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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Apr. 30, 2019	Jun. 01, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Trading Symbol	STCN
Entity Registrant Name	Steel Connect, Inc.
Entity Central Index Key	0000914712
Current Fiscal Year End Date	--07-31
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding		61,802,196

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 30, 2019	Jul. 31, 2018
ASSETS
Cash and cash equivalents	$ 20,364	$ 92,138
Accounts receivable, trade, net of allowance for doubtful accounts of $468 and $480 at April 30, 2019 and July 31, 2018, respectively	113,204	99,254
Inventories, net	25,404	47,786
Restricted cash	10,070	11,688
Prepaid expenses and other current assets	33,399	13,415
Total current assets	202,441	264,281
Property and equipment, net	97,260	106,632
Goodwill	257,128	254,352
Other intangible assets, net	169,796	192,964
Other assets	8,125	8,821
Total assets	734,750	827,050
LIABILITIES, CONTINGENTLY REDEEMABLE PREFERRED STOCK & STOCKHOLDERS’ EQUITY
Accounts payable	83,234	78,212
Accrued expenses	77,713	88,426
Restricted cash	10,070	11,688
Current portion of long-term debt	5,729	5,727
Other current liabilities	43,753	42,029
Convertible Notes payable	0	50,274
Total current liabilities	220,499	276,356
Convertible Notes payable	7,022	14,256
Long-term debt, excluding current portion	369,938	383,111
Other long-term liabilities	9,707	10,507
Total long-term liabilities	386,667	407,874
Total liabilities	607,166	684,230
Contingently redeemable preferred stock, $0.01 par value per share. 35,000 shares authorized, issued and outstanding at April 30, 2019 and July 31, 2018	35,198	35,192
Stockholders’ equity:
Preferred stock, $0.01 par value per share. 4,965,000 shares authorized at April 30, 2019 and July 31, 2018; zero shares issued and outstanding at April 30, 2019 and July 31, 2018	0	0
Common stock, $0.01 par value per share. Authorized 1,400,000,000 shares; 61,802,196 issued and outstanding shares at April 30, 2019; 60,742,859 issued and outstanding shares at July 31, 2018	618	608
Additional paid-in capital	7,477,234	7,467,855
Accumulated deficit	(7,387,774)	(7,363,569)
Accumulated other comprehensive income	2,308	2,734
Total stockholders’ equity	92,386	107,628
Total liabilities, contingently redeemable preferred stock and stockholders’ equity	$ 734,750	$ 827,050

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2019	Jul. 31, 2018
Accounts receivable, trade, allowance for doubtful accounts	$ 468	$ 480
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	4,965,000	4,965,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,400,000,000	1,400,000,000
Common stock, shares issued (in shares)	61,802,196	60,742,859
Common stock, shares outstanding (in shares)	61,802,196	60,742,859
Contingent Redeemable Preferred Stock
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	35,000	35,000
Preferred stock, shares issued (in shares)	35,000	35,000
Preferred stock, shares outstanding (in shares)	35,000	35,000

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Income Statement [Abstract]
Net revenue	$ 194,003	$ 193,921	$ 615,359	$ 450,181
Cost of revenue	157,142	154,916	502,755	386,279
Gross profit	36,861	39,005	112,604	63,902
Operating expenses
Selling, general and administrative	27,426	29,661	81,702	72,676
Amortization of intangible assets	7,278	7,964	23,168	12,071
Gain on sale of property	0	0	(85)	(12,692)
Total operating expenses	34,704	37,625	104,785	72,055
Operating income (loss)	2,157	1,380	7,819	(8,153)
Other income (expense):
Interest income	22	174	517	430
Interest expense	(10,294)	(10,680)	(32,335)	(19,362)
Other losses, net	(114)	(692)	(832)	(987)
Total other expense	(10,386)	(11,198)	(32,650)	(19,919)
Loss before income taxes	(8,229)	(9,818)	(24,831)	(28,072)
Income tax expense (benefit)	1,420	715	3,956	(71,719)
Gains on investments in affiliates, net of tax	(22)	(200)	(42)	(601)
Net income (loss)	(9,627)	(10,333)	(28,745)	44,248
Less: Preferred dividends on redeemable preferred stock	(525)	(529)	(1,598)	(799)
Net income (loss) attributable to common stockholders	$ (10,152)	$ (10,862)	$ (30,343)	$ 43,449
Basic net earnings (loss) per share attributable to common stockholders (usd per share)	$ (0.17)	$ (0.18)	$ (0.50)	$ 0.75
Diluted net earnings (loss) per share attributable to common stockholders (usd per share)	$ (0.17)	$ (0.18)	$ (0.50)	$ 0.63
Weighted average common shares used in:
Basic earnings per share (in shares)	61,393	60,076	61,111	58,281
Diluted earnings per share (in shares)	61,393	60,076	61,111	78,934

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (9,627)	$ (10,333)	$ (28,745)	$ 44,248
Other comprehensive income (loss):
Foreign currency translation adjustment	(608)	(1,411)	(276)	2,515
Net unrealized holding gain (loss) on securities, net of tax	3	(26)	(86)	(10)
Pension liability adjustments, net of tax	0	0	(64)	26
Other comprehensive gain (loss)	(605)	(1,437)	(426)	2,531
Comprehensive income (loss)	$ (10,232)	$ (11,770)	$ (29,171)	$ 46,779

- 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 STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income
Beginning balance (in shares) at Jul. 31, 2017		55,555,973
Beginning balance at Jul. 31, 2017	$ 62,971	$ 556	$ 7,457,051	$ (7,398,949)	$ 4,313
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	44,248			44,248
Preferred dividends	(799)			(799)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)		6,703
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	3		3
Restricted stock grants (in shares)		5,225,806
Restricted stock grants	47	$ 52
Restricted stock forfeitures (in shares)		(49,382)
Restricted stock forfeitures	0
Share-based compensation	9,657		9,657
Other comprehensive items	2,531				2,531
Ending balance (in shares) at Apr. 30, 2018		60,739,100
Ending balance at Apr. 30, 2018	118,658	$ 608	7,466,706	(7,355,500)	6,844
Beginning balance at Jan. 31, 2018	128,697	$ 603	7,464,451	(7,344,638)	8,281
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(10,333)			(10,333)
Preferred dividends	(529)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)		4,258
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	0		0
Restricted stock grants (in shares)		528,896
Restricted stock grants		$ 5	(5)
Share-based compensation	2,260		2,260
Other comprehensive items	(1,437)				(1,437)
Ending balance (in shares) at Apr. 30, 2018		60,739,100
Ending balance at Apr. 30, 2018	$ 118,658	$ 608	7,466,706	(7,355,500)	6,844
Beginning balance (in shares) at Jul. 31, 2018	60,742,859	60,742,859
Beginning balance at Jul. 31, 2018	$ 107,628	$ 608	7,467,855	(7,363,569)	2,734
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(28,745)			(28,745)
Effect of adoption of accounting standards	6,138			6,138
Equity portion of convertible note	8,200		8,200
Preferred dividends	(1,598)			(1,598)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)		13,794
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	15		15
Restricted stock grants (in shares)		1,045,543
Restricted stock grants		$ 10	(10)
Share-based compensation	1,174		1,174
Other comprehensive items	$ (426)				(426)
Ending balance (in shares) at Apr. 30, 2019	61,802,196	61,802,196
Ending balance at Apr. 30, 2019	$ 92,386	$ 618	7,477,234	(7,387,774)	2,308
Beginning balance at Jan. 31, 2019	94,537	$ 618	7,468,628	(7,377,622)	2,913
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(9,627)			(9,627)
Equity portion of convertible note	8,200		8,200
Preferred dividends	(525)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)		4,389
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	2		2
Share-based compensation	404		404
Other comprehensive items	$ (605)				(605)
Ending balance (in shares) at Apr. 30, 2019	61,802,196	61,802,196
Ending balance at Apr. 30, 2019	$ 92,386	$ 618	$ 7,477,234	$ (7,387,774)	$ 2,308

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ (28,745)	$ 44,248
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	16,331	11,388
Amortization of intangible assets	23,168	12,071
Amortization of deferred financing costs	703	748
Accretion of debt discount	2,741	3,230
Impairment of long-lived assets	469	0
Share-based compensation	1,174	9,657
Other (gains) losses, net	832	(13,137)
Gains on investments in affiliates and impairments	(42)	(601)
Changes in operating assets and liabilities
Accounts receivable, net	(15,111)	30,600
Inventories, net	859	16,350
Prepaid expenses and other current assets	3,548	1,483
Accounts payable and accrued expenses	(2,795)	(32,508)
Refundable and accrued income taxes, net	(2,059)	9,123
Deferred tax assets and liabilities	1,563	(75,775)
Other assets and liabilities	(6,252)	(13,882)
Net cash provided by (used in) operating activities	(3,616)	2,995
Cash flows from investing activities:
Payments to acquire business	0	(469,221)
Additions to property and equipment	(11,840)	(13,610)
Proceeds from the disposition of property and equipment	19	20,747
Proceeds from the sale of trading securities	0	13,775
Proceeds from investments in affiliates	42	601
Net cash used in investing activities	(11,779)	(447,708)
Cash flows from financing activities:
Proceeds from long-term debt	0	393,000
Proceeds from issuance of preferred stock	0	35,000
Proceeds from issuance of Convertible Note	14,940	0
Proceeds from revolving line of credit, net	10,000	6,000
Payments on maturity of Convertible Notes	(63,925)	0
Payment of long-term debt	(13,376)	(1,500)
Payment of deferred financing costs	0	(1,334)
Payment of preferred dividends	(1,598)	(612)
Purchase of the Company's Convertible Notes	(3,700)	0
Repayments on capital lease obligations	(114)	(178)
Proceeds from issuance of common stock	15	3
Net cash provided by (used in) financing activities	(57,758)	430,379
Net effect of exchange rate changes on cash, cash equivalents, and restricted cash	(239)	714
Net decrease in cash, cash equivalents, and restricted cash	(73,392)	(13,620)
Cash, cash equivalents, and restricted cash, beginning of period	103,826	124,124
Cash, cash equivalents, and restricted cash, end of period	$ 30,434	$ 110,504

NATURE OF OPERATIONS	9 Months Ended
NATURE OF OPERATIONS	Apr. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NATURE OF OPERATIONS Steel Connect, Inc. (“Steel Connect” or the “Company”) together with its consolidated subsidiaries, operates through its wholly owned subsidiaries, ModusLink Corporation and ModusLink PTS, Inc. (together “ModusLink” or “Supply Chain“), and IWCO Direct Holdings, Inc. (“IWCO Direct” or “IWCO”). The Company was formerly known as ModusLink Global Solutions, Inc. until it changed its name to Steel Connect, Inc. effective February 27, 2018. ModusLink is a supply chain business process management company serving clients in markets such as consumer electronics, communications, computing, medical devices, software, and retail. ModusLink designs and executes elements in its clients’ global supply chains to improve speed to market, product customization, flexibility, cost, quality and service. The Company also produces and licenses an entitlement management solution for activation, provisioning, entitlement subscription and data collection from physical goods (connected products) and digital products. ModusLink has an integrated network of strategically located facilities with 20 sites operating in 21 languages in various countries, including numerous sites throughout North America, Europe and Asia. The Company previously operated under the names ModusLink Global Solutions, Inc., CMGI, Inc. and CMG Information Services, Inc. and was incorporated in Delaware in 1986. IWCO Direct delivers data-driven marketing solutions for its customers. Its full range of services includes strategy, creative and execution for omnichannel marketing campaigns, along with postal logistics programs for direct mail. Through its Mail-Gard® division, IWCO Direct also offers business continuity and disaster recovery services to protect against unexpected business interruptions, along with providing print and mail outsourcing services. IWCO has administrative offices in Chanhassen, MN. and has three facilities in Chanhassen, MN., one facility in Little Falls, MN., one facility in Warminster, PA. and two facilities in Hamburg PA. Historically, the Company has financed its operations and met its capital requirements primarily through funds generated from operations, the sale of our securities, borrowings from lending institutions, and sale of facilities that were not fully utilized. The Company believes it has access to adequate resources to meet its needs for normal operating costs, capital expenditures, mandatory debt redemptions and working capital for its existing business for at least twelve months from the date of this filing. These resources include cash and cash equivalents, a credit agreement with PNC Bank (the “Credit Agreement”) the possible securitization of European and domestic trade receivables, the revolving credit facility and cash, if any, provided by operating activities. At April 30, 2019 and July 31, 2018, the Company had cash and cash equivalents of $20.4 million and $92.1 million, respectively. As of April 30, 2019, the Company had a deficiency in working capital which was primarily driven by the Company's $10.0 million outstanding on the revolving credit facility, accrued pricing liabilities which the Company believes will not require a cash outlay in the next twelve months and the additional liabilities assumed because of the acquisition of IWCO Direct during December 2017 (the "IWCO Acquisition"). At April 30, 2019, the Company had a readily available borrowing capacity under its revolving credit and security agreement with PNC Bank, National Association of $12.5 million. At April 30, 2019, IWCO had a readily available borrowing capacity under its revolving credit facility by and among MLGS Merger Company, Inc. (“MLGS”), Instant Web, LLC and Cerberus Business Finance, LLC of $15.0 million. Per that certain financing agreement by and among MLGS, Instant Web, LLC, IWCO and Cerberus Business Finance, LLC (the “Financing Agreement”) and the credit facilities provided thereunder, IWCO is permitted to make distributions to Steel Connect, an aggregate amount not to exceed $5.0 million in any fiscal year and pay reasonable documented expenses incurred by Steel Connect. Steel Connect is entitled to receive additional cash remittances under a “U.S. Federal Income Tax Sharing Agreement.” The Company believes it will generate sufficient cash to meet its debt covenants under the Credit Agreement and the Financing Agreement to which certain of its subsidiaries are a party and that it will be able to obtain cash through its current credit facilities and through securitization of certain trade receivables, if needed. As discussed below, the Company's 5.25% Convertible Senior Notes (the "Notes") matured on March 1, 2019, with a balance due of $65.6 million, including interest to the March 1, 2019 maturity date. The total $65.6 million balance due was paid in full by the Company from available cash on-hand and $14.9 million from the proceeds of the 7.50% Convertible Senior Note (the "SPHG Note") transaction entered into on February 28, 2019 (the "SPHG Note Transaction"). The Company’s historical operating results and working capital deficit indicate substantial doubt exists related to the Company’s ability to continue as a going concern. The Company believes that the resources it has in place and has access to, as discussed above, are probable of occurring and mitigating the substantial doubt raised by the Company’s historical operating results and satisfying the Company’s estimated liquidity needs 12 months from the issuance of the financial statements. However, the Company cannot predict, with certainty, the outcome of its actions to generate liquidity, including the availability of additional debt refinancing or factoring of receivables, or whether such actions would generate the expected liquidity as currently planned.

BASIS OF PRESENTATION	9 Months Ended
BASIS OF PRESENTATION	Apr. 30, 2019
Accounting Policies [Abstract]
BASIS OF PRESENTATION	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, 2018, which are contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on December 4, 2018. The results for the three and nine months ended April 30, 2019 are not necessarily indicative of the results to be expected for the full fiscal year. The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. All significant intercompany transactions and balances have been eliminated in consolidation. The Company considers events or transactions that occur after the balance sheet date but before the issuance of financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. For the period ended April 30, 2019, the Company evaluated subsequent events for potential recognition and disclosure through the date these financial statements were filed.

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Apr. 30, 2019
Accounting Policies [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606 or the new standard), 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. On August 1, 2018, the Company adopted this guidance and all the related amendments using the modified retrospective method for all contracts not completed as of the date of adoption. For contracts that were modified before the effective date, the Company reflected the aggregate effect of all modifications when identifying performance obligations and allocating transaction price in accordance with practical expedient ASC 606-10-65-1-(f)-4, which did not have a material effect on the Company’s assessment of the cumulative effect adjustment upon adoption. The Company recognized the cumulative effect of initially applying the new standard as an adjustment to the opening balance of accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The Company expects to adopt the provisions of this guidance on August 1, 2019, using a modified retrospective transition method without restating its prior fiscal year financial statements for comparable amounts. The Company has established an implementation team that has gathered and analyzed a significant portion of our lease contracts. Our implementation efforts include reviewing existing leases and service contracts, which may include embedded leases. Based on preliminary results of the process, which has not been completed, nothing has come to our attention that would indicate that adoption of the new standard will have a material impact on our earnings or shareholders' equity. We expect that the recording of right-of-use assets and associated lease liabilities will have a significant effect on our condensed consolidated balance sheet; however, we are unable to determine an exact amount at this time. We are in the process of evaluating changes to our business processes, systems and controls needed to support recognition and disclosure under the new standard. Further, we are continuing to assess any incremental disclosures that will be required in our consolidated financial statements. In January 2017 the FASB issued ASU 2017, Intangibles-Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment. The revised guidance eliminates Step 2 of the current goodwill impairment test, which requires a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment loss will instead be measured at the amount by which a reporting unit’s carry amount exceeds its fair value, not to exceed the carrying amount of goodwill. The Company has elected to early adopt this standard as of July 31, 2019, the Company’s fiscal year end. Its adoption is not expected to have an impact on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715), which requires that the service cost component of net periodic pension and postretirement benefit cost be presented in the same line item as other employee compensation costs, while the other components be presented separately as non-operating income (expense). This ASU became effective beginning in the first quarter of fiscal year 2019. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). This standard provides an option to reclassify stranded tax effects within accumulated other comprehensive income (loss) to retained earnings due to the U.S. federal corporate income tax rate change in the Tax Cuts and Jobs Act of 2017. This standard was effective for interim and annual reporting periods beginning after December 15, 2018. We did not exercise the option to make this reclassification.

REVENUE RECOGNITION

9 Months Ended

Apr. 30, 2019

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

Adoption of ASC Topic 606, “Revenue from Contracts with Customers”

On August 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of August 1, 2018. Results for reporting periods beginning after August 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 605.

