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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Apr. 30, 2020	Jun. 01, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Apr. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Registrant Name	Steel Connect, Inc.
Entity Central Index Key	0000914712
Current Fiscal Year End Date	--07-31
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		62,383,678

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
Current Assets
Cash and cash equivalents	$ 90,189	$ 32,548
Accounts receivable, trade, net of allowance for doubtful accounts of $424 and $1,804 at April 30, 2020 and July 31, 2019, respectively	83,000	112,141
Inventories, net	19,522	23,674
Funds held for clients	17,198	13,516
Prepaid expenses and other current assets	24,341	31,445
Total current assets	234,250	213,324
Property and equipment, net	85,102	91,268
Goodwill	257,128	257,128
Other intangible assets, net	141,799	162,518
Operating right-of-use assets	58,487
Other assets	7,900	7,325
Total assets	784,666	731,563
Current Liabilities
Accounts payable	74,269	85,898
Accrued expenses	107,918	112,658
Funds held for clients	17,198	13,516
Current portion of long-term debt	4,016	5,732
Current lease obligations	14,104	127
Other current liabilities	56,925	38,919
Total current liabilities	274,430	256,850
Convertible note payable	8,672	7,432
Long-term debt, excluding current portion	366,939	368,505
Long-term lease obligations	45,835
Other long-term liabilities	9,464	10,898
Total long-term liabilities	430,910	386,835
Total liabilities	705,340	643,685
Contingently redeemable preferred stock, $0.01 par value per share. 35,000 shares authorized, issued and outstanding at April 30, 2020 and July 31, 2019	35,175	35,186
Stockholders' equity:
Preferred stock, $0.01 par value per share. 4,965,000 shares authorized at April 30, 2020 and July 31, 2019; zero shares issued and outstanding at April 30, 2020 and July 31, 2019	0	0
Common stock, $0.01 par value per share. Authorized 1,400,000,000 shares; 62,383,678 issued and outstanding shares at April 30, 2020; 61,805,856 issued and outstanding shares at July 31, 2019	624	618
Additional paid-in capital	7,477,910	7,477,327
Accumulated deficit	(7,432,803)	(7,426,287)
Accumulated other comprehensive income (loss)	(1,580)	1,034
Total stockholders' equity	44,151	52,692
Total liabilities, contingently redeemable preferred stock and stockholders' equity	$ 784,666	$ 731,563

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
Accounts receivable, trade, allowance for doubtful accounts	$ 424	$ 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)	62,383,678	61,805,856
Common stock, shares outstanding (in shares)	62,383,678	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		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Condensed Income Statements, Captions [Line Items]
Revenues	$ 177,351	$ 194,003	$ 617,956	$ 615,359
Cost of revenue	143,881	157,142	494,991	502,755
Gross profit	33,470	36,861	122,965	112,604
Operating expenses:
Selling, general and administrative	25,872	27,426	79,264	81,617
Amortization of intangible assets	6,531	7,278	20,719	23,168
Total operating expenses	32,403	34,704	99,983	104,785
Operating income	1,067	2,157	22,982	7,819
Other income (expense):
Interest income	8	22	38	517
Interest expense	(8,523)	(10,294)	(26,425)	(32,335)
Other gains (losses), net	2,774	(114)	2,509	(832)
Total other expense	(5,741)	(10,386)	(23,878)	(32,650)
Loss before income taxes	(4,674)	(8,229)	(896)	(24,831)
Income tax expense	1,485	1,420	4,028	3,956
Gains on investments in affiliates, net of tax	0	(22)	0	(42)
Net loss	(6,159)	(9,627)	(4,924)	(28,745)
Less: Preferred dividends on redeemable preferred stock	(525)	(525)	(1,592)	(1,598)
Net loss attributable to common stockholders	$ (6,684)	$ (10,152)	$ (6,516)	$ (30,343)
Basic net earnings (loss) per share attributable to common stockholders (in usd per share)	$ (0.11)	$ (0.17)	$ (0.11)	$ (0.50)
Diluted net earnings (loss) per share attributable to common stockholders (in usd per share)	$ (0.11)	$ (0.17)	$ (0.11)	$ (0.50)
Weighted average common shares used in:
Basic earnings (loss) per share (in shares)	61,815	61,393	61,583	61,111
Diluted earnings (loss) per share (in shares)	61,815	61,393	61,583	61,111
Products
Condensed Income Statements, Captions [Line Items]
Revenues	$ 98,284	$ 116,006	$ 354,404	$ 362,547
Services
Condensed Income Statements, Captions [Line Items]
Revenues	$ 79,067	$ 77,997	$ 263,552	$ 252,812

