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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jan. 31, 2020	Mar. 01, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
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		62,375,558

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
ASSETS
Cash and cash equivalents	$ 30,197	$ 32,548
Accounts receivable, trade, net of allowance for doubtful accounts of $334 and $1,804 at January 31, 2020 and July 31, 2019, respectively	118,291	112,141
Inventories, net	24,241	23,674
Funds held for clients	15,977	13,516
Prepaid expenses and other current assets	34,828	31,445
Total current assets	223,534	213,324
Property and equipment, net	90,088	91,268
Goodwill	257,128	257,128
Other intangible assets, net	148,334	162,518
Operating right-of-use assets	61,650
Other assets	8,161	7,325
Total assets	788,895	731,563
LIABILITIES, CONTINGENTLY REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY
Accounts payable	86,148	85,898
Accrued expenses	109,760	112,658
Funds held for clients	15,977	13,516
Current portion of long-term debt	5,734	5,732
Current lease obligations	14,788	127
Other current liabilities	35,706	38,919
Total current liabilities	268,113	256,850
Convertible Note payable	8,262	7,432
Long-term debt, excluding current portion	365,638	368,505
Long-term lease obligations	48,133
Other long-term liabilities	9,753	10,898
Total long-term liabilities	431,786	386,835
Total liabilities	699,899	643,685
Contingently redeemable preferred stock, $0.01 par value per share. 35,000 shares authorized, issued and outstanding at January 31, 2020 and July 31, 2019	35,181	35,186
Stockholders' equity:
Preferred stock, $0.01 par value per share. 4,965,000 shares authorized at January 31, 2020 and July 31, 2019; zero shares issued and outstanding at January 31, 2020 and July 31, 2019	0	0
Common stock, $0.01 par value per share. Authorized 1,400,000,000 shares; 62,375,558 issued and outstanding shares at January 31, 2020; 61,805,856 issued and outstanding shares at July 31, 2019	624	618
Additional paid-in capital	7,477,697	7,477,327
Accumulated deficit	(7,426,119)	(7,426,287)
Accumulated other comprehensive income	1,613	1,034
Total stockholders' equity	53,815	52,692
Total liabilities, contingently redeemable preferred stock and stockholders' equity	$ 788,895	$ 731,563

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
Accounts receivable, trade, allowance for doubtful accounts	$ 334	$ 1,804
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)	62,375,558	61,805,856
Common stock, shares outstanding (in shares)	62,375,558	61,805,856
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		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Condensed Income Statements, Captions [Line Items]
Net revenue:	$ 215,452	$ 206,223	$ 440,605	$ 421,356
Cost of revenue	170,203	168,680	351,110	345,613
Gross profit	45,249	37,543	89,495	75,743
Operating expenses:
Selling, general and administrative	31,165	27,626	53,392	54,191
Amortization of intangible assets	6,911	7,791	14,188	15,890
Total operating expenses	38,076	35,417	67,580	70,081
Operating income	7,173	2,126	21,915	5,662
Other income (expense):
Interest income	14	172	30	495
Interest expense	(8,733)	(10,984)	(17,902)	(22,041)
Other losses, net	(823)	(1,662)	(265)	(718)
Total other expense	(9,542)	(12,474)	(18,137)	(22,264)
Income (loss) before income taxes	(2,369)	(10,348)	3,778	(16,602)
Income tax expense	1,188	1,405	2,543	2,536
Gains on investments in affiliates, net of tax	0	0	0	(20)
Net income (loss)	(3,557)	(11,753)	1,235	(19,118)
Less: Preferred dividends on redeemable preferred stock	(531)	(536)	(1,067)	(1,073)
Net income (loss) attributable to common stockholders	$ (4,088)	$ (12,289)	$ 168	$ (20,191)
Basic net earnings (loss) per share attributable to common stockholders	$ (0.07)	$ (0.20)	$ 0.00	$ (0.33)
Diluted net earnings (loss) per share attributable to common stockholders	$ (0.07)	$ (0.20)	$ 0.00	$ (0.33)
Weighted average common shares used in:
Basic earnings (loss) per share	61,538	60,935	61,469	60,974
Diluted earnings (loss) per share	61,538	60,935	61,482	60,974
Services
Condensed Income Statements, Captions [Line Items]
Net revenue:	$ 92,335	$ 87,776	$ 184,485	$ 174,815
Goods
Condensed Income Statements, Captions [Line Items]
Net revenue:	$ 123,117	$ 118,447	$ 256,120	$ 246,541

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (3,557)	$ (11,753)	$ 1,235	$ (19,118)
Other comprehensive income (loss):
Foreign currency translation adjustment	664	1,952	677	332
Net unrealized holding loss on securities, net of tax	(96)	(74)	(96)	(89)
Pension liability adjustments, net of tax	0	(469)	(2)	(64)
Other comprehensive income (loss)	568	1,409	579	179
Comprehensive income (loss)	$ (2,989)	$ (10,344)	$ 1,814	$ (18,939)

- 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	Retained Earnings	Accumulated Other Comprehensive Income
Beginning balance (in shares) at Jul. 31, 2018		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 income (loss)	(19,118)			(19,118)
Effect of adoption of ASC 606 on August 1, 2018, net of taxes	6,138
Preferred dividends	(1,073)			(1,073)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)		9,405
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	13		13
Restricted stock grants (in shares)		1,045,543
Restricted stock grants		$ 10	(10)
Share-based compensation	770		770
Other comprehensive items	179				179
Ending balance (in shares) at Jan. 31, 2019		61,797,807.000
Ending balance at Jan. 31, 2019	94,537	$ 618	7,468,628	(7,377,622)	2,913
Beginning balance (in shares) at Oct. 31, 2018		61,386,888
Beginning balance at Oct. 31, 2018	105,433	$ 614	7,468,647	(7,365,332)	1,504
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(11,753)			(11,753)
Preferred dividends	(537)
Preferred dividends	(536)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)		6,298
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	7		7
Restricted stock grants (in shares)		404,621
Restricted stock grants	0	$ 4	(4)
Share-based compensation	(22)		(22)
Other comprehensive items	1,409				1,409
Ending balance (in shares) at Jan. 31, 2019		61,797,807.000
Ending balance at Jan. 31, 2019	$ 94,537	$ 618	7,468,628	(7,377,622)	2,913
Beginning balance (in shares) at Jul. 31, 2019	61,805,856	61,805,856
Beginning balance at Jul. 31, 2019	$ 52,692	$ 618	7,477,327	(7,426,287)	1,034
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	1,235			1,235
Preferred dividends	(1,067)			(1,067)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)		9,179
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	4		4
Restricted stock grants (in shares)		560,523
Restricted stock grants		$ 6	(6)
Share-based compensation	372		372
Other comprehensive items	$ 579				579
Ending balance (in shares) at Jan. 31, 2020	62,375,558	62,375,558
Ending balance at Jan. 31, 2020	$ 53,815	$ 624	7,477,697	(7,426,119)	1,613
Beginning balance (in shares) at Oct. 31, 2019		61,810,253
Beginning balance at Oct. 31, 2019	57,137	$ 618	7,477,505	(7,422,031)	1,045
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(3,557)			(3,557)
Preferred dividends	(531)			(531)
Preferred dividends	(531)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)		4,782
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises	2		2
Restricted stock grants (in shares)		560,523
Restricted stock grants		$ 6	(6)
Share-based compensation	196		196
Other comprehensive items	$ 568				568
Ending balance (in shares) at Jan. 31, 2020	62,375,558	62,375,558
Ending balance at Jan. 31, 2020	$ 53,815	$ 624	$ 7,477,697	$ (7,426,119)	$ 1,613

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ 1,235	$ (19,118)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation	11,374	10,451
Amortization of intangible assets	14,188	15,890
Amortization of deferred financing costs	146	511
Accretion of debt discount	830	2,311
Impairment of long-lived assets	0	432
Share-based compensation	372	770
Other losses, net	265	718
Gains on investments in affiliates	0	(20)
Changes in operating assets and liabilities
Accounts receivable, net	(6,157)	(4,618)
Inventories, net	(606)	(2,961)
Prepaid expenses and other current assets	(3,258)	3,593
Accounts payable and accrued expenses	(2,712)	8,129
Refundable and accrued income taxes, net	55	(1,833)
Other assets and liabilities	(859)	1,209
Net cash provided by operating activities	14,873	15,464
Cash flows from investing activities:
Additions to property and equipment	(10,370)	(8,953)
Proceeds from the disposition of property and equipment	23	14
Proceeds from the sale of available-for-sale securities	163	0
Proceeds from investments in affiliates	0	20
Net cash used in investing activities	(10,184)	(8,919)
Cash flows from financing activities:
Payment of long-term debt	(3,000)	(3,000)
Payment of preferred dividends	(1,077)	(1,072)
Payment of financing costs	(414)	0
Purchase of the Company's Convertible Notes	0	(3,700)
Repayments on capital lease obligations	(79)	(76)
Proceeds from issuance of common stock	12	13
Net cash used in financing activities	(4,558)	(7,835)
Net effect of exchange rate changes on cash, cash equivalents and restricted cash	(21)	(329)
Net increase (decrease) in cash, cash equivalents and restricted cash	110	(1,619)
Cash, cash equivalents and restricted cash, beginning of period	46,064	103,826
Cash, cash equivalents and restricted cash, end of period	46,174	102,207
Cash and cash equivalents, end of period	30,197	92,899
Funds held for clients, end of period	$ 15,977	$ 9,308

NATURE OF OPERATIONS	6 Months Ended
NATURE OF OPERATIONS	Jan. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NATURE OF OPERATIONS Steel Connect, Inc. (the "Company") together with its consolidated subsidiaries, operates through its wholly-owned subsidiaries, ModusLink Corporation ("ModusLink" or "Supply Chain") and IWCO Direct Holdings, Inc. ("IWCO Direct" or "IWCO"). 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. 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. Historically, the Company has financed its operations and met its capital requirements primarily through funds generated from operations, the sale of its 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 current cash and cash equivalents, ModusLink's credit agreement with MidCap Financial Trust, IWCO's revolving credit facility, and cash, if any, provided by operating activities. The Company's expectations regarding its ability to use its existing cash to continue funding its operations are based on assumptions that may prove to be inaccurate, and the Company may require capital resources sooner than currently expected. While the Company believes it will be able to access this additional liquidity based on existing information, the assumptions underlying this belief may also later prove to be inaccurate. As of January 31, 2020 and July 31, 2019, the Company had cash and cash equivalents of $30.2 million and $32.5 million, respectively. As of January 31, 2020, the Company had a working capital deficit of $44.6 million, which includes accrued pricing liabilities and certain tax related liabilities which the Company believes will not require a cash outlay in the next twelve months. As of January 31, 2020, ModusLink had a readily available borrowing capacity under its revolving credit facility of $6.8 million. As of January 31, 2020, IWCO Direct had a readily available borrowing capacity under its revolving facility of $19.0 million. The Company believes it will generate sufficient cash to meet its debt covenants under its credit facilities to which certain of its subsidiaries are a party and that it will be able to obtain cash through its current and future credit facilities, if needed.