The Company recognizes revenue from its contracts with customers primarily from the sale of supply chain management services and marketing solutions offerings. Revenue is recognized when control of the promised goods or services is transferred to a customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. For ModusLink’s supply chain management services arrangements and IWCO’s marketing solutions offerings, the goods and services are considered to be transferred over time as they are performed. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue.

ModusLink’s revenue primarily comes from the sale of supply chain management services to its clients. Under the new standard, the majority of these arrangements consist of two distinct performance obligations (i.e. a warehousing and inventory management service and a separate kitting, packaging and assembly service), each of which is recognized over time as services are performed using an input method based on the level of efforts expended. A significant portion of ModusLink’s revenue from these arrangements continues to be recognized over time as the services are performed based on an input method of efforts expended which corresponds with the transfer of value to the customer. For the limited population of contracts where the Company previously recognized revenues upon completion of all services and historically recognized revenue at a point in time (generally upon product shipment), the new standard accelerates the recognition of revenue as the Company’s performance enhances assets that the customer controls and therefore revenue is recognized over time based on an input method of efforts expended which corresponds with the transfer of value to the customer.

Revenue from the sale of perpetual licenses sold in ModusLink’s e-Business operations is now recognized at a point in time upon execution of the relevant license agreement and when delivery has taken place.

Revenue recognized related to the majority of IWCO’s marketing solutions offerings, which typically consist of a single integrated performance obligation, is now recognized over time as the Company performs because the products have no alternative use to the Company.

Revenue Recognition

In accordance with Topic 606, revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods or services, and excludes any sales incentives or taxes collected from customers which are subsequently remitted to government authorities. To achieve this core principle, the Company applies the following five steps:

Identify the contract(s) with a customer—A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to those goods or services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company’s arrangements with customers are typically documented within a master services agreement (MSA) together with a statement of work (SOW) or business requirements document (BRD). Depending on the nature of the goods and/or services being provided, a contract will be created at the time that the Company and the customer have entered into an MSA and SOW or BRD, and the Company has received some form of authorization or acknowledgment from the customer as to the request for the specified services. For certain goods and/or services, a contract does not exist until the Company receives a firm order to commence the specified activities. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer.

Identify the performance obligations in the contract—Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, the Company must apply judgment to determine whether promised goods or services are capable of being distinct and distinct in the context of the contract. If these criteria are not met, the promised goods or services are accounted for as a combined performance obligation.

The Company’s contracts typically do not include options that would result in a material right. If options to purchase additional goods or services are included in customer contracts, the Company evaluates the option in order to determine if the Company’s arrangement include promises that may represent a material right and needs to be accounted for as a performance obligation in the contract with the customer.

Determine the transaction price—The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Determining the transaction price requires significant judgment.

Allocate the transaction price to the performance obligations in the contract—If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative standalone selling price (SSP) basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. The Company determines SSP based on the price at which the performance obligation is sold separately. If the SSP is not observable through past transactions, the Company estimates the SSP taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations.


5.	Recognize revenue when (or as) the Company satisfies a performance obligation—The Company satisfies performance obligations either over time or at a point in time as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or service to a customer.

Disaggregation of Revenue

The following table presents the Company’s revenues disaggregated by major good or service line, timing of revenue recognition, and sales channel. The table also includes a reconciliation of the disaggregated revenue with the reportable segments.



	Three Months Ended April 30, 2019
	Americas		Asia		Europe		Direct Marketing		e- Business		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Supply chain management services	$	17,164	$	39,312	$	16,747	$	—	$	4,285	$	77,508
Perpetual software licenses	—		—		—		—		—		—
Marketing solutions offerings	—		—		—		116,006		—		116,006
Other	—		—		—		—		489		489
	$	17,164	$	39,312	$	16,747	$	116,006	$	4,774	$	194,003
Timing of Revenue Recognition
Goods transferred over time	$	—	$	—	$	—	$	116,006	$	—	$	116,006
Services transferred over time	17,164		39,312		16,747		—		4,774		77,997
	$	17,164	$	39,312	$	16,747	$	116,006	$	4,774	$	194,003
Total Revenue
Revenue from contracts with customers	$	17,164	$	39,312	$	16,747	$	116,006	$	4,774	$	194,003
	$	17,164	$	39,312	$	16,747	$	116,006	$	4,774	$	194,003

Over the three month period ended April 30, 2019, the Company had no revenue recognized at a point in time.



	Nine Months Ended April 30, 2019
	Americas		Asia		Europe		Direct Marketing		e- Business		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Supply chain management services	$	51,313	$	128,123	$	56,718	$	—	$	15,146	$	251,300
Perpetual software licenses	—		—		—		—		—		—
Marketing solutions offerings	—		—		—		362,547		—		362,547
Other	—		—		—		—		1,512		1,512
	$	51,313	$	128,123	$	56,718	$	362,547	$	16,658	$	615,359
Timing of Revenue Recognition
Goods transferred over time	$	—	$	—	$	—	$	362,547	$	—	$	362,547
Services transferred over time	51,313		128,123		56,718		—		16,658		252,812
	$	51,313	$	128,123	$	56,718	$	362,547	$	16,658	$	615,359
Total Revenue
Revenue from contracts with customers	$	51,313	$	128,123	$	56,718	$	362,547	$	16,658	$	615,359
	$	51,313	$	128,123	$	56,718	$	362,547	$	16,658	$	615,359

Over the nine month period ended April 30, 2019, the Company had no revenue recognized at a point in time.

Prior period amounts have not been adjusted under the modified retrospective method.

Supply chain management services.

ModusLink’s revenue primarily comes from the sale of supply chain management services to its clients. Amounts billed to customers under these arrangements include revenue attributable to the services performed as well as for materials procured on the customer’s behalf as part of its service to them. The majority of these arrangements consist of two distinct performance obligations (i.e. warehousing/inventory management service and a separate kitting/packaging/assembly service), revenue related to each of which is recognized over time as services are performed using an input method based on the level of efforts expended.

Perpetual software licenses.

Revenue from the sale of perpetual software licenses in the Company’s e-Business operations is recognized at a point in time upon execution of the relevant license agreement and when delivery has taken place.

Marketing solutions offerings.

IWCO’s revenue is generated through the provision of data-driven marketing solutions, primarily through providing direct mail products to customers. Revenue related to the majority of IWCO’s marketing solutions contracts, which typically consist of a single integrated performance obligation, is recognized over time as the Company performs because the products have no alternative use to the Company.

Other.

Other revenue consists of cloud-based software subscriptions, software maintenance and support service contracts, and fees for professional services. Revenue related to these arrangements is recognized on a straight-line basis over the term of the agreement or over the term of the agreement in proportion to the costs incurred in satisfying the obligations under the contract.

Significant Judgments

The Company’s contracts with customers may include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. For arrangements with multiple performance obligations, the Company allocates revenue to each performance obligation based on its relative standalone selling price. Judgment is required to determine the standalone selling price for each distinct performance obligation. The Company generally determines standalone selling prices based on the prices charged to customers and uses a range of amounts to estimate standalone selling prices when we sell each of the products and services separately and need to determine whether there is a discount that needs to be allocated based on the relative standalone selling prices of the various products and services. The Company typically has more than one range of standalone selling prices for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, the Company may use information such as the type of customer and geographic region in determining the range of standalone selling prices.

The Company may provide credits or incentives to customers, which are accounted for as variable consideration when estimating the transaction price of the contract and amounts of revenue to recognize. The amount of variable consideration to include in the transaction price is estimated at contract inception using either the estimated value method or the most likely amount method based on the nature of the variable consideration. These estimates are updated at the end of each reporting period as additional information becomes available and revenue is recognized only to the extent that it is probable that a significant reversal of any amounts of variable consideration included in the transaction price will not occur.

Practical Expedients and Exemptions

The Company has elected to make the following accounting policy elections through the adoption of the following practical expedients:

Right to Invoice

Where applicable, the Company will recognize revenue from a contract with a customer in an amount that corresponds directly with the value to the customer of the Company’s performance completed to date and the amount to which the entity has a right to invoice.

Sales and Other Similar Taxes

The Company will exclude sales taxes and similar taxes from the measurement of transaction price and will ensure that it complies with the disclosure requirements of ASC 235-10-50-1 through 50-6.

Significant Financing Component

The Company will not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less.

Cost to Obtain a Contract

The Company will recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less and there are no renewal periods on which the Company does not pay commissions that are not commensurate with those originally paid.

Promised Goods or Services that are Immaterial in the Context of a Contract

The Company has elected to assess promised goods or services as performance obligations that are deemed to be immaterial in the context of a contract. As such, the Company will not aggregate and assess immaterial items at the entity level. That is, when determining whether a good or service is immaterial in the context of a contract, the assessment will be made based on the application of ASC 606 at the contract level.

Contract Balances

Timing of revenue recognition may differ from timing of invoicing to customers. The Company records contract assets and liabilities related to its contracts with customers as follows:


•	Accounts receivable when revenue is recognized prior to receipt of cash payments and if the right to such amounts is unconditional and solely based on the passage of time.

•

Contract asset when the Company recognizes revenue based on efforts expended but the right to such amount is conditional upon satisfaction of another performance obligation. Contract assets are primarily comprised of fees related to marketing solutions offerings and supply chain management services. The Company notes that its contract assets are all short-term in nature and are included in prepaid expenses and other current assets in the Company’s condensed consolidated balance sheets.

•

Deferred revenue when cash payments are received or due in advance of performance. Deferred revenue is primarily comprised of fees related to supply chain management services, cloud-based software subscriptions and software maintenance and support service contracts, which are generally billed in advance. Deferred revenue also includes other offerings for which we have been paid in advance and earn the revenue when we transfer control of the product or service. The deferred revenue balance is classified as a component of other current liabilities and other long-term liabilities on the Company’s condensed consolidated balance sheets.

The opening balance of contract assets was $24.0 million as of August 1, 2018. As of April 30, 2019, the contract asset balance was $22.4 million, which is recorded as a component of prepaid expenses and other current assets. Contract assets are classified as accounts receivable, trade, upon billing to the customer where such amounts become unconditional.

The opening balance of current deferred revenue and long-term deferred revenue was $3.7 million and $0.2 million, respectively, as of August 1, 2018. As of April 30, 2019, current deferred revenue and long-term deferred revenue was $2.9 million and $0.1 million, respectively.

Changes in deferred revenue during the nine months ended April 30, 2019, were as follows (in thousands):



Nine Months Ended April 30, 2019
Balance at beginning of period	$	3,858
Deferral of revenue	3,583
Recognition of deferred amounts upon satisfaction of performance obligation	(4,415		)
Balance at end of period	$	3,026

We expect to recognize approximately $2.9 million of the unearned amount over the twelve months ended April 30, 2020 and the remaining $0.1 million beyond April 30, 2020.

Assets Recognized from the Costs to Obtain a Contract with a Customer

Prior to the adoption of Topic 606, the Company expensed incremental costs to obtain a contract, which represented commissions, as the liability was incurred. In accordance with Topic 606, the Company recognizes an asset for the incremental costs of obtaining a contract with a customer if the period over which such costs would be amortized is greater than one year. The Company has determined that certain commissions programs meet the requirements to be capitalized. However, as of August 1, 2018, the total commission expense that had been incurred under the commissions programs identified was not material and therefore, the Company determined that no amounts were required to be capitalized at the date of adoption. For the three and nine months ended April 30, 2019, the total commission expense that had been incurred under the commissions programs identified was not material and the Company determined that no amounts were required to be capitalized at April 30, 2019.

The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.

The cumulative effect of the changes made to the Company’s consolidated August 1, 2018 balance sheet for the adoption of Topic 606 were as follows (in thousands):



Balance Sheet
	July 31, 2018			Adjustments Due to ASU 2014-09			August 1, 2018
Assets
Inventories, net	$	47,786		$	(21,233	)	$	26,553
Prepaid expenses and other current assets	13,415			24,041			37,456
Total current assets	264,281			2,808			267,089
Total assets	$	827,050		$	2,808		$	829,858
Liabilities
Other current liabilities	$	42,029		$	(3,330	)	$	38,699
Total current liabilities	276,356			(3,330		)	273,026
Total liabilities	684,230			(3,330		)	680,900
Stockholders’ equity
Accumulated deficit	(7,363,569		)	6,138			(7,357,431		)
Total stockholders’ equity	107,628			6,138			113,766
Total liabilities, contingently redeemable preferred stock and stockholders’ equity	$	827,050		$	2,808		$	829,858

The Company reduced opening accumulated deficit by $6.1 million as of August 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact attributable to the acceleration of revenue related to ModusLink’s supply chain management services arrangements and IWCO’s marketing solutions offerings where the Company previously recognized revenues upon completion of all services and historically recognized revenue at a point in time (generally upon product shipment or when the products were complete). The adoption of ASC 606 primarily resulted in an acceleration of revenue as of August 1, 2018, which in turn generated additional deferred tax liabilities that ultimately reduced the Company’s net deferred tax asset position. As the Company fully reserves its net deferred tax assets in the jurisdictions impacted by the adoption of Topic 606, this impact was offset by a corresponding reduction to the valuation allowance.

In accordance with the requirements of the new standard, the disclosure of the impact of the adoption on the Company’s consolidated balance sheet and statement of operations was as follows (in thousands, except per share amounts):



Balance Sheet:	April 30, 2019
	As Reported			Balances without Adoption of ASC 606			Effect of Change Higher/(Lower)
Assets
Inventories, net	$	25,404		$	47,950		$	(22,546	)
Prepaid expenses and other current assets	33,399			10,975			22,424
Total current assets	202,441			202,563			(122		)
Total assets	$	734,750		$	734,872		$	(122	)
Liabilities
Other current liabilities	$	43,753		$	50,811		$	(7,058	)
Total current liabilities	220,499			227,557			(7,058		)
Total liabilities	607,166			614,224			(7,058		)
Stockholders’ equity
Accumulated deficit	(7,387,774		)	(7,394,710		)	6,936
Total stockholders’ equity	92,386			85,450			6,936
Total liabilities, contingently redeemable preferred stock and stockholders’ equity	$	734,750		$	734,872		$	(122	)



Statement of Operations:	Three Months Ended April 30, 2019
	As Reported			Balances without Adoption of ASC 606			Effect of Change Higher/(Lower)
Net revenue	$	194,003		$	191,514		$	2,489
Cost of revenue	157,142			155,482			1,660
Gross profit	36,861			36,032			829
Loss before income taxes	(8,229		)	(9,058		)	829
Net loss	(9,627		)	(10,456		)	829
Net loss attributable to common stockholders	$	(10,152	)	$	(10,981	)	$	829
Basic and diluted net loss per share attributable to common stockholders:	$	(0.17	)	$	(0.18	)	$	0.01

The impact to revenues for the three month period ended April 30, 2019 was an increase of $2.5 million as a result of applying Topic 606 primarily related to the acceleration of revenue related to IWCO’s marketing solutions arrangements for certain contracts with customers that under Topic 606 are being recognized over time based on an input method of efforts expended which depicts the transfer of value to the customer.



Statement of Operations:	Nine Months Ended April 30, 2019
	As Reported			Balances without Adoption of ASC 606			Effect of Change Higher/(Lower)
Net revenue	$	615,359		$	613,248		$	2,111
Cost of revenue	502,755			501,442			1,313
Gross profit	112,604			111,806			798
Loss before income taxes	(24,831		)	(25,629		)	798
Net loss	(28,745		)	(29,543		)	798
Net loss attributable to common stockholders	$	(30,343	)	$	(31,141	)	$	798
Basic and diluted net loss per share attributable to common stockholders:	$	(0.50	)	$	(0.51	)	$	0.01

The impact to revenues for the nine month period ended April 30, 2019 was an increase of $2.1 million as a result of applying Topic 606 primarily related to the acceleration of revenue related to IWCO’s marketing solutions arrangements for certain contracts with customers that under Topic 606 are being recognized over time based on an input method of efforts expended which depicts the transfer of value to the customer.

INVENTORIES

9 Months Ended

Apr. 30, 2019

Inventory Disclosure [Abstract]

INVENTORIES

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

Inventories, net consisted of the following:



	April 30, 2019		July 31, 2018
	(In thousands)
Raw materials	$	22,262	$	23,208
Work-in-process	460		16,147
Finished goods	2,682		8,431
	$	25,404	$	47,786

The Company continuously monitors inventory balances and records inventory provisions for any excess of the cost of the inventory over its estimated net realizable value. The Company also monitors inventory balances for obsolescence and excess quantities as compared to projected demands. The Company’s inventory methodology is based on assumptions about average shelf life of inventory, forecasted volumes, forecasted selling prices, contractual provisions with its clients, write-down history of inventory and market conditions. While such assumptions may change from period to period, in determining the net realizable value of its inventories, the Company uses the best information available as of the balance sheet date. If actual market conditions are less favorable than those projected, or the Company experiences a higher incidence of inventory obsolescence because of rapidly changing technology and client requirements, additional inventory provisions may be required. Once established, write-downs of inventory are considered permanent adjustments to the cost basis of inventory and cannot be reversed due to subsequent increases in demand forecasts. Accordingly, if inventory previously written down to its net realizable value is subsequently sold, gross profit margins may be favorably impacted. IWCO’s inventory consists primarily of raw materials (paper) used to produce direct mail packages and work-in-process. Finished goods are generally not a significant element of the inventory as they are generally mailed after the production and sorting process.

GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Apr. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

The Company’s goodwill of $257.1 million as of April 30, 2019 relates to the Company’s Direct Marketing reporting unit. The purchase price allocation, associated with the IWCO Acquisition during December 2017, was completed during the 12 months from the acquisition date. Related adjustments made during the nine months ended April 30, 2019 totaled $2.8 million, which primarily related to the re-evaluation of equipment that was idle as of the purchase date.

