2019 unless earlier repurchased by the Company or converted by the holder in accordance with their terms prior to such maturity date.

Holders of the Notes may convert all or any portion of their notes, in multiples of $1,000 principal amount, at their option at any-time prior to the close of business or the business day immediately preceding the maturity date. Each $1,000 of principal of the Notes will initially be convertible into 166.2593 shares of our common stock, which is equivalent to an initial conversion price of approximately $6.01 per share, subject to adjustment upon the occurrence of certain events, or, if the Company obtains the required consent from its 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.

Holders will have the right to require the Company to repurchase their Notes, at a repurchase price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest, upon the occurrence of certain fundamental changes, subject to certain conditions. No fundamental changes occurred during the three and six months ended January 31, 2015.

The Company may not redeem the Notes prior to the mandatory date, and no sinking fund is provided for the Notes. The Company will have the right to elect to cause the mandatory conversion of the Notes in whole, and not in part, at any time on or after March 6, 2017, if the last reported sale price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company notifies holders of its election to mandatorily convert the Notes, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company notifies holders of its election to mandatorily convert the notes.

The Company has valued the debt using similar nonconvertible debt as of the original issuance date of the Notes and bifurcated the conversion option associated with the Notes from the host debt instrument and recorded the conversion option of $28.1 million in stockholders’ equity prior to the allocation of debt issuance costs. The initial value of the equity component, which reflects the equity conversion feature, is equal to the initial debt discount. The resulting debt discount on the Notes is being accreted to interest expense at the effective interest rate over the estimated life of the Notes. The equity component is included in the additional paid-in-capital portion of stockholders’ equity on the Company’s consolidated balance sheet. In addition, the debt issuance costs of $3.4 million are allocated between the liability and equity components in proportion to the allocation of the proceeds. The issuance costs allocated to the liability component ($2.5 million) are capitalized as a long-term asset on the Company’s balance sheet and amortized as additional interest expense over the term of the Notes. This amount has been classified as long-term as the underlying debt instrument has been classified as a long-term liability in the Company’s balance sheet. The issuance costs allocated to the equity component is recorded as a reduction to additional paid-in capital. The fair value of our Notes payable, calculated as of the closing price of the traded securities, was $90.9 million and $93.8 million as of January 31, 2015 and July 31, 2014, respectively. This value 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. As of January 31, 2015, the net carrying value of the Notes was $75.6 million.


	January 31,			July 31,
	2015			2014
	(In thousands )
Carrying amount of equity component (net of allocated debt issuance costs)	$	27,177		$	27,177

Principal amount of Notes	$	100,000		$	100,000
Unamortized debt discount		(24,440	)		(26,609	)

Net carrying amount	$	75,560		$	73,391

As of January 31, 2015, the remaining period over which the unamortized discount will be amortized is 49 months.


	Three Months Ended January 31, 2015		Six Months Ended January 31, 2015
	(In thousands)
Interest expense related to contractual interest coupon	$	1,313	$	2,626
Interest expense related to accretion of the discount		1,142		2,169
Interest expense related to debt issuance costs		97		188

	$	2,552	$	4,983

During the three and six months ended January 31, 2015, we recognized interest expense of $2.5 million and $5.0 million, respectively. The effective interest rate on the Notes, including amortization of debt issuance costs and accretion of the debt discount, is 14.04%. The notes bear interest at a rate of 5.25%.

Wells Fargo Bank Credit Facility

On October 31, 2012, the Company and certain of its domestic subsidiaries entered into a Credit Agreement (the “Credit Facility”) with Wells Fargo Bank, National Association as lender and agent for the lenders party thereto. The Credit Facility provided a senior secured revolving credit facility up to an initial aggregate principal amount of $50.0 million or the calculated borrowing base and was secured by substantially all of the domestic assets of the Company. As of July 31, 2013, the calculated borrowing base was $29.9 million. The Credit Facility was scheduled to terminate on October 31, 2015. Interest on the Credit Facility was based on the Company’s options of LIBOR plus 2.5% or the base rate plus 1.5%. The Credit Facility included one restrictive financial covenant, which is minimum EBITDA, and restrictions that limited the ability of the Company, to among other things, create liens, incur additional indebtedness, make investments, or dispose of assets or property without prior approval from the lenders.

On March 13, 2014, the Company entered into a Second Amendment to Credit Facility, which amended the Company’s Credit Agreement, dated as of October 31, 2012, as amended by the First Amendment to Credit Agreement dated December 18, 2013. The Amendment modified certain provisions of the Credit Agreement that would have restricted or otherwise affected the issuance of the Notes and the use of proceeds therefrom, the conversion of the Notes into common stock of the Company, and the payment of interest on the Notes. Effective as of April 16, 2014, the Company voluntarily terminated the Credit Facility. The Company did not have any outstanding indebtedness related to the Credit Facility as of January 31, 2015.

PNC Bank Credit Facility

On June 30, 2014, two direct and wholly owned subsidiaries of the Company (the “Borrowers”) entered into a revolving credit and security agreement (the “Credit Agreement”), as borrowers and guarantors, with PNC Bank and National Association, as lender and as agent, respectively.

The Credit Agreement 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, 2015, the Company did not meet the criteria that would cause its financial covenants to be effective. As of January 31, 2015, the Company did not have any balance outstanding on the PNC Bank credit facility. As of July 31, 2014, the Company had $4.5 million outstanding on the PNC Bank credit facility. This balance is included in other current liabilities on the consolidated balance sheet.

Contingencies

6 Months Ended

Jan. 31, 2015

Contingencies

(10) CONTINGENCIES

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

On June 11, 2012, we announced the pending restatement of the Company’s financial statements for the periods ending on or before April 30, 2012 (the “June 11, 2012 Announcement”), related to the Company’s accounting treatment of rebates associated with volume discounts provided by vendors. The restated financial statements were filed on January 11, 2013. After the June 11, 2012 Announcement, stockholders of the Company commenced three purported class actions in the United States District Court for the District of Massachusetts arising from the circumstances described in the June 11, 2012 Announcement (the “Securities Actions”), entitled, respectively:

•

Irene Collier, Individually And On Behalf Of All Others Similarly Situated, vs. ModusLink Global Solutions, Inc., Joseph C. Lawler and Steven G. Crane, Case 1:12-CV-11044-DJC, filed June 12, 2012 (the “Collier Action”);

•

Alexander Shnerer Individually And On Behalf Of All Others Similarly Situated, vs. ModusLink Global Solutions, Inc., Joseph C. Lawler and Steven G. Crane, Case 1:12-CV-11078-DJC, filed June 18, 2012 (the “Shnerer Action”); and

•

Harold Heszkel, Individually and on Behalf of All Others Similarly Situated v. ModusLink Global Solutions, Inc., Joseph C. Lawler, and Steven G. Crane, Case 1:12-CV-11279-DJC, filed July 11, 2012 (the “Heszkel Action”).