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (6,159)	$ (9,627)	$ (4,924)	$ (28,745)
Other comprehensive loss:
Foreign currency translation adjustment	(3,064)	(608)	(2,387)	(276)
Net unrealized holding gain (loss) on securities, net of tax	0	3	(96)	(86)
Pension liability adjustments, net of tax	(129)	0	(131)	(64)
Other comprehensive loss	(3,193)	(605)	(2,614)	(426)
Comprehensive loss	$ (9,352)	$ (10,232)	$ (7,538)	$ (29,171)

- Definition

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

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjustment Accumulated Deficit
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' Equity Attributable to Parent	$ 107,628	$ 608	$ 7,467,855	$ (7,363,569)	$ 2,734	$ 6,138	$ 6,138
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	6,138	6,138
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(28,745)			(28,745)
Preferred dividends	(1,598)			(1,598)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)		13,794
Issuance of common stock pursuant to employee stock purchase plan	15		15
Share-based compensation	1,174		1,174
Other comprehensive items	(426)				(426)
Equity portion of convertible note	8,200		8,200
Restricted stock grants (in shares)		1,045,543
Restricted stock grants		$ 10	(10)
Stockholders' Equity Attributable to Parent	92,386	$ 618	7,477,234	(7,387,774)	2,308	6,138	6,138
Ending balance (in shares) at Apr. 30, 2019		61,802,196
Ending balance at Apr. 30, 2019	92,386	$ 618	7,477,234	(7,387,774)	2,308
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	6,138	6,138
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' Equity Attributable to Parent	$ 52,692	$ 618	7,477,327	(7,426,287)	1,034	$ 6,138	$ 6,138
Ending balance (in shares) at Jul. 31, 2019	61,805,856	61,805,856
Ending balance at Jul. 31, 2019	$ 52,692	$ 618	7,477,327	(7,426,287)	1,034
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' Equity Attributable to Parent	94,537	$ 618	7,468,628	(7,377,622)	2,913
Beginning balance (in shares) at Jan. 31, 2019		61,797,807
Beginning balance at Jan. 31, 2019	94,537	$ 618	7,468,628	(7,377,622)	2,913
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(9,627)			(9,627)
Preferred dividends	(525)			(525)
Preferred dividends	(525)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)		4,389
Issuance of common stock pursuant to employee stock purchase plan	2		2
Share-based compensation	404		404
Other comprehensive items	(605)				(605)
Equity portion of convertible note	8,200		8,200
Stockholders' Equity Attributable to Parent	92,386	$ 618	7,477,234	(7,387,774)	2,308
Ending balance (in shares) at Apr. 30, 2019		61,802,196
Ending balance at Apr. 30, 2019	92,386	$ 618	7,477,234	(7,387,774)	2,308
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' Equity Attributable to Parent	92,386	618	7,477,234	(7,387,774)	2,308
Stockholders' Equity Attributable to Parent	$ 52,692	$ 618	7,477,327	(7,426,287)	1,034
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 loss	(4,924)			(4,924)
Preferred dividends	(1,592)			(1,592)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)		17,299
Issuance of common stock pursuant to employee stock purchase plan	8		8
Share-based compensation	581		581
Other comprehensive items	(2,614)				(2,614)
Restricted stock grants (in shares)		560,523
Restricted stock grants		$ 6	(6)
Stockholders' Equity Attributable to Parent	$ 44,151	$ 624	7,477,910	(7,432,803)	(1,580)
Ending balance (in shares) at Apr. 30, 2020	62,383,678	62,383,678.000
Ending balance at Apr. 30, 2020	$ 44,151	$ 624	7,477,910	(7,432,803)	(1,580)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' Equity Attributable to Parent	53,815	$ 624	7,477,697	(7,426,119)	1,613
Beginning balance (in shares) at Jan. 31, 2020		62,375,558
Beginning balance at Jan. 31, 2020	53,815	$ 624	7,477,697	(7,426,119)	1,613
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(6,159)			(6,159)
Preferred dividends	(525)			(525)
Preferred dividends	(525)
Issuance of common stock pursuant to employee stock purchase plan and stock option exercises (in shares)		8,120
Issuance of common stock pursuant to employee stock purchase plan	4		4
Share-based compensation	209		209
Other comprehensive items	(3,193)				(3,193)
Stockholders' Equity Attributable to Parent	$ 44,151	$ 624	7,477,910	(7,432,803)	(1,580)
Ending balance (in shares) at Apr. 30, 2020	62,383,678	62,383,678.000
Ending balance at Apr. 30, 2020	$ 44,151	$ 624	7,477,910	(7,432,803)	(1,580)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' Equity Attributable to Parent	$ 44,151	$ 624	$ 7,477,910	$ (7,432,803)	$ (1,580)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019
Cash flows from operating activities:
Net loss	$ (4,924)	$ (28,745)
Adjustments to reconcile net loss to cash flows from operating activities:
Depreciation	17,240	16,331
Amortization of intangible assets	20,719	23,168
Amortization of deferred financing costs	285	703
Accretion of debt discount	1,240	2,741
Impairment of long-lived assets	0	469
Share-based compensation	581	1,174
Other (gains) losses, net	(2,509)	832
Gains on investments in affiliates	0	(42)
Changes in operating assets and liabilities
Accounts receivable, net	28,492	(15,111)
Inventories, net	3,847	859
Prepaid expenses and other current assets	7,538	3,548
Accounts payable and accrued expenses	(14,547)	(2,795)
Refundable and accrued income taxes, net	(793)	(2,059)
Other assets and liabilities	2,882	(4,689)
Net cash provided by (used in) operating activities	60,051	(3,616)
Cash flows from investing activities:
Additions of property and equipment	(11,477)	(11,840)
Proceeds from the disposition of property and equipment	12	19
Proceeds from the sale of available-for-sale securities	163	0
Proceeds from investments in affiliates	0	42
Net cash used in investing activities	(11,302)	(11,779)
Cash flows from financing activities:
Proceeds from issuance of convertible note	0	14,940
Proceeds from revolving lines of credit, net	19,000	10,000
Payments on maturity of convertible notes	0	(63,925)
Payment of long-term debt	(3,076)	(13,376)
Payment of preferred dividends	(1,563)	(1,598)
Payment of debt financing and amendment costs	(914)	0
Purchase of the Company's convertible notes	0	(3,700)
Repayments on capital lease obligations	(83)	(114)
Proceeds from issuance of common stock	8	15
Net cash provided by (used in) financing activities	13,372	(57,758)
Net effect of exchange rate changes on cash, cash equivalents and restricted cash	(798)	(239)
Net increase (decrease) in cash, cash equivalents and restricted cash	61,323	(73,392)
Cash, cash equivalents and restricted cash, beginning of period	46,064	103,826
Cash, cash equivalents and restricted cash, end of period	107,387	30,434
Cash and cash equivalents, end of period	90,189	20,364
Funds held for clients, end of period	$ 17,198	$ 10,070