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Jan. 31, 2020
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 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, 2019, which are contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on October 15, 2019. The results for the three and six months ended January 31, 2020 are not necessarily indicative of the results to be expected for the full fiscal year. The year-end condensed consolidated 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 six months ended January 31, 2020, the Company evaluated subsequent events for potential recognition and disclosure through the date these financial statements were filed. During the three months ended October 31, 2019, the Company recorded a $6.4 million adjustment to correct an out-of-period misstatement related to the Company's estimate for certain tax related liabilities. Had this correction been recorded for the fiscal year ended July 31, 2019, the Company's selling, general and administrative expenses and net loss for that period would have been reduced to $137.7 million and $60.3 million, respectively. The Company's accrued expenses as of July 31, 2019 would have been reduced to $106.3 million.

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Jan. 31, 2020
Accounting Policies [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which supersedes the previous guidance for lease accounting, Leases (Topic 840). ASC 842 requires lessees to recognize leases on their balance sheets (through right-of-use ("ROU") assets and lease liabilities). The Company adopted the provisions of ASC 842 on August 1, 2019, using the modified retrospective approach and the option presented under ASU 2018-11, Leases (Topic 842), to transition only active leases as of the August 1, 2019 adoption date, with a cumulative effect adjustment recorded as of that date. All comparative periods prior to August 1, 2019 retain the financial reporting and disclosure requirements of ASC 840. The Company elected to utilize the transition package of practical expedients permitted under ASC 842, which, among other things, allowed the Company to carry forward the historical lease classification. Additionally, the Company made an accounting policy election to exempt short-term leases (with an initial term of 12 months or less) from the provisions of ASC 842, which resulted in recognition of the related lease payments on a straight-line basis over the lease term, consistent with prior treatment under ASC 840. The Company did not elect the "hindsight" practical expedient when determining the lease terms under ASC 842. Adoption of ASC 842 resulted in the recording of ROU operating lease assets and corresponding operating lease liabilities of $51.1 million and $53.1 million, respectively, as of August 1, 2019. The difference between the ROU assets and the lease liabilities represents the existing deferred rent balance (under ASC 840), which was reduced to zero, net of prepaids, upon adoption of ASC 842 on August 1, 2019. The adoption of ASC 842 did not materially impact the Company's net earnings and had no impact on its cash flows. The Company's current lease arrangements expire through 2030. In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This new standard was created to simplify the accounting for share-based payments to nonemployees. This standard provides guidance on how to account for share-based payment transactions with nonemployees in which a grantor acquires goods or services to be used or consumed in the grantor's own operations by issuing share-based payment awards. The amendments in ASU 2018-07 are effective for the Company's 2020 fiscal year. The adoption of the accounting standard did not have a material impact on the Company's financial statements. Accounting Standards Issued and Not Yet Implemented In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Loses on Financial Instruments, an accounting standard update that requires measurement and recognition of expected credit losses for financial instruments, including trade receivables, based on historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal year 2024 on a modified retrospective basis which requires a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the impact of this accounting standard update on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements. The amendments in ASU 2018-13 are effective for the Company's fiscal year 2021, except that the standard permits an entity to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until the effective date. The Company does not expect that the full adoption of this standard will have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans. ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension and other post-retirement plans. The amendments in ASU 2018-14 are effective for the Company's fiscal year 2021. The Company does not expect that the adoption of this standard will have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, (a consensus of the FASB Emerging Issues Task Force) to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The amendments in ASU 2018-15 are effective for the Company's first quarter of fiscal year 2021. The Company is currently evaluating the potential impact of this new guidance. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which amends the existing guidance relating to the accounting for income taxes. This ASU is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of U.S. GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. The new guidance is effective for the Company's first quarter of fiscal year 2022. The Company does not expect that the adoption of this new guidance will have a material impact on its consolidated financial statements.

INVENTORIES

6 Months Ended

Jan. 31, 2020

Inventory Disclosure [Abstract]

INVENTORIES

Inventories, net consisted of the following:



	January 31, 2020		July 31, 2019
	(In thousands)
Raw materials	$	21,631	$	21,322
Work-in-process	428		587
Finished goods	2,182		1,765
	$	24,241	$	23,674

GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jan. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

The Company's goodwill of $257.1 million as of January 31, 2020 relates to the Company's Direct Marketing reporting unit, which is the only reporting unit in the Direct Marketing reportable segment. The Company has not previously recognized any impairment losses for this reporting unit.

Other intangible assets, net, as of January 31, 2020, include trademarks and tradenames, and customer relationships. The trademarks and tradenames intangible assets are being amortized on a straight-line basis and the customer relationship intangible assets are being amortized on a double-declining basis over their estimated useful lives.

The table below presents information for the Company's intangible assets:



		January 31, 2020						July 31, 2019
	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(In thousands)
Customer relationships	15	$	192,730	$	50,381	$	142,349	$	192,730	$	39,617	$	153,113
Trademarks and trade names	3	20,520		14,535		5,985		20,520		11,115		9,405
Total		$	213,250	$	64,916	$	148,334	$	213,250	$	50,732	$	162,518

The table below presents amortization expense recorded by the Company for other intangible assets:



	Three Months Ended January 31,				Six Months Ended January 31,
	2020		2019		2020		2019
	(In thousands)
Customer relationships	$	5,197	$	5,996	$	10,764	$	12,420
Trademarks and trade names	1,714		1,795		3,424		3,470
Total	$	6,911	$	7,791	$	14,188	$	15,890

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

6 Months Ended

Jan. 31, 2020

Payables and Accruals [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

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



	January 31, 2020		July 31, 2019
Accrued Expense	(In thousands)
Accrued taxes	$	55,217	$	59,057
Accrued compensation	24,810		22,584
Accrued interest	467		467
Accrued audit, tax and legal	3,711		3,148
Accrued contract labor	1,444		1,650
Accrued worker's compensation	4,866		4,549
Accrued other	19,245		21,203
	$	109,760	$	112,658



	January 31, 2020		July 31, 2019
Other Current Liabilities	(In thousands)
Accrued pricing liabilities	$	14,309	$	14,309
Customer postage deposits	8,890		11,816
Revolving credit facility	6,000		6,000
Other	6,507		6,794
	$	35,706	$	38,919

As of January 31, 2020 and July 31, 2019, the Company had accrued taxes of $55.2 million and $59.1 million, respectively, which reflected the Company's estimate for certain tax related liabilities. During the three months ended October 31, 2019, the Company recorded a $6.4 million adjustment to correct an out-of-period misstatement related to the Company's estimate for certain tax related liabilities. As of both January 31, 2020 and July 31, 2019, the Company had accrued pricing liabilities of approximately $14.3 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, 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, and due in part to the nature of the interactions with its clients. The remaining accrued pricing liabilities as of January 31, 2020 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.

LEASES Leases

6 Months Ended

Jan. 31, 2020

Leases [Abstract]

Leases

LEASES

The Company has operating and finance leases for office space, office equipment, warehouse space and automobiles. The leases have remaining terms of up to 11 years, some of which include options to purchase, extend or terminate the leases, and management has assessed such terms when determining the lease term for accounting purposes. The Company's current lease arrangements expire through 2030.

The Company's leases do not include any residual value guarantees, and therefore none were considered in the calculation of the operating ROU and operating lease liability balances. The Company has leases that contain variable payments, most commonly in the form of common area maintenance charges, which are based on actual costs incurred. These variable payments were excluded from the calculation of the operating ROU asset and operating lease liability balances since they are not fixed or in-substance fixed payments.

For leases with terms greater than 12 months, the Company records the related operating ROU assets and operating lease liabilities at the present value of lease payments over the lease terms. For leases with an initial term of 12 months or less (with purchase options or extension options that are not reasonably certain to be exercised), the Company does not record them on the balance sheet, but instead recognizes lease expense on a straight-line basis over the terms of the leases.

Lease expense

The components of the Company's lease expense are presented below:



	Three Months Ended January 31, 2020		Six Months Ended January 31, 2020
	(In thousands)
Operating lease cost	$	4,816	$	9,632
Short-term lease expense	226		452
Variable lease cost	6		46
Amortization of finance lease assets	18		36
Interest on finance lease liabilities	4		8
	$	5,070	$	10,174

Lease commitments

The Company's future minimum lease payments required under operating and finance leases that have commenced as of January 31, 2020 were as follows:



	Operating Leases		Finance Leases
	(In thousands)
2020	$	10,527	$	65
2021	15,941		76
2022	12,493		76
2023	7,597		38
2024	5,298		—
Thereafter	23,261		—
Total lease payments	75,117		255
Less: imputed interest	12,413		38
Present value of lease payments	62,704		217
Less: current maturities of lease obligations	14,717		71
Long-term lease obligations	$	47,987	$	146

As of January 31, 2020, the Company had additional operating leases primarily for office space, which have not yet commenced, with lease liabilities totaling $8.9 million.

In order to calculate the operating ROU asset and operating lease liability for a lease, ASC 842 requires that a lessee apply a discount rate equal to the rate implicit in the lease whenever that rate is readily determinable. The Company's lease agreements do not provide a readily determinable implicit rate, nor is the rate available to the Company from its lessors. Therefore, we use an incremental borrowing rate to determine the present value of the lease payments. The incremental borrowing rate represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar lease term to obtain an asset of similar value.