Each of the Securities Actions purports to be brought on behalf of those persons who purchased shares of the Company between September 26, 2007 through and including June 8, 2012 (the “Class Period”) and alleges that failure to timely disclose the issues raised in the June 11, 2012 Announcement during the Class Period rendered defendants’ public statements concerning the Company’s financial condition materially false and misleading in violation of Sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder. On February 11, 2013, plaintiffs filed a consolidated amended complaint in the Securities Actions. The Company moved to dismiss the amended complaint on March 11, 2013. On March 26, 2014, following a November 8, 2013 hearing, the Court denied the Company’s motion to dismiss, and, on May 26, 2014, the Company answered the Amended Complaint. In October 2014, the parties agreed to a stipulation for a proposed $4 million class settlement to be covered by insurance proceeds, subject to Court approval. On November 24, 2014, the Court entered an order preliminarily approving the proposed settlement, certification of the settlement class, and provision of notice of the settlement to the settling class. The Court held a final approval hearing for the settlement on March 11, 2015, at which the Court indicated that it would approve the settlement and enter an order as proposed by the parties. Once the Court has entered its order of final judgment, this matter will be concluded.

On October 15, 2014, a Company shareholder commenced a purported derivative action in the Court of Chancery of the State of Delaware against the Company, entitled Mohammad Ladjevardian v. Anthony Bergamo, Jeffrey J. Fenton, Glen M. Kassan, Warren G. Lichtenstein, Jeffrey S. Wald, and Philip E. Lengyel, Steel Partners Holdings L.P., Handy & Harman Ltd.; Defendants, And ModusLink Global Solutions, Inc., Nominal Defendant, C.A. No. 10237-VCL , and Steel Partners Holdings L.P. (“Steel”) Handy & Harman Ltd. The Plaintiff alleges that the individual Defendants breached their fiduciary duties to the Company, unjust enrichment, duty of disclosure, waste of corporate assets and aiding and abetting such breaches. On November 6, 2014, Defendants moved to dismiss the Complaint for (i) failure to make a pre-suit demand upon the Board or sufficiently plead demand futility, and (ii) failure to state a claim upon which relief may be granted. The parties stipulated that all discovery concerning claims asserted in the Complaint shall be stayed pending resolution of the Motion to Dismiss. Although there can be no assurance to the ultimate outcome, the Company believes it has meritorious defense, will deny liability, and intends to defend this litigation vigorously.

On July 18, 2014, Scott R. Crawley (“Crawley”), a former executive officer of the Company, filed a Complaint against the Company in Massachusetts Superior Court in Middlesex County (the “Court”) alleging breach of contract and wrongful termination in violation of public policy and is seeking damages pursuant to a breach of his Executive Severance Agreement. The case is currently in the discovery phase. In furtherance of the case, Crawley has demanded that ModusLink indemnify him and advance expenses for all of his costs and expenses incurred as a result of this case and has filed a Preliminary Injunction with the Court to require ModusLink to immediately pay his attorney’s fees and expenses. On December 4, 2014, ModusLink opposed Crawley’s Motion for Preliminary Injunction and on December 16, 2014 the Court denied Crawley’s motion. Discovery is ongoing.

On December 22, 2014, ModusLink received a letter from a major customer, which claimed that ModusLink was responsible for the theft of the customer’s proprietary data from two of ModusLink’s sites in China. The letter alleged that the customer had suffered significant losses as a result of the alleged theft. ModusLink has vigorously denied the allegations contained in the letter and continues to engage the customer in discussions regarding the matter. Based upon the information available at this time, the Company is not able to estimate a possible range of loss with respect to this matter. In the event that litigation is commenced and the customer prevails and wins a significant monetary judgment not fully covered by insurance, such an outcome could have a material adverse effect on the Company’s financial condition.

Other Gains (Losses), Net

6 Months Ended

Jan. 31, 2015

Other Gains (Losses), Net

(11) OTHER GAINS (LOSSES), NET

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


	Three Months Ended January 31,						Six Months Ended January 31,
	2015			2014			2015		2014
	(In thousands)
Foreign currency exchange gain (losses)	$	1,726		$	1,002		$	2,430	$	(170	)
Gain on disposal of assets		29			161			29		467
Other, net		(1,344	)		(271	)		779		(106	)

	$	411		$	892		$	3,238	$	191

The Company recorded foreign exchange gains of approximately $1.7 million during the three months ended January 31, 2015, as compared to foreign exchange gains of approximately $1.0 million during the three months ended January 31, 2014. For the three months ended January 31, 2015, the net gains primarily related to realized and unrealized gains from foreign currency exposures and settled transactions of approximately $0.3 million and $1.1 million in the Americas and Europe, respectively. 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.

During the three months ended January 31, 2015, the Company recognized $0.4 million in net non-cash losses associated with its Trading Securities. In addition to this, during the three months ended January 31, 2015, the Company recognized $0.8 million in net losses associated with short-term foreign currency contracts.

The Company recorded foreign exchange gains of approximately $2.4 million during the six months ended January 31, 2015, as compared to foreign exchange losses of approximately $0.2 million during the six months ended January 31, 2014. For the six months ended January 31, 2015, the net gains primarily related to realized and unrealized gains from foreign currency exposures and settled transactions of approximately $0.4 million and $2.1 million in the Americas and Europe, 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.

During the six months ended January 31, 2015, the Company recognized $2.1 million in net non-cash gains associated with its Trading Securities. In addition to this, during the six months ended January 31, 2015, the Company recognized $1.1 million in net losses associated with short-term foreign currency contracts.

Income Taxes

6 Months Ended

Jan. 31, 2015

Income Taxes

(12) 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, 2015, the Company was profitable in certain jurisdictions, resulting in an income tax expense using enacted rates in those jurisdictions. As of January 31, 2015 and July 31, 2014, the total amount of the liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $1.1 million and $1.0 million, respectively.

Uncertain Tax Positions

In accordance with the Company’s accounting policy, interest related to unrecognized tax benefits is included in the provision of income taxes line of the Consolidated Statements of Operations. As of January 31, 2015 and July 31, 2014, 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, 2010 through July 31, 2014. To the extent the Company has tax attribute carryforwards, the tax year in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service or state tax authorities to the extent utilized in a future period. In addition, a number of tax years remain subject to examination by the appropriate government agencies for certain countries in the Europe and Asia regions. In Europe, the Company’s 2006 through 2013 tax years remain subject to examination in most locations, while the Company’s 2002 through 2013 tax years remain subject to examination in most Asia locations.

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. 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, subject to stockholder approval at the Company’s 2015 annual meeting of stockholders.

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 (“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 (Loss) Per Share

6 Months Ended

Jan. 31, 2015

Earnings (Loss) Per Share

(13) EARNINGS (LOSS) PER SHARE

The Company calculates earnings (loss) per share in accordance with ASC Topic 260, “Earnings per Share.” The following table reconciles earnings (loss) per share for the three and six months ended January 31, 2015 and 2014.


	Three Months Ended January 31,					Six Months Ended January 31,
	2015			2014		2015			2014
	(In thousands, except per share amounts)
Income from continuing operations	$	(1,556	)	$	1,063	$	(1,334	)	$	1,601
Income from discontinued operations		—			1		—			80

Net Income	$	(1,556	)	$	1,064	$	(1,334	)	$	1,681

Weighted average common shares outstanding		51,646			51,498		51,888			51,467
Weighted average common equivalent shares arising from dilutive stock options and restricted stock		—			313		—			72

Weighted average number of common and potential common shares		51,646			51,811		51,888			51,539

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

	$	(0.03	)	$	0.02	$	(0.03	)	$	0.03

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

	$	(0.03	)	$	0.02	$	(0.03	)	$	0.03

Basic earnings per common share is calculated using the weighted-average number of common shares outstanding during the period. Diluted earnings per common share, if any, gives effect to diluted stock options (calculated based on the treasury stock method), non-vested restricted stock shares purchased under the employee stock purchase plan and share issuable upon debt conversion (calculated using an as-if converted method).