NATURE OF OPERATIONS	9 Months Ended
NATURE OF OPERATIONS	Apr. 30, 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, IWCO Direct Holdings, Inc. ("IWCO Direct" or "IWCO") and ModusLink Corporation ("ModusLink" or "Supply Chain"). 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. 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. 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 ("MidCap"), 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 April 30, 2020 and July 31, 2019, the Company had cash and cash equivalents of $90.2 million and $32.5 million, respectively. As of April 30, 2020, the Company had a working capital deficit of $40.2 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 April 30, 2020, ModusLink had a readily available borrowing capacity under its revolving credit facility of $5.7 million. As of April 30, 2020, IWCO Direct had no available borrowing capacity under its revolving facility as it had fully borrowed the $25.0 million under the facility as part of a comprehensive precautionary approach to increase the Company's cash position and maximize its financial flexibility in light of the current volatility in global markets resulting from the novel Coronavirus ("COVID-19") outbreak. 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. Impact of COVID-19 In March 2020, the World Health Organization categorized the novel Coronavirus ("COVID-19") as a pandemic, and the President of the United States declared the COVID-19 outbreak a national emergency. The spread of the outbreak has caused significant disruptions in the U.S. and global economies, and economists expect the impact will be significant during the remainder of 2020. The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. The Company continues to evaluate the global risks and the slowdown in business activity related to COVID-19, including the potential impacts on its employees, customers, suppliers and financial results. The effects of COVID-19 required temporary closures of certain of ModusLink's facilities for short periods of time. Additionally, although IWCO is operating as an essential business, it has reduced operating levels and labor shifts due to lower sales volume. As of the filing of this quarterly report on Form 10-Q, all of the Company's facilities were open and able to operate at normal capacities. Additionally, to help mitigate the financial impact of the COVID-19 pandemic, the Company has initiated cost reduction actions, including deferral of board fees, hiring freezes, staffing and force reductions, Company-wide salary reductions, bonus payment deferrals and temporary 401(k) match suspension. The Company continues its focus on cash management and liquidity, which includes elimination of discretionary spending, aggressive working capital management, strict approvals for capital expenditures and borrowing from its revolving credit facilities as a precautionary measure to preserve financial flexibility (as further discussed above in this Note 1 and in Note 8 - "Debt"). The Company will evaluate further actions if circumstances warrant. Currently, the Company anticipates that the impact of the rapid deterioration of the U.S and global economies will most likely continue and have an adverse impact on the Company's business. However, as the situation surrounding COVID-19 remains fluid, it is difficult to predict the duration of the pandemic and the impact on the Company's business, operations, financial condition and cash flows. The severity of the impact on the Company's business for the remainder of fiscal 2020 and beyond will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic, the extent and severity of the impact on the Company's customers and suppliers, the continued disruption to the demand for our businesses' products and services, and the impact of the global business and economic environment on liquidity and the availability of capital, all of which are uncertain and cannot be predicted. The Company's future results of operations and liquidity could also be adversely impacted by delays in payments of outstanding receivables beyond normal payment terms, supply chain disruptions and uncertain demand, and the effect of any initiatives or programs that the Company may undertake to address financial and operational challenges faced by its customers. There is also no certainty that federal, state or local regulations regarding safety measures to address the spread of COVID-19 will not adversely impact the Company's operations.