Additional lease information

Additional information related to the Company's leases as of January 31, 2020 was as follows:



Weighted average remaining lease term:
Operating leases	6.3	years
Finance leases	2.8	years

Weighted average discount rate:
Operating leases		4.4%
Finance leases		3.8%

Supplemental cash flow information

Supplemental cash flow information related to the Company's leases during the six months ended January 31, 2020 was as follows (in thousands):



Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	8,769
Operating cash flows from finance leases	$	5
Financing cash flows from finance leases	$	74

Leases

LEASES

Lease expense

The components of the Company's lease expense are presented below:



	Three Months Ended January 31, 2020		Six Months Ended January 31, 2020
	(In thousands)
Operating lease cost	$	4,816	$	9,632
Short-term lease expense	226		452
Variable lease cost	6		46
Amortization of finance lease assets	18		36
Interest on finance lease liabilities	4		8
	$	5,070	$	10,174

Lease commitments

The Company's future minimum lease payments required under operating and finance leases that have commenced as of January 31, 2020 were as follows:



	Operating Leases		Finance Leases
	(In thousands)
2020	$	10,527	$	65
2021	15,941		76
2022	12,493		76
2023	7,597		38
2024	5,298		—
Thereafter	23,261		—
Total lease payments	75,117		255
Less: imputed interest	12,413		38
Present value of lease payments	62,704		217
Less: current maturities of lease obligations	14,717		71
Long-term lease obligations	$	47,987	$	146

As of January 31, 2020, the Company had additional operating leases primarily for office space, which have not yet commenced, with lease liabilities totaling $8.9 million.

Additional lease information

Additional information related to the Company's leases as of January 31, 2020 was as follows:



Weighted average remaining lease term:
Operating leases	6.3	years
Finance leases	2.8	years

Weighted average discount rate:
Operating leases		4.4%
Finance leases		3.8%

Supplemental cash flow information

Supplemental cash flow information related to the Company's leases during the six months ended January 31, 2020 was as follows (in thousands):



Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	8,769
Operating cash flows from finance leases	$	5
Financing cash flows from finance leases	$	74

DEBT

6 Months Ended

Jan. 31, 2020

Debt Disclosure [Abstract]

DEBT

The components of debt and a reconciliation to the carrying amount of long-term debt is presented in the table below:



	January 31, 2020			July 31, 2019
	(In thousands)
Cerberus term loan	$	372,125		$	375,125
7.50% Convertible senior note	14,940			14,940
Principal amount of long-term debt	387,065			390,065
Unamortized debt discount	(6,678		)	(7,508		)
Unamortized debt issuance costs	(753		)	(888		)
Carrying amount of long-term debt	$	379,634		$	381,669

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, 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 amended 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) extend the maturity of the term under the Credit Agreement by six months from June 30, 2019 to December 31, 2019. On December 31, 2019, the Credit Agreement was terminated in accordance with the terms thereof, and all outstanding amounts thereunder were repaid.

Cerberus Credit Facility

On December 15, 2017, MLGS Merger Company, Inc. ("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 acquisition of IWCO Direct (the "IWCO Acquisition"), Borrower became the borrower under the Financing Agreement.

The Financing Agreement provides for a $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.

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 January 31, 2020, IWCO had a readily available borrowing capacity under its Revolving Facility of $19.0 million. As of January 31, 2020 and July 31, 2019, the balance outstanding on the Revolving Facility was $6.0 million and $6.0 million, respectively. The following table reflects the components of the Term Loan:



	January 31, 2020			July 31, 2019
	(In thousands)
Principal amount outstanding on the Term Loan	$	372,125		$	375,125
Unamortized debt issuance costs	(753		)	(888		)
Net carrying value of the Term Loan	$	371,372		$	374,237

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 SPH Group Holdings LLC ("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"). 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 its 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 Holdings 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 Holdings 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 the 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 Holdings. 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 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 condensed consolidated balance sheets. The debt issuance costs were not material. As of January 31, 2020, the if-converted value of the SPHG Note did not exceed the principal value of the SPHG Note. As of January 31, 2020, the remaining period over which the unamortized discount will be amortized is 49 months. As of January 31, 2020 and July 31, 2019, the net carrying value of the SPHG Note was $8.3 million and $7.4 million, respectively.



	January 31, 2020			July 31, 2019
	(In thousands)
Carrying amount of equity component	$	8,200		$	8,200

Principal amount of note	$	14,940		$	14,940
Unamortized debt discount	(6,678		)	(7,508		)
Net carrying amount	$	8,262		$	7,432



	Three Months Ended January 31, 2020		Six Months Ended January 31, 2020
	(In thousands)
Interest expense related to contractual interest coupon	$	280	$	560
Interest expense related to accretion of the discount	421		830
	$	701	$	1,390

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

MidCap Credit Facility

On December 31, 2019, ModusLink, as borrower, and certain of its subsidiaries as guarantors (the "MidCap Guarantors"), entered into a revolving credit and security agreement (the "MidCap Credit Agreement"), with MidCap Financial Trust, as lender and as agent ("MidCap").

The MidCap Credit Agreement, which has a three year term, provides for a maximum credit commitment of $12.5 million and a sublimit of $5.0 million for letters of credit. The actual maximum credit available under the MidCap 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 (a) eligible accounts receivable; plus (b) the least of (i) the orderly liquidation value of eligible inventory, (ii) the value of eligible inventory based on first-in-first-out cost or market cost and other adjustments, and (iii) $4.5 million; minus (c) reserves; all as specified in the MidCap Credit Agreement. Amounts borrowed under the MidCap Credit Agreement are due and payable, together with all unpaid interest, fees and other obligations, on December 31, 2022.

Generally, borrowings under the MidCap Credit Agreement bear interest at a rate per annum equal to the LIBOR Rate (as defined in the MidCap Credit Agreement), which is subject to adjustment by MidCap, plus a margin of 4% per annum. In addition to paying interest on outstanding principal under the MidCap Credit Agreement, ModusLink is required to pay an unused line fee of 0.50% per annum. ModusLink is also required to pay a customary letter of credit fee equal to the applicable margin on loans bearing interest at the LIBOR Rate.

Obligations under the MidCap Credit Agreement are guaranteed by the MidCap Guarantors, and the MidCap Credit Agreement is secured by security interests in substantially all of the assets of ModusLink and the MidCap Guarantors, including a pledge of all of the equity interests of each subsidiary of ModusLink that is a domestic entity (subject to certain limited exceptions). Steel Connect, Inc. is not a borrower or a guarantor under the MidCap Credit Agreement.

The MidCap Credit Agreement includes certain representations and warranties of ModusLink, as well as events of default and certain affirmative and negative covenants that are customary for credit agreements of this type. These covenants include restrictions on borrowings, investments and dispositions by ModusLink, as well as limitations on ModusLink's ability to make certain distributions and to enter into transactions with affiliates. The MidCap Credit Agreement requires compliance with certain financial covenants providing for the maintenance of a minimum fixed charge coverage ratio, all as more fully described in the MidCap Credit Agreement.

Upon the occurrence and during the continuation of an event of default under the MidCap Credit Agreement, MidCap may, among other things, declare all obligations under the MidCap Credit Agreement immediately due and payable and increase the interest rate at which loans and other obligations under the MidCap Credit Agreement bear interest. At January 31, 2020, the Company had a readily available borrowing capacity under its MidCap Credit Facility of $6.8 million. As of January 31, 2020, the Company did not have any balance outstanding on the MidCap Credit Facility.

CONTINGENCIES	6 Months Ended
CONTINGENCIES	Jan. 31, 2020
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., 2018-277 (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 of Directors, 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, Ltd., SPHG Holdings, Handy & Harman Ltd. and WHX CS Corp. (collectively, the "Steel Parties") in connection with the acquisition of $35.0 million of the Series C Convertible Preferred Stock by SPHG Holdings and equity grants made to Lichtenstein, Howard and Fejes on December 15, 2017 (collectively, the "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 Annual Meeting of Stockholders 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 and monetary damages. On June 8, 2018, defendants moved to dismiss the complaint for failure to plead demand futility and failure to state a claim. On June 28, 2019, the Court denied most of the motion to dismiss allowing the matter to proceed. Discovery is proceeding. Based on information currently available, the Company is unable to reasonably estimate a possible loss or range of possible losses, if any, with regard to the remaining lawsuit; therefore, no litigation reserve has been recorded in the Company's condensed consolidated balance sheets. Although there can be no assurance as to the ultimate outcome, the Company believes it has meritorious defenses, continues to deny liability and intends to defend this litigation vigorously.

STOCKHOLDERS' EQUITY	6 Months Ended
STOCKHOLDERS' EQUITY	Jan. 31, 2020
Equity [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 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 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 ("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 ("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, at the Company's option, 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 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.

REVENUE RECOGNITION

6 Months Ended

Jan. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

Disaggregation of Revenue

The following table presents the Company's revenues from contracts with customers disaggregated by major good or service line and timing of revenue recognition. The table also includes a reconciliation of the disaggregated revenue with the reportable segments.



	Three Months Ended January 31, 2020						Three Months Ended January 31, 2019
	Supply Chain		Direct Marketing		Consolidated Total		Supply Chain		Direct Marketing		Consolidated Total
	(In thousands)						(In thousands)
Major Goods/Service Lines
Supply chain management services	$	91,911	$	—	$	91,911	$	87,166	$	—	$	87,166
Marketing solutions offerings	—		123,117		123,117		—		118,447		118,447
Other	424		—		424		610		—		610
	$	92,335	$	123,117	$	215,452	$	87,776	$	118,447	$	206,223
Timing of Revenue Recognition
Goods transferred over time	$	—	$	123,117	$	123,117	$	—	$	118,447	$	118,447
Services transferred over time	92,335		—		92,335		87,776		—		87,776
	$	92,335	$	123,117	$	215,452	$	87,776	$	118,447	$	206,223



	Six Months Ended January 31, 2020						Six Months Ended January 31, 2019
	Supply Chain		Direct Marketing		Consolidated Total		Supply Chain		Direct Marketing		Consolidated Total
	(In thousands)						(In thousands)
Major Goods/Service Lines
Supply chain management services	$	183,616	$	—	$	183,616	$	173,792	$	—	$	173,792
Marketing solutions offerings	—		256,120		256,120		—		246,541		246,541
Other	869		—		869		1,023		—		1,023
	$	184,485	$	256,120	$	440,605	$	174,815	$	246,541	$	421,356
Timing of Revenue Recognition
Goods transferred over time	$	—	$	256,120	$	256,120	$	—	$	246,541	$	246,541
Services transferred over time	184,485		—		184,485		174,815		—		174,815
	$	184,485	$	256,120	$	440,605	$	174,815	$	246,541	$	421,356

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.