For the three and six months ended January 31, 2015, approximately 21.6 million and 21.2 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, 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.

Share-Based Payments

6 Months Ended

Jan. 31, 2015

Share-Based Payments

(14) SHARE-BASED PAYMENTS

The following table summarizes share-based compensation expense related to employee stock options, employee stock purchases and non-vested shares for the three and six months ended January 31, 2015 and 2014, which was allocated as follows:


	Three Months Ended January 31,				Six Months Ended January 31,
	2015		2014		2015		2014
	(In thousands)
Cost of revenue	$	39	$	117	$	133	$	233
Selling, general and administrative		407		521		722		917

	$	446	$	638	$	855	$	1,150

At January 31, 2015, there was approximately $2.9 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, 2015

Comprehensive Income (Loss)

(15) COMPREHENSIVE INCOME (LOSS)

Comprehensive income (loss) combines net income (loss) and other comprehensive items. Other comprehensive items represent certain amounts that are reported as components of shareholder’s equity in the accompanying condensed consolidated balance sheets.

Accumulated other comprehensive items consist of the following:


	Foreign currency items			Pension items			Unrealized gains (losses) on securities			Total
	(In thousands)
Accumulated other comprehensive income at July 31, 2014	$	15,833		$	(1,900	)	$	35		$	13,968

Foreign currency translation adjustment		(7,154	)		—			—			(7,154	)
Pension liability adjustments		—			(811	)		—			(811	)
Net unrealized holding loss on securities		—			—			(6	)		(6	)

Net current-period other comprehensive income		(7,154	)		(811	)		(6	)		(7,971	)

Accumulated other comprehensive income at January 31, 2015	$	8,679		$	(2,711	)	$	29		$	5,997

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=36458714&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e640-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e716-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e709-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e637-108580

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e681-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

+ Details

Foreign Currency Contracts

6 Months Ended

Jan. 31, 2015

Foreign Currency Contracts

(16) FOREIGN CURRENCY CONTRACTS

During the quarter ended October 31, 2014, the Company entered into foreign currency forward contracts to manage the foreign currency risk associated with anticipated foreign currency denominated transactions. As of January 31, 2015, the aggregate notional amount of the Company’s outstanding foreign currency forward contracts was $19.8 million as summarized below:


	January 31, 2015
	Foreign		Notional
	Currency		Contract
Currency Contracts	Amount		Value in USD
	(In thousands)
Buy CNH		89,774	$	14,477
Buy CZK		52,717		2,488
Buy EUR		2,145		2,785

			$	19,750

As of January 31, 2015, the fair value of the Company’s short-term foreign currency contracts was $1.1 million and is included in other current liabilities. These contracts are designed to hedge the Company’s exposure to transactions denominated in a non-functional currency and are not accounted for as hedges under the accounting standards. Accordingly, changes in the fair value of these instruments are recognized in earnings during the period of change as a component of Other gains (losses), net. The contracts were classified within Level 2 of the fair value hierarchy. During the three and six months ended January 31, 2015, the Company recognized $0.8 million and $1.1 million in net losses associated with these contracts, respectively.

- Definition

The entire disclosure for foreign currency transactions and translation. This may include description of foreign currency transactions, foreign currency gains and losses, explanation of change in cumulative translation adjustment, description of effect of subsequent foreign currency exchange rate change, cumulative translation adjustment movement, foreign currency translation adjustment by component movement, translation adjustment for net investment hedge movement, adjustment for long-term intercompany transactions, schedule of long-term intercompany balances and any other foreign currency transactions and translation related items.

+ References + Details

Related Party Transactions

6 Months Ended

Jan. 31, 2015

Related Party Transactions

(17) RELATED PARTY TRANSACTIONS

On December 24, 2014, SP Corporate Services LLC (“SP Corporate”), an indirect wholly owned subsidiary of Steel Partners Holdings L.P. (a related party), entered into a Management Services Agreement (the “Management Services Agreement”) with the Company. Pursuant to the Management Services Agreement, SP Corporate will provide the Company and its subsidiaries with the services of certain employees, including certain executive officers, and other corporate services. The Management Services Agreement was effective as of January 1, 2015.

The Management Services Agreement was approved by a special committee of the Company’s Board of Directors comprised entirely of independent directors (the “Committee”). SP Corporate will be subject to the supervision and control of the Committee while performing its obligations under the Management Services Agreement. The Management Services Agreement provides that the Company will pay SP Corporate a fixed monthly fee of $175,000 in consideration of the Services. The fees payable under the Management Services Agreement are subject to a review and such adjustments as may be agreed upon by SP Corporate and the Company. The Management Services Agreement will continue through June 30, 2015.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Discontinued Operations and Divestitures

6 Months Ended

Jan. 31, 2015

Discontinued Operations and Divestitures

(18) DISCONTINUED OPERATIONS AND DIVESTITURES

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

The Company’s other discontinued operations relate to a lease obligation associated with a previously vacated facility. 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).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Segment Information

6 Months Ended

Jan. 31, 2015

Segment Information

(19) SEGMENT INFORMATION

The Company has four operating segments: Americas; Asia; Europe; and e-Business. 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. 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, trading securities, investments in affiliates, notes payables and other assets and liabilities 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 January 31,						Six Months Ended January 31,
	2015			2014			2015			2014
	(In thousands )
Net revenue:
Americas	$	53,242		$	78,787		$	135,040		$	155,362
Asia		45,493			47,530			88,448			92,920
Europe		40,626			56,751			95,041			117,367
All Other		8,949			10,943			17,225			19,777

	$	148,310		$	194,011		$	335,754		$	385,426

Operating income (loss):
Americas	$	(139	)	$	2,080		$	1,479		$	5,568
Asia		4,677			5,808			8,030			11,659
Europe		(952	)		(2,149	)		(2,330	)		(4,495	)
All Other		361			(76	)		522			509

Total Segment operating income		3,947			5,663			7,701			13,241
Corporate-level activity		(3,301	)		(4,428	)		(5,908	)		(9,385	)

Total operating income		646			1,235			1,793			3,856

Total other income (expense)		(1,853	)		581			(1,629	)		(231	)

Income (loss) from continuing operations before income taxes	$	(1,207	)	$	1,816		$	164		$	3,625


	January 31,		July 31,
	2015		2014
	(In thousands)
Total assets:
Americas	$	54,575	$	73,254
Asia		127,067		78,749
Europe		63,120		81,327
All Other		28,312		14,221

Sub-total - segment assets		273,074		247,551
Corporate		183,948		204,095

	$	457,022	$	451,646

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,
	2015		2014		2015		2014
	(In thousands)
Supply chain services	$	122,972	$	169,397	$	288,378	$	339,547
Aftermarket services		16,389		13,671		30,151		26,102
e-Business services		8,949		10,943		17,225		19,777

	$	148,310	$	194,011	$	335,754	$	385,426

As of January 31, 2015, approximately $16.2 million, $3.6 million and $3.9 million of the Company’s long-lived assets were located in the U.S.A., Singapore and Ireland, respectively. As of July 31, 2014, approximately $19.3 million, $4.4 million and $4.7 million of the Company’s long-lived assets were located in the U.S.A., Singapore and Ireland, respectively.