BASIS OF PRESENTATION	9 Months Ended
BASIS OF PRESENTATION	Apr. 30, 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 ("U.S. GAAP") 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, as amended by Amendment No. 1 filed on November 26, 2019. The results for the three and nine months ended April 30, 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 nine months ended April 30, 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. Certain reclassifications have been made to conform prior-period amounts to the current-period presentation.

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Apr. 30, 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 standard was created to simplify the accounting for share-based payments to nonemployees and provides guidance on how to account for share-based payment awards issued in transactions in which a grantor acquires goods or services to be used or consumed in the grantor's own operations. 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. The Company is currently evaluating the impact of this accounting standard update on its 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 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. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which is intended to provide temporary optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate, known as LIBOR, or by another reference rate expected to be discontinued. This optional guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements.

INVENTORIES

9 Months Ended

Apr. 30, 2020

Inventory Disclosure [Abstract]

INVENTORIES

Inventories, net consisted of the following:



	April 30, 2020		July 31, 2019
	(In thousands)
Raw materials	$	18,060	$	21,322
Work-in-process	309		587
Finished goods	1,153		1,765
	$	19,522	$	23,674

GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Apr. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

The Company's goodwill of $257.1 million as of April 30, 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 April 30, 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:



		April 30, 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	$	55,206	$	137,524	$	192,730	$	39,617	$	153,113
Trademarks and trade names	3	20,520		16,245		4,275		20,520		11,115		9,405
Total		$	213,250	$	71,451	$	141,799	$	213,250	$	50,732	$	162,518

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



	Three Months Ended April 30,				Nine Months Ended April 30,
	2020		2019		2020		2019
	(In thousands)
Customer relationships	$	4,825	$	5,564	$	15,589	$	18,038
Trademarks and trade names	1,706		1,714		5,130		5,130
Total	$	6,531	$	7,278	$	20,719	$	23,168

As of April 30, 2020, the Company reviewed its goodwill and other intangible assets for indicators of impairment as a result of the impact of the COVID-19 pandemic, and as a result, the Company believes that indicators of impairment were present for all these asset classes due to a general deterioration in macroeconomic conditions, reduced cash flow projections and a significant decline in the Company's market capitalization. The Company performed a quantitative impairment test of goodwill. The Company calculated the fair value of the Direct Marketing reporting unit using a discounted cash flow ("DCF") valuation approach, which indicated the fair value of the reporting unit exceeded its carrying value by greater than $30.0 million and therefore, as of April 30, 2020, there was no goodwill impairment. The DCF calculation was dependent on estimates for future sales, operating income, depreciation and amortization, income tax payments, working capital changes and capital expenditures, as well as expected long-term growth rates for cash flows. All of these factors are affected by economic conditions related to the industries in which the Company and its customers operate, as well as in conditions in the global capital markets. The discount rates utilized in the DCF valuation are based upon our weighted average cost of capital, which takes into account the relative weights of each component of capital structure (equity and debt) and represents the expected cost of new capital adjusted as appropriate to consider the risk inherent in future cash flows of the reporting unit.

The Company performed a qualitative assessment of whether it was more likely than not that its other intangibles assets were impaired as of April 30, 2020. The Company reviewed its previous forecasts and assumptions based on the Company's current projections, that are subject to various risks and uncertainties, including forecasted revenues, expenses and cash flows, including the duration and extent of impact to our businesses from the COVID-19 pandemic. Based upon that assessment, the Company concluded it was not more likely than not that the other intangible assets were impaired as of April 30, 2020.

However, as a result of the COVID-19 pandemic, it is possible in future periods that further declines in market conditions, customer demand or other potential changes in operations may increase the risk that goodwill and other intangible assets may become impaired.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

9 Months Ended

Apr. 30, 2020

Payables and Accruals [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

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



	April 30, 2020		July 31, 2019
Accrued Expenses	(In thousands)
Accrued taxes	$	56,722	$	59,057
Accrued compensation	21,526		22,584
Accrued worker's compensation	4,698		4,549
Accrued audit, tax and legal	3,918		3,148
Accrued contract labor	826		1,650
Accrued interest	180		467
Accrued other	20,048		21,203
	$	107,918	$	112,658