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.

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 table below presents information for the Company's contract balances:



	January 31, 2020		July 31, 2019
	(In thousands)
Accounts receivable, trade, net	$	118,291	$	112,141
Contract assets	$	23,546	$	21,473

Deferred revenue - current	$	3,895	$	2,967
Deferred revenue - long-term	98		62
Total deferred revenue	$	3,993	$	3,029

Remaining Performance Obligations

Remaining performance obligations are comprised of deferred revenue. Changes in deferred revenue during the six months ended January 31, 2020, were as follows:



	Six Months Ended January 31, 2020
	(In thousands)
Balance at beginning of period	$	3,029
Deferral of revenue	2,669
Recognition of deferred amounts upon satisfaction of performance obligation	(1,705		)
Balance at end of period	$	3,993

We expect to recognize approximately $3.9 million of the deferred revenue over the next twelve months and the remaining $0.1 million beyond that time period.

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.

INCOME TAXES	6 Months Ended
INCOME TAXES	Jan. 31, 2020
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 six months ended January 31, 2020, the Company was profitable in certain jurisdictions, resulting in an income tax expense using enacted rates in those jurisdictions. As of January 31, 2020, the total amount of the liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $2.1 million. As of July 31, 2019, the total amount of the liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $2.4 million. Uncertain Tax Positions In accordance with the Company's accounting policy, interest related to unrecognized tax benefits is included in the income tax expense line of the condensed consolidated statements of operations. As of January 31, 2020 and July 31, 2019, the liabilities for interest expense related to uncertain tax positions were $0.2 million and $0.2 million, respectively. The Company has accrued $0.2 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, 2014 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 2013 through 2018 tax years remain subject to examination in most locations, while the Company's 2006 through 2018 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" or "Tax Plan"). 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 $160.0 million, respectively, as of July 31, 2019. The federal net operating losses will expire from fiscal year 2022 through 2038 and the state net operating losses will expire from fiscal year 2019 through 2039. The Company's ability to use its Tax Benefits would be substantially limited if the Company undergoes an Ownership Change. The Tax Plan is intended to prevent an Ownership Change of the Company that would impair the Company's 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 Tax 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 or (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 January 18, 2021; (ii) the time at which the Rights are redeemed or exchanged as provided in the Tax Plan; and (iii) 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

6 Months Ended

Jan. 31, 2020

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

The following table reconciles earnings (loss) per share for the three and six months ended months ended January 31, 2020 and 2019:



	Three Months Ended January 31,						Six Months Ended January 31,
	2020			2019			2020			2019
	(In thousands, except per share data)
Net income (loss)	$	(3,557	)	$	(11,753	)	$	1,235		$	(19,118	)
Less: Preferred dividends on redeemable preferred stock	(531		)	(536		)	(1,067		)	(1,073		)
Net income (loss) attributable to common stockholders	$	(4,088	)	$	(12,289	)	$	168		$	(20,191	)

Weighted average common shares outstanding	61,538			60,935			61,469			60,974
Weighted average common equivalent shares arising from restricted stock	—			—			13			—
Weighted average number of common and potential common shares	61,538			60,935			61,482			60,974
Basic net earnings (loss) per share attributable to common stockholders	$	(0.07	)	$	(0.20	)	$	0.00		$	(0.33	)
Diluted net earnings (loss) per share attributable to common stockholders	$	(0.07	)	$	(0.20	)	$	0.00		$	(0.33	)

Basic net earnings (loss) per common share is calculated using the weighted-average number of common shares outstanding during the period. Diluted net 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 months ended January 31, 2020 and 2019, approximately 24.5 million and 28.9 million, respectively, common stock equivalent shares were excluded from the denominator in the calculation of diluted net earnings per share as their inclusion would have been antidilutive. For the six months ended January 31, 2020 and 2019, approximately 24.5 million and 28.9 million, respectively, common stock equivalent shares (including those related to convertible debt and preferred stock) were excluded from the denominator in the calculation of diluted net earnings per share as their inclusion would have been antidilutive.

COMPREHENSIVE INCOME (LOSS)

6 Months Ended

Jan. 31, 2020

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 stockholders' 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, 2019	$	5,017	$	(4,079	)	$	96		$	1,034
Foreign currency translation adjustment	677		—			—			677
Net unrealized holding loss on securities	—		—			(96		)	(96		)
Pension liability adjustments	—		(2		)	—			(2		)
Net current-period other comprehensive income (loss)	677		(2		)	(96		)	579
Accumulated other comprehensive income (loss) at January 31, 2020	$	5,694	$	(4,081	)	$	—		$	1,613



	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	332		—			—			332
Net unrealized holding loss on securities	—		—			(89		)	(89		)
Pension liability adjustments	—		(64		)	—			(64		)
Net current-period other comprehensive income (loss)	332		(64		)	(89		)	179
Accumulated other comprehensive income (loss) at January 31, 2019	$	6,680	$	(3,859	)	$	92		$	2,913

SEGMENT INFORMATION

6 Months Ended

Jan. 31, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

The Company has two operating segments: Supply Chain and Direct Marketing. The Company determined that its two reportable segments are the same as its operating segments. 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, debt 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 and operating income (loss).

Summarized financial information by operating segment is as follows:



	Three Months Ended January 31,						Six Months Ended January 31,
	2020			2019			2020			2019
	(In thousands)
Net revenue:
Supply Chain	$	92,335		$	87,776		$	184,485		$	174,815
Direct Marketing	123,117			118,447			256,120			246,541
	$	215,452		$	206,223		$	440,605		$	421,356
Operating income (loss):
Supply Chain	$	5,763		$	(141	)	$	12,273		$	1,541
Direct Marketing	4,217			6,695			15,420			11,462
Total segment operating income	9,980			6,554			27,693			13,003
Corporate-level activity	(2,807		)	(4,428		)	(5,778		)	(7,341		)
Total operating income	7,173			2,126			21,915			5,662
Total other expense	(9,542		)	(12,474		)	(18,137		)	(22,264		)
Income (loss) before income taxes	$	(2,369	)	$	(10,348	)	$	3,778		$	(16,602	)



	January 31, 2020		July 31, 2019
	(In thousands)
Total assets:
Supply Chain	$	141,053	$	112,712
Direct Marketing	619,729		600,390
Sub-total—segment assets	760,782		713,102
Corporate	28,113		18,461
	$	788,895	$	731,563

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



	Three Months Ended January 31,				Six Months Ended January 31,
	2020		2019		2020		2019
	(In thousands)
Services:
Supply Chain	$	92,335	$	87,776	$	184,485	$	174,815
Products:
Direct Marketing	123,117		118,447		256,120		246,541
	$	215,452	$	206,223	$	440,605	$	421,356

Summarized financial information of the Company's net revenue by geographic location is as follows:



	Three Months Ended January 31,				Six Months Ended January 31,
	2020		2019		2020		2019
	(In thousands)
United States	$	145,293	$	136,347	$	299,714	$	282,411
China	32,569		37,910		72,026		74,521
Netherlands	11,071		14,403		21,719		29,347
Other	26,519		17,563		47,146		35,077
	$	215,452	$	206,223	$	440,605	$	421,356

RELATED PARTY TRANSACTIONS	6 Months Ended
RELATED PARTY TRANSACTIONS	Jan. 31, 2020
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS As of January 31, 2020, SPHG Holdings and its affiliates, including Steel Holdings, Handy & Harman Ltd., Steel Partners, Ltd., beneficially owned approximately 56.3% of our outstanding capital stock, including shares of Series C Convertible Preferred Stock, par value $0.01 per share that vote on an as-converted basis together with our Common Stock. Warren G. Lichtenstein, our Interim Chief Executive Officer and the Executive Chairman of our Board, is also the Executive Chairman of Steel Holdings GP. Glen Kassan, our Vice Chairman of the Board and former Chief Administrative Officer, is an employee of Steel Services Ltd. ("Steel Services"). Jack L. Howard, the President and a director of Steel Holdings GP, was appointed to the Board upon the closing of the Preferred Stock Transaction described below. William T. Fejes, Jr., the Chief Operating Officer of Steel Holdings, was also appointed to the Board upon the closing of the Preferred Stock Transaction described below. SPHG Note Transaction On February 28, 2019, the Company entered into that certain 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 January 31, 2020 and July 31, 2019, SPHG Holdings held $14.9 million principal amount of the Company's 7.50% Convertible Senior Note. As of January 31, 2020 and July 31, 2019, the net carrying value of the SPHG Note was $8.3 million and $7.4 million, respectively. Preferred Stock Transaction 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. Management Services Agreement On December 24, 2014, the Company entered into a Management Services Agreement with SP Corporate Services LLC ("SP Corporate"), effective as of January 1, 2015 (the "2015 Management Services Agreement"). SP Corporate, and its successor, is an indirect wholly-owned subsidiary of Steel Holdings and is a related party. Pursuant to this agreement, SP Corporate provided the Company and its subsidiaries with the services of certain employees, including certain executive officers and other corporate services. On June 14, 2019, the Company entered into a new agreement (the "2019 Management Services Agreement") with Steel Services, an indirect wholly-owned subsidiary of Steel Holdings. The 2019 Management Services Agreement was effective as of June 1, 2019. The 2019 Management Services Agreement supersedes all prior agreements between the Company and Steel Services, including the 2015 Management Services Agreement. Total expenses incurred related to the 2015 Management Services Agreement and the 2019 Management Services Agreement for the three months ended January 31, 2020 and 2019 were $0.9 million and $0.4 million, respectively. Total expenses incurred related to the 2015 Management Services Agreement and the 2019 Management Services Agreement for the six months ended January 31, 2020 and 2019 were $1.7 million and $0.7 million, respectively. As of January 31, 2020 and July 31, 2019, amounts due to Steel Services were $0.3 million and $0.5 million, respectively.