For the three months ended January 31, 2015, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $54.3 million, $37.3 million, $14.8 million and $23.1 million, respectively. For the three months ended January 31, 2014, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $79.1 million, $35.5 million, $30.0 million and $22.3 million, respectively.

For the six months ended January 31, 2015, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $136.4 million, $72.1 million, $39.9 million and $48.8 million, respectively. For the six months ended January 31, 2014, the Company’s net revenues within U.S.A., China, Netherlands and Czech Republic were $156.5 million, $68.3 million, $54.2 million and $53.0 million, 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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+ Details

Fair Value Measurement of Assets and Liabilities

6 Months Ended

Jan. 31, 2015

Fair Value Measurement of Assets and Liabilities

(20) 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, 2015 and July 31, 2014, classified by fair value hierarchy:


			Fair Value Measurements at Reporting Date Using
(In thousands)	January 31, 2015		Level 1		Level 2		Level 3
Assets:
Marketable equity securities	$	40,100	$	40,100	$	—	$	—
Marketable corporate bonds		31,508		31,508		—		—
Money market funds		78,704		78,704		—		—

Liabilities:
Foreign currency contracts	$	1,054	$	—	$	1,054	$	—

			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2014		Level 1		Level 2		Level 3
Assets:
Marketable equity securities	$	9,856	$	9,856	$	—	$	—
Marketable corporate bonds		12,937		12,937		—		—
Money market funds		150,626		150,626		—		—

Liabilities:
Foreign currency contracts	$	—	$	—	$	—	$	—

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 the Company’s @Ventures investments, goodwill and certain assets subject to long-lived asset impairment.

The Company reviews the carrying amounts of these assets whenever certain events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company also performs an impairment evaluation of goodwill on an annual basis. An impairment loss is recognized when the carrying amount of the asset group or reporting unit is not recoverable and exceeds its fair value. The Company estimated the fair values of assets subject to impairment based on the Company’s own judgments about the assumptions that market participants would use in pricing the assets and on observable market data, when available. The Company uses the income approach when determining the fair value of its reporting units.

Fair Value of Financial Instruments

The Company’s financial instruments not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable, accounts payable and long-term debt and are reflected in the financial statements at cost. With the exception of long-term debt, cost approximates fair value for these items due to their short-term nature.

Included in trading securities in the accompanying balance sheet are marketable equity securities and marketable corporate bonds. These instruments are valued at quoted market prices in active markets. Included in cash and cash equivalents in the accompanying balance sheet are money market funds. These are valued at quoted market prices in active markets.

The following table presents the Company’s debt not carried at fair value:

As of January 31, 2015

As of July 31, 2014

Carrying
Amount

Fair Value

Carrying
Amount

Fair Value

Fair Value
Hierarchy

(In thousands)

Notes payable

75,560

90,875

73,391

93,750

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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Inventories (Tables)

6 Months Ended

Jan. 31, 2015

Components of Inventories

Inventories consisted of the following:


	January 31, 2015		July 31, 2014
	(In thousands)
Raw materials	$	57,487	$	51,179
Work-in-process		571		910
Finished goods		8,829		13,180

	$	66,887	$	65,269

Other Current Liabilities (Tables)

6 Months Ended

Jan. 31, 2015

Components of Other Current Liabilities

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


	January 31, 2015		July 31, 2014
	(In thousands)
Accrued pricing liabilities	$	18,882	$	19,301
Unsettled trading securities liabilities		—		22,430
Line of credit liability		—		4,453
Funds held for clients		8,017		—
Other		9,374		5,575

	$	36,273	$	51,759

Restructuring, Net (Tables)

6 Months Ended

Jan. 31, 2015

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, 2015:


	Employee Related Expenses			Contractual Obligations			Total
	(In thousands)
Accrued restructuring balance at July 31, 2014	$	1,687		$	598		$	2,285

Restructuring charges		2,727			213			2,940
Restructuring adjustments		57			(55	)		2
Cash paid		(3,314	)		(413	)		(3,727	)
Non-cash adjustments		(192	)		(75	)		(267	)

Accrued restructuring balance at January 31, 2015	$	965		$	268		$	1,233


	Americas			Asia			Europe			All Other			Consolidated Total
	(In thousands)
Accrued restructuring balance at July 31, 2014	$	195		$	274		$	1,750		$	66		$	2,285

Restructuring charges		860			699			1,381			—			2,940
Restructuring adjustments		6			(54	)		50			—			2
Cash paid		(464	)		(805	)		(2,448	)		(10	)		(3,727	)
Non-cash adjustments		—			(13	)		(254	)		—			(267	)

Accrued restructuring balance at January 31, 2015	$	597		$	101		$	479		$	56		$	1,233

Net Restructuring Charges


	Three Months Ended January 31,				Six Months Ended January 31,
	2015		2014		2015		2014
	(In thousands)
Cost of revenue	$	769	$	693	$	2,651	$	1,373
Selling, general and administrative		272		300		291		599

	$	1,041	$	993	$	2,942	$	1,972

Debt (Tables)

6 Months Ended

Jan. 31, 2015

Net Carrying Value of the Notes

This amount has been classified as long-term as the underlying debt instrument has been classified as a long-term liability in the Company’s balance sheet. The issuance costs allocated to the equity component is recorded as a reduction to additional paid-in capital. The fair value of our Notes payable, calculated as of the closing price of the traded securities, was $90.9 million and $93.8 million as of January 31, 2015 and July 31, 2014, respectively. This value 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. As of January 31, 2015, the net carrying value of the Notes was $75.6 million.


	January 31,			July 31,
	2015			2014
	(In thousands )
Carrying amount of equity component (net of allocated debt issuance costs)	$	27,177		$	27,177

Principal amount of Notes	$	100,000		$	100,000
Unamortized debt discount		(24,440	)		(26,609	)

Net carrying amount	$	75,560		$	73,391

Summary of Interest Expense Related to Convertible Notes

As of January 31, 2015, the remaining period over which the unamortized discount will be amortized is 49 months.


	Three Months Ended January 31, 2015		Six Months Ended January 31, 2015
	(In thousands)
Interest expense related to contractual interest coupon	$	1,313	$	2,626
Interest expense related to accretion of the discount		1,142		2,169
Interest expense related to debt issuance costs		97		188

	$	2,552	$	4,983

Other Gains (Losses), Net (Tables)

6 Months Ended

Jan. 31, 2015

Components of Other Gains, Net

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


	Three Months Ended January 31,						Six Months Ended January 31,
	2015			2014			2015		2014
	(In thousands)
Foreign currency exchange gain (losses)	$	1,726		$	1,002		$	2,430	$	(170	)
Gain on disposal of assets		29			161			29		467
Other, net		(1,344	)		(271	)		779		(106	)

	$	411		$	892		$	3,238	$	191

Earnings (Loss) Per Share (Tables)

6 Months Ended

Jan. 31, 2015

Reconciliation of Earnings (Loss) Per Share

The following table reconciles earnings (loss) per share for the three and six months ended January 31, 2015 and 2014.