	April 30, 2020		July 31, 2019
Other Current Liabilities	(In thousands)
Accrued pricing liabilities	$	14,309	$	14,309
Customer postage deposits	7,697		11,816
Revolving credit facility	25,000		6,000
Other	9,919		6,794
	$	56,925	$	38,919

As of April 30, 2020 and July 31, 2019, the Company had accrued taxes of $56.7 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 April 30, 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 April 30, 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

9 Months Ended

Apr. 30, 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 April 30, 2020		Nine Months Ended April 30, 2020
	(In thousands)
Operating lease cost	$	2,837	$	12,469
Short-term lease expense	1,802		2,254
Variable lease cost	4		50
Amortization of finance lease assets	2		38
Interest on finance lease liabilities	1		9
	$	4,646	$	14,820

Lease Commitments

The Company's future minimum lease payments required under operating and finance leases that have commenced as of April 30, 2020 were as follows:



	Operating Leases		Finance Leases
	(In thousands)
2020	$	4,054	$	19
2021	15,644		76
2022	12,426		76
2023	7,786		37
2024	5,482		—
Thereafter	23,622		—
Total lease payments	69,014		208
Less: imputed interest	9,268		15
Present value of lease payments	59,746		193
Less: current maturities of lease obligations	14,034		70
Long-term lease obligations	$	45,712	$	123

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 April 30, 2020 was as follows:



Weighted average remaining lease term:
Operating leases	6.3	years
Finance leases	2.7	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 nine months ended April 30, 2020 was as follows (in thousands):



Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	11,677
Operating cash flows from finance leases	$	7
Financing cash flows from finance leases	$	83

Leases

LEASES

Lease Expense

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



	Three Months Ended April 30, 2020		Nine Months Ended April 30, 2020
	(In thousands)
Operating lease cost	$	2,837	$	12,469
Short-term lease expense	1,802		2,254
Variable lease cost	4		50
Amortization of finance lease assets	2		38
Interest on finance lease liabilities	1		9
	$	4,646	$	14,820

Lease Commitments

The Company's future minimum lease payments required under operating and finance leases that have commenced as of April 30, 2020 were as follows:



	Operating Leases		Finance Leases
	(In thousands)
2020	$	4,054	$	19
2021	15,644		76
2022	12,426		76
2023	7,786		37
2024	5,482		—
Thereafter	23,622		—
Total lease payments	69,014		208
Less: imputed interest	9,268		15
Present value of lease payments	59,746		193
Less: current maturities of lease obligations	14,034		70
Long-term lease obligations	$	45,712	$	123

Additional Lease Information

Additional information related to the Company's leases as of April 30, 2020 was as follows:



Weighted average remaining lease term:
Operating leases	6.3	years
Finance leases	2.7	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 nine months ended April 30, 2020 was as follows (in thousands):



Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	11,677
Operating cash flows from finance leases	$	7
Financing cash flows from finance leases	$	83

DEBT

9 Months Ended

Apr. 30, 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:



	April 30, 2020			July 31, 2019
	(In thousands)
Cerberus term loan	$	372,049		$	375,125
7.50% Convertible senior note	14,940			14,940
Principal amount of long-term debt	386,989			390,065
Unamortized debt discount	(6,268		)	(7,508		)
Unamortized debt issuance costs	(1,094		)	(888		)
Carrying amount of long-term debt	$	379,627		$	381,669

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. Steel Connect, Inc. is not a borrower or a guarantor 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.

On March 30, 2020, IWCO entered into Amendment No. 2 to Financing Agreement ("Amendment No. 2"). Amendment No. 2 amends the Financing Agreement to permit Borrower to defer approximately $3.0 million in principal payments, due between March 31, 2020 and June 30, 2020, until loan maturity and to forgo the payment of approximately $4.3 million in principal payments pursuant to the excess cash flow sweep in the Financing Agreement. In addition, while Amendment No. 2 limits the total amount Borrower may distribute to the Company for management fees and tax sharing to $5.0 million during the calendar year ending December 31, 2020, Amendment No. 2 also amends the calculation of the excess cash flow defined in the Financing Agreement, for the same period, to eliminate any adverse impact to Borrower from the distribution limit or from the deferral of principal payments. Borrower is required to continue to make all interest payments. In addition, Amendment No. 2 amends the liquidity requirement from $15.0 million to $14.5 million.

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.

During the three months ended April 30, 2020, the Company borrowed on the remaining availability under the Revolving Facility as part of a comprehensive precautionary approach to increase the Company's cash position and maximize its financial flexibility in light of the current volatility in the global markets resulting from the COVID-19 pandemic.