FAIR VALUE MEASUREMENTS

6 Months Ended

Jan. 31, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

ASC 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 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 their assets invested in insurance contracts 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 January 31, 2020 and July 31, 2019, classified by fair value hierarchy:



			Fair Value Measurements at Reporting Date Using
(In thousands)	January 31, 2020		Level 1		Level 2		Level 3
Assets:
Money market funds	$	526	$	526	$	—	$	—



			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2019		Level 1		Level 2		Level 3
Assets:
Money market funds	$	365	$	365	$	—	$	—

There were no transfers between Levels 1, 2 or 3 during any of the periods presented.

When available, quoted prices are used to determine fair value. When quoted prices in active markets are available, investments are classified within Level 1 of the fair value hierarchy. When quoted prices in active markets are not available, fair values are determined using pricing models, and the inputs to those pricing models are based on observable market inputs. The inputs to the pricing models are 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 estimates 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 carrying value. With the exception of the SPHG Note and long-term debt, carrying value 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 condensed consolidated balance sheets are money market funds. These are valued at quoted market prices in active markets.

- 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)

6 Months Ended

Jan. 31, 2020

Accounting Policies [Abstract]

Basis of Accounting

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 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, 2019, which are contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on October 15, 2019. The results for the three and six months ended January 31, 2020 are not necessarily indicative of the results to be expected for the full fiscal year. The year-end condensed consolidated 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.

Consolidation

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

Recent Accounting Pronouncements

RECENT ACCOUNTING PRONOUNCEMENTS

Adoption of New Accounting Standards

In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which supersedes the previous guidance for lease accounting, Leases (Topic 840). ASC 842 requires lessees to recognize leases on their balance sheets (through right-of-use ("ROU") assets and lease liabilities). The Company adopted the provisions of ASC 842 on August 1, 2019, using the modified retrospective approach and the option presented under ASU 2018-11, Leases (Topic 842), to transition only active leases as of the August 1, 2019 adoption date, with a cumulative effect adjustment recorded as of that date. All comparative periods prior to August 1, 2019 retain the financial reporting and disclosure requirements of ASC 840.

The Company elected to utilize the transition package of practical expedients permitted under ASC 842, which, among other things, allowed the Company to carry forward the historical lease classification. Additionally, the Company made an accounting policy election to exempt short-term leases (with an initial term of 12 months or less) from the provisions of ASC 842, which resulted in recognition of the related lease payments on a straight-line basis over the lease term, consistent with prior treatment under ASC 840. The Company did not elect the "hindsight" practical expedient when determining the lease terms under ASC 842.

Adoption of ASC 842 resulted in the recording of ROU operating lease assets and corresponding operating lease liabilities of $51.1 million and $53.1 million, respectively, as of August 1, 2019. The difference between the ROU assets and the lease liabilities represents the existing deferred rent balance (under ASC 840), which was reduced to zero, net of prepaids, upon adoption of ASC 842 on August 1, 2019. The adoption of ASC 842 did not materially impact the Company's net earnings and had no impact on its cash flows. The Company's current lease arrangements expire through 2030.

In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. This new standard was created to simplify the accounting for share-based payments to nonemployees. This standard provides guidance on how to account for share-based payment transactions with nonemployees in which a grantor acquires goods or services to be used or consumed in the grantor's own operations by issuing share-based payment awards. The amendments in ASU 2018-07 are effective for the Company's 2020 fiscal year. The adoption of the accounting standard did not have a material impact on the Company's financial statements.

Accounting Standards Issued and Not Yet Implemented

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Loses on Financial Instruments, an accounting standard update that requires measurement and recognition of expected credit losses for financial instruments, including trade receivables, based on historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal year 2024 on a modified retrospective basis which requires a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We are currently evaluating the impact of this accounting standard update on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU 2018-13 modifies the disclosure requirements on fair value measurements. The amendments in ASU 2018-13 are effective for the Company's fiscal year 2021, except that the standard permits an entity to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until the effective date. The Company does not expect that the full adoption of this standard will have a material impact on the Company's consolidated financial statements.

In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans. ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension and other post-retirement plans. The amendments in ASU 2018-14 are effective for the Company's fiscal year 2021. The Company does not expect that the adoption of this standard will have a material impact on the Company's consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, (a consensus of the FASB Emerging Issues Task Force) to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The amendments in ASU 2018-15 are effective for the Company's first quarter of fiscal year 2021. The Company is currently evaluating the potential impact of this new guidance.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which amends the existing guidance relating to the accounting for income taxes. This ASU is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles of accounting for income taxes and to improve the consistent application of U.S. GAAP for other areas of accounting for income taxes by clarifying and amending existing guidance. The new guidance is effective for the Company's first quarter of fiscal year 2022. The Company does not expect that the adoption of this new guidance will have a material impact on its consolidated financial statements.

Inventory Impairment



	January 31, 2020		July 31, 2019
	(In thousands)
Raw materials	$	21,631	$	21,322
Work-in-process	428		587
Finished goods	2,182		1,765
	$	24,241	$	23,674

Fair Value of Financial Instruments

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

INVENTORIES (Tables)

6 Months Ended

Jan. 31, 2020

Inventory Disclosure [Abstract]

Schedule of inventories, net

Inventories, net consisted of the following:



	January 31, 2020		July 31, 2019
	(In thousands)
Raw materials	$	21,631	$	21,322
Work-in-process	428		587
Finished goods	2,182		1,765
	$	24,241	$	23,674

GOODWILL AND INTANGIBLE ASSETS (Tables)

6 Months Ended

Jan. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite Live Intangible Assets

The table below presents information for the Company's intangible assets:



		January 31, 2020						July 31, 2019
	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(In thousands)
Customer relationships	15	$	192,730	$	50,381	$	142,349	$	192,730	$	39,617	$	153,113
Trademarks and trade names	3	20,520		14,535		5,985		20,520		11,115		9,405
Total		$	213,250	$	64,916	$	148,334	$	213,250	$	50,732	$	162,518

Finite-lived Intangible Assets Amortization Expense

The table below presents amortization expense recorded by the Company for other intangible assets:



	Three Months Ended January 31,				Six Months Ended January 31,
	2020		2019		2020		2019
	(In thousands)
Customer relationships	$	5,197	$	5,996	$	10,764	$	12,420
Trademarks and trade names	1,714		1,795		3,424		3,470
Total	$	6,911	$	7,791	$	14,188	$	15,890

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

6 Months Ended

Jan. 31, 2020

Payables and Accruals [Abstract]

Components of Accrued Expenses

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



	January 31, 2020		July 31, 2019
Accrued Expense	(In thousands)
Accrued taxes	$	55,217	$	59,057
Accrued compensation	24,810		22,584
Accrued interest	467		467
Accrued audit, tax and legal	3,711		3,148
Accrued contract labor	1,444		1,650
Accrued worker's compensation	4,866		4,549
Accrued other	19,245		21,203
	$	109,760	$	112,658

Components of Other Current Liabilities



	January 31, 2020		July 31, 2019
Other Current Liabilities	(In thousands)
Accrued pricing liabilities	$	14,309	$	14,309
Customer postage deposits	8,890		11,816
Revolving credit facility	6,000		6,000
Other	6,507		6,794
	$	35,706	$	38,919

LEASES (Tables)

6 Months Ended

Jan. 31, 2020

Leases [Abstract]

Lease cost

Supplemental cash flow information related to the Company's leases during the six months ended January 31, 2020 was as follows (in thousands):



Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	8,769
Operating cash flows from finance leases	$	5
Financing cash flows from finance leases	$	74

Lease expense

The components of the Company's lease expense are presented below:



	Three Months Ended January 31, 2020		Six Months Ended January 31, 2020
	(In thousands)
Operating lease cost	$	4,816	$	9,632
Short-term lease expense	226		452
Variable lease cost	6		46
Amortization of finance lease assets	18		36
Interest on finance lease liabilities	4		8
	$	5,070	$	10,174

Future minimum lease payments under operating leases

The Company's future minimum lease payments required under operating and finance leases that have commenced as of January 31, 2020 were as follows:



	Operating Leases		Finance Leases
	(In thousands)
2020	$	10,527	$	65
2021	15,941		76
2022	12,493		76
2023	7,597		38
2024	5,298		—
Thereafter	23,261		—
Total lease payments	75,117		255
Less: imputed interest	12,413		38
Present value of lease payments	62,704		217
Less: current maturities of lease obligations	14,717		71
Long-term lease obligations	$	47,987	$	146

Future minimum lease payments under financing leases

The Company's future minimum lease payments required under operating and finance leases that have commenced as of January 31, 2020 were as follows:



	Operating Leases		Finance Leases
	(In thousands)
2020	$	10,527	$	65
2021	15,941		76
2022	12,493		76
2023	7,597		38
2024	5,298		—
Thereafter	23,261		—
Total lease payments	75,117		255
Less: imputed interest	12,413		38
Present value of lease payments	62,704		217
Less: current maturities of lease obligations	14,717		71
Long-term lease obligations	$	47,987	$	146

Additional lease information

Additional information related to the Company's leases as of January 31, 2020 was as follows:



Weighted average remaining lease term:
Operating leases	6.3	years
Finance leases	2.8	years

Weighted average discount rate:
Operating leases		4.4%
Finance leases		3.8%

DEBT (Tables)

6 Months Ended

Jan. 31, 2020

Debt Disclosure [Abstract]

Components of Debt and Reconciliation

The components of debt and a reconciliation to the carrying amount of long-term debt is presented in the table below:



	January 31, 2020			July 31, 2019
	(In thousands)
Cerberus term loan	$	372,125		$	375,125
7.50% Convertible senior note	14,940			14,940
Principal amount of long-term debt	387,065			390,065
Unamortized debt discount	(6,678		)	(7,508		)
Unamortized debt issuance costs	(753		)	(888		)
Carrying amount of long-term debt	$	379,634		$	381,669

Summary of Interest Expense



	Three Months Ended January 31, 2020		Six Months Ended January 31, 2020
	(In thousands)
Interest expense related to contractual interest coupon	$	280	$	560
Interest expense related to accretion of the discount	421		830
	$	701	$	1,390

Schedule of Debt

The following table reflects the components of the Term Loan:



	January 31, 2020			July 31, 2019
	(In thousands)
Principal amount outstanding on the Term Loan	$	372,125		$	375,125
Unamortized debt issuance costs	(753		)	(888		)
Net carrying value of the Term Loan	$	371,372		$	374,237

Net Carrying Value of SPG Note

As of January 31, 2020 and July 31, 2019, the net carrying value of the SPHG Note was $8.3 million and $7.4 million, respectively.