	Three Months Ended January 31,					Six Months Ended January 31,
	2015			2014		2015			2014
	(In thousands, except per share amounts)
Income from continuing operations	$	(1,556	)	$	1,063	$	(1,334	)	$	1,601
Income from discontinued operations		—			1		—			80

Net Income	$	(1,556	)	$	1,064	$	(1,334	)	$	1,681

Weighted average common shares outstanding		51,646			51,498		51,888			51,467
Weighted average common equivalent shares arising from dilutive stock options and restricted stock		—			313		—			72

Weighted average number of common and potential common shares		51,646			51,811		51,888			51,539

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

	$	(0.03	)	$	0.02	$	(0.03	)	$	0.03

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

	$	(0.03	)	$	0.02	$	(0.03	)	$	0.03

Share-Based Payments (Tables)

6 Months Ended

Jan. 31, 2015

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


	Three Months Ended January 31,				Six Months Ended January 31,
	2015		2014		2015		2014
	(In thousands)
Cost of revenue	$	39	$	117	$	133	$	233
Selling, general and administrative		407		521		722		917

	$	446	$	638	$	855	$	1,150

Comprehensive Income (Loss) (Tables)

6 Months Ended

Jan. 31, 2015

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, 2014	$	15,833		$	(1,900	)	$	35		$	13,968

Foreign currency translation adjustment		(7,154	)		—			—			(7,154	)
Pension liability adjustments		—			(811	)		—			(811	)
Net unrealized holding loss on securities		—			—			(6	)		(6	)

Net current-period other comprehensive income		(7,154	)		(811	)		(6	)		(7,971	)

Accumulated other comprehensive income at January 31, 2015	$	8,679		$	(2,711	)	$	29		$	5,997

Foreign Currency Contracts (Tables)

6 Months Ended

Jan. 31, 2015

Schedule of Foreign Currency Forward Contracts

As of January 31, 2015, the aggregate notional amount of the Company’s outstanding foreign currency forward contracts was $19.8 million as summarized below:


	January 31, 2015
	Foreign		Notional
	Currency		Contract
Currency Contracts	Amount		Value in USD
	(In thousands)
Buy CNH		89,774	$	14,477
Buy CZK		52,717		2,488
Buy EUR		2,145		2,785

			$	19,750

Segment Information (Tables)

6 Months Ended

Jan. 31, 2015

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 January 31,						Six Months Ended January 31,
	2015			2014			2015			2014
	(In thousands )
Net revenue:
Americas	$	53,242		$	78,787		$	135,040		$	155,362
Asia		45,493			47,530			88,448			92,920
Europe		40,626			56,751			95,041			117,367
All Other		8,949			10,943			17,225			19,777

	$	148,310		$	194,011		$	335,754		$	385,426

Operating income (loss):
Americas	$	(139	)	$	2,080		$	1,479		$	5,568
Asia		4,677			5,808			8,030			11,659
Europe		(952	)		(2,149	)		(2,330	)		(4,495	)
All Other		361			(76	)		522			509

Total Segment operating income		3,947			5,663			7,701			13,241
Corporate-level activity		(3,301	)		(4,428	)		(5,908	)		(9,385	)

Total operating income		646			1,235			1,793			3,856

Total other income (expense)		(1,853	)		581			(1,629	)		(231	)

Income (loss) from continuing operations before income taxes	$	(1,207	)	$	1,816		$	164		$	3,625

Total Assets of Continuing Operations


	January 31,		July 31,
	2015		2014
	(In thousands)
Total assets:
Americas	$	54,575	$	73,254
Asia		127,067		78,749
Europe		63,120		81,327
All Other		28,312		14,221

Sub-total - segment assets		273,074		247,551
Corporate		183,948		204,095

	$	457,022	$	451,646

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,
	2015		2014		2015		2014
	(In thousands)
Supply chain services	$	122,972	$	169,397	$	288,378	$	339,547
Aftermarket services		16,389		13,671		30,151		26,102
e-Business services		8,949		10,943		17,225		19,777

	$	148,310	$	194,011	$	335,754	$	385,426

Fair Value Measurement of Assets and Liabilities (Tables)

6 Months Ended

Jan. 31, 2015

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, 2015 and July 31, 2014, classified by fair value hierarchy:


			Fair Value Measurements at Reporting Date Using
(In thousands)	January 31, 2015		Level 1		Level 2		Level 3
Assets:
Marketable equity securities	$	40,100	$	40,100	$	—	$	—
Marketable corporate bonds		31,508		31,508		—		—
Money market funds		78,704		78,704		—		—

Liabilities:
Foreign currency contracts	$	1,054	$	—	$	1,054	$	—

			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2014		Level 1		Level 2		Level 3
Assets:
Marketable equity securities	$	9,856	$	9,856	$	—	$	—
Marketable corporate bonds		12,937		12,937		—		—
Money market funds		150,626		150,626		—		—

Liabilities:
Foreign currency contracts	$	—	$	—	$	—	$	—

Debt not Carried at Fair Value

The following table presents the Company’s debt not carried at fair value:

As of January 31, 2015

As of July 31, 2014

Carrying
Amount

Fair Value

Carrying
Amount

Fair Value

Fair Value
Hierarchy

(In thousands)

Notes payable

75,560

90,875

73,391

93,750

Level 1

Nature of Operations - Additional Information (Detail)	Jan. 31, 2015 Location
Minimum
Nature Of Operations [Line Items]
Number of sites	25

Basis of Presentation - Additional information (Detail)	Dec. 09, 2014
Reverse Stock Split
Basis of Presentation [Line Items]
Stock split, conversion ratio	0.01
Forward Stock Split
Basis of Presentation [Line Items]
Stock split, conversion ratio	100

Components of Inventories (Detail) - USD ($) $ in Thousands	Jan. 31, 2015	Jul. 31, 2014
Inventory [Line Items]
Raw materials	$ 57,487	$ 51,179
Work-in-process	571	910
Finished goods	8,829	13,180
Inventories, net	$ 66,887	$ 65,269

Investments in Affiliates - Additional information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014	Jul. 31, 2014
Investment [Line Items]
Unsettled trading securities liabilities					$ 22,430,000
Trading securities	$ 71,608,000		$ 71,608,000		22,793,000
Investments in privately held companies			216,000	$ 412,000
Impairment charges		$ 177,000		177,000
Carrying value of investment	7,188,000		7,188,000		7,172,000
Co-venturer
Investment [Line Items]
Investments in privately held companies	200,000	400,000	200,000	400,000
Impairment charges	0	200,000	0	200,000
Investment distribution income	400,000	$ 0	400,000	$ 0
Co-venturer \| Private Agreements
Investment [Line Items]
Carrying value of investment	$ 7,200,000		$ 7,200,000		7,200,000
Co-venturer \| Maximum
Investment [Line Items]
Company's voting interest	50.00%		50.00%
Co-venturer \| Minimum
Investment [Line Items]
Company's voting interest	20.00%		20.00%
Available For Sale Securities \| Co-venturer \| Maximum
Investment [Line Items]
Ownership interest on investment, percent			20.00%
Convertible Debt Securities
Investment [Line Items]
Trading Securities, debt					12,900,000
Trading securities	$ 31,500,000		$ 31,500,000
Common Stock
Investment [Line Items]
Trading Securities, equity					9,900,000
Common Stock \| Other Current Liabilities
Investment [Line Items]
Unsettled trading securities liabilities					$ 9,400,000