As of April 30, 2020, IWCO Direct had no available borrowing capacity under its Revolving Facility. As of April 30, 2020 and July 31, 2019, the balance outstanding on the Revolving Facility was $25.0 million and $6.0 million, respectively. The following table reflects the components of the Term Loan:



	April 30, 2020			July 31, 2019
	(In thousands)
Principal amount outstanding on the Term Loan	$	372,049		$	375,125
Unamortized debt issuance costs	(1,094		)	(888		)
Net carrying value of the Term Loan	$	370,955		$	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. Additionally, Jack L. Howard and William T. Fejes, Jr., directors of the Company, are or previously were 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 April 30, 2020, the if-converted value of the SPHG Note did not exceed the principal value of the SPHG Note. As of April 30, 2020, the remaining period over which the unamortized discount will be amortized is 46 months. As of April 30, 2020 and July 31, 2019, the net carrying value of the SPHG Note was $8.7 million and $7.4 million, respectively.



	April 30, 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	(6,268		)	(7,508		)
Net carrying amount	$	8,672		$	7,432



	Three Months Ended April 30, 2020		Nine Months Ended April 30, 2020
	(In thousands)
Interest expense related to contractual interest coupon	$	280	$	840
Interest expense related to accretion of the discount	410		1,240
	$	690	$	2,080

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, as lender and as agent.

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 April 30, 2020, the Company had a readily available borrowing capacity under its MidCap Credit Facility of $5.7 million. As of April 30, 2020, the Company did not have any balance outstanding on the MidCap Credit Facility.

CONTINGENCIES	9 Months Ended
CONTINGENCIES	Apr. 30, 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, 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 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	9 Months Ended
STOCKHOLDERS' EQUITY	Apr. 30, 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 the manner reasonably requested by the holder and the qualification of the securities in all states reasonably requested by the holder, in each case, 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

9 Months Ended

Apr. 30, 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 April 30, 2020						Three Months Ended April 30, 2019
	Direct Marketing		Supply Chain		Consolidated Total		Direct Marketing		Supply Chain		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Marketing solutions offerings	$	98,284	$	—	$	98,284	$	116,006	$	—	$	116,006
Supply chain management services	—		78,626		78,626		—		77,508		77,508
Other	—		441		441		—		489		489
	$	98,284	$	79,067	$	177,351	$	116,006	$	77,997	$	194,003
Timing of Revenue Recognition
Goods transferred over time	$	98,284	$	—	$	98,284	$	116,006	$	—	$	116,006
Services transferred over time	—		79,067		79,067		—		77,997		77,997
	$	98,284	$	79,067	$	177,351	$	116,006	$	77,997	$	194,003



	Nine Months Ended April 30, 2020						Nine Months Ended April 30, 2019
	Direct Marketing		Supply Chain		Consolidated Total		Direct Marketing		Supply Chain		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Marketing solutions offerings	$	354,404	$	—	$	354,404	$	362,547	$	—	$	362,547
Supply chain management services	—		262,242		262,242		—		251,300		251,300
Other	—		1,310		1,310		—		1,512		1,512
	$	354,404	$	263,552	$	617,956	$	362,547	$	252,812	$	615,359
Timing of Revenue Recognition
Goods transferred over time	$	354,404	$	—	$	354,404	$	362,547	$	—	$	362,547
Services transferred over time	—		263,552		263,552		—		252,812		252,812
	$	354,404	$	263,552	$	617,956	$	362,547	$	252,812	$	615,359

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.

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.

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:



	April 30, 2020		July 31, 2019
	(In thousands)
Accounts receivable, trade, net	$	83,000	$	112,141
Contract assets	$	14,305	$	21,473

Deferred revenue - current	$	3,810	$	2,967
Deferred revenue - long-term	69		62
Total deferred revenue	$	3,879	$	3,029

Remaining Performance Obligations

Remaining performance obligations are comprised of deferred revenue. Changes in deferred revenue during the nine months ended April 30, 2020, were as follows:



	Nine Months Ended April 30, 2020
	(In thousands)
Balance at beginning of period	$	3,029
Deferral of revenue	3,804
Recognition of deferred amounts upon satisfaction of performance obligation	(2,954		)
Balance at end of period	$	3,879

We expect to recognize approximately $3.8 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	9 Months Ended
INCOME TAXES	Apr. 30, 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 nine months ended April 30, 2020, the Company was profitable in certain jurisdictions, resulting in an income tax expense using enacted rates in those jurisdictions. As of April 30, 2020, the total amount of the liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $2.0 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. On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security ("CARES") Act into law which is intended to respond to the COVID-19 pandemic and its impact on the economy, public health, state and local governments, individuals and businesses. The CARES Act contains numerous tax provisions such as temporary changes regarding the prior and future utilization of net operating losses, temporary changes to the prior and future limitations on interest deductions, deferral of payment of the employer portion of social security taxes through the end of calendar year 2020, technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property and the creation of certain refundable employee retention credits. As of April 30, 2020, the Company has elected to defer the employer-paid portion of social security taxes which is expected to provide the Company with approximately $4.0 million of additional liquidity during the current calendar year, with 50% of the deferral due December 31, 2021 and the remaining 50% due December 31, 2022. The Company does not expect the provisions of the CARES Act to have a significant impact on the income tax provision, income tax payable or deferred income tax positions of the Company. In addition, governments around the world have enacted or implemented various forms of tax relief measures in response to the economic conditions in the wake of COVID-19. The Company is also currently evaluating the potential tax related incentives offered in certain foreign countries, where our operations have also been impacted by COVID-19. 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 April 30, 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