	January 31, 2020			July 31, 2019
	(In thousands)
Carrying amount of equity component	$	8,200		$	8,200

Principal amount of note	$	14,940		$	14,940
Unamortized debt discount	(6,678		)	(7,508		)
Net carrying amount	$	8,262		$	7,432

REVENUE RECOGNITION (Tables)

6 Months Ended

Jan. 31, 2020

Revenue from Contract with Customer [Abstract]

Summary of reconciliation of the disaggregated revenue



	Three Months Ended January 31, 2020						Three Months Ended January 31, 2019
	Supply Chain		Direct Marketing		Consolidated Total		Supply Chain		Direct Marketing		Consolidated Total
	(In thousands)						(In thousands)
Major Goods/Service Lines
Supply chain management services	$	91,911	$	—	$	91,911	$	87,166	$	—	$	87,166
Marketing solutions offerings	—		123,117		123,117		—		118,447		118,447
Other	424		—		424		610		—		610
	$	92,335	$	123,117	$	215,452	$	87,776	$	118,447	$	206,223
Timing of Revenue Recognition
Goods transferred over time	$	—	$	123,117	$	123,117	$	—	$	118,447	$	118,447
Services transferred over time	92,335		—		92,335		87,776		—		87,776
	$	92,335	$	123,117	$	215,452	$	87,776	$	118,447	$	206,223



	Six Months Ended January 31, 2020						Six Months Ended January 31, 2019
	Supply Chain		Direct Marketing		Consolidated Total		Supply Chain		Direct Marketing		Consolidated Total
	(In thousands)						(In thousands)
Major Goods/Service Lines
Supply chain management services	$	183,616	$	—	$	183,616	$	173,792	$	—	$	173,792
Marketing solutions offerings	—		256,120		256,120		—		246,541		246,541
Other	869		—		869		1,023		—		1,023
	$	184,485	$	256,120	$	440,605	$	174,815	$	246,541	$	421,356
Timing of Revenue Recognition
Goods transferred over time	$	—	$	256,120	$	256,120	$	—	$	246,541	$	246,541
Services transferred over time	184,485		—		184,485		174,815		—		174,815
	$	184,485	$	256,120	$	440,605	$	174,815	$	246,541	$	421,356

Summary of changes in deferred revenue

The table below presents information for the Company's contract balances:



	January 31, 2020		July 31, 2019
	(In thousands)
Accounts receivable, trade, net	$	118,291	$	112,141
Contract assets	$	23,546	$	21,473

Deferred revenue - current	$	3,895	$	2,967
Deferred revenue - long-term	98		62
Total deferred revenue	$	3,993	$	3,029

Remaining Performance Obligations

Remaining performance obligations are comprised of deferred revenue. Changes in deferred revenue during the six months ended January 31, 2020, were as follows:



	Six Months Ended January 31, 2020
	(In thousands)
Balance at beginning of period	$	3,029
Deferral of revenue	2,669
Recognition of deferred amounts upon satisfaction of performance obligation	(1,705		)
Balance at end of period	$	3,993

EARNINGS (LOSS) PER SHARE (Tables)

6 Months Ended

Jan. 31, 2020

Earnings Per Share [Abstract]

Reconciliation of earnings per share

The following table reconciles earnings (loss) per share for the three and six months ended months ended January 31, 2020 and 2019:



	Three Months Ended January 31,						Six Months Ended January 31,
	2020			2019			2020			2019
	(In thousands, except per share data)
Net income (loss)	$	(3,557	)	$	(11,753	)	$	1,235		$	(19,118	)
Less: Preferred dividends on redeemable preferred stock	(531		)	(536		)	(1,067		)	(1,073		)
Net income (loss) attributable to common stockholders	$	(4,088	)	$	(12,289	)	$	168		$	(20,191	)

Weighted average common shares outstanding	61,538			60,935			61,469			60,974
Weighted average common equivalent shares arising from restricted stock	—			—			13			—
Weighted average number of common and potential common shares	61,538			60,935			61,482			60,974
Basic net earnings (loss) per share attributable to common stockholders	$	(0.07	)	$	(0.20	)	$	0.00		$	(0.33	)
Diluted net earnings (loss) per share attributable to common stockholders	$	(0.07	)	$	(0.20	)	$	0.00		$	(0.33	)

COMPREHENSIVE INCOME (LOSS) (Tables)

6 Months Ended

Jan. 31, 2020

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, 2019	$	5,017	$	(4,079	)	$	96		$	1,034
Foreign currency translation adjustment	677		—			—			677
Net unrealized holding loss on securities	—		—			(96		)	(96		)
Pension liability adjustments	—		(2		)	—			(2		)
Net current-period other comprehensive income (loss)	677		(2		)	(96		)	579
Accumulated other comprehensive income (loss) at January 31, 2020	$	5,694	$	(4,081	)	$	—		$	1,613



	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	332		—			—			332
Net unrealized holding loss on securities	—		—			(89		)	(89		)
Pension liability adjustments	—		(64		)	—			(64		)
Net current-period other comprehensive income (loss)	332		(64		)	(89		)	179
Accumulated other comprehensive income (loss) at January 31, 2019	$	6,680	$	(3,859	)	$	92		$	2,913

SEGMENT INFORMATION (Tables)

6 Months Ended

Jan. 31, 2020

Segment Reporting [Abstract]

Summarized Financial Information of Continuing Operations

Summarized financial information by operating segment is as follows:



	Three Months Ended January 31,						Six Months Ended January 31,
	2020			2019			2020			2019
	(In thousands)
Net revenue:
Supply Chain	$	92,335		$	87,776		$	184,485		$	174,815
Direct Marketing	123,117			118,447			256,120			246,541
	$	215,452		$	206,223		$	440,605		$	421,356
Operating income (loss):
Supply Chain	$	5,763		$	(141	)	$	12,273		$	1,541
Direct Marketing	4,217			6,695			15,420			11,462
Total segment operating income	9,980			6,554			27,693			13,003
Corporate-level activity	(2,807		)	(4,428		)	(5,778		)	(7,341		)
Total operating income	7,173			2,126			21,915			5,662
Total other expense	(9,542		)	(12,474		)	(18,137		)	(22,264		)
Income (loss) before income taxes	$	(2,369	)	$	(10,348	)	$	3,778		$	(16,602	)

Total Assets of Continuing Operations



	January 31, 2020		July 31, 2019
	(In thousands)
Total assets:
Supply Chain	$	141,053	$	112,712
Direct Marketing	619,729		600,390
Sub-total—segment assets	760,782		713,102
Corporate	28,113		18,461
	$	788,895	$	731,563

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 January 31,				Six Months Ended January 31,
	2020		2019		2020		2019
	(In thousands)
Services:
Supply Chain	$	92,335	$	87,776	$	184,485	$	174,815
Products:
Direct Marketing	123,117		118,447		256,120		246,541
	$	215,452	$	206,223	$	440,605	$	421,356

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jan. 31, 2020

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 January 31, 2020 and July 31, 2019, classified by fair value hierarchy:



			Fair Value Measurements at Reporting Date Using
(In thousands)	January 31, 2020		Level 1		Level 2		Level 3
Assets:
Money market funds	$	526	$	526	$	—	$	—



			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2019		Level 1		Level 2		Level 3
Assets:
Money market funds	$	365	$	365	$	—	$	—

NATURE OF OPERATIONS - Nature of Operations (Detail) - USD ($) $ in Millions	Jan. 31, 2020	Jul. 31, 2019
Nature Of Operations [Line Items]
Cash and cash equivalents	$ 30.2	$ 32.5
Working capital	(44.6)
PNC Bank Credit Facility
Nature Of Operations [Line Items]
Credit facility, readily available borrowing capacity	6.8
Cerberus Credit Facility
Nature Of Operations [Line Items]
Credit facility, readily available borrowing capacity	$ 19.0

BASIS OF PRESENTATION Error Corrections and Prior Period Adjustments (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jan. 31, 2020	Oct. 31, 2019	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019	Jul. 31, 2019
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Operating expenses	$ 38,076		$ 35,417	$ 67,580	$ 70,081
Net loss	$ (3,557)		$ (11,753)	1,235	$ (19,118)
Restatement Adjustment
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Accrued expenses						$ 106,300
Adjustment of Tax Related Liabilities
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Adjustments of tax related liabilities		$ 6,400
Operating Expense \| Restatement Adjustment \| Adjustment of Tax Related Liabilities
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Operating expenses				137,700
Net loss \| Restatement Adjustment
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Net loss				$ (60,300)

RECENT ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Aug. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right of use assets	$ 61,650
Operating lease liability	$ 62,704
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right of use assets		$ 51,100
Operating lease liability		$ 53,100

INVENTORIES - Components of Inventories (Detail) - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 21,631	$ 21,322
Work-in-process	428	587
Finished goods	2,182	1,765
Inventories, net	$ 24,241	$ 23,674

GOODWILL AND INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2020	Jul. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 257,128	$ 257,128
Gross carrying amount	213,250	213,250
Accumulated amortization	64,916	50,732
Intangible assets	$ 148,334	162,518
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	15 years
Gross carrying amount	$ 192,730	192,730
Accumulated amortization	50,381	39,617
Intangible assets	$ 142,349	153,113
Trademarks and Trade Names
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Gross carrying amount	$ 20,520	20,520
Accumulated amortization	14,535	11,115
Intangible assets	5,985	$ 9,405
Direct Marketing
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 257,100

GOODWILL AND INTANGIBLE ASSETS Schedule of amortization expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 6,911	$ 7,791	$ 14,188	$ 15,890
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	5,197	5,996	10,764	12,420
Trademarks and Trade Names
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 1,714	$ 1,795	$ 3,424	$ 3,470

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components of Accrued Expenses (Detail) - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
Payables and Accruals [Abstract]
Accrued taxes	$ 55,217	$ 59,057
Accrued compensation	24,810	22,584
Accrued interest	467	467
Accrued audit, tax and legal	3,711	3,148
Accrued contract labor	1,444	1,650
Accrued worker's compensation	4,866	4,549
Accrued other	19,245	21,203
Accrued expenses	$ 109,760	$ 112,658