Goodwill - Additional Information (Detail) - USD ($)	3 Months Ended	6 Months Ended
Goodwill - Additional Information (Detail) - USD ($)	Jan. 31, 2015	Jan. 31, 2015	Jul. 31, 2014
Goodwill [Line Items]
Goodwill	$ 3,058,000	$ 3,058,000	$ 3,058,000
e-Business Services
Goodwill [Line Items]
Goodwill	3,100,000	3,100,000	$ 3,100,000
Goodwill impairment	$ 0	$ 0

Components of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jan. 31, 2015	Jul. 31, 2014
Other Current Liabilities [Line Items]
Accrued pricing liabilities	$ 18,882	$ 19,301
Unsettled trading securities liabilities		22,430
Line of credit liability		4,453
Funds held for clients	8,017
Other	9,374	5,575
Other current liabilities	$ 36,273	$ 51,759

- Definition

The carrying value as of the balance sheet date of the current portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Other Current Liabilities - Additional Information (Detail) - USD ($) $ in Thousands	Jan. 31, 2015	Jul. 31, 2014
Other Liabilities [Line Items]
Accrued pricing liabilities	$ 18,882	$ 19,301

Restructuring, Net - Additional Information (Detail) $ in Thousands	3 Months Ended				6 Months Ended
	Jan. 31, 2015 USD ($) Employee	Oct. 31, 2014 USD ($) Employee	Jan. 31, 2014 USD ($) Employee	Oct. 31, 2013 USD ($) Employee	Jan. 31, 2015 USD ($)	Jan. 31, 2014 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charge	$ 1,041	$ 1,900	$ 993	$ 900	$ 2,942	$ 1,972
Number of workforce reduction \| Employee	72	93	35	49
Estimated annualized savings	$ 6,300				$ 6,300
Americas
Restructuring Cost and Reserve [Line Items]
Restructuring charge related to workforce reduction	400	$ 400	$ 400	$ 200
Asia
Restructuring Cost and Reserve [Line Items]
Restructuring charge related to workforce reduction	100	500	300	100
Europe
Restructuring Cost and Reserve [Line Items]
Restructuring charge related to workforce reduction	$ 500	$ 1,000	$ 300	$ 600

Activity in Restructuring Accrual (Detail) $ in Thousands	6 Months Ended
Activity in Restructuring Accrual (Detail) $ in Thousands	Jan. 31, 2015 USD ($)
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	$ 2,285
Restructuring charges	2,940
Restructuring adjustments	2
Cash paid	(3,727)
Non-cash adjustments	(267)
Accrued restructuring, ending balance	1,233
Employee Related Expenses
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	1,687
Restructuring charges	2,727
Restructuring adjustments	57
Cash paid	(3,314)
Non-cash adjustments	(192)
Accrued restructuring, ending balance	965
Contractual Obligations
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	598
Restructuring charges	213
Restructuring adjustments	(55)
Cash paid	(413)
Non-cash adjustments	(75)
Accrued restructuring, ending balance	$ 268

Summary of Restructuring Accrual by Reportable Segment (Detail) $ in Thousands	6 Months Ended
	Jan. 31, 2015 USD ($)
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	$ 2,285
Restructuring charges	2,940
Restructuring adjustments	2
Cash paid	(3,727)
Non-cash adjustments	(267)
Accrued restructuring, ending balance	1,233
Americas
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	195
Restructuring charges	860
Restructuring adjustments	6
Cash paid	(464)
Accrued restructuring, ending balance	597
Asia
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	274
Restructuring charges	699
Restructuring adjustments	(54)
Cash paid	(805)
Non-cash adjustments	(13)
Accrued restructuring, ending balance	101
Europe
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	1,750
Restructuring charges	1,381
Restructuring adjustments	50
Cash paid	(2,448)
Non-cash adjustments	(254)
Accrued restructuring, ending balance	479
All Other
Restructuring Cost and Reserve [Line Items]
Accrued restructuring, beginning balance	66
Cash paid	(10)
Accrued restructuring, ending balance	$ 56

Net Restructuring Charges (Detail) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Net Restructuring Charges (Detail) - USD ($) $ in Thousands	Jan. 31, 2015	Oct. 31, 2014	Jan. 31, 2014	Oct. 31, 2013	Jan. 31, 2015	Jan. 31, 2014
Restructuring Cost and Reserve [Line Items]
Restructuring, net	$ 1,041	$ 1,900	$ 993	$ 900	$ 2,942	$ 1,972
Cost of revenue
Restructuring Cost and Reserve [Line Items]
Restructuring, net	769		693		2,651	1,373
Selling, general and administrative
Restructuring Cost and Reserve [Line Items]
Restructuring, net	$ 272		$ 300		$ 291	$ 599

Debt - Additional Information (Detail)				3 Months Ended	6 Months Ended
Debt - Additional Information (Detail)	Jun. 30, 2014 USD ($)	Mar. 18, 2014 USD ($)	Oct. 31, 2012 USD ($)	Jan. 31, 2015 USD ($) $ / shares	Jan. 31, 2015 USD ($) d $ / shares	Jul. 31, 2014 USD ($)	Jul. 31, 2013 USD ($)
Debt Instrument [Line Items]
Debt instrument issued				$ 100,000,000	$ 100,000,000	$ 100,000,000
Debt instrument, carrying amount				$ 75,560,000	$ 75,560,000	73,391,000
Convertible debt, remaining discount amortization period				49 months
Wells Fargo Bank Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment			$ 50,000,000
Line of credit facility, calculated borrowing base							$ 29,900,000
Credit facility expiry date			Oct. 31, 2015
Debt instrument, covenant description					The Credit Facility included one restrictive financial covenant, which is minimum EBITDA, and restrictions that limited the ability of the Company, to among other things, create liens, incur additional indebtedness, make investments, or dispose of assets or property without prior approval from the lenders.
Outstanding indebtedness under the Credit Facility				$ 0	$ 0
Wells Fargo Bank Credit Facility \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate			2.50%
Wells Fargo Bank Credit Facility \| Base Rate
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate			1.50%
PNC Bank Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment	$ 50,000,000
Credit facility expiry date	Jun. 30, 2019
Outstanding indebtedness under the Credit Facility				0	$ 0	4,500,000
Line of credit facility, term	5 years
Line of credit facility, unutilized commitment fee percentage	0.25%
Scenario 1 \| PNC Bank Credit Facility \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate	2.25%
Scenario 2 \| PNC Bank Credit Facility \| London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate	1.00%
Scenario 2 \| PNC Bank Credit Facility \| Federal Funds Open Rate
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate	0.50%
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
5.25% Convertible Senior Notes due 2019
Debt Instrument [Line Items]
Debt instrument issued		$ 100,000,000		$ 1,000	$ 1,000
Debt instrument, stated interest rate		5.25%
Debt instrument convertible conversion shares per 1000 principal amount of notes				166.2593	166.2593
Initial Conversion price \| $ / shares				$ 6.01	$ 6.01
Debt instrument, redemption price percentage		100.00%
Debt instrument, convertible, earliest date					Mar. 06, 2017
Debt instrument, convertible, threshold percentage of stock price trigger					130.00%
Debt instrument, convertible, threshold trading days \| d					20
Debt instrument, convertible, threshold consecutive trading days					30 days
Debt instrument conversion option					$ 28,100,000
Debt instrument issuance costs					3,400,000
Fair value of Notes payable				$ 90,900,000	90,900,000	$ 93,800,000
Debt instrument, interest expense				$ 2,552,000	$ 4,983,000
Debt instrument, interest rate, effective percentage				14.04%	14.04%
5.25% Convertible Senior Notes due 2019 \| Noncurrent Assets
Debt Instrument [Line Items]
Debt instrument issuance costs					$ 2,500,000