The following table summarizes the fair value of assets acquired and liabilities assumed at the date of the acquisition:



	As Originally Reported			Adjustments			As Revised
	(In thousands)
Accounts receivable	$	47,841		$	(433	)	$	47,408
Inventory	27,165			5,829			32,994
Other current assets	7,427			3,197			10,624
Property and equipment	87,976			477			88,453
Intangible assets	210,920			2,330			213,250
Goodwill	259,085			(1,957		)	257,128
Other assets	3,040			—			3,040
Accounts payable	(31,069		)	—			(31,069		)
Accrued liabilities and other current liabilities	(35,790		)	(30,368		)	(66,158		)
Customer deposits	(7,829		)	—			(7,829		)
Deferred income taxes	(79,918		)	2,755			(77,163		)
Other liabilities	(19,627		)	18,170			(1,457		)
Total consideration	$	469,221		$	—		$	469,221

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. There were no indicators of impairment identified related to the Company’s Direct Marketing reporting unit during the three months ended April 30, 2019.

Other intangible assets, net, as of April 30, 2019, include trademarks and tradenames with a carrying balance of $11.1 million and customer relationships of $158.7 million. The trademarks and tradenames intangible asset are being amortized on a straight line basis over a 3 years estimated useful life. The customer relationship intangible asset is being amortized on a double-declining basis over an estimated useful life of 15 years. Intangible assets deemed to have finite lives are amortized over their estimated useful lives, where the useful life is the period over which the asset is expected to contribute directly, or indirectly, to its future cash flows. Intangible assets are reviewed for impairment on an interim basis when certain events or circumstances exist. For amortizable intangible assets, impairment exists when the carrying amount of the intangible asset exceeds its fair value. An analysis was performed with no indicators of impairment identified for the Company’s intangible assets at April 30, 2019.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

9 Months Ended

Apr. 30, 2019

Payables and Accruals [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

The following tables reflect the components of “Accrued expenses” and “Other current liabilities”:



	April 30, 2019		July 31, 2018
	(In thousands)
Accrued sales taxes	$	21,790	$	21,390
Accrued other taxes	6,432		8,414
Accrued compensation	20,113		25,603
Accrued interest	287		1,437
Accrued audit, tax and legal	3,747		3,264
Accrued contract labor	1,613		1,932
Accrued worker's compensation	5,078		6,126
Accrued other	18,653		20,260
	$	77,713	$	88,426



	April 30, 2019		July 31, 2018
	(In thousands)
Accrued pricing liabilities	$	18,882	$	18,882
Customer postage deposits	8,857		12,638
Revolving credit facility	10,000		—
Other	6,014		10,509
	$	43,753	$	42,029

As of April 30, 2019 and July 31, 2018, the Company had accrued pricing liabilities of approximately $18.9 million. As previously reported by the Company, several principal adjustments were made to its historic financial statements for periods ending on or before January 31, 2012, the most significant of which related to the treatment of vendor rebates in its pricing policies. Where the retention of a rebate or a mark-up was determined to have been inconsistent with a client contract (collectively referred to as “pricing adjustments”), the Company concluded that these amounts were not properly recorded as revenue. Accordingly, revenue was reduced by an equivalent amount for the period that the rebate was estimated to have been 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 or any of the accrued pricing liabilities based upon the expiration of statutes of limitations or legal relief, and due in part to the nature of the interactions with its clients. The remaining accrued pricing liabilities at April 30, 2019 will be derecognized when there is sufficient information for the Company to conclude that such liabilities are not subject to escheatment and have been extinguished, which may occur through payment, legal release, or other legal or factual determination. The Company has not provided for any provision for interest and or penalties related to escheatment as it has concluded that such is not probable to occur and any potential interest and penalties cannot be reasonably estimated.

DEBT

9 Months Ended

Apr. 30, 2019

Debt Disclosure [Abstract]

DEBT

5.25% Convertible Senior Notes Payable

On March 18, 2014, the Company entered into an indenture (the “Indenture”) with Wells Fargo Bank, National Association, as trustee, relating to the Company’s issuance of $100 million of 5.25% Convertible Senior Notes (the “Notes”). As of July 31, 2018, the net carrying value of the Notes was $64.5 million. The Notes matured on March 1, 2019, with a balance due of $65.6 million, including interest to the March 1, 2019 maturity date. Included in the balance due were notes held by SPH Group Holdings LLC ("SPHG Holdings") in the principal amount of $14.9 million. The total $65.6 million balance due was paid in full by the Company from available cash on-hand, including the $14.9 million from the proceeds of the 7.50% Convertible Senior Note entered into on February 28, 2019, as described below.



	Three Months Ended April 30,				Nine Months Ended April 30,
	2019		2018		2019		2018
	(In thousands)				(In thousands)
Interest expense related to contractual interest coupon	$	286	$	914	$	1,932	$	2,741
Interest expense related to accretion of the discount	430		1,113		2,741		3,230
Interest expense related to debt issuance costs	38		99		243		286
	$	754	$	2,126	$	4,916	$	6,257

During the three months ended April 30, 2019 and 2018, the Company recognized interest expense associated with the Notes of $0.8 million and $2.1 million, respectively. During the nine months ended April 30, 2019 and 2018, the Company recognized interest expense associated with the Notes of $4.9 million and $6.3 million, respectively. The effective interest rate on the Notes, including amortization of debt issuance costs and accretion of the discount, was 13.9%.

PNC Bank Credit Facility

On June 30, 2014, two direct and wholly owned subsidiaries of the Company (the “Borrowers”) and certain subsidiaries of the Borrowers acting as guarantors (the “Guarantors”), entered into a Revolving Credit and Security Agreement (the “Credit Agreement”), as borrowers and guarantors, with PNC Bank, National Association (“PNC Bank”), as a Lender and as agent for the Lenders (“Agent”).

The Credit Agreement had a five (5) year term which was to expire on June 30, 2019. On April 30, 2019, the Borrowers and Guarantors entered into a Second Amendment to Revolving Credit and Security Agreement (the “Second Amendment”) by and among the Borrowers, the Guarantors, the financial institutions named as parties thereto from time to time as lenders (collectively, the “Lenders”) and PNC Bank as Agent. The Second Amendment amends the Credit Agreement in order to, among other things, (i) reduce the aggregate Revolving Commitment Amounts (as defined in the Credit Agreement) of the Lenders and the related Maximum Revolving Advance Amount (as defined in the Credit Agreement) available to Borrowers under the Credit Agreement, from $50.0 million to $25.0 million, and (ii) to extend the maturity of the term under the Credit Agreement by six (6) months from June 30, 2019 to December 31, 2019. The maximum credit commitment of $25.0 million is available for letters of credit (with a sublimit of $5.0 million). 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, (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.

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. At April 30, 2019, the Company had a readily available borrowing capacity under the Credit Agreement of $12.5 million. As of April 30, 2019 and July 31, 2018, the Company did not have any balance outstanding on the Credit Agreement.

Cerberus Credit Facility

On December 15, 2017, MLGS, a wholly owned subsidiary of the Company, entered into a Financing Agreement (the “Financing Agreement”), by and among the MLGS (as the initial borrower), Instant Web, LLC, a Delaware corporation and wholly owned subsidiary of IWCO (as “Borrower”), IWCO, and certain of IWCO’s subsidiaries (together with IWCO, the “Guarantors”), the lenders from time to time party thereto, and Cerberus Business Finance, LLC, as collateral agent and administrative agent for the lenders. MLGS was the initial borrower under the Financing Agreement, but immediately upon the consummation of the IWCO Acquisition, as described above, Borrower became the borrower under the Financing Agreement.

The Financing Agreement provides for $393.0 million term loan facility (the “Term Loan”) and a $25.0 million revolving credit facility (the “Revolving Facility”) (together, the “Cerberus Credit Facility”). Proceeds of the Cerberus Credit Facility were used (i) to finance a portion of the IWCO Acquisition, (ii) to repay certain existing indebtedness of the Borrower and its subsidiaries, (iii) for working capital and general corporate purposes and (iv) to pay fees and expenses related to the Financing Agreement and the IWCO Acquisition.

The Cerberus Credit Facility has a maturity of five years. Borrowings under the Cerberus Credit Facility bear interest, at the Borrower’s option, at a Reference Rate plus 3.75% or a LIBOR Rate plus 6.5%, each as defined the Financing Agreement. The initial interest rate under the Cerberus Credit Facility is at the LIBOR Rate option.

The Term Loan under the Cerberus Credit Facility is repayable in consecutive quarterly installments, each of which will be in an amount equal per quarter of $1.5 million and each such installment to be due and payable, in arrears, on the last day of each calendar quarter, which commenced on March 31, 2018 and ending on the earlier of (a) December 15, 2022 and (b) upon the payment in full of all obligations under the Financing Agreement and the termination of all commitments under the Financing Agreement. Further, the Term Loan would be permanently reduced pursuant to certain mandatory prepayment events including an annual “excess cash flow sweep” of 50% of the consolidated excess cash flow, with a step-down to 25% when the Leverage Ratio (as defined in the Financing agreement) is below 3.50%:1.00; provided that, in any calendar year, any voluntary prepayments of the Term Loan shall be credited against the Borrower’s “excess cash flow” prepayment obligations on a dollar-for-dollar basis for such calendar year. During both the three and nine months ended April 30, 2019, the Company made $8.9 million in excess cash flow payments.

Borrowings under the Financing Agreement are fully guaranteed by the Guarantors and are collateralized by substantially all the assets of the Borrower and the Guarantors and a pledge of all of the issued and outstanding equity interests of each of IWCO’s subsidiaries.

The Financing Agreement contains certain representations, warranties, events of default, mandatory prepayment requirements, as well as certain affirmative and negative covenants customary for financing agreements of this type. These covenants include restrictions on borrowings, investments and dispositions, as well as limitations on the ability of the Borrower and the Guarantors to make certain capital expenditures and pay dividends. Upon the occurrence and during the continuation of an event of default under the Financing Agreement, the lenders under the Financing Agreement may, among other things, terminate all commitments and declare all or a portion of the loans under the Financing Agreement immediately due and payable and increase the interest rate at which loans and obligations under the Financing Agreement bear interest.

At April 30, 2019, IWCO had a readily available borrowing capacity under its Revolving Facility of $15.0 million. As of April 30, 2019, the Company had $10.0 million outstanding on the Revolving Facility. As of July 31, 2018, the Company did not have an outstanding balance on the Revolving Facility. As of April 30, 2019 and July 31, 2018, the principal amount outstanding on the Term Loan was $376.6 million and $390.0 million, respectively. As of April 30, 2019 and July 31, 2018, the current and long-term net carrying value of the Term Loan was $375.7 million and $388.8 million, respectively.



	April 30, 2019			July 31, 2018
	(In thousands)
Principal amount outstanding on the Term Loan	$	376,625		$	390,000
Unamortized debt issuance costs	(958		)	(1,162		)
Net carrying value of the Term Loan	$	375,667		$	388,838

7.50% Convertible Senior Note

On February 28, 2019, the Company entered into that certain 7.50% Convertible Senior Note Due 2024 Purchase Agreement (the "SPHG Note Purchase Agreement") with SPHG Holdings, whereby SPHG Holdings agreed to loan the Company $14.9 million in exchange for a 7.50% Convertible Senior Note due 2024 (the SPHG Note)(the SPHG Note Transaction).

On February 28, 2019, the Company issued the SPHG Note in the amount of $14.9 million to SPHG Holdings. The SPHG Note bears interest at the rate of 7.50% per year, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2019. The SPHG Note will mature on March 1, 2024 (the “SPHG Note Maturity Date”), unless earlier repurchased by the Company or converted by the holder in accordance with their terms prior to such maturity date.

The Company has the right to prepay the SPHG Note at any time, upon 10 days’ prior written notice, in whole or in part, without penalty or premium, at a price equal to 100% of the then outstanding principal amount of the SPHG Note plus accrued and unpaid interest. The SPHG Note is an unsecured and unsubordinated obligation of the Company, and will rank equal in right of payment with the Company’s other unsecured and unsubordinated indebtedness, but will be effectively subordinated in right of payment to any existing and future secured indebtedness and liabilities to the extent of the value of the collateral securing those obligations, and structurally subordinated to the indebtedness and other liabilities of the Company’s subsidiaries. The SPHG Note contains other customary terms and conditions, including customary events of default.

At its election, the Company may pay some or all of the interest due on each interest payment date by increasing the principal amount of the SPHG Note in the amount of such interest due or any portion thereof (such payment of interest by increasing the principal amount of the SPHG Note referred to as (“PIK Interest”), with the remaining portion of the interest due on such interest payment date (or, at the Company’s election, the entire amount of interest then due) to be paid in cash by the Company. Following an increase in the principal amount of the SPHG Note as a result of a payment of PIK Interest, the SPHG Note will bear interest on such increased principal amount from and after the date of such payment of PIK Interest.

SPHG has the right to require the Company to repurchase the SPHG Note upon the occurrence of certain fundamental changes, subject to certain conditions, at a repurchase price equal to 100% of the principal amount of the SPHG Note plus accrued and unpaid interest. The Company will have the right to elect to cause the mandatory conversion of the SPHG Note in whole, and not in part, at any time on or after March 6, 2022, subject to certain conditions including that the stock price of the Company exceeds a certain threshold.

SPHG has the right, at its option, prior to the close of business on the business day immediately preceding the SPHG Note maturity date, to convert the SPHG Note or a portion thereof that is $1,000 or an integral multiple thereof, into shares of common stock (if the Company has not received a required stockholder approval) or cash, shares of common stock or a combination of cash and shares of common stock, as applicable (if the Company has received a required stockholder approval), at an initial conversion rate of 421.2655 shares of common stock, which is equivalent to an initial conversion price of approximately $2.37 per share (subject to adjustment as provided in the SPHG Note) per $1,000 principal amount of the SPHG Note (the “Conversion Rate”), subject to, and in accordance with, the settlement provisions of SPHG Note.

For any conversion of the SPHG Note, if the Company is required to obtain and has not received approval from its stockholders in accordance with NASDAQ Stock Market Rule 5635 to issue 20% or more of the total shares of common stock outstanding upon conversion (including upon any mandatory conversion) of the SPHG Note prior to the relevant conversion date (or, if earlier, the 45th Scheduled trading day immediately preceding the SPHG Note Maturity Date), the Company shall deliver to the converting holder, in respect of each $1,000 principal amount of the SPHG Note being converted, a number of shares of common stock determined by reference to the Conversion Rate, together with a cash payment, if applicable, in lieu of delivering any fractional share of common stock based on the volume weighted average price (VWAP) of its common stock on the relevant conversion date, on the third Business Day immediately following the relevant conversion date.

The Company’s Board of Directors (the "Board") established a special committee (the “Special Committee”), consisting solely of independent directors not affiliated with SPHG Holdings, to review and consider a financing transaction including a transaction with SPHG. The terms and conditions of the SPHG Note Transaction were determined by the Special Committee to be fair and in the best interests of the Company, and the Special Committee recommended that the Board approve the SPHG Note Transaction and the transactions contemplated thereby. The Board approved such transactions. Warren G. Lichtenstein, our Interim Chief Executive Officer and the Executive Chairman of our Board, is also the Executive Chairman of Steel Partners Holdings GP Inc. ("Steel Holdings GP"), the manager of SPHG Holdings. Jack L. Howard and William T. Fejes, Jr., directors of the Company, are also affiliated with Steel Holdings GP. Glen Kassan, a director and our Vice Chairman of the Board and former Chief Administrative Officer, is also affiliated with Steel Holdings GP.

The Company then assessed the features of the SPHG Note and determined that the conversion features should not be bifurcated as a derivative liability, but should be accounted for under the cash conversion subsections of ASC 470.

The Company has valued the debt using similar nonconvertible debt as of the original issuance date of the SPHG Note and bifurcated the conversion option associated with the SPHG Note from the host debt instrument and recorded the conversion option of $8.2 million in stockholders’ equity. The initial value of the equity component, which reflected the equity conversion feature, was equal to the initial debt discount. The resulting debt discount on the SPHG Note is being accreted to interest expense at the effective interest rate over the estimated life of the SPHG Note. 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 were not material. As of April 30, 2019, the if-converted value of the SPHG Note did not exceed the principal value of the SPHG Note. As of April 30, 2019, the remaining period over which the unamortized discount will be amortized is 58 months. As of April 30, 2019, the net carrying value of the SPHG Note was $7.0 million.



	April 30, 2018
	(In thousands)
Carrying amount of equity component	$	8,200

Principal amount of Note	$	14,940
Unamortized debt discount	(7,918		)
Net carrying amount	$	7,022

During both the three and nine months ended April 30, 2019, the Company recognized interest expense associated with the SPHG Note of $0.5 million which includes amortization of debt accretion.



	Three and Nine Months Ended April 30,
	2019
	(In thousands)
Interest expense related to contractual interest coupon	$	193
Interest expense related to accretion of the discount	282
	$	475

The effective interest rate on the SPHG Note, including accretion of the discount, is 18.47%. The SPHG Note bears interest at 7.50%.