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
Payables and Accruals [Abstract]
Accrued pricing liabilities	$ 14,309	$ 14,309
Customer postage deposits	8,890	11,816
Revolving credit facility	6,000	6,000
Other	6,507	6,794
Other current liabilities	$ 35,706	$ 38,919

LEASES - Narrative (Details)	6 Months Ended
LEASES - Narrative (Details)	Jan. 31, 2020
Leases [Abstract]
Remaining lease term	11 years

LEASES - Lease Costs (Details) - USD ($) $ in Thousands	6 Months Ended
LEASES - Lease Costs (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Jan. 31, 2019
Lease, Cost [Abstract]
Operating lease cost	$ 4,816	$ 9,632
Short-term lease expense	226	452
Variable lease cost	6	46
Amortization of finance lease assets	18	36
Interest on finance lease liabilities	4	8
Total lease cost	$ 5,070	$ 10,174

LEASES - Lease Commitments (Details) $ in Thousands	Jan. 31, 2020 USD ($)
Operating Leases
2020	$ 10,527
2021	15,941
2022	12,493
2023	7,597
2024	5,298
Thereafter	23,261
Total lease payments	75,117
Less: imputed interest	12,413
Present value of lease payments	62,704
Less: current maturities of lease obligations	14,717
Long-term lease obligations	47,987
Finance Leases
2020	65
2021	76
2022	76
2023	38
2024	0
Thereafter	0
Total lease payments	255
Less: imputed interest	38
Present value of lease payments	217
Less: current maturities of lease obligations	71
Long-term lease obligations	146
Operating lease not yet commenced, liability	$ 8,900

LEASES - Lease Information (Details)	Jan. 31, 2020
Weighted average remaining lease term:
Operating leases	6 years 4 months
Finance leases	2 years 9 months 12 days
Weighted average discount rate:
Operating leases	4.40%
Finance leases	3.80%

LEASES - Supplemental Cash Flow Information (Details) $ in Thousands	6 Months Ended
	Jan. 31, 2020 USD ($)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$ 8,769
Operating cash flows from finance leases	5
Financing cash flows from finance leases	$ 74

DEBT Component of Debt and Reconciliation (Details) - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
Term Loan
Line of Credit Facility [Line Items]
Principal amount of long-term debt	$ 387,065	$ 390,065
Unamortized debt discount	(6,678)	(7,508)
Unamortized debt issuance costs	(753)	(888)
Net carrying value of the term loan	379,634	381,669
Convertible Senior Note
Line of Credit Facility [Line Items]
Principal amount of long-term debt	14,940	14,940
Convertible Senior Note \| SPHG Holdings
Line of Credit Facility [Line Items]
Unamortized debt discount	(6,678)	(7,508)
Net carrying value of the term loan	8,262	7,432
Cerberus Credit Facility
Line of Credit Facility [Line Items]
Principal amount of long-term debt	372,125	375,125
Cerberus Credit Facility \| Term Loan
Line of Credit Facility [Line Items]
Principal amount of long-term debt	372,125	375,125
Unamortized debt issuance costs	(753)	(888)
Net carrying value of the term loan	$ 371,372	$ 374,237

DEBT - Summary of Interest Expense (Detail) - SPHG Holdings - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jan. 31, 2020	Jan. 31, 2020
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	$ 701	$ 1,390
Coupon Interest
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	280	560
Accretion
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	$ 421	$ 830

DEBT - Additional Information (Detail)					3 Months Ended		6 Months Ended
DEBT - Additional Information (Detail)	Feb. 28, 2019 USD ($) $ / shares	Dec. 15, 2017	Dec. 15, 2017 USD ($)	Jun. 30, 2014 USD ($)	Jan. 31, 2020 USD ($)	Mar. 31, 2018 USD ($)	Jan. 31, 2020 USD ($)	Dec. 31, 2019	Jul. 31, 2019 USD ($)	Jun. 29, 2014 USD ($)
Debt Instrument [Line Items]
Number of direct and wholly-owned subsidiaries				2
Debt instrument, interest rate, effective percentage					18.47%		18.47%
Excess cash flow payments							$ 0
Line of credit, current					$ 6,000,000		6,000,000		$ 6,000,000
Redemption price percentage	100.00%
Carrying amount of equity component					$ 8,200,000		$ 8,200,000		8,200,000
PNC Bank Credit Facility
Debt Instrument [Line Items]
Line of credit facility, term				5 years				6 months
Line of credit facility, maximum credit commitment				$ 25,000,000						$ 50,000,000
Cerberus Credit Facility
Debt Instrument [Line Items]
Line of credit facility, term		5 years
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					350.00%		350.00%
Principal amount outstanding					$ 372,125,000		$ 372,125,000		375,125,000
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%
Scenario 1 \| Cerberus Credit Facility
Debt Instrument [Line Items]
Excess cash flow payment percentage			50.00%
Scenario 2 \| Cerberus Credit Facility
Debt Instrument [Line Items]
Excess cash flow payment percentage			25.00%
Convertible Senior Note
Debt Instrument [Line Items]
Principal amount outstanding					14,940,000		14,940,000		14,940,000
Term Loan
Debt Instrument [Line Items]
Long-term debt					379,634,000		379,634,000		381,669,000
Principal amount outstanding					387,065,000		387,065,000		390,065,000
Term Loan \| Cerberus Credit Facility
Debt Instrument [Line Items]
Long-term debt					371,372,000		371,372,000		374,237,000
Principal amount outstanding					372,125,000		372,125,000		375,125,000
Line of Credit \| Cerberus Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment					19,000,000		19,000,000
Line of credit, current					6,000,000		6,000,000		6,000,000
SPHG Holdings
Debt Instrument [Line Items]
Debt instrument, interest expense					701,000		1,390,000
Conversion to common stock	$ 1,000
Debt conversion ratio	421.2655
Debt conversion price (in usd per share) \| $ / shares	$ 2.37
SPHG Holdings \| 7.50% Convertible Senior Debt
Debt Instrument [Line Items]
Principal amount	$ 14,940,000				14,940,000		14,940,000		14,940,000
Debt instrument, stated interest rate	7.50%
SPHG Holdings \| Convertible Senior Note
Debt Instrument [Line Items]
Long-term debt					$ 8,262,000		$ 8,262,000		$ 7,432,000
Debt instrument amortization period					49 months

DEBT - Net Carrying Value of the Notes (Detail) - USD ($)		3 Months Ended	6 Months Ended
	Dec. 15, 2017	Jan. 31, 2020	Jan. 31, 2020	Jul. 31, 2019	Feb. 28, 2019
Interest Expense, Debt [Line Items]
Line of credit, current		$ 6,000,000	$ 6,000,000	$ 6,000,000
Carrying amount of equity component		$ 8,200,000	$ 8,200,000	8,200,000
Debt instrument, interest rate, effective percentage		18.47%	18.47%
Unused line of credit fee		0.50%	0.50%
Term Loan
Interest Expense, Debt [Line Items]
Principal amount outstanding		$ 387,065,000	$ 387,065,000	390,065,000
Unamortized debt discount		(753,000)	(753,000)	(888,000)
Net carrying value of the term loan		379,634,000	379,634,000	381,669,000
Convertible Senior Note
Interest Expense, Debt [Line Items]
Principal amount outstanding		14,940,000	14,940,000	14,940,000
SPHG Holdings
Interest Expense, Debt [Line Items]
Debt instrument, interest expense		701,000	1,390,000
SPHG Holdings \| Coupon Interest
Interest Expense, Debt [Line Items]
Debt instrument, interest expense		280,000	560,000
SPHG Holdings \| Accretion
Interest Expense, Debt [Line Items]
Debt instrument, interest expense		421,000	830,000
SPHG Holdings \| Convertible Senior Note
Interest Expense, Debt [Line Items]
Net carrying value of the term loan		8,262,000	8,262,000	7,432,000
SPHG Holdings \| 7.50% Convertible Senior Debt
Interest Expense, Debt [Line Items]
Principal amount		14,940,000	14,940,000	14,940,000	$ 14,940,000
Cerberus Credit Facility
Interest Expense, Debt [Line Items]
Principal amount outstanding		372,125,000	372,125,000	375,125,000
Line of credit facility, term	5 years
Credit facility, readily available borrowing capacity		19,000,000	19,000,000
Cerberus Credit Facility \| Line of Credit
Interest Expense, Debt [Line Items]
Line of credit, current		6,000,000	6,000,000	6,000,000
Line of credit facility, maximum credit commitment		19,000,000	19,000,000
Cerberus Credit Facility \| Term Loan
Interest Expense, Debt [Line Items]
Principal amount outstanding		372,125,000	372,125,000	375,125,000
Unamortized debt discount		(753,000)	(753,000)	(888,000)
Net carrying value of the term loan		$ 371,372,000	371,372,000	$ 374,237,000
MidCap Credit Facility
Interest Expense, Debt [Line Items]
Debt instrument, percentage points added to the reference rate		4.00%
Line of credit facility, term		3 years
Line of credit facility, maximum credit commitment		$ 12,500,000.0	12,500,000.0
Credit facility, readily available borrowing capacity		6,817,000	6,817,000
MidCap Credit Facility \| Letter Of Credit Sublimit
Interest Expense, Debt [Line Items]
Line of credit facility, maximum credit commitment		5,000,000.0	5,000,000.0
MidCap Credit Facility \| Inventory Sublimit
Interest Expense, Debt [Line Items]
Line of credit facility, maximum credit commitment		$ 4,500,000.0	$ 4,500,000.0

CONTINGENCIES - Additional Information (Detail) $ in Millions	Dec. 15, 2017 USD ($)
Purchase Agreement \| SPHG Holdings \| Series C Convertible Preferred Stock
Contingencies [Line Items]
Proceeds from issuance of preferred stock	$ 35.0

STOCKHOLDERS' EQUITY - Additional Information (Detail) $ / shares in Units, $ in Millions	Dec. 15, 2017 USD ($) day $ / shares shares	Jan. 31, 2020 $ / shares shares	Jul. 31, 2019 $ / 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
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 \| $	$ 35.0
Preferred stock preference, percentage of stated value	100.00%
Preferred stock preference, percentage of declared but unpaid dividends	100.00%