Net Carrying Value of the Notes (Detail) - USD ($) $ in Thousands	Jan. 31, 2015	Jul. 31, 2014
Debt Instrument [Line Items]
Carrying amount of equity component (net of allocated debt issuance costs)	$ 27,177	$ 27,177
Principal amount of Notes	100,000	100,000
Unamortized debt discount	(24,440)	(26,609)
Net carrying amount	$ 75,560	$ 73,391

Summary of Interest Expense Related to Convertible Notes (Detail) - 5.25% Convertible Senior Notes due 2019 - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jan. 31, 2015	Jan. 31, 2015
Non Cash Convertible Debt Related Expense [Line Items]
Debt instrument, interest expense	$ 2,552	$ 4,983
Coupon interest rate
Non Cash Convertible Debt Related Expense [Line Items]
Debt instrument, interest expense	1,313	2,626
Accretion of debt discount
Non Cash Convertible Debt Related Expense [Line Items]
Debt instrument, interest expense	1,142	2,169
Amortization of debt issue cost
Non Cash Convertible Debt Related Expense [Line Items]
Debt instrument, interest expense	$ 97	$ 188

Contingencies - Additional Information (Detail) $ in Millions	1 Months Ended	12 Months Ended
	Oct. 31, 2014 USD ($)	Jul. 31, 2012 LegalMatter
Commitments and Contingencies [Line Items]
Number of purported class actions filed following the announcement \| LegalMatter		3
Covered by Insurance Proceeds
Commitments and Contingencies [Line Items]
Class settlement amount \| $	$ 4

Components of Other Gains, Net (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Component Of Other Expense Income Nonoperating [Line Items]
Foreign currency exchange gain (losses)	$ 1,726	$ 1,002	$ 2,430	$ (170)
Gain on disposal of assets	29	161	29	467
Other, net	(1,344)	(271)	779	(106)
Other losses, net	$ 411	$ 892	$ 3,238	$ 191

Other Gains (Losses), Net - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Component Of Other Expense Income Nonoperating [Line Items]
Foreign currency exchange gains (losses)	$ 1,726	$ 1,002	$ 2,430	$ (170)
Non-cash gains (losses) in trading securities	(400)		2,100
Foreign Exchange Contract
Component Of Other Expense Income Nonoperating [Line Items]
Foreign currency exchange gains (losses)	(800)		(1,100)
Americas \| Gain Loss On Foreign Currency Transactions
Component Of Other Expense Income Nonoperating [Line Items]
Realized and unrealized gains (losses) from foreign currency exposures and settled transactions	300	200	400	200
Asia \| Gain Loss On Foreign Currency Transactions
Component Of Other Expense Income Nonoperating [Line Items]
Realized and unrealized gains (losses) from foreign currency exposures and settled transactions				(500)
Europe \| Gain Loss On Foreign Currency Transactions
Component Of Other Expense Income Nonoperating [Line Items]
Realized and unrealized gains (losses) from foreign currency exposures and settled transactions	$ 1,100	$ 1,000	$ 2,100	$ 300

Income Taxes - Additional Information (Detail) - USD ($)			6 Months Ended
	Dec. 29, 2014	Oct. 09, 2014	Jan. 31, 2015	Jul. 31, 2014
Income Taxes [Line Items]
Unrecognized tax benefits related to federal, state and foreign taxes			$ 1,100,000	$ 1,000,000
Income tax positions penalties accrued			0
Expected any unrecognized tax benefits to reverse in the next twelve months			$ 0
Stockholder owning ownership on corporation's securities percentage			5.00%
Stockholder owning ownership on corporation's securities rolling period			3 years
Amended expiration date of the Tax Plan		Oct. 17, 2017
Maximum
Income Taxes [Line Items]
Percentage of common shares outstanding permitted for acquired by HNH and its affiliates	45.00%
Protective Amendment \| Minimum
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%
Tax Benefit Preservation Plan
Income Taxes [Line Items]
Tax Benefit Preservation Plan, adoption date			Oct. 17, 2011
Tax Benefit Preservation Plan \| Minimum
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%
United States \| Federal
Income Taxes [Line Items]
Tax examinations tax period			Tax years ended July 31, 2010 through July 31, 2014
Europe \| Foreign
Income Taxes [Line Items]
Tax examinations tax period			2006 through 2013 tax years
Asia \| Foreign
Income Taxes [Line Items]
Tax examinations tax period			2002 through 2013 tax years

Reconciliation of Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Income from continuing operations	$ (1,556)	$ 1,063	$ (1,334)	$ 1,601
Income from discontinued operations		1		80
Net Income	$ (1,556)	$ 1,064	$ (1,334)	$ 1,681
Weighted average common shares outstanding	51,646	51,498	51,888	51,467
Weighted average common equivalent shares arising from dilutive stock options and restricted stock		313		72
Weighted average number of common and potential common shares	51,646	51,811	51,888	51,539
Basic net income per common share from:
Continuing operations	$ (0.03)	$ 0.02	$ (0.03)	$ 0.03
Discontinued operations	0.00	0.00	0.00	0.00
Basic net loss per common share	(0.03)	0.02	(0.03)	0.03
Diluted net income per common share from:
Continuing operations	(0.03)	0.02	(0.03)	0.03
Discontinued operations	0.00	0.00	0.00	0.00
Diluted net loss per common share	$ (0.03)	$ 0.02	$ (0.03)	$ 0.03

Earnings (Loss) Per Share - Additional Information (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Earnings Per Share [Line Items]
Common stock equivalent shares excluded from the denominator in the calculation of diluted earnings per share	21.6	3.6	21.2	5.5

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, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 446	$ 638	$ 855	$ 1,150
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	39	117	133	233
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 407	$ 521	$ 722	$ 917

Share-Based Payments - Additional Information (Detail) $ in Millions	Jan. 31, 2015 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to nonvested shares	$ 2.9

Accumulated Other Comprehensive Items (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income at beginning of period			$ 13,968
Foreign currency translation adjustment	$ (4,515)	$ (2,137)	(7,154)	$ (58)
Pension liability adjustments	(450)	250	(811)	250
Net unrealized holding loss on securities	1	2	(6)	(4)
Net current-period other comprehensive income	(4,964)	$ (1,885)	(7,971)	$ 188
Accumulated other comprehensive income at end of period	5,997		5,997
Foreign currency items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income at beginning of period			15,833
Foreign currency translation adjustment			(7,154)
Net current-period other comprehensive income			(7,154)
Accumulated other comprehensive income at end of period	8,679		8,679
Pension items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income at beginning of period			(1,900)
Pension liability adjustments			(811)
Net current-period other comprehensive income			(811)
Accumulated other comprehensive income at end of period	(2,711)		(2,711)
Unrealized gains (losses) on securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income at beginning of period			35
Net unrealized holding loss on securities			(6)
Net current-period other comprehensive income			(6)
Accumulated other comprehensive income at end of period	$ 29		$ 29