CONTINGENCIES	9 Months Ended
CONTINGENCIES	Apr. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES On April 13, 2018, a purported shareholder, Donald Reith, filed a verified complaint, Reith v. Lichtenstein, et al., 2018-0277 (Del. Ch.) in the Delaware Court of Chancery. The complaint alleges class and derivative claims for breach of fiduciary duty and/or aiding and abetting breach of fiduciary duty and unjust enrichment against the Company’s Board, Warren Lichtenstein, Glen Kassan, William T. Fejes, Jack L. Howard, Jeffrey J. Fenton, Philip E. Lengyel and Jeffrey S. Wald; and stockholders Steel Partners Holdings L.P. (“Steel Holdings”), Steel Partners, L.P., SPHG Holdings, Handy & Harman Ltd. and WHX CS Corp. (collectively, “Steel Parties”) in connection with the acquisition of $35 million of the Series C Preferred Stock by SPHG Holdings and equity grants made to Lichtenstein, Howard and Fejes on December 15, 2017 (collectively, “Challenged Transactions”). The Company is named as a nominal defendant. The complaint alleges that although the Challenged Transactions were approved by a Special Committee consisting of the independent members of the Board (Messrs. Fenton, Lengyel and Wald), the Steel Parties dominated and controlled the Special Committee, who approved the Challenged Transactions in breach of their fiduciary duty. Plaintiff alleges that the Challenged Transactions unfairly diluted shareholders and therefore unjustly enriched Steel Holdings, SPHG Holdings and Messrs. Lichtenstein, Howard and Fejes. The complaint also alleges that the Board made misleading disclosures in the Company’s proxy statement for the 2017 meeting in connection with seeking approval to amend the 2010 Incentive Award Plan to authorize the issuance of additional shares to accommodate certain shares underlying the equity grants. Remedies requested include rescission of the Series C Convertible Preferred Stock and equity grants, disgorgement of any unjustly obtained property or compensation, attorneys’ fees and costs and monetary damages. On June 18, 2018, defendants moved to dismiss the complaint for failure to plead demand futility and failure to state a claim. The motions are fully briefed, and argument was held March 5, 2019. On March 5, 2019, the Court of Chancery heard oral argument on (i) the motion to dismiss the Reith complaint and (ii) Ladjevardian’s (see below) motion to intervene and stay. The Court took the motion to dismiss under advisement. Discovery is stayed pending a decision on the motions to dismiss. Because the litigation is at an early stage and motions to dismiss are pending, we are unable at this time to provide a calculation of potential damages or litigation loss that is probable or estimable. Although there can be no assurance as to the ultimate outcome, the defendants believe they have meritorious defenses and intend to defend this litigation vigorously. On January 18, 2019, Mohammad Ladjevardian, a purported shareholder, filed a verified complaint pursuant to 8 Del. C. § 220. The complaint seeks previously demanded books and records concerning the matters in Ladjevardian’s letters dated January 29, 2018, and August 21, 2018. The complaint does not seek money damages, but does request an award of reasonable attorneys’ fees and costs incurred in pursuing the action. Steel Connect filed an answer on February 7, 2019. On February 20, 2019, the Court entered a scheduling order. Trial in this matter is scheduled for June 26, 2019. Ladjevardian moved to intervene in the Reith matter. On March 5, 2019, the Court took the motion under advisement and denied Ladjevardian’s motion to intervene. On March 13, 2019, the court entered an order staying the case indefinitely pending a decision on the motions to dismiss in the case captioned Donald Reith, v. Lichtenstein, et al.

STOCKHOLDERS' EQUITY

9 Months Ended

Apr. 30, 2019

Federal Home Loan Banks [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

Preferred Stock

The Company’s Board has the authority, subject to any limitations prescribed by Delaware law, to issue shares of preferred stock in one or more series and to fix and determine the designation, privileges, preferences and rights and the qualifications, limitations and restrictions of those shares, including dividend rights, conversion rights, voting rights, redemption rights, terms of sinking funds, liquidation preferences and the number of shares constituting any series or the designation of the series, without any further vote or action by the stockholders. Any shares of the Company’s preferred stock so issued may have priority over its common stock with respect to dividend, liquidation and other rights. The Company’s Board may authorize the issuance of preferred stock with voting rights or conversion features that could adversely affect the voting power or other rights of the holders of its common stock. Although the issuance of preferred stock could provide us with flexibility in connection with possible acquisitions and other corporate purposes, under some circumstances, it could have the effect of delaying, deferring or preventing a change of control.

On December 15, 2017, the Company entered into a Preferred Stock Purchase Agreement (the “Purchase Agreement”) with SPHG Holdings, pursuant to which the Company issued 35,000 shares of the Company’s newly created Series C Convertible Preferred Stock, par value $0.01 per share (the “Preferred Stock”), to SPHG Holdings at a price of $1,000 per share, for an aggregate purchase consideration of $35.0 million (the “Preferred Stock Transaction”). The terms, rights, obligations and preferences of the Preferred Stock are set forth in a Certificate of Designations, Preferences and Rights of Series C Convertible Preferred Stock of the Company (the “Series C Certificate of Designations”), which has been filed with the Secretary of State of the State of Delaware.

Under the Series C Certificate of Designations, each share of Preferred Stock can be converted into shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), at an initial conversion price equal to $1.96 per share, subject to appropriate adjustments for any stock dividend, stock split, stock combination, reclassification or similar transaction. Holders of the Preferred Stock will also receive dividends at 6% per annum payable in cash or Common Stock. If at any time the closing bid price of the Company’s Common Stock exceeds 170% of the conversion price for at least five consecutive trading days (subject to appropriate adjustments for any stock dividend, stock split, stock combination, reclassification or similar transaction), the Company has the right to require each holder of Preferred Stock to convert all, or any whole number, of shares of the Preferred Stock into Common Stock.

Upon the occurrence of certain triggering events such as a liquidation, dissolution or winding up of the Company, either voluntary or involuntary, or the merger or consolidation of the Company or significant subsidiary, or the sale of substantially all of the assets or capital stock of the Company or a significant subsidiary, the holders of the Preferred Stock are entitled to receive, prior and in preference to any distribution of any of the assets or funds of the Company to the holders of other equity or equity equivalent securities of the Company other than the Preferred Stock by reason of their ownership thereof, an amount per share in cash equal to the sum of (i) one hundred percent (100%) of the stated value per share of Preferred Stock (initially $1,000 per share) then held by them (as adjusted for any stock split, stock dividend, stock combination or other similar transactions with respect to the Preferred Stock), plus (ii) 100% of all declared but unpaid dividends, and all accrued but unpaid dividends on each such share of Preferred Stock, in each case as the date of the triggering event. On or after December 15, 2022, each holder of Preferred Stock can also require the Company to redeem its Preferred Stock in cash at a price equal to the Liquidation Preference (as defined in Series C Certificate of Designations).

Each holder of Preferred Stock has a vote equal to the number of shares of Common Stock into which its Preferred Stock would be convertible as of the record date, provided that the number of shares voted is based upon a conversion price which is no less than the greater of the book or market value of the Common Stock on the closing date of the purchase of the Preferred Stock. In addition, for so long as the Preferred Stock remains outstanding, the Company will not, directly or indirectly, and including in each case with respect to any significant subsidiary, without the affirmative vote of the holders of a majority of the Preferred Stock (i) liquidate, dissolve or wind up the Company or any significant subsidiary; (ii) consummate any transaction that would constitute or result in a Liquidation Event (as defined in the Series C Certificate of Designations); (iii) effect or consummate any Prohibited Issuance (as defined in the Series C Certificate of Designations); or (iv) create, incur, assume or suffer to exist any Indebtedness (as defined in the Series C Certificate of Designations) of any kind, other than certain existing Indebtedness of the Company and any replacement financing thereto, unless any such replacement financing be on substantially similar terms as such existing Indebtedness.

The Purchase Agreement provides that the Company will use its commercially reasonable efforts to effect the piggyback registration of the Common Stock issuable on the conversion of the Preferred Stock and any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing, with the Securities and Exchange Commission in all states reasonably requested by the holder in accordance with certain enumerated conditions. The Purchase Agreement also contains other representations, warranties and covenants, customary for an issuance of Preferred Stock in a private placement of this nature.

The Preferred Stock Transaction was approved and recommended to the Board by a special committee of the Board (the “Special Committee”) consisting of independent directors not affiliated with Steel Holdings GP, which controls the power to vote and dispose of the securities held by SPHG Holdings and its affiliates.

Common Stock

Each holder of the Company’s common stock is entitled to:


•	one vote per share on all matters submitted to a vote of the stockholders, subject to the rights of any preferred stock that may be outstanding;


•	dividends as may be declared by the Company’s Board out of funds legally available for that purpose, subject to the rights of any preferred stock that may be outstanding; and


•	a pro rata share in any distribution of the Company’s assets after payment or providing for the payment of liabilities and the liquidation preference of any outstanding preferred stock in the event of liquidation.

Holders of the Company’s common stock have no cumulative voting rights, redemption rights or preemptive rights to purchase or subscribe for any shares of its common stock or other securities. All of the outstanding shares of common stock are fully paid and nonassessable. The rights, preferences and privileges of holders of its common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any existing series of preferred stock and any series of preferred stock that the Company may designate and issue in the future. There are no redemption or sinking fund provisions applicable to the Company’s common stock.

The following tables reflect the changes in stockholders' equity for the three months ended April 30, 2019 and 2018 (in thousands):



	Number of Shares	Common Stock		Additional Paid-in Capital		Accumulated Deficit			Accumulated Other Comprehensive Income			Total Stockholders' Equity
Balance at January 31, 2019	61,797,807	$	618	$	7,468,628	$	(7,377,622	)	$	2,913		$	94,537
Net loss	—	—		—		(9,627		)	—			(9,627		)
Equity portion of convertible note	—	—		8,200		—			—			8,200
Preferred dividends	—	—		—		(525		)	—			(525		)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	4,389	—		2		—			—			2
Share-based compensation	—	—		404		—			—			404
Other comprehensive items	—	—		—		—			(605		)	(605		)
Balance at April 30, 2019	61,802,196	$	618	$	7,477,234	$	(7,387,774	)	$	2,308		$	92,386



	Number of Shares	Common Stock		Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Income			Total Stockholders' Equity
Balance at January 31, 2018	60,205,946	$	603	$	7,464,451		$	(7,344,638	)	$	8,281		$	128,697
Net loss	—	—		—			(10,333		)	—			(10,333		)
Preferred dividends	—	—		—			(529		)	—			(529		)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	4,258	—		—			—			—			—
Restricted stock grants	528,896	5		(5		)	—			—			—
Share-based compensation	—	—		2,260			—			—			2,260
Other comprehensive items	—	—		—			—			(1,437		)	(1,437		)
Balance at April 30, 2018	60,739,100	$	608	$	7,466,706		$	(7,355,500	)	$	6,844		$	118,658

OTHER GAINS (LOSSES), NET

9 Months Ended

Apr. 30, 2019

Other Income and Expenses [Abstract]

OTHER GAINS (LOSSES), NET

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



	Three Months Ended April 30,						Nine Months Ended April 30,
	2019			2018			2019			2018
	(In thousands)
Foreign currency exchange losses	$	(33	)	$	720		$	(601	)	$	(1,351	)
Gains, net on trading securities	—			—			—			1,876
Other, net	(81		)	(1,412		)	(231		)	(1,512		)
	$	(114	)	$	(692	)	$	(832	)	$	(987	)

The Company recorded an immaterial amount of foreign exchange losses during the three months ended April 30, 2019 and 2018, respectively. The Company recorded foreign exchange gains of approximately $0.7 million during the three months ended April 30, 2018. For the three months ended April 30, 2019, the net losses primarily related to realized and unrealized gains (losses) from foreign currency exposures and settled transactions of approximately $1.0 million, $(0.2) million and $(0.8) million in Corporate, e-Business and Europe, respectively. For the three months ended April 30, 2018, the net losses primarily related to realized and unrealized gains (losses) from foreign currency exposures and settled transactions of approximately $1.4 million, and $(0.6) million in Corporate and Europe, respectively.

The Company recorded foreign exchange losses of approximately $(0.6) million and $(1.4) million during the nine months ended April 30, 2019 and 2018, respectively. For the nine months ended April 30, 2019, the net losses primarily related to realized and unrealized gains (losses) from foreign currency exposures and settled transactions of approximately $1.6 million, $(0.5) million, $(1.4) million and $(0.4) million in Corporate, Asia, Europe and e-Business, respectively. For the nine months ended April 30, 2018, the net losses primarily related to realized and unrealized gains (losses) from foreign currency exposures and settled transactions of approximately $(0.8) million, $0.4 million and $(1.0) million in Corporate, Europe and Asia, respectively.

During the nine months ended April 30, 2018, the Company recognized $1.9 million in net cash gains associated with its trading securities.

INCOME TAXES	9 Months Ended
INCOME TAXES	Apr. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company operates in multiple taxing jurisdictions, both within and outside of the United States. For the nine months ended April 30, 2019, the Company was profitable in certain jurisdictions, resulting in an income tax expense using enacted rates in those jurisdictions. As of April 30, 2019, the total amount of the liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $1.7 million. As of July 31, 2018, the total amount of the liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $1.6 million. 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 Condensed Consolidated Statements of Operations. As of both April 30, 2019 and July 31, 2018, the liabilities for interest expense related to uncertain tax positions were $0.1 million. The Company has accrued $0.1 million for penalties related to income tax positions. 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, 2013 through July 31, 2018. 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 2009 through 2017 tax years remain subject to examination in most locations, while the Company’s 2005 through 2017 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 Benefits Preservation Plan On March 6, 2018, the Board, subject to approval by the Company’s stockholders, approved an amendment to the Company’s Restated Certificate of Incorporation designed to protect the tax benefits of the Company’s net operating loss carryforwards by preventing certain transfers of our securities that could result in an “ownership change” (as defined under Section 382 of the Code) (the “Protective Amendment”). The Protective Amendment was approved and adopted by the Company’s stockholders at the 2017 Meeting and was filed with the Secretary of State of the State of Delaware on April 12, 2018. The Company had net operating loss carryforwards for federal and state tax purposes of approximately $2.1 billion and $150.6 million, respectively, as of April 30, 2019. The Company’s ability to use its Tax Benefits would be substantially limited if the Company undergoes an “ownership change” (within the meaning of Section 382 of the Internal Revenue Code). The tax plan is intended to prevent an “ownership change” of the Company that would impair the Company ability to utilize its tax benefits. As part of the Tax Plan, the Board declared a dividend of one right (a “Right”) for each share of Common Stock then outstanding. The dividend was payable to holders of record as of the close of business on January 29, 2018. Any shares of Common Stock issued after January 29, 2018, will be issued together with the Rights. Each Right initially represents the right to purchase one one-thousandth of a share of newly created Series D Junior Participating Preferred Stock. Initially, the Rights will be attached to all certificates representing shares of Common Stock then outstanding and no separate rights certificates will be distributed. In the case of book entry shares, the Rights will be evidenced by notations in the book entry accounts. Subject to certain exceptions specified in the Plan, the Rights will separate from the Common Stock and a distribution date (the “Distribution Date”) will occur upon the earlier of (i) ten (10) business days following a public announcement that a stockholder (or group) has become a beneficial owner of 4.99-percent or more of the shares of Common Stock then outstanding and (ii) ten (10) business days (or such later date as the Board determines) following the commencement of a tender offer or exchange offer that would result in a person or group becoming a 4.99 percent stockholder. Pursuant to the Tax Plan and subject to certain exceptions, if a stockholder (or group) becomes a 4.99-percent stockholder after adoption of the Tax Plan, the Rights would generally become exercisable and entitle stockholders (other than the 4.99-percent stockholder or group) to purchase additional shares of the Company at a significant discount, resulting in substantial dilution in the economic interest and voting power of the 4.99-percent stockholder (or group). In addition, under certain circumstances in which the Company is acquired in a merger or other business combination after an non-exempt stockholder (or group) becomes a 4.99-percent stockholder, each holder of the Right (other than the 4.99-percent stockholder or group) would then be entitled to purchase shares of the acquiring company’s common stock at a discount. The Rights are not exercisable until the Distribution Date and will expire at the earliest of (i) 11:59 p.m. on the date that the votes of the stockholders of the Company with respect to the Company’s next annual meeting or special meeting of stockholders are certified (which date will be no later than January 18, 2019 - the annual meeting or special meeting of stockholders did not take place prior to this date ), unless the continuation of the Tax Plan is approved by the affirmative vote of the majority of shares of Common Stock present at such meeting of stockholders (in which case clause (ii) will govern); (ii) 11:59 p.m., on January 18, 2021; (iii) the time at which the Rights are redeemed or exchanged as provided in the Tax Plan; and (iv) the time at which the Board determines that the Tax Plan is no longer necessary or desirable for the preservation of Tax Benefits.

EARNINGS (LOSS) PER SHARE

9 Months Ended

Apr. 30, 2019

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

The Company calculates earnings per share in accordance with ASC Topic 260, “Earnings per Share.” The following table reconciles earnings per share for the three and nine months ended April 30, 2019 and 2018:



	Three Months Ended April 30,						Nine Months Ended April 30,
	2019			2018			2019			2018
	(In thousands, except per share data)
Net income (loss)	$	(9,627	)	$	(10,333	)	$	(28,745	)	$	44,248
Less: Preferred dividends on redeemable preferred stock	(525		)	(529		)	(1,598		)	(799		)
Net income (loss) attributable to common stockholders	(10,152		)	(10,862		)	(30,343		)	43,449
Effect of dilutive securities:
5.25% Convertible Senior Notes	—			—			—			5,248
Redeemable preferred stock	—			—			—			788
Net income (loss) attributable to common stockholders after assumed conversions	$	(10,152	)	$	(10,862	)	$	(30,343	)	$	49,485
Weighted average common shares outstanding	61,393			60,076			61,111			58,281
Weighted average common equivalent shares arising from dilutive stock options, restricted stock, convertible notes and convertible preferred stock	—			—			—			20,653
Weighted average number of common and potential common shares	61,393			60,076			61,111			78,934
Basic net earnings (loss) per share attributable to common stockholders:	$	(0.17	)	$	(0.18	)	$	(0.50	)	$	0.75
Diluted net earnings (loss) per share attributable to common stockholders:	$	(0.17	)	$	(0.18	)	$	(0.50	)	$	0.63

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 shares issuable upon debt or preferred stock conversion (calculated using an as-if converted method).

For the three and nine months ended April 30, 2019, approximately 22.5 million and 19.6 million, respectively, common stock equivalent shares were excluded from the denominator in the calculation of diluted earnings per share as their inclusion would have been antidilutive.

For the three and nine months ended April 30, 2018, approximately 29.6 million and 0.5 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

9 Months Ended

Apr. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

SHARE-BASED PAYMENTS


	SHARE-BASED PAYMENTS

The following table summarizes share-based compensation expense related to employee stock options, employee stock purchases and non-vested shares for the three and nine months ended April 30, 2019 and 2018, which was allocated as follows:



	Three Months Ended April 30,				Nine Months Ended April 30,
	2019		2018		2019		2018
	(In thousands)
Cost of revenue	$	—	$	1	$	—	$	13
Selling, general and administrative	404		2,259		1,174		9,644
	$	404	$	2,260	$	1,174	$	9,657

During December 2017, the Board, upon the recommendation of the Special Committee and the Human Resources and Compensation Committee of the Board, approved equity grants to certain members of the Board, in each case effective upon the closing of the IWCO Acquisition and in consideration for current and future services to the Company.