REVENUE RECOGNITION - Disaggregated Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 215,452	$ 206,223	$ 440,605	$ 421,356
Supply chain management services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	91,911	87,166	183,616	173,792
Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	123,117	118,447	256,120	246,541
Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	424	610	869	1,023
Goods
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	123,117	118,447	256,120	246,541
Goods \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	123,117	118,447	256,120	246,541
Services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	92,335	87,776	184,485	174,815
Services \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	92,335	87,776	184,485	174,815
Supply Chain
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	92,335	87,776	184,485	174,815
Supply Chain \| Supply chain management services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	91,911	87,166	183,616	173,792
Supply Chain \| Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0	0	0
Supply Chain \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	424	610	869	1,023
Supply Chain \| Goods \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0	0	0
Supply Chain \| Services \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	92,335	87,776	184,485	174,815
Direct Marketing
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	123,117	118,447	256,120	246,541
Direct Marketing \| Supply chain management services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0	0	0
Direct Marketing \| Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	123,117	118,447	256,120	246,541
Direct Marketing \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	0	0	0	0
Direct Marketing \| Goods \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	123,117	118,447	256,120	246,541
Direct Marketing \| Services \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 0	$ 0	$ 0	$ 0

REVENUE RECOGNITION - Additional Information (Detail) - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract assets	$ 23,546	$ 21,473
Deferred revenue current	3,895	2,967
Deferred revenue long-term	98	62
Deferred revenue	3,993	3,029
Contract with Customer, Asset, Gross, Current	3,993	3,029
Trade Accounts Receivable
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, trade	$ 118,291	$ 112,141

REVENUE RECOGNITION - Summary of Changes in Deferred Revenue (Detail) $ in Thousands	6 Months Ended
	Jan. 31, 2020 USD ($)
Change in Deferred Revenue
Balance at beginning of period	$ 3,029
Deferral of revenue	2,669
Recognition of deferred amounts upon satisfaction of performance obligation	(1,705)
Balance at end of period	$ 3,993

REVENUE RECOGNITION - Performance Obligations (Details) $ in Millions	Jan. 31, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-11-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unearned revenue	$ 3.9
Unearned revenue, timing of satisfaction	12 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-08-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unearned revenue	$ 0.1
Unearned revenue, timing of satisfaction

INCOME TAXES - Additional Information (Detail)	6 Months Ended
INCOME TAXES - Additional Information (Detail)	Jan. 31, 2020 USD ($) day	Jul. 31, 2019 USD ($)
Income Taxes [Line Items]
Unrecognized tax benefits related to federal, state and foreign taxes	$ 2,100,000	$ 2,400,000
Liabilities for interest expense related to uncertain tax positions	200,000	$ 200,000
Income tax penalties accrued	200,000
Expected any unrecognized tax benefits to reverse in the next twelve months	$ 0
Stockholder owning ownership on corporation's securities percentage	5.00%
Stockholder owning ownership on corporation's securities rolling period	3 years
Net operating loss carryforwards for federal tax	$ 2,100,000,000
Net operating loss carryforwards for state tax	$ 160,000,000
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		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Earnings Per Share [Abstract]
Net income (loss)	$ (3,557)	$ (11,753)	$ 1,235	$ (19,118)
Less: Preferred dividends on redeemable preferred stock	(531)	(536)	(1,067)	(1,073)
Net income (loss) attributable to common stockholders	$ (4,088)	$ (12,289)	$ 168	$ (20,191)
Weighted average common shares outstanding (in shares)	61,538	60,935	61,469	60,974
Weighted average common equivalent shares arising from restricted stock	0	0	13	0
Weighted average number of common and potential common shares (in shares)	$ 61,538,000	$ 60,935,000	$ 61,482,000	$ 60,974,000
Basic net earnings (loss) per share attributable to common stockholders	(0.07)	(0.20)	0.00	(0.33)
Diluted net earnings (loss) per share attributable to common stockholders	$ (0.07)	$ (0.20)	$ 0.00	$ (0.33)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

- Definition

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

+ References + Details

EARNINGS (LOSS) PER SHARE - Additional Information (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Earnings Per Share [Abstract]
Common stock equivalent shares excluded from the denominator in the calculation of diluted loss per share	24.5	28.9	24.5	28.9

COMPREHENSIVE INCOME (LOSS) - Accumulated Other Comprehensive Income Items (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 57,137	$ 105,433	$ 52,692	$ 107,628
Foreign currency translation adjustment	664	1,952	677	332
Net unrealized holding loss on securities			(96)	(89)
Pension liability adjustments	0	(469)	(2)	(64)
Other comprehensive income (loss)	568	1,409	579	179
Ending balance	53,815	94,537	53,815	94,537
Foreign Currency Items
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			5,017	6,348
Foreign currency translation adjustment			677	332
Net unrealized holding loss on securities			0	0
Pension liability adjustments			0	0
Other comprehensive income (loss)			677	332
Ending balance	5,694	6,680	5,694	6,680
Pension Items
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			(4,079)	(3,795)
Foreign currency translation adjustment			0	0
Net unrealized holding loss on securities			0	0
Pension liability adjustments			(2)	(64)
Other comprehensive income (loss)			(2)	(64)
Ending balance	(4,081)	(3,859)	(4,081)	(3,859)
Unrealized Gains (Losses) on Securities
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			96	181
Foreign currency translation adjustment			0	0
Net unrealized holding loss on securities			(96)	(89)
Pension liability adjustments			0	0
Other comprehensive income (loss)			(96)	(89)
Ending balance	0	92	0	92
Accumulated Other Comprehensive Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,045	1,504	1,034	2,734
Other comprehensive income (loss)	568	1,409	579	179
Ending balance	$ 1,613	$ 2,913	$ 1,613	$ 2,913

SEGMENT INFORMATION - Additional Information (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020 USD ($)	Jan. 31, 2019 USD ($)	Jan. 31, 2020 USD ($) segment	Jan. 31, 2019 USD ($)	Jul. 31, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment			2
Number of reportable segments \| segment			2
Total assets	$ 788,895		$ 788,895		$ 731,563
Net revenue:	215,452	$ 206,223	440,605	$ 421,356
United States
Segment Reporting Information [Line Items]
Net revenue:	145,293	136,347	299,714	282,411
China
Segment Reporting Information [Line Items]
Net revenue:	32,569	37,910	72,026	74,521
Netherlands
Segment Reporting Information [Line Items]
Net revenue:	11,071	14,403	21,719	29,347
Other
Segment Reporting Information [Line Items]
Net revenue:	$ 26,519	$ 17,563	$ 47,146	$ 35,077

SEGMENT INFORMATION - Summarized Financial Information of Continuing Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Segment Reporting Information [Line Items]
Revenue from contracts with customers	$ 215,452	$ 206,223	$ 440,605	$ 421,356
Operating income (loss)	7,173	2,126	21,915	5,662
Total other income (expense)	(9,542)	(12,474)	(18,137)	(22,264)
Income (loss) before income taxes	(2,369)	(10,348)	3,778	(16,602)
Supply Chain
Segment Reporting Information [Line Items]
Revenue from contracts with customers	92,335	87,776	184,485	174,815
Direct Marketing
Segment Reporting Information [Line Items]
Revenue from contracts with customers	123,117	118,447	256,120	246,541
Operating Segments
Segment Reporting Information [Line Items]
Operating income (loss)	9,980	6,554	27,693	13,003
Operating Segments \| Supply Chain
Segment Reporting Information [Line Items]
Revenue from contracts with customers	92,335	87,776	184,485	174,815
Operating income (loss)	5,763	(141)	12,273	1,541
Operating Segments \| Direct Marketing
Segment Reporting Information [Line Items]
Revenue from contracts with customers	123,117	118,447	256,120	246,541
Operating income (loss)	4,217	6,695	15,420	11,462
Corporate-level activity
Segment Reporting Information [Line Items]
Operating income (loss)	$ (2,807)	$ (4,428)	$ (5,778)	$ (7,341)

SEGMENT INFORMATION - Total Assets of Continuing Operations (Detail) - USD ($) $ in Thousands	Jan. 31, 2020	Jul. 31, 2019
Segment Reporting Information [Line Items]
Total assets	$ 788,895	$ 731,563
Operating Segments
Segment Reporting Information [Line Items]
Total assets	760,782	713,102
Operating Segments \| Supply Chain
Segment Reporting Information [Line Items]
Total assets	141,053	112,712
Operating Segments \| Direct Marketing
Segment Reporting Information [Line Items]
Total assets	619,729	600,390
Corporate-level activity
Segment Reporting Information [Line Items]
Total assets	$ 28,113	$ 18,461

SEGMENT INFORMATION - Summarized Financial Information of Net Revenue from External Customers by Group of Services (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	$ 215,452	$ 206,223	$ 440,605	$ 421,356
Supply Chain
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	92,335	87,776	184,485	174,815
Direct Marketing
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	123,117	118,447	256,120	246,541
Supply Chain
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	92,335	87,776	184,485	174,815
Direct Marketing
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	$ 123,117	$ 118,447	$ 256,120	$ 246,541

RELATED PARTY TRANSACTIONS (Detail) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		6 Months Ended
	Dec. 15, 2017	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019	Jul. 31, 2019	Feb. 28, 2019
Related Party Transaction [Line Items]
Preferred stock, shares issued (in shares)		0		0		0
Preferred stock, par value (in usd per share)		$ 0.01		$ 0.01		$ 0.01
Steel Holdings \| 5.25% Convertible Senior Notes
Related Party Transaction [Line Items]
Principal amount convertible senior notes held of						$ 14.9	$ 14.9
Debt instrument, stated interest rate			5.25%		5.25%		7.50%
SPHG Holdings \| Purchase Agreement \| 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	$ 35.0
Steel Services Ltd. \| Management Services Agreement
Related Party Transaction [Line Items]
Total expenses incurred related to Management Services Agreement and Transfer Agreement		$ 0.9	$ 0.4	$ 1.7	$ 0.7
SP Corporate Services Llc and Steel Services Limited \| Management Services Agreement
Related Party Transaction [Line Items]
Amount due to related parties		$ 0.3		$ 0.3		$ 0.5
Steel Connect, Inc. \| SPHG Holdings
Related Party Transaction [Line Items]
Ownership percentage in capital stock		56.30%		56.30%

FAIR VALUE MEASUREMENTS - 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	Jan. 31, 2020	Jul. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 526	$ 365
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	526	365
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