- 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

Foreign Currency Contracts - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Foreign currency exchange gains (losses)	$ 1,726	$ 1,002	$ 2,430	$ (170)
Foreign Exchange Contract
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount	19,750		19,750
Foreign currency exchange gains (losses)	(800)		(1,100)
Foreign Exchange Contract \| Other Current Liabilities
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative liability, notional amount	$ 1,100		$ 1,100

Schedule of Foreign Currency Contracts (Detail) - Jan. 31, 2015 - Foreign Exchange Contract € in Thousands, ¥ in Thousands, Kč in Thousands, $ in Thousands	USD ($)	CNY (¥)	CZK (Kč)	EUR (€)
Contractual Amounts Of Foreign Currency Forward Contracts [Line Items]
Derivative, notional amount	$ 19,750
Buy CNH
Contractual Amounts Of Foreign Currency Forward Contracts [Line Items]
Derivative, notional amount	14,477	¥ 89,774
Buy CZK
Contractual Amounts Of Foreign Currency Forward Contracts [Line Items]
Derivative, notional amount	2,488		Kč 52,717
Buy EUR
Contractual Amounts Of Foreign Currency Forward Contracts [Line Items]
Derivative, notional amount	$ 2,785			€ 2,145

Related Party Transactions - Additional Information (Detail) - SP Corporate - Management Services Agreement	Dec. 24, 2014 USD ($)
Related Party Transaction [Line Items]
Management services agreement, effective date of agreement	Jan. 01, 2015
Management services agreement, expiry date of agreement	Jun. 30, 2015
Fixed monthly fee to be paid in consideration of services	$ 175,000

Discontinued Operations and Divestitures - Additional Information (Detail) - USD ($) $ in Millions			3 Months Ended
	Aug. 01, 2013	Jan. 11, 2013	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 escrow amount		$ 0.2
Proceeds from escrow amount			$ 0.1
Gain on disposition of asset			0.6
Transition support agreement, period		90 days
Lease termination fee	$ 0.4
Adjusted
Discontinued Operations [Line Items]
Gain on disposition of asset			(0.1)
Previously Reported
Discontinued Operations [Line Items]
Gain on disposition of asset			$ 0.7

Segment Information - Additional Information (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2015 USD ($)	Jan. 31, 2014 USD ($)	Jan. 31, 2015 USD ($) Segment	Jan. 31, 2014 USD ($)	Jul. 31, 2014 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| Segment			4
Number of reportable segments \| Segment			3
Total assets	$ 457,022		$ 457,022		$ 451,646
Net revenue	148,310	$ 194,011	335,754	$ 385,426
United States
Segment Reporting Information [Line Items]
Total assets	16,200		16,200		19,300
Net revenue	54,300	79,100	136,400	156,500
Singapore
Segment Reporting Information [Line Items]
Total assets	3,600		3,600		4,400
Ireland
Segment Reporting Information [Line Items]
Total assets	3,900		3,900		$ 4,700
China
Segment Reporting Information [Line Items]
Net revenue	37,300	35,500	72,100	68,300
Netherlands
Segment Reporting Information [Line Items]
Net revenue	14,800	30,000	39,900	54,200
Czech Republic
Segment Reporting Information [Line Items]
Net revenue	$ 23,100	$ 22,300	$ 48,800	$ 53,000

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, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Segment Reporting Information [Line Items]
Net revenue	$ 148,310	$ 194,011	$ 335,754	$ 385,426
Operating income (loss)	646	1,235	1,793	3,856
Total other income (expense)	(1,853)	581	(1,629)	(231)
Income (loss) from continuing operations before income taxes	(1,207)	1,816	164	3,625
Operating Segments
Segment Reporting Information [Line Items]
Operating income (loss)	3,947	5,663	7,701	13,241
Operating Segments \| Americas
Segment Reporting Information [Line Items]
Net revenue	53,242	78,787	135,040	155,362
Operating income (loss)	(139)	2,080	1,479	5,568
Operating Segments \| Asia
Segment Reporting Information [Line Items]
Net revenue	45,493	47,530	88,448	92,920
Operating income (loss)	4,677	5,808	8,030	11,659
Operating Segments \| Europe
Segment Reporting Information [Line Items]
Net revenue	40,626	56,751	95,041	117,367
Operating income (loss)	(952)	(2,149)	(2,330)	(4,495)
Operating Segments \| All Other
Segment Reporting Information [Line Items]
Net revenue	8,949	10,943	17,225	19,777
Operating income (loss)	361	(76)	522	509
Corporate-level activity
Segment Reporting Information [Line Items]
Operating income (loss)	$ (3,301)	$ (4,428)	$ (5,908)	$ (9,385)

Total Assets of Continuing Operations (Detail) - USD ($) $ in Thousands	Jan. 31, 2015	Jul. 31, 2014
Segment Reporting Information [Line Items]
Total assets	$ 457,022	$ 451,646
Operating Segments
Segment Reporting Information [Line Items]
Total assets	273,074	247,551
Operating Segments \| Americas
Segment Reporting Information [Line Items]
Total assets	54,575	73,254
Operating Segments \| Asia
Segment Reporting Information [Line Items]
Total assets	127,067	78,749
Operating Segments \| Europe
Segment Reporting Information [Line Items]
Total assets	63,120	81,327
Operating Segments \| All Other
Segment Reporting Information [Line Items]
Total assets	28,312	14,221
Corporate-level activity
Segment Reporting Information [Line Items]
Total assets	$ 183,948	$ 204,095

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, 2015	Jan. 31, 2014	Jan. 31, 2015	Jan. 31, 2014
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenue	$ 148,310	$ 194,011	$ 335,754	$ 385,426
Supply Chain Services
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenue	122,972	169,397	288,378	339,547
After Market Services
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenue	16,389	13,671	30,151	26,102
e-Business Services
Segment Reporting, Revenue Reconciling Item [Line Items]
Net revenue	$ 8,949	$ 10,943	$ 17,225	$ 19,777

Fair Value Measurement of Assets and Liabilities - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Jan. 31, 2015	Jul. 31, 2014
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%
Transfers between Levels 1, 2 or 3	$ 0	$ 0

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, 2015	Jul. 31, 2014
Marketable equity securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 40,100	$ 9,856
Marketable corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	31,508	12,937
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	78,704	150,626
Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value disclosure, recurring	1,054
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	40,100	9,856
Fair Value, Inputs, Level 1 \| Marketable corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	31,508	12,937
Fair Value, Inputs, Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	78,704	$ 150,626
Fair Value, Inputs, Level 2 \| Foreign currency contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value disclosure, recurring	$ 1,054

Debt not Carried at Fair Value (Detail) - USD ($) $ in Thousands	Jan. 31, 2015	Jul. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notes payable	$ 75,560	$ 73,391
Notes payable, Fair Value	$ 90,875	$ 93,750