At April 30, 2019, there was an immaterial amount unrecognized compensation cost related to stock options issued under the Company’s plans. At April 30, 2019, there was approximately $0.5 million of total unrecognized compensation cost related to non-vested share-based compensation awards under the Company’s plans.

COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Apr. 30, 2019

Equity [Abstract]

COMPREHENSIVE INCOME (LOSS)

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

Accumulated other comprehensive items consist of the following:



	Foreign currency items			Pension items			Unrealized gains (losses) on securities			Total
	(In thousands)
Accumulated other comprehensive income (loss) at July 31, 2018	$	6,348		$	(3,795	)	$	181		$	2,734
Foreign currency translation adjustment	(276		)	—						(276		)
Net unrealized holding loss on securities	—			—			(86		)	(86		)
Pension liability adjustments	—			(64		)	—			(64		)
Net current-period other comprehensive loss	(276		)	(64		)	(86		)	(426		)
Accumulated other comprehensive income (loss) at April 30, 2019	$	6,072		$	(3,859	)	$	95		$	2,308

SEGMENT INFORMATION

9 Months Ended

Apr. 30, 2019

Segment Reporting [Abstract]

SEGMENT INFORMATION

The Company has five operating segments: Americas; Asia; Europe; Direct Marketing; 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 five reportable segments: Americas, Asia, Europe, Direct Marketing and e-Business. The Company also has Corporate-level activity, which consists primarily of costs associated with certain corporate administrative functions such as legal, finance, share-based compensation and acquisition costs which are not allocated to the Company’s reportable segments. The Corporate-level balance sheet information includes cash and cash equivalents, 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.

Management evaluates segment performance based on segment net revenue, operating income (loss) and “adjusted operating income (loss)”, which is defined as the operating income (loss) excluding net charges related to depreciation, amortization of intangible assets, long-lived asset impairment, share-based compensation and restructuring. These items are excluded because they may be considered to be of a non-operational or non-cash nature. Historically, the Company has recorded significant impairment and restructuring charges, and therefore management uses adjusted operating income to assist in evaluating the performance of the Company’s core operations.

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



	Three Months Ended April 30,						Nine Months Ended April 30,
	2019			2018			2019			2018
	(In thousands)
Net revenue:
Americas	$	17,164		$	13,061		$	51,313		$	41,664
Asia	39,312			31,820			128,123			111,622
Europe	16,747			22,942			56,718			99,225
Direct Marketing	116,006			120,646			362,547			180,178
e-Business	4,774			5,452			16,658			17,492
	$	194,003		$	193,921		$	615,359		$	450,181
Operating income (loss):
Americas	$	(1,733	)	$	(2,032	)	$	(5,752	)	$	(6,518	)
Asia	3,366			1,903			13,861			21,795
Europe	(1,154		)	(1,770		)	(3,980		)	(8,089		)
Direct Marketing	5,308			9,917			16,770			5,965
e-Business	(1,195		)	(1,646		)	(3,304		)	(4,437		)
Total Segment operating income (loss)	4,592			6,372			17,595			8,716
Corporate-level activity	(2,435		)	(4,992		)	(9,776		)	(16,869		)
Total operating income (loss)	2,157			1,380			7,819			(8,153		)
Total other expense	(10,386		)	(11,198		)	(32,650		)	(19,919		)
Loss before income taxes	$	(8,229	)	$	(9,818	)	$	(24,831	)	$	(28,072	)

For the nine months ended April 30, 2018, the net revenue and operating loss associated with Direct Marketing is for the period from December 15, 2017 to April 30, 2018. For this period, the Direct Marketing operating loss includes certain purchase accounting adjustments associated with the IWCO acquisition.



	April 30, 2019		July 31, 2018
	(In thousands)
Total assets:
Americas	$	23,236	$	22,820
Asia	46,562		44,322
Europe	37,351		37,223
Direct Marketing	601,602		642,820
e-Business	12,256		15,758
Sub-total—segment assets	721,007		762,943
Corporate	13,743		64,107
	$	734,750	$	827,050

Summarized financial information of the Company’s net revenue from external customers by group of services is as follows:



	Three Months Ended April 30,				Nine Months Ended April 30,
	2019		2018		2019		2018
	(In thousands)
Supply chain services	$	73,223	$	67,823	$	236,154	$	252,511
e-Business services	4,774		5,452		16,658		17,492
Direct Marketing	116,006		120,646		362,547		180,178
	$	194,003	$	193,921	$	615,359	$	450,181

As of April 30, 2019, approximately $92.3 million of the Company’s long-lived assets were located in the U.S.A. As of July 31, 2018, approximately $101.8 million of the Company’s long-lived assets were located in the U.S.A.

For the three months ended April 30, 2019, the Company’s net revenues within U.S.A., China and Netherlands were $133.8 million, $32.2 million and $11.5 million, respectively. For the three months ended April 30, 2018, the Company’s net revenues within U.S.A., China and Netherlands were $129.3 million, $24.3 million and $13.3 million, respectively.

For the nine months ended April 30, 2019, the Company’s net revenues within U.S.A., China and Netherlands were $416.2 million, $106.8 million and $40.9 million, respectively. For the nine months ended April 30, 2018, the Company’s net revenues within U.S.A., China and Netherlands were $216.8 million, $87.3 million and $45.1 million, respectively.

RELATED PARTY TRANSACTIONS	9 Months Ended
RELATED PARTY TRANSACTIONS	Apr. 30, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS As of April 30, 2019, SPHG Holdings and its affiliates beneficially owned approximately 52.6% of our outstanding capital stock which includes restricted stock held by Warren G. Lichtenstein, our Interim Chief Executive Officer and the Executive Chairman of our Board, and also the Executive Chairman of Steel Holdings GP. Glen Kassan, a director and our Vice Chairman of the Board and former Chief Administrative Officer, is also affiliated with Steel Holdings GP. Jack L. Howard and William T. Fejes, Jr., directors of the Company, are also affiliated with Steel Holdings GP. SPHG Note Transaction On February 28, 2019, the Company entered into that certain the SPHG Note Purchase Agreement with SPHG Holdings, whereby SPHG Holdings agreed to loan the Company $14.9 million in exchange for a 7.50% Convertible Senior Note due 2024. As of July 31, 2018, SPHG held $14.9 million principal amount of the Company’s 5.25% Convertible Senior Notes. The Notes matured on March 1, 2019, with a balance due of $65.6 million, including interest to the March 1, 2019 maturity date. The total $65.6 million balance due was paid in full by the Company from available cash on-hand and $14.9 million from the proceeds of the SPHG Note Transaction (see note 8). Preferred Stock Transaction and Warrant Repurchase On December 15, 2017, the Company entered into a Preferred Stock Purchase Agreement with SPHG Holdings, pursuant to which the Company issued 35,000 shares of the Company’s newly created Series C Convertible Preferred Stock, par value $0.01 per share, to SPHG Holdings at a price of $1,000 per share, for an aggregate purchase consideration of 35.0 million. The terms, rights, obligations and preferences of the Series C Preferred Stock are set forth in a Certificate of Designations, Preferences and Rights of the Series C Convertible Preferred Stock of the Company, which has been filed with the Secretary of State of the State of Delaware. The Preferred Stock Transaction was approved and recommended to the Board by the Special Committee of the Board. Each member of the Special Committee was independent and not affiliated with Steel Holdings GP, which controls the power to vote and dispose of the securities held by SPHG Holdings and its affiliates. On December 15, 2017, contemporaneously with the closing of the Preferred Stock Transaction, the Company entered into a Warrant Repurchase Agreement with Steel Holdings, an affiliate of SPHG Holdings, pursuant to which the Company repurchased for $100 the warrant to acquire 2,000,000 shares of the Common Stock that the Company had previously issued to Steel Holdings. The Warrant, which was to expire in 2018, was terminated by the Company upon repurchase. Management Services Agreement On September 1, 2017, the Company entered into a Third Amendment to the Management Services Agreement, with Steel Services Ltd. (“Steel Services”) a related party, which reduced the fixed monthly fee paid by the Company to Steel Services under the Management Services Agreement from $175,000 per month to $95,641 per month. The monthly fee is subject to review and adjustment by agreement between the Company and Steel Services for periods commencing in fiscal 2016 and beyond. Additionally, the Company may be required to reimburse Steel Services and its affiliates for all reasonable and necessary business expenses incurred on our behalf in connection with the performance of the services under the Management Services Agreement, including travel expenses. The Management Services Agreement provides that, under certain circumstances, the Company may be required to indemnify and hold harmless Steel Services and its affiliates and employees from any claims or liabilities by a third party in connection with activities or the rendering of services under the Management Services Agreement. Total expenses incurred related to this agreement for the three months ended April 30, 2019 and 2018 were $0.3 million and $0.7 million, respectively. Total expenses incurred related to this agreement for the nine months ended April 30, 2019 and 2018 were $1.0 million and $1.5 million, respectively. As of April 30, 2019 and July 31, 2018, amounts due to Steel Services were $0.1 million and $0.2 million, respectively. The Related Party Transactions Committee of the Board (the “Related Party Transactions Committee”) approved the entry into the Management Services Agreement (and the first two amendments thereto). The Audit Committee of the Board of Directors (the “Audit Committee”) approved the third amendment to the Management Services Agreement. The Related Party Transactions Committee held the responsibility to review, approve and ratify related party transactions from November 20, 2014, until October 11, 2016. On October 11, 2016, the Board adopted a Related Person Transaction Policy that is administered by the Audit Committee and applies to all related party transactions. As of October 11, 2016, the Audit Committee reviews all related party transactions on an ongoing basis, and all such transactions must be approved or ratified by the Audit Committee. Mutual Securities, Inc. (“Mutual Securities”) serves as the broker and record-keeper for all the transactions associated with the trading securities. Mr. Howard, a director of the Company, is a registered principal of Mutual Securities. Commissions charged by Mutual Securities are generally commensurate with commissions charged by other institutional brokers, and the Company believes its use of Mutual Securities is consistent with its desire to obtain best price and execution. During the three and nine months ended April 30, 2019 and 2018, Mutual Securities received an immaterial amount in commissions associated with these transactions.

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES

9 Months Ended

Apr. 30, 2019

Fair Value Disclosures [Abstract]

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, restricted cash, accounts payable, current liabilities and the revolving line of credit approximate fair value because of the short maturity of these instruments. We believe that the carrying value of our long-term debt approximates fair value because the stated interest rates of this debt is consistent with current market rates. 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 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 present the Company’s financial assets measured at fair value on a recurring basis as of April 30, 2019 and July 31, 2018, classified by fair value hierarchy:



			Fair Value Measurements at Reporting Date Using
(In thousands)	April 30, 2019		Level 1		Level 2		Level 3
Assets:
Money market funds	$	365	$	365	$	—	$	—



			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2018		Level 1		Level 2		Level 3
Assets:
Money market funds	$	47,186	$	47,186	$	—	$	—

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

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, customer deposits, accounts payable, restricted cash and debt, and are reflected in the financial statements at cost. With the exception of the SPHG Note, the Notes payable and long-term debt, cost approximates fair value for these items due to their short-term nature. We believe that the carrying value of the liability component of the SPHG Note and our long-term debt approximates fair value because the stated interest rates of this debt is consistent with current market rates.

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 Notes payable which were not carried at fair value:



	July 31, 2018
	Carrying Amount		Fair Value		Fair Value Hierarchy

Notes payable	$	64,530	$	66,658	Level 1

The fair value of the Company’s Notes payable represented the value at which its lenders could trade its debt within the financial markets, and did not represent the settlement value of these 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 were traded and their fair values were 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

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	9 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	Apr. 30, 2019
Accounting Policies [Abstract]
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, 2018, which are contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on December 4, 2018. The results for the three and nine months ended April 30, 2019 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.
Principles of Consolidation	All significant intercompany transactions and balances have been eliminated in consolidation.
Recent Accounting Pronouncements	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606 or the new standard), 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. On August 1, 2018, the Company adopted this guidance and all the related amendments using the modified retrospective method for all contracts not completed as of the date of adoption. For contracts that were modified before the effective date, the Company reflected the aggregate effect of all modifications when identifying performance obligations and allocating transaction price in accordance with practical expedient ASC 606-10-65-1-(f)-4, which did not have a material effect on the Company’s assessment of the cumulative effect adjustment upon adoption. The Company recognized the cumulative effect of initially applying the new standard as an adjustment to the opening balance of accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to put most leases on their balance sheets but recognize expenses on their income statements in a manner similar to today’s accounting. The Company expects to adopt the provisions of this guidance on August 1, 2019, using a modified retrospective transition method without restating its prior fiscal year financial statements for comparable amounts. The Company has established an implementation team that has gathered and analyzed a significant portion of our lease contracts. Our implementation efforts include reviewing existing leases and service contracts, which may include embedded leases. Based on preliminary results of the process, which has not been completed, nothing has come to our attention that would indicate that adoption of the new standard will have a material impact on our earnings or shareholders' equity. We expect that the recording of right-of-use assets and associated lease liabilities will have a significant effect on our condensed consolidated balance sheet; however, we are unable to determine an exact amount at this time. We are in the process of evaluating changes to our business processes, systems and controls needed to support recognition and disclosure under the new standard. Further, we are continuing to assess any incremental disclosures that will be required in our consolidated financial statements. In January 2017 the FASB issued ASU 2017, Intangibles-Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment. The revised guidance eliminates Step 2 of the current goodwill impairment test, which requires a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment loss will instead be measured at the amount by which a reporting unit’s carry amount exceeds its fair value, not to exceed the carrying amount of goodwill. The Company has elected to early adopt this standard as of July 31, 2019, the Company’s fiscal year end. Its adoption is not expected to have an impact on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation—Retirement Benefits (Topic 715), which requires that the service cost component of net periodic pension and postretirement benefit cost be presented in the same line item as other employee compensation costs, while the other components be presented separately as non-operating income (expense). This ASU became effective beginning in the first quarter of fiscal year 2019. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements and related disclosures. In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). This standard provides an option to reclassify stranded tax effects within accumulated other comprehensive income (loss) to retained earnings due to the U.S. federal corporate income tax rate change in the Tax Cuts and Jobs Act of 2017. This standard was effective for interim and annual reporting periods beginning after December 15, 2018. We did not exercise the option to make this reclassification.
Revenue Recognition	The Company recognizes revenue from its contracts with customers primarily from the sale of supply chain management services and marketing solutions offerings. Revenue is recognized when control of the promised goods or services is transferred to a customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. For ModusLink’s supply chain management services arrangements and IWCO’s marketing solutions offerings, the goods and services are considered to be transferred over time as they are performed. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. ModusLink’s revenue primarily comes from the sale of supply chain management services to its clients. Under the new standard, the majority of these arrangements consist of two distinct performance obligations (i.e. a warehousing and inventory management service and a separate kitting, packaging and assembly service), each of which is recognized over time as services are performed using an input method based on the level of efforts expended. A significant portion of ModusLink’s revenue from these arrangements continues to be recognized over time as the services are performed based on an input method of efforts expended which corresponds with the transfer of value to the customer. For the limited population of contracts where the Company previously recognized revenues upon completion of all services and historically recognized revenue at a point in time (generally upon product shipment), the new standard accelerates the recognition of revenue as the Company’s performance enhances assets that the customer controls and therefore revenue is recognized over time based on an input method of efforts expended which corresponds with the transfer of value to the customer. Revenue from the sale of perpetual licenses sold in ModusLink’s e-Business operations is now recognized at a point in time upon execution of the relevant license agreement and when delivery has taken place. Revenue recognized related to the majority of IWCO’s marketing solutions offerings, which typically consist of a single integrated performance obligation, is now recognized over time as the Company performs because the products have no alternative use to the Company.
Inventory	Inventories are stated at the lower of cost or net realizable value. Cost is determined by both the moving average and the first-in, first-out methods. Materials that the Company typically procures on behalf of its clients that are included in inventory include materials such as compact discs, printed materials, manuals, labels, hardware accessories, hard disk drives, phone chassis, consumer packaging, shipping boxes and labels, power cords and cables for client-owned electronic devices.
Inventory Provisions	The Company continuously monitors inventory balances and records inventory provisions for any excess of the cost of the inventory over its estimated net realizable value. The Company also monitors inventory balances for obsolescence and excess quantities as compared to projected demands. The Company’s inventory methodology is based on assumptions about average shelf life of inventory, forecasted volumes, forecasted selling prices, contractual provisions with its clients, write-down history of inventory and market conditions. While such assumptions may change from period to period, in determining the net realizable value of its inventories, the Company uses the best information available as of the balance sheet date. If actual market conditions are less favorable than those projected, or the Company experiences a higher incidence of inventory obsolescence because of rapidly changing technology and client requirements, additional inventory provisions may be required. Once established, write-downs of inventory are considered permanent adjustments to the cost basis of inventory and cannot be reversed due to subsequent increases in demand forecasts. Accordingly, if inventory previously written down to its net realizable value is subsequently sold, gross profit margins may be favorably impacted. IWCO’s inventory consists primarily of raw materials (paper) used to produce direct mail packages and work-in-process. Finished goods are generally not a significant element of the inventory as they are generally mailed after the production and sorting process.
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.
Intangible Assets	The trademarks and tradenames intangible asset are being amortized on a straight line basis over a 3 years estimated useful life. The customer relationship intangible asset is being amortized on a double-declining basis over an estimated useful life of 15 years. Intangible assets deemed to have finite lives are amortized over their estimated useful lives, where the useful life is the period over which the asset is expected to contribute directly, or indirectly, to its future cash flows. Intangible assets are reviewed for impairment on an interim basis when certain events or circumstances exist. For amortizable intangible assets, impairment exists when the carrying amount of the intangible asset exceeds its fair value.
Fair Value of Financial Instruments	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, restricted cash, accounts payable, current liabilities and the revolving line of credit approximate fair value because of the short maturity of these instruments. We believe that the carrying value of our long-term debt approximates fair value because the stated interest rates of this debt is consistent with current market rates. 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 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.