9 Months Ended

Apr. 30, 2020

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

The following table reconciles earnings (loss) per share for the three and nine months ended months ended April 30, 2020 and 2019:



	Three Months Ended April 30,						Nine Months Ended April 30,
	2020			2019			2020			2019
	(In thousands, except per share data)
Net loss	$	(6,159	)	$	(9,627	)	$	(4,924	)	$	(28,745	)
Less: Preferred dividends on redeemable preferred stock	(525		)	(525		)	(1,592		)	(1,598		)
Net loss attributable to common stockholders	$	(6,684	)	$	(10,152	)	$	(6,516	)	$	(30,343	)

Weighted average common shares outstanding	61,815			61,393			61,583			61,111
Weighted average common equivalent shares arising from restricted stock	—			—			—			—
Weighted average number of common and potential common shares	61,815			61,393			61,583			61,111
Basic net loss per share attributable to common stockholders	$	(0.11	)	$	(0.17	)	$	(0.11	)	$	(0.50	)
Diluted net loss per share attributable to common stockholders	$	(0.11	)	$	(0.17	)	$	(0.11	)	$	(0.50	)

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 April 30, 2020 and 2019, approximately 25.0 million and 22.5 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 (loss) per share as their inclusion would have been antidilutive. For the nine months ended April 30, 2020 and 2019, approximately 24.5 million and 19.6 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 (loss) per share as their inclusion would have been antidilutive.

COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Apr. 30, 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	(2,387		)	—			—			(2,387		)
Net unrealized holding loss on securities	—			—			(96		)	(96		)
Pension liability adjustments	—			(131		)	—			(131		)
Net current-period other comprehensive income (loss)	(2,387		)	(131		)	(96		)	(2,614		)
Accumulated other comprehensive income (loss) at April 30, 2020	$	2,630		$	(4,210	)	$	—		$	(1,580	)



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

SEGMENT INFORMATION

9 Months Ended

Apr. 30, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

The Company has two operating segments: Direct Marketing and Supply Chain. 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 April 30,						Nine Months Ended April 30,
	2020			2019			2020			2019
	(In thousands)
Net revenue:
Direct Marketing	$	98,284		$	116,006		$	354,404		$	362,547
Supply Chain	79,067			77,997			263,552			252,812
	$	177,351		$	194,003		$	617,956		$	615,359
Operating income (loss):
Direct Marketing	$	(3,041	)	$	5,308		$	12,379		$	16,770
Supply Chain	6,535			(716		)	18,808			825
Total segment operating income	3,494			4,592			31,187			17,595
Corporate-level activity	(2,427		)	(2,435		)	(8,205		)	(9,776		)
Total operating income	1,067			2,157			22,982			7,819
Total other expense	(5,741		)	(10,386		)	(23,878		)	(32,650		)
Loss before income taxes	$	(4,674	)	$	(8,229	)	$	(896	)	$	(24,831	)



	April 30, 2020		July 31, 2019
	(In thousands)
Total assets:
Direct Marketing	$	615,579	$	600,390
Supply Chain	134,718		112,712
Sub-total—segment assets	750,297		713,102
Corporate	34,369		18,461
	$	784,666	$	731,563

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



	Three Months Ended April 30,				Nine Months Ended April 30,
	2020		2019		2020		2019
	(In thousands)
Products:
Direct Marketing	$	98,284	$	116,006	$	354,404	$	362,547
Services:
Supply Chain	79,067		77,997		263,552		252,812
	$	177,351	$	194,003	$	617,956	$	615,359

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



	Three Months Ended April 30,				Nine Months Ended April 30,
	2020		2019		2020		2019
	(In thousands)
United States	$	117,315	$	133,790	$	417,028	$	416,228
China	28,100		32,257		99,898		106,762
Netherlands	9,467		11,534		31,185		40,881
Other	22,469		16,422		69,845		51,488
	$	177,351	$	194,003	$	617,956	$	615,359