REVENUE RECOGNITION (Tables)

9 Months Ended

Apr. 30, 2019

Revenue from Contract with Customer [Abstract]

Summary of reconciliation of the disaggregated revenue



	Three Months Ended April 30, 2019
	Americas		Asia		Europe		Direct Marketing		e- Business		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Supply chain management services	$	17,164	$	39,312	$	16,747	$	—	$	4,285	$	77,508
Perpetual software licenses	—		—		—		—		—		—
Marketing solutions offerings	—		—		—		116,006		—		116,006
Other	—		—		—		—		489		489
	$	17,164	$	39,312	$	16,747	$	116,006	$	4,774	$	194,003
Timing of Revenue Recognition
Goods transferred over time	$	—	$	—	$	—	$	116,006	$	—	$	116,006
Services transferred over time	17,164		39,312		16,747		—		4,774		77,997
	$	17,164	$	39,312	$	16,747	$	116,006	$	4,774	$	194,003
Total Revenue
Revenue from contracts with customers	$	17,164	$	39,312	$	16,747	$	116,006	$	4,774	$	194,003
	$	17,164	$	39,312	$	16,747	$	116,006	$	4,774	$	194,003

Over the three month period ended April 30, 2019, the Company had no revenue recognized at a point in time.



	Nine Months Ended April 30, 2019
	Americas		Asia		Europe		Direct Marketing		e- Business		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Supply chain management services	$	51,313	$	128,123	$	56,718	$	—	$	15,146	$	251,300
Perpetual software licenses	—		—		—		—		—		—
Marketing solutions offerings	—		—		—		362,547		—		362,547
Other	—		—		—		—		1,512		1,512
	$	51,313	$	128,123	$	56,718	$	362,547	$	16,658	$	615,359
Timing of Revenue Recognition
Goods transferred over time	$	—	$	—	$	—	$	362,547	$	—	$	362,547
Services transferred over time	51,313		128,123		56,718		—		16,658		252,812
	$	51,313	$	128,123	$	56,718	$	362,547	$	16,658	$	615,359
Total Revenue
Revenue from contracts with customers	$	51,313	$	128,123	$	56,718	$	362,547	$	16,658	$	615,359
	$	51,313	$	128,123	$	56,718	$	362,547	$	16,658	$	615,359

Summary of changes in deferred revenue

Changes in deferred revenue during the nine months ended April 30, 2019, were as follows (in thousands):



Nine Months Ended April 30, 2019
Balance at beginning of period	$	3,858
Deferral of revenue	3,583
Recognition of deferred amounts upon satisfaction of performance obligation	(4,415		)
Balance at end of period	$	3,026

Cumulative effect of the changes to consolidated balance sheet for the adoption of topic 606

The cumulative effect of the changes made to the Company’s consolidated August 1, 2018 balance sheet for the adoption of Topic 606 were as follows (in thousands):



Balance Sheet
	July 31, 2018			Adjustments Due to ASU 2014-09			August 1, 2018
Assets
Inventories, net	$	47,786		$	(21,233	)	$	26,553
Prepaid expenses and other current assets	13,415			24,041			37,456
Total current assets	264,281			2,808			267,089
Total assets	$	827,050		$	2,808		$	829,858
Liabilities
Other current liabilities	$	42,029		$	(3,330	)	$	38,699
Total current liabilities	276,356			(3,330		)	273,026
Total liabilities	684,230			(3,330		)	680,900
Stockholders’ equity
Accumulated deficit	(7,363,569		)	6,138			(7,357,431		)
Total stockholders’ equity	107,628			6,138			113,766
Total liabilities, contingently redeemable preferred stock and stockholders’ equity	$	827,050		$	2,808		$	829,858

Impact of the adoption on consolidated balance sheet and statement of operations



Balance Sheet:	April 30, 2019
	As Reported			Balances without Adoption of ASC 606			Effect of Change Higher/(Lower)
Assets
Inventories, net	$	25,404		$	47,950		$	(22,546	)
Prepaid expenses and other current assets	33,399			10,975			22,424
Total current assets	202,441			202,563			(122		)
Total assets	$	734,750		$	734,872		$	(122	)
Liabilities
Other current liabilities	$	43,753		$	50,811		$	(7,058	)
Total current liabilities	220,499			227,557			(7,058		)
Total liabilities	607,166			614,224			(7,058		)
Stockholders’ equity
Accumulated deficit	(7,387,774		)	(7,394,710		)	6,936
Total stockholders’ equity	92,386			85,450			6,936
Total liabilities, contingently redeemable preferred stock and stockholders’ equity	$	734,750		$	734,872		$	(122	)



Statement of Operations:	Three Months Ended April 30, 2019
	As Reported			Balances without Adoption of ASC 606			Effect of Change Higher/(Lower)
Net revenue	$	194,003		$	191,514		$	2,489
Cost of revenue	157,142			155,482			1,660
Gross profit	36,861			36,032			829
Loss before income taxes	(8,229		)	(9,058		)	829
Net loss	(9,627		)	(10,456		)	829
Net loss attributable to common stockholders	$	(10,152	)	$	(10,981	)	$	829
Basic and diluted net loss per share attributable to common stockholders:	$	(0.17	)	$	(0.18	)	$	0.01



Statement of Operations:	Nine Months Ended April 30, 2019
	As Reported			Balances without Adoption of ASC 606			Effect of Change Higher/(Lower)
Net revenue	$	615,359		$	613,248		$	2,111
Cost of revenue	502,755			501,442			1,313
Gross profit	112,604			111,806			798
Loss before income taxes	(24,831		)	(25,629		)	798
Net loss	(28,745		)	(29,543		)	798
Net loss attributable to common stockholders	$	(30,343	)	$	(31,141	)	$	798
Basic and diluted net loss per share attributable to common stockholders:	$	(0.50	)	$	(0.51	)	$	0.01

INVENTORIES (Tables)

9 Months Ended

Apr. 30, 2019

Inventory Disclosure [Abstract]

Schedule of inventories, net

Inventories, net consisted of the following:



	April 30, 2019		July 31, 2018
	(In thousands)
Raw materials	$	22,262	$	23,208
Work-in-process	460		16,147
Finished goods	2,682		8,431
	$	25,404	$	47,786

GOODWILL AND INTANGIBLE ASSETS (Tables)

9 Months Ended

Apr. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Preliminary fair value of assets acquired and liabilities assumed

The following table summarizes the fair value of assets acquired and liabilities assumed at the date of the acquisition:



	As Originally Reported			Adjustments			As Revised
	(In thousands)
Accounts receivable	$	47,841		$	(433	)	$	47,408
Inventory	27,165			5,829			32,994
Other current assets	7,427			3,197			10,624
Property and equipment	87,976			477			88,453
Intangible assets	210,920			2,330			213,250
Goodwill	259,085			(1,957		)	257,128
Other assets	3,040			—			3,040
Accounts payable	(31,069		)	—			(31,069		)
Accrued liabilities and other current liabilities	(35,790		)	(30,368		)	(66,158		)
Customer deposits	(7,829		)	—			(7,829		)
Deferred income taxes	(79,918		)	2,755			(77,163		)
Other liabilities	(19,627		)	18,170			(1,457		)
Total consideration	$	469,221		$	—		$	469,221

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

9 Months Ended

Apr. 30, 2019

Payables and Accruals [Abstract]

Components of Accrued Expenses

The following tables reflect the components of “Accrued expenses” and “Other current liabilities”:



	April 30, 2019		July 31, 2018
	(In thousands)
Accrued sales taxes	$	21,790	$	21,390
Accrued other taxes	6,432		8,414
Accrued compensation	20,113		25,603
Accrued interest	287		1,437
Accrued audit, tax and legal	3,747		3,264
Accrued contract labor	1,613		1,932
Accrued worker's compensation	5,078		6,126
Accrued other	18,653		20,260
	$	77,713	$	88,426

Components of Other Current Liabilities



	April 30, 2019		July 31, 2018
	(In thousands)
Accrued pricing liabilities	$	18,882	$	18,882
Customer postage deposits	8,857		12,638
Revolving credit facility	10,000		—
Other	6,014		10,509
	$	43,753	$	42,029

DEBT (Tables)

9 Months Ended

Apr. 30, 2019

Debt Disclosure [Abstract]

Summary of Interest Expense

During both the three and nine months ended April 30, 2019, the Company recognized interest expense associated with the SPHG Note of $0.5 million which includes amortization of debt accretion.



	Three and Nine Months Ended April 30,
	2019
	(In thousands)
Interest expense related to contractual interest coupon	$	193
Interest expense related to accretion of the discount	282
	$	475

The total $65.6 million balance due was paid in full by the Company from available cash on-hand, including the $14.9 million from the proceeds of the 7.50% Convertible Senior Note entered into on February 28, 2019, as described below.



	Three Months Ended April 30,				Nine Months Ended April 30,
	2019		2018		2019		2018
	(In thousands)				(In thousands)
Interest expense related to contractual interest coupon	$	286	$	914	$	1,932	$	2,741
Interest expense related to accretion of the discount	430		1,113		2,741		3,230
Interest expense related to debt issuance costs	38		99		243		286
	$	754	$	2,126	$	4,916	$	6,257

Schedule of Debt

As of April 30, 2019 and July 31, 2018, the current and long-term net carrying value of the Term Loan was $375.7 million and $388.8 million, respectively.



	April 30, 2019			July 31, 2018
	(In thousands)
Principal amount outstanding on the Term Loan	$	376,625		$	390,000
Unamortized debt issuance costs	(958		)	(1,162		)
Net carrying value of the Term Loan	$	375,667		$	388,838

As of April 30, 2019, the net carrying value of the SPHG Note was $7.0 million.



	April 30, 2018
	(In thousands)
Carrying amount of equity component	$	8,200

Principal amount of Note	$	14,940
Unamortized debt discount	(7,918		)
Net carrying amount	$	7,022

STOCKHOLDERS' EQUITY Stockholders' Equity (Tables)

9 Months Ended

Apr. 30, 2019

Equity [Abstract]

Schedule of Stockholders Equity [Table Text Block]

The following tables reflect the changes in stockholders' equity for the three months ended April 30, 2019 and 2018 (in thousands):



	Number of Shares	Common Stock		Additional Paid-in Capital		Accumulated Deficit			Accumulated Other Comprehensive Income			Total Stockholders' Equity
Balance at January 31, 2019	61,797,807	$	618	$	7,468,628	$	(7,377,622	)	$	2,913		$	94,537
Net loss	—	—		—		(9,627		)	—			(9,627		)
Equity portion of convertible note	—	—		8,200		—			—			8,200
Preferred dividends	—	—		—		(525		)	—			(525		)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	4,389	—		2		—			—			2
Share-based compensation	—	—		404		—			—			404
Other comprehensive items	—	—		—		—			(605		)	(605		)
Balance at April 30, 2019	61,802,196	$	618	$	7,477,234	$	(7,387,774	)	$	2,308		$	92,386



	Number of Shares	Common Stock		Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Income			Total Stockholders' Equity
Balance at January 31, 2018	60,205,946	$	603	$	7,464,451		$	(7,344,638	)	$	8,281		$	128,697
Net loss	—	—		—			(10,333		)	—			(10,333		)
Preferred dividends	—	—		—			(529		)	—			(529		)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	4,258	—		—			—			—			—
Restricted stock grants	528,896	5		(5		)	—			—			—
Share-based compensation	—	—		2,260			—			—			2,260
Other comprehensive items	—	—		—			—			(1,437		)	(1,437		)
Balance at April 30, 2018	60,739,100	$	608	$	7,466,706		$	(7,355,500	)	$	6,844		$	118,658

OTHER GAINS (LOSSES), NET (Tables)

9 Months Ended

Apr. 30, 2019

Other Income and Expenses [Abstract]

Components of Other Gains (Losses), Net

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



	Three Months Ended April 30,						Nine Months Ended April 30,
	2019			2018			2019			2018
	(In thousands)
Foreign currency exchange losses	$	(33	)	$	720		$	(601	)	$	(1,351	)
Gains, net on trading securities	—			—			—			1,876
Other, net	(81		)	(1,412		)	(231		)	(1,512		)
	$	(114	)	$	(692	)	$	(832	)	$	(987	)

EARNINGS (LOSS) PER SHARE (Tables)

9 Months Ended

Apr. 30, 2019

Earnings Per Share [Abstract]

Reconciliation of Earnings Per Share



	Three Months Ended April 30,						Nine Months Ended April 30,
	2019			2018			2019			2018
	(In thousands, except per share data)
Net income (loss)	$	(9,627	)	$	(10,333	)	$	(28,745	)	$	44,248
Less: Preferred dividends on redeemable preferred stock	(525		)	(529		)	(1,598		)	(799		)
Net income (loss) attributable to common stockholders	(10,152		)	(10,862		)	(30,343		)	43,449
Effect of dilutive securities:
5.25% Convertible Senior Notes	—			—			—			5,248
Redeemable preferred stock	—			—			—			788
Net income (loss) attributable to common stockholders after assumed conversions	$	(10,152	)	$	(10,862	)	$	(30,343	)	$	49,485
Weighted average common shares outstanding	61,393			60,076			61,111			58,281
Weighted average common equivalent shares arising from dilutive stock options, restricted stock, convertible notes and convertible preferred stock	—			—			—			20,653
Weighted average number of common and potential common shares	61,393			60,076			61,111			78,934
Basic net earnings (loss) per share attributable to common stockholders:	$	(0.17	)	$	(0.18	)	$	(0.50	)	$	0.75
Diluted net earnings (loss) per share attributable to common stockholders:	$	(0.17	)	$	(0.18	)	$	(0.50	)	$	0.63

SHARE-BASED PAYMENTS (Tables)

9 Months Ended

Apr. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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



	Three Months Ended April 30,				Nine Months Ended April 30,
	2019		2018		2019		2018
	(In thousands)
Cost of revenue	$	—	$	1	$	—	$	13
Selling, general and administrative	404		2,259		1,174		9,644
	$	404	$	2,260	$	1,174	$	9,657

COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Apr. 30, 2019

Equity [Abstract]

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 (loss) at July 31, 2018	$	6,348		$	(3,795	)	$	181		$	2,734
Foreign currency translation adjustment	(276		)	—						(276		)
Net unrealized holding loss on securities	—			—			(86		)	(86		)
Pension liability adjustments	—			(64		)	—			(64		)
Net current-period other comprehensive loss	(276		)	(64		)	(86		)	(426		)
Accumulated other comprehensive income (loss) at April 30, 2019	$	6,072		$	(3,859	)	$	95		$	2,308

SEGMENT INFORMATION (Tables)

9 Months Ended

Apr. 30, 2019

Segment Reporting [Abstract]

Summarized Financial Information of Continuing Operations

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



	Three Months Ended April 30,						Nine Months Ended April 30,
	2019			2018			2019			2018
	(In thousands)
Net revenue:
Americas	$	17,164		$	13,061		$	51,313		$	41,664
Asia	39,312			31,820			128,123			111,622
Europe	16,747			22,942			56,718			99,225
Direct Marketing	116,006			120,646			362,547			180,178
e-Business	4,774			5,452			16,658			17,492
	$	194,003		$	193,921		$	615,359		$	450,181
Operating income (loss):
Americas	$	(1,733	)	$	(2,032	)	$	(5,752	)	$	(6,518	)
Asia	3,366			1,903			13,861			21,795
Europe	(1,154		)	(1,770		)	(3,980		)	(8,089		)
Direct Marketing	5,308			9,917			16,770			5,965
e-Business	(1,195		)	(1,646		)	(3,304		)	(4,437		)
Total Segment operating income (loss)	4,592			6,372			17,595			8,716
Corporate-level activity	(2,435		)	(4,992		)	(9,776		)	(16,869		)
Total operating income (loss)	2,157			1,380			7,819			(8,153		)
Total other expense	(10,386		)	(11,198		)	(32,650		)	(19,919		)
Loss before income taxes	$	(8,229	)	$	(9,818	)	$	(24,831	)	$	(28,072	)

Total Assets of Continuing Operations



	April 30, 2019		July 31, 2018
	(In thousands)
Total assets:
Americas	$	23,236	$	22,820
Asia	46,562		44,322
Europe	37,351		37,223
Direct Marketing	601,602		642,820
e-Business	12,256		15,758
Sub-total—segment assets	721,007		762,943
Corporate	13,743		64,107
	$	734,750	$	827,050

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 April 30,				Nine Months Ended April 30,
	2019		2018		2019		2018
	(In thousands)
Supply chain services	$	73,223	$	67,823	$	236,154	$	252,511
e-Business services	4,774		5,452		16,658		17,492
Direct Marketing	116,006		120,646		362,547		180,178
	$	194,003	$	193,921	$	615,359	$	450,181

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Tables)

9 Months Ended

Apr. 30, 2019

Fair Value Disclosures [Abstract]

Financial Assets Measured at Fair Value on Recurring Basis and Classified by Fair Value Hierarchy

The following tables present the Company’s financial assets measured at fair value on a recurring basis as of April 30, 2019 and July 31, 2018, classified by fair value hierarchy:



			Fair Value Measurements at Reporting Date Using
(In thousands)	April 30, 2019		Level 1		Level 2		Level 3
Assets:
Money market funds	$	365	$	365	$	—	$	—



			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2018		Level 1		Level 2		Level 3
Assets:
Money market funds	$	47,186	$	47,186	$	—	$	—

Notes Payable not Carried at Fair Value

The following table presents the Company’s Notes payable which were not carried at fair value:



	July 31, 2018
	Carrying Amount		Fair Value		Fair Value Hierarchy

Notes payable	$	64,530	$	66,658	Level 1

NATURE OF OPERATIONS - Nature of Operations (Detail)	9 Months Ended
NATURE OF OPERATIONS - Nature of Operations (Detail)	Apr. 30, 2019 USD ($) site facility Language	Mar. 01, 2019 USD ($)	Feb. 28, 2019 USD ($)	Jul. 31, 2018 USD ($)	Mar. 18, 2014 USD ($)
Nature Of Operations [Line Items]
Cash and cash equivalents	$ 20,400,000			$ 92,100,000
Revolving credit facility outstanding	10,000,000			0
Notes payable	0	$ 65,600,000		$ 50,274,000
PNC Bank Credit Facility
Nature Of Operations [Line Items]
Credit facility, readily available borrowing capacity	12,500,000
Cerberus Credit Facility
Nature Of Operations [Line Items]
Credit facility, readily available borrowing capacity	$ 15,000,000
Moduslink
Nature Of Operations [Line Items]
Number of sites \| site	20
Number of languages \| Language	21
IWCO \| Cerberus Credit Facility \| Maximum
Nature Of Operations [Line Items]
Cash distributions permitted	$ 5,000,000
IWCO \| Chanhassen MN
Nature Of Operations [Line Items]
Number of facilities \| facility	3
IWCO \| Little Falls MN
Nature Of Operations [Line Items]
Number of facilities \| facility	1
IWCO \| Warminster PA
Nature Of Operations [Line Items]
Number of facilities \| facility	1
IWCO \| Hamburg PA
Nature Of Operations [Line Items]
Number of facilities \| facility	2
Senior Convertible Notes Due Twenty Nineteen [Member]
Nature Of Operations [Line Items]
Debt instrument, stated interest rate					5.25%
Principal amount					$ 100,000,000
SPHG Holdings \| 7.50% Convertible Senior Debt
Nature Of Operations [Line Items]
Debt instrument, stated interest rate			7.50%
Notes payable			$ 14,900,000
Principal amount	$ 14,940,000		$ 14,900,000

REVENUE RECOGNITION - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018	Aug. 01, 2018	Jul. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract assets	$ 22,400		$ 22,400		$ 24,000
Deferred revenue current	2,900		2,900		3,700
Deferred revenue long-term	100		100		200
Accumulated deficit	(7,387,774)		(7,387,774)		(7,357,431)	$ (7,363,569)
Net revenue	194,003	$ 193,921	615,359	$ 450,181
Difference between Revenue Guidance in Effect before and after Topic 606 \| Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accumulated deficit	6,936		6,936		$ 6,138
Net revenue	$ 2,489		$ 2,111

REVENUE RECOGNITION - Summary of Changes in Deferred Revenue (Detail) $ in Thousands	9 Months Ended
	Apr. 30, 2019 USD ($)
Change in Deferred Revenue
Balance at beginning of period	$ 3,858
Deferral of revenue	3,583
Recognition of deferred amounts upon satisfaction of performance obligation	(4,415)
Balance at end of period	$ 3,026

REVENUE RECOGNITION - Performance Obligations (Details) $ in Millions	Apr. 30, 2019 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-05-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unearned revenue	$ 2.9
Unearned revenue, timing of satisfaction	12 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-05-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unearned revenue	$ 0.1
Unearned revenue, timing of satisfaction

REVENUE RECOGNITION - Cumulative Effect of the Changes to Consolidated Balance Sheet for the Adoption of Topic 606 (Detail) - USD ($) $ in Thousands	Apr. 30, 2019	Jan. 31, 2019	Aug. 01, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Jul. 31, 2017
Assets
Inventories, net	$ 25,404		$ 26,553	$ 47,786
Prepaid expenses and other current assets	33,399		37,456	13,415
Total current assets	202,441		267,089	264,281
Total assets	734,750		829,858	827,050
Liabilities
Other current liabilities	43,753		38,699	42,029
Total current liabilities	220,499		273,026	276,356
Total liabilities	607,166		680,900	684,230
Stockholders' equity
Accumulated deficit	(7,387,774)		(7,357,431)	(7,363,569)
Total stockholders’ equity	92,386	$ 94,537	113,766	107,628	$ 118,658	$ 128,697	$ 62,971
Total liabilities, contingently redeemable preferred stock and stockholders’ equity	734,750		829,858	827,050
Calculated under Revenue Guidance in Effect before Topic 606
Assets
Inventories, net	47,950			47,786
Prepaid expenses and other current assets	10,975			13,415
Total current assets	202,563			264,281
Total assets	734,872			827,050
Liabilities
Other current liabilities	50,811			42,029
Total current liabilities	227,557			276,356
Total liabilities	614,224			684,230
Stockholders' equity
Accumulated deficit	(7,394,710)			(7,363,569)
Total stockholders’ equity	85,450			107,628
Total liabilities, contingently redeemable preferred stock and stockholders’ equity	734,872			$ 827,050
Accounting Standards Update 2014-09 \| Difference between Revenue Guidance in Effect before and after Topic 606
Assets
Inventories, net	(22,546)		(21,233)
Prepaid expenses and other current assets	22,424		24,041
Total current assets	(122)		2,808
Total assets	(122)		2,808
Liabilities
Other current liabilities	(7,058)		(3,330)
Total current liabilities	(7,058)		(3,330)
Total liabilities	(7,058)		(3,330)
Stockholders' equity
Accumulated deficit	6,936		6,138
Total stockholders’ equity	6,936		6,138
Total liabilities, contingently redeemable preferred stock and stockholders’ equity	$ (122)		$ 2,808

REVENUE RECOGNITION - Impact of the Adoption on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Apr. 30, 2019	Jan. 31, 2019	Aug. 01, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Jul. 31, 2017
ASSETS
Inventories, net	$ 25,404		$ 26,553	$ 47,786
Prepaid expenses and other current assets	33,399		37,456	13,415
Total current assets	202,441		267,089	264,281
Total assets	734,750		829,858	827,050
Liabilities
Other current liabilities	43,753		38,699	42,029
Total current liabilities	220,499		273,026	276,356
Total liabilities	607,166		680,900	684,230
Stockholders' equity
Accumulated deficit	(7,387,774)		(7,357,431)	(7,363,569)
Total stockholders’ equity	92,386	$ 94,537	113,766	107,628	$ 118,658	$ 128,697	$ 62,971
Total liabilities, contingently redeemable preferred stock and stockholders’ equity	734,750		829,858	827,050
Calculated under Revenue Guidance in Effect before Topic 606
ASSETS
Inventories, net	47,950			47,786
Prepaid expenses and other current assets	10,975			13,415
Total current assets	202,563			264,281
Total assets	734,872			827,050
Liabilities
Other current liabilities	50,811			42,029
Total current liabilities	227,557			276,356
Total liabilities	614,224			684,230
Stockholders' equity
Accumulated deficit	(7,394,710)			(7,363,569)
Total stockholders’ equity	85,450			107,628
Total liabilities, contingently redeemable preferred stock and stockholders’ equity	734,872			$ 827,050
Accounting Standards Update 2014-09 \| Difference between Revenue Guidance in Effect before and after Topic 606
ASSETS
Inventories, net	(22,546)		(21,233)
Prepaid expenses and other current assets	22,424		24,041
Total current assets	(122)		2,808
Total assets	(122)		2,808
Liabilities
Other current liabilities	(7,058)		(3,330)
Total current liabilities	(7,058)		(3,330)
Total liabilities	(7,058)		(3,330)
Stockholders' equity
Accumulated deficit	6,936		6,138
Total stockholders’ equity	6,936		6,138
Total liabilities, contingently redeemable preferred stock and stockholders’ equity	$ (122)		$ 2,808

REVENUE RECOGNITION - Impact of the Adoption on Consolidated Statement of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue	$ 194,003	$ 193,921	$ 615,359	$ 450,181
Cost of revenue	157,142	154,916	502,755	386,279
Gross profit	36,861	39,005	112,604	63,902
Loss before income taxes	(8,229)	(9,818)	(24,831)	(28,072)
Net loss	(9,627)	(10,333)	(28,745)	44,248
Net loss attributable to common stockholders	$ (10,152)	$ (10,862)	$ (30,343)	$ 43,449
Basic and diluted net loss per share attributable to common stockholders (usd per share)	$ (0.17)	$ (0.18)	$ (0.50)	$ 0.75
Calculated under Revenue Guidance in Effect before Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue	$ 191,514		$ 613,248
Cost of revenue	155,482		501,442
Gross profit	36,032		111,806
Loss before income taxes	(9,058)		(25,629)
Net loss	(10,456)		(29,543)
Net loss attributable to common stockholders	$ (10,981)		$ (31,141)
Basic and diluted net loss per share attributable to common stockholders (usd per share)	$ (0.18)		$ (0.51)
Accounting Standards Update 2014-09 \| Difference between Revenue Guidance in Effect before and after Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue	$ 2,489		$ 2,111
Cost of revenue	1,660		1,313
Gross profit	829		798
Loss before income taxes	829		798
Net loss	829		798
Net loss attributable to common stockholders	$ 829		$ 798
Basic and diluted net loss per share attributable to common stockholders (usd per share)	$ 0.01		$ 0.01

INVENTORIES - Components of Inventories (Detail) - USD ($) $ in Thousands	Apr. 30, 2019	Aug. 01, 2018	Jul. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 22,262		$ 23,208
Work-in-process	460		16,147
Finished goods	2,682		8,431
Inventories, net	$ 25,404	$ 26,553	$ 47,786

GOODWILL AND INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2019	Jul. 31, 2018
Goodwill [Line Items]
Goodwill	$ 257,128	$ 254,352
Adjustments from re-evaluation of equipment	2,800
Trademarks and Trade Names
Goodwill [Line Items]
Intangible assets	$ 11,100
Estimated useful life	3 years
Customer Relationships
Goodwill [Line Items]
Intangible assets	$ 158,700
Estimated useful life	15 years
Direct Marketing
Goodwill [Line Items]
Goodwill	$ 257,100

GOODWILL AND INTANGIBLE ASSETS - Goodwill and Intangible Assets (Detail) $ in Thousands	Apr. 30, 2019 USD ($)
Indefinite-lived Intangible Assets [Line Items]
Accounts receivable	$ 47,408
Inventory	32,994
Other current assets	10,624
Property and equipment	88,453
Intangible assets	213,250
Goodwill	257,128
Other assets	3,040
Accounts payable	(31,069)
Accrued liabilities and other current liabilities	(66,158)
Customer deposits	(7,829)
Deferred income taxes	(77,163)
Other liabilities	(1,457)
Total consideration	469,221
Previously Reported
Indefinite-lived Intangible Assets [Line Items]
Accounts receivable	47,841
Inventory	27,165
Other current assets	7,427
Property and equipment	87,976
Intangible assets	210,920
Goodwill	259,085
Other assets	3,040
Accounts payable	(31,069)
Accrued liabilities and other current liabilities	(35,790)
Customer deposits	(7,829)
Deferred income taxes	(79,918)
Other liabilities	(19,627)
Total consideration	469,221
Restatement Adjustment
Indefinite-lived Intangible Assets [Line Items]
Accounts receivable	(433)
Inventory	5,829
Other current assets	3,197
Property and equipment	477
Intangible assets	2,330
Goodwill	(1,957)
Accrued liabilities and other current liabilities	(30,368)
Deferred income taxes	2,755
Other liabilities	$ 18,170

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components of Accrued Expenses (Detail) - USD ($) $ in Thousands	Apr. 30, 2019	Jul. 31, 2018
Payables and Accruals [Abstract]
Accrued sales taxes	$ 21,790	$ 21,390
Accrued other taxes	6,432	8,414
Accrued compensation	20,113	25,603
Accrued interest	287	1,437
Accrued audit, tax and legal	3,747	3,264
Accrued contract labor	1,613	1,932
Accrued worker's compensation	5,078	6,126
Accrued other	18,653	20,260
Accrued expenses	$ 77,713	$ 88,426

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Apr. 30, 2019	Aug. 01, 2018	Jul. 31, 2018
Payables and Accruals [Abstract]
Accrued pricing liabilities	$ 18,882		$ 18,882
Customer postage deposits	8,857		12,638
Revolving credit facility	10,000		0
Other	6,014		10,509
Other current liabilities	$ 43,753	$ 38,699	$ 42,029

DEBT - Summary of Interest Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
5.25% Convertible Senior Notes Due 2019
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	$ 754	$ 2,126	$ 4,916	$ 6,257
5.25% Convertible Senior Notes Due 2019 \| Coupon Interest
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	286	914	1,932	2,741
5.25% Convertible Senior Notes Due 2019 \| Accretion
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	430	1,113	2,741	3,230
5.25% Convertible Senior Notes Due 2019 \| Amortization of Debt Issue Cost
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	38	$ 99	243	$ 286
SPHG Holdings
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	475		$ 500
SPHG Holdings \| Coupon Interest
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	193
SPHG Holdings \| Accretion
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	$ 282

DEBT - Additional Information (Detail)					3 Months Ended			9 Months Ended
DEBT - Additional Information (Detail)	Feb. 28, 2019 USD ($) $ / shares	Dec. 15, 2017 USD ($)	Dec. 15, 2017	Jun. 30, 2014 USD ($)	Apr. 30, 2019 USD ($)	Apr. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Apr. 30, 2019 USD ($)	Apr. 30, 2018 USD ($)	Mar. 01, 2019 USD ($)	Jul. 31, 2018 USD ($)	Mar. 18, 2014 USD ($)
Debt Instrument [Line Items]
Debt instrument, carrying amount											$ 64,500,000
Notes payable					$ 0			$ 0		$ 65,600,000	50,274,000
Repayments of convertible debt								63,925,000	$ 0
Debt instrument, interest rate, effective percentage	18.47%
Term loan facility								0	393,000,000
ExcessCashFlowPayments								8,900,000
Revolving credit facility outstanding					10,000,000			10,000,000			0
Redemption price percentage	100.00%
Carrying amount of equity component					8,200,000			$ 8,200,000
Unamortized discount, remaining amortization period								58 months
PNC Bank Credit Facility
Debt Instrument [Line Items]
Line of credit facility, term				5 years
Line of credit facility, maximum credit commitment				$ 50,000,000	25,000,000			$ 25,000,000
Line of credit facility, unutilized commitment fee percentage				0.25%
Available borrowing capacity					12,500,000			12,500,000
Balance outstanding					0			0			0
Cerberus Credit Facility
Debt Instrument [Line Items]
Available borrowing capacity					15,000,000			15,000,000
Balance outstanding					0			0			0
Term loan facility		$ 393,000,000
Revolving credit facility		$ 25,000,000
Line of credit facility, interest rate description			Borrowings under the Cerberus Credit Facility bear interest, at the Borrower's option, at a Reference Rate plus 3.75% or a LIBOR Rate plus 6.5%, each as defined the Financing Agreement.
Aggregate amount of each consecutive quarterly scheduled principal installment							$ 1,500,000
Leverage ratio		3.50%	3.50%
London Interbank Offered Rate (LIBOR) \| Cerberus Credit Facility
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate			6.50%
Base Rate \| Cerberus Credit Facility
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate			3.75%
Letter of Credit Sublimit \| PNC Bank Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment					5,000,000			5,000,000
Scenario 1 \| Cerberus Credit Facility
Debt Instrument [Line Items]
Excess cash flow payment percentage		50.00%
Scenario 1 \| London Interbank Offered Rate (LIBOR) \| PNC Bank Credit Facility
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate				2.25%
Scenario 2 \| Cerberus Credit Facility
Debt Instrument [Line Items]
Excess cash flow payment percentage		25.00%
Scenario 2 \| London Interbank Offered Rate (LIBOR) \| PNC Bank Credit Facility
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate				1.00%
Scenario 2 \| Federal Funds Open Rate \| PNC Bank Credit Facility
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate				0.50%
5.25% Convertible Senior Notes Due 2019
Debt Instrument [Line Items]
Principal amount												$ 100,000,000
Debt instrument, stated interest rate												5.25%
Debt instrument, interest expense					$ 754,000	$ 2,126,000		$ 4,916,000	$ 6,257,000
Debt instrument, interest rate, effective percentage					13.90%			13.90%
Term Loan \| Cerberus Credit Facility
Debt Instrument [Line Items]
Long-term debt					$ 375,667,000			$ 375,667,000			388,838,000
Principal amount											390,000,000
Principal amount outstanding					376,625,000			376,625,000			390,000,000
Current and long-term net					375,700,000			375,700,000			$ 388,800,000
Line of Credit \| Cerberus Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment					15,000,000			15,000,000
Revolving credit facility outstanding					10,000,000			10,000,000
SPHG Holdings
Debt Instrument [Line Items]
Debt instrument, interest expense					475,000			500,000
Debt conversion ratio	0.4212655
Debt conversion price (in usd per share) \| $ / shares	$ 2.37
SPHG Holdings \| 7.50% Convertible Senior Debt
Debt Instrument [Line Items]
Principal amount	$ 14,900,000				$ 14,940,000			$ 14,940,000
Debt instrument, stated interest rate	7.50%
Notes payable	$ 14,900,000

DEBT - Net Carrying Value of the Notes (Detail) - USD ($) $ in Thousands	Apr. 30, 2019	Jul. 31, 2018
Interest Expense, Debt [Line Items]
Carrying amount of equity component	$ 8,200
SPHG Holdings \| Convertible Senior Note
Interest Expense, Debt [Line Items]
Unamortized debt discount	(7,918)
Net carrying value of the Term Loan	7,022
Cerberus Credit Facility \| Term Loan
Interest Expense, Debt [Line Items]
Principal amount		$ 390,000
Principal amount outstanding	376,625	390,000
Unamortized debt discount	(958)	(1,162)
Net carrying value of the Term Loan	$ 375,667	$ 388,838

CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Thousands		9 Months Ended
	Dec. 15, 2017	Apr. 30, 2019	Apr. 30, 2018
Contingencies [Line Items]
Proceeds from issuance of preferred stock		$ 0	$ 35,000
Purchase Agreement \| SPHG Holdings \| Series C Convertible Preferred Stock
Contingencies [Line Items]
Proceeds from issuance of preferred stock	$ 35,000

STOCKHOLDERS' EQUITY - Additional Information (Detail) $ / shares in Units, $ in Thousands		9 Months Ended
	Dec. 15, 2017 USD ($) day $ / shares shares	Apr. 30, 2019 USD ($) $ / shares shares	Apr. 30, 2018 USD ($)	Jul. 31, 2018 $ / shares shares
Equity [Line Items]
Preferred stock, shares issued (in shares) \| shares		0		0
Preferred stock, par value (in usd per share)		$ 0.01		$ 0.01
Proceeds from issuance of preferred stock \| $		$ 0	$ 35,000
Common stock, par value (in usd per share)		$ 0.01		$ 0.01
Series C Convertible Preferred Stock
Equity [Line Items]
Common stock, par value (in usd per share)	$ 0.01
Convertible preferred stock conversion price per share (in usd per share)	$ 1.96
Preferred stock, dividend rate, percentage	6.00%
Percentage threshold closing sale price of common stock higher than conversion price	170.00%
Series C Convertible Preferred Stock \| Minimum
Equity [Line Items]
Trading days \| day	5
Purchase Agreement \| SPHG Holdings \| Series C Convertible Preferred Stock
Equity [Line Items]
Preferred stock, shares issued (in shares) \| shares	35,000
Preferred stock, par value (in usd per share)	$ 0.01
Price per share (in usd per share)	$ 1,000
Proceeds from issuance of preferred stock \| $	$ 35,000
Preferred stock preference, percentage of stated value	100.00%
Preferred stock preference, percentage of declared but unpaid dividends	100.00%

STOCKHOLDERS' EQUITY - Changes in stockholders' equity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (shares)			60,742,859
Beginning balance	$ 94,537	$ 128,697	$ 107,628	$ 62,971
Net income (loss)	(9,627)	(10,333)	(28,745)	44,248
Equity portion of convertible note	8,200		8,200
Preferred dividends	(525)	(529)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	2	0	15	3
Restricted stock grants				47
Share-based compensation	404	2,260	1,174	9,657
Other comprehensive items	$ (605)	(1,437)	$ (426)	2,531
Ending balance (shares)	61,802,196		61,802,196
Ending balance	$ 92,386	$ 118,658	$ 92,386	118,658
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance (shares)	61,797,807	60,205,946
Beginning balance	$ 618	$ 603	$ 608	$ 556
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)	4,389	4,258	13,794	6,703
Restricted stock grants (in shares)		528,896	1,045,543	5,225,806
Restricted stock grants		$ 5	$ 10	$ 52
Ending balance (shares)	61,802,196	60,739,100	61,802,196	60,739,100
Ending balance	$ 618	$ 608	$ 618	$ 608
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	7,468,628	7,464,451	7,467,855	7,457,051
Equity portion of convertible note	8,200		8,200
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	2	0	15	3
Restricted stock grants		(5)	(10)
Share-based compensation	404	2,260	1,174	9,657
Ending balance	7,477,234	7,466,706	7,477,234	7,466,706
Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(7,377,622)	(7,344,638)	(7,363,569)	(7,398,949)
Net income (loss)	(9,627)	(10,333)	(28,745)	44,248
Preferred dividends	(525)	(529)
Ending balance	(7,387,774)	(7,355,500)	(7,387,774)	(7,355,500)
Accumulated Other Comprehensive Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	2,913	8,281	2,734	4,313
Other comprehensive items	(605)	(1,437)	(426)	2,531
Ending balance	$ 2,308	$ 6,844	$ 2,308	$ 6,844

OTHER GAINS (LOSSES) , NET - Components of Other Gains (Losses), Net (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Other Income and Expenses [Abstract]
Foreign currency exchange losses	$ (33)	$ 720	$ (601)	$ (1,351)
Gains, net on trading securities	0	0	0	1,876
Other, net	(81)	(1,412)	(231)	(1,512)
Other gains (losses), net	$ (114)	$ (692)	$ (832)	$ (987)

OTHER GAINS (LOSSES) , NET - Other Gains (Losses), Net - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Component Of Other Expense Income Nonoperating [Line Items]
Gains (losses) in trading securities	$ 0	$ 0	$ 0	$ 1,876
Foreign currency exchange gains (losses)	(33)	720	(601)	(1,351)
Corporate Segment
Component Of Other Expense Income Nonoperating [Line Items]
Net realized and unrealized foreign currency exchange gain (losses)	1,000	1,400	1,600	(800)
e-Business services
Component Of Other Expense Income Nonoperating [Line Items]
Net realized and unrealized foreign currency exchange gain (losses)	(200)		(400)
Asia
Component Of Other Expense Income Nonoperating [Line Items]
Net realized and unrealized foreign currency exchange gain (losses)			(500)	(1,000)
Europe
Component Of Other Expense Income Nonoperating [Line Items]
Net realized and unrealized foreign currency exchange gain (losses)	$ (800)	$ (600)	$ (1,400)	400
Cash
Component Of Other Expense Income Nonoperating [Line Items]
Gains (losses) in trading securities				$ 1,900

INCOME TAXES - Additional Information (Detail)	9 Months Ended
INCOME TAXES - Additional Information (Detail)	Apr. 30, 2019 USD ($) day	Jul. 31, 2018 USD ($)
Income Taxes [Line Items]
Unrecognized tax benefits related to federal, state and foreign taxes	$ 1,700,000	$ 1,600,000
Liabilities for interest expense related to uncertain tax positions	100,000	$ 100,000
Income tax penalties accrued	100,000
Expected any unrecognized tax benefits to reverse in the next twelve months	$ 0
Stockholder owning ownership on corporation's securities percentage	5.00%
Stockholder owning ownership on corporation's securities rolling period	3 years
Net operating loss carryforwards for federal tax	$ 2,100,000,000
Net operating loss carryforwards for state tax	$ 150,600,000
Number of business days \| day	10
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%

EARNINGS (LOSS) PER SHARE - Reconciliation of Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Debt Instrument [Line Items]
Net income (loss)	$ (9,627)	$ (10,333)	$ (28,745)	$ 44,248
Less: Preferred dividends on redeemable preferred stock	(525)	(529)	(1,598)	(799)
Net income (loss) attributable to common stockholders	(10,152)	(10,862)	(30,343)	43,449
Effect of dilutive securities:
Net income (loss) attributable to common stockholders after assumed conversions	$ (10,152)	$ (10,862)	$ (30,343)	$ 49,485
Weighted average common shares outstanding (in shares)	61,393	60,076	61,111	58,281
Weighted average common equivalent shares arising from dilutive stock options, restricted stock, convertible notes and convertible preferred stock (in shares)	0	0	0	20,653
Weighted average number of common and potential common shares (in shares)	61,393	60,076	61,111	78,934
Basic net earnings (loss) per share attributable to common stockholders (usd per share)	$ (0.17)	$ (0.18)	$ (0.50)	$ 0.75
Diluted net earnings (loss) per share attributable to common stockholders (usd per share)	$ (0.17)	$ (0.18)	$ (0.50)	$ 0.63
5.25% Convertible Senior Notes Due 2019
Effect of dilutive securities:
Dilutive securities	$ 0	$ 0	$ 0	$ 5,248
Contingent Redeemable Preferred Stock
Effect of dilutive securities:
Dilutive securities	$ 0	$ 0	$ 0	$ 788

EARNINGS (LOSS) PER SHARE - Additional Information (Detail) - shares shares in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Earnings Per Share [Abstract]
Common stock equivalent shares excluded from the denominator in the calculation of diluted loss per share	22.5	29.6	19.6	0.5

SHARE-BASED PAYMENTS - 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		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 404	$ 2,260	$ 1,174	$ 9,657
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	0	1	0	13
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share-based compensation expense	$ 404	$ 2,259	$ 1,174	$ 9,644

SHARE-BASED PAYMENTS - Additional Information (Detail) $ in Millions	Apr. 30, 2019 USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unrecognized compensation cost related to non-vested shares	$ 0.5

Accumulated Other Comprehensive Income Items (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 94,537	$ 128,697	$ 107,628	$ 62,971
Foreign currency translation adjustment	(608)	(1,411)	(276)	2,515
Net unrealized holding loss on securities	3	(26)	(86)	(10)
Pension liability adjustments	0	0	(64)	26
Other comprehensive gain (loss)	(605)	(1,437)	(426)	2,531
Ending balance	92,386	118,658	92,386	118,658
Foreign currency items
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			6,348
Foreign currency translation adjustment			(276)
Net unrealized holding loss on securities			0
Pension liability adjustments			0
Other comprehensive gain (loss)			(276)
Ending balance	6,072		6,072
Pension items
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			(3,795)
Foreign currency translation adjustment			0
Net unrealized holding loss on securities			0
Pension liability adjustments			(64)
Other comprehensive gain (loss)			(64)
Ending balance	(3,859)		(3,859)
Unrealized gains (losses) on securities
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			181
Foreign currency translation adjustment
Net unrealized holding loss on securities			(86)
Pension liability adjustments			0
Other comprehensive gain (loss)			(86)
Ending balance	95		95
Accumulated Other Comprehensive Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	2,913	8,281	2,734	4,313
Other comprehensive gain (loss)	(605)	(1,437)	(426)	2,531
Ending balance	$ 2,308	$ 6,844	$ 2,308	$ 6,844

SEGMENT INFORMATION - Additional Information (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2019 USD ($)	Apr. 30, 2018 USD ($)	Apr. 30, 2019 USD ($) segment	Apr. 30, 2018 USD ($)	Aug. 01, 2018 USD ($)	Jul. 31, 2018 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment			5
Number of reportable segments \| segment			5
Total assets	$ 734,750		$ 734,750		$ 829,858	$ 827,050
Net revenue	194,003	$ 193,921	615,359	$ 450,181
United States
Segment Reporting Information [Line Items]
Total assets	92,300		92,300			$ 101,800
Net revenue	133,800	129,300	416,200	216,800
China
Segment Reporting Information [Line Items]
Net revenue	32,200	24,300	106,800	87,300
Netherlands
Segment Reporting Information [Line Items]
Net revenue	$ 11,500	$ 13,300	$ 40,900	$ 45,100

SEGMENT INFORMATION - Summarized Financial Information of Continuing Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Segment Reporting Information [Line Items]
Revenue from contracts with customers	$ 194,003	$ 193,921	$ 615,359	$ 450,181
Operating income (loss)	2,157	1,380	7,819	(8,153)
Total other income (expense)	(10,386)	(11,198)	(32,650)	(19,919)
Loss before income taxes	(8,229)	(9,818)	(24,831)	(28,072)
Americas
Segment Reporting Information [Line Items]
Revenue from contracts with customers	17,164		51,313
Asia
Segment Reporting Information [Line Items]
Revenue from contracts with customers	39,312		128,123
Europe
Segment Reporting Information [Line Items]
Revenue from contracts with customers	16,747		56,718
Direct Marketing
Segment Reporting Information [Line Items]
Revenue from contracts with customers	116,006		362,547
e-Business services
Segment Reporting Information [Line Items]
Revenue from contracts with customers	4,774		16,658
Operating Segments
Segment Reporting Information [Line Items]
Operating income (loss)	4,592	6,372	17,595	8,716
Operating Segments \| Americas
Segment Reporting Information [Line Items]
Revenue from contracts with customers	17,164	13,061	51,313	41,664
Operating income (loss)	(1,733)	(2,032)	(5,752)	(6,518)
Operating Segments \| Asia
Segment Reporting Information [Line Items]
Revenue from contracts with customers	39,312	31,820	128,123	111,622
Operating income (loss)	3,366	1,903	13,861	21,795
Operating Segments \| Europe
Segment Reporting Information [Line Items]
Revenue from contracts with customers	16,747	22,942	56,718	99,225
Operating income (loss)	(1,154)	(1,770)	(3,980)	(8,089)
Operating Segments \| Direct Marketing
Segment Reporting Information [Line Items]
Revenue from contracts with customers	116,006	120,646	362,547	180,178
Operating income (loss)	5,308	9,917	16,770	5,965
Operating Segments \| e-Business services
Segment Reporting Information [Line Items]
Revenue from contracts with customers	4,774	5,452	16,658	17,492
Operating income (loss)	(1,195)	(1,646)	(3,304)	(4,437)
Corporate-level activity
Segment Reporting Information [Line Items]
Operating income (loss)	$ (2,435)	$ (4,992)	$ (9,776)	$ (16,869)

SEGMENT INFORMATION - Total Assets of Continuing Operations (Detail) - USD ($) $ in Thousands	Apr. 30, 2019	Aug. 01, 2018	Jul. 31, 2018
Segment Reporting Information [Line Items]
Total assets	$ 734,750	$ 829,858	$ 827,050
Operating Segments
Segment Reporting Information [Line Items]
Total assets	721,007		762,943
Operating Segments \| Americas
Segment Reporting Information [Line Items]
Total assets	23,236		22,820
Operating Segments \| Asia
Segment Reporting Information [Line Items]
Total assets	46,562		44,322
Operating Segments \| Europe
Segment Reporting Information [Line Items]
Total assets	37,351		37,223
Operating Segments \| Direct Marketing
Segment Reporting Information [Line Items]
Total assets	601,602		642,820
Operating Segments \| e-Business services
Segment Reporting Information [Line Items]
Total assets	12,256		15,758
Corporate-level activity
Segment Reporting Information [Line Items]
Total assets	$ 13,743		$ 64,107

SEGMENT INFORMATION - Summarized Financial Information of Net Revenue from External Customers by Group of Services (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	$ 194,003	$ 193,921	$ 615,359	$ 450,181
Supply chain services
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	73,223	67,823	236,154	252,511
e-Business services
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	4,774	5,452	16,658	17,492
Direct Marketing
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	$ 116,006	$ 120,646	$ 362,547	$ 180,178

RELATED PARTY TRANSACTIONS (Detail) - USD ($)			3 Months Ended		9 Months Ended		12 Months Ended
RELATED PARTY TRANSACTIONS (Detail) - USD ($)	Dec. 15, 2017	Sep. 01, 2017	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018	Jul. 31, 2017	Mar. 01, 2019	Feb. 28, 2019	Jul. 31, 2018
Related Party Transaction [Line Items]
Notes payable			$ 0		$ 0			$ 65,600,000		$ 50,274,000
Preferred stock, shares issued (in shares)			0		0					0
Preferred stock, par value (in usd per share)			$ 0.01		$ 0.01					$ 0.01
Proceeds from issuance of preferred stock					$ 0	$ 35,000,000
Issuance of warrants to acquire additional shares (in shares)	2,000,000
Steel Holdings \| 5.25% Convertible Senior Notes
Related Party Transaction [Line Items]
Ownership percentage in capital stock			52.60%		52.60%
Principal amount convertible senior notes held of			$ 14,900,000		$ 14,900,000				$ 14,900,000
Debt instrument, stated interest rate			5.25%		5.25%
Steel Holdings \| Repurchase Agreements \| Warrant
Related Party Transaction [Line Items]
Repurchase price of warrant (in usd per share)	$ 100
Purchase Agreement \| SPHG Holdings \| Series C Convertible Preferred Stock
Related Party Transaction [Line Items]
Preferred stock, shares issued (in shares)	35,000
Preferred stock, par value (in usd per share)	$ 0.01
Price per share (in usd per share)	$ 1,000
Proceeds from issuance of preferred stock	$ 35,000,000
Steel Services Ltd. \| Management Services Agreement
Related Party Transaction [Line Items]
Fixed monthly fee to be paid in consideration of services		$ 95,641					$ 175,000
Total expenses incurred related to Management Services Agreement and Transfer Agreement			$ 300,000	$ 700,000	$ 1,000,000	$ 1,500,000
SP Corporate Services Llc and Steel Services Limited \| Management Services Agreement
Related Party Transaction [Line Items]
Amount due to related parties			$ 100,000		$ 100,000					$ 200,000

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Additional Information (Detail)	Apr. 30, 2019
Fair Value Disclosures [Abstract]
Defined benefit plans assets percentage invested in bank-managed portfolios	100.00%

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Financial Assets Measured at Fair Value on Recurring Basis and Classified by Fair Value Hierarchy (Detail) - Fair Value, Measurements, Recurring - Money market funds - USD ($) $ in Thousands	Apr. 30, 2019	Jul. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 365	$ 47,186
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	365	47,186
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	0	0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 0	$ 0

FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES - Notes Payable not Carried at Fair Value (Detail) $ in Thousands	Jul. 31, 2018 USD ($)
Fair Value Disclosures [Abstract]
Notes payable	$ 64,530
Notes payable, fair value	$ 66,658

REVENUE RECOGNITION - Disaggregated Revenue (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Apr. 30, 2019	Apr. 30, 2018	Apr. 30, 2019	Apr. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 194,003,000	$ 193,921,000	$ 615,359,000	$ 450,181,000
Transferred at point in time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Supply chain management services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	77,508,000		251,300,000
Perpetual software licenses
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	116,006,000		362,547,000
Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	489,000		1,512,000
Goods \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	116,006,000		362,547,000
Services \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	77,997,000		252,812,000
Americas
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	17,164,000		51,313,000
Americas \| Supply chain management services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	17,164,000		51,313,000
Americas \| Perpetual software licenses
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Americas \| Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Americas \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Americas \| Goods \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Americas \| Services \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	17,164,000		51,313,000
Asia
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	39,312,000		128,123,000
Asia \| Supply chain management services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	39,312,000		128,123,000
Asia \| Perpetual software licenses
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Asia \| Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Asia \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Asia \| Goods \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Asia \| Services \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	39,312,000		128,123,000
Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	16,747,000		56,718,000
Europe \| Supply chain management services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	16,747,000		56,718,000
Europe \| Perpetual software licenses
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Europe \| Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Europe \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Europe \| Goods \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Europe \| Services \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	16,747,000		56,718,000
Direct Marketing
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	116,006,000		362,547,000
Direct Marketing \| Supply chain management services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Direct Marketing \| Perpetual software licenses
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Direct Marketing \| Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	116,006,000		362,547,000
Direct Marketing \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
Direct Marketing \| Goods \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	116,006,000		362,547,000
Direct Marketing \| Services \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
e-Business services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	4,774,000		16,658,000
e-Business services \| Supply chain management services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	4,285,000		15,146,000
e-Business services \| Perpetual software licenses
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
e-Business services \| Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
e-Business services \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	489,000		1,512,000
e-Business services \| Goods \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0		0
e-Business services \| Services \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 4,774,000		$ 16,658,000