RELATED PARTY TRANSACTIONS	9 Months Ended
RELATED PARTY TRANSACTIONS	Apr. 30, 2020
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS As of April 30, 2020, SPHG Holdings and its affiliates, including Steel Holdings, Handy & Harman Ltd., and Steel Partners, Ltd., beneficially owned approximately 55.9% of our outstanding capital stock, including the if-converted value of the SPHG Note and shares of Series C Convertible Preferred Stock 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 former 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 April 30, 2020 and July 31, 2019, SPHG Holdings held $14.9 million principal amount of the Company's 7.50% Convertible Senior Note. As of April 30, 2020 and July 31, 2019, the net carrying value of the SPHG Note was $8.7 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 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 the Series C Certificate of Designations, 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 April 30, 2020 and 2019 were $0.9 million and $0.3 million, respectively. Total expenses incurred related to the 2015 Management Services Agreement and the 2019 Management Services Agreement for the nine months ended April 30, 2020 and 2019 were $2.6 million and $1.0 million, respectively. As of April 30, 2020 and July 31, 2019, amounts due to Steel Services were $0.3 million and $0.5 million, respectively.

FAIR VALUE MEASUREMENTS

9 Months Ended

Apr. 30, 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.

Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

The following tables present the Company's financial assets measured at fair value on a recurring basis as of April 30, 2020 and July 31, 2019, classified by fair value hierarchy:



			Fair Value Measurements at Reporting Date Using
(In thousands)	April 30, 2020		Level 1		Level 2		Level 3
Assets:
Money market funds	$	513	$	513	$	—	$	—



			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)	9 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	Apr. 30, 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 ("U.S. GAAP") 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, as amended by Amendment No. 1 filed on November 26, 2019. The results for the three and nine months ended April 30, 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 standard was created to simplify the accounting for share-based payments to nonemployees and provides guidance on how to account for share-based payment awards issued in transactions in which a grantor acquires goods or services to be used or consumed in the grantor's own operations. 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. The Company is currently evaluating the impact of this accounting standard update on its 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 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. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which is intended to provide temporary optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate, known as LIBOR, or by another reference rate expected to be discontinued. This optional guidance is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently evaluating the impact this guidance may have on its consolidated financial statements.
Fair Value of Financial Instruments	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.

INVENTORIES (Tables)

9 Months Ended

Apr. 30, 2020

Inventory Disclosure [Abstract]

Schedule of inventories, net

Inventories, net consisted of the following:



	April 30, 2020		July 31, 2019
	(In thousands)
Raw materials	$	18,060	$	21,322
Work-in-process	309		587
Finished goods	1,153		1,765
	$	19,522	$	23,674

GOODWILL AND INTANGIBLE ASSETS (Tables)

9 Months Ended

Apr. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite Live Intangible Assets

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



		April 30, 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	$	55,206	$	137,524	$	192,730	$	39,617	$	153,113
Trademarks and trade names	3	20,520		16,245		4,275		20,520		11,115		9,405
Total		$	213,250	$	71,451	$	141,799	$	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 April 30,				Nine Months Ended April 30,
	2020		2019		2020		2019
	(In thousands)
Customer relationships	$	4,825	$	5,564	$	15,589	$	18,038
Trademarks and trade names	1,706		1,714		5,130		5,130
Total	$	6,531	$	7,278	$	20,719	$	23,168

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

9 Months Ended

Apr. 30, 2020

Payables and Accruals [Abstract]

Components of Accrued Expenses

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



	April 30, 2020		July 31, 2019
Accrued Expenses	(In thousands)
Accrued taxes	$	56,722	$	59,057
Accrued compensation	21,526		22,584
Accrued worker's compensation	4,698		4,549
Accrued audit, tax and legal	3,918		3,148
Accrued contract labor	826		1,650
Accrued interest	180		467
Accrued other	20,048		21,203
	$	107,918	$	112,658

Components of Other Current Liabilities



	April 30, 2020		July 31, 2019
Other Current Liabilities	(In thousands)
Accrued pricing liabilities	$	14,309	$	14,309
Customer postage deposits	7,697		11,816
Revolving credit facility	25,000		6,000
Other	9,919		6,794
	$	56,925	$	38,919

LEASES (Tables)

9 Months Ended

Apr. 30, 2020

Leases [Abstract]

Lease cost

Supplemental cash flow information related to the Company's leases during the nine months ended April 30, 2020 was as follows (in thousands):



Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	11,677
Operating cash flows from finance leases	$	7
Financing cash flows from finance leases	$	83

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



	Three Months Ended April 30, 2020		Nine Months Ended April 30, 2020
	(In thousands)
Operating lease cost	$	2,837	$	12,469
Short-term lease expense	1,802		2,254
Variable lease cost	4		50
Amortization of finance lease assets	2		38
Interest on finance lease liabilities	1		9
	$	4,646	$	14,820

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 April 30, 2020 were as follows:



	Operating Leases		Finance Leases
	(In thousands)
2020	$	4,054	$	19
2021	15,644		76
2022	12,426		76
2023	7,786		37
2024	5,482		—
Thereafter	23,622		—
Total lease payments	69,014		208
Less: imputed interest	9,268		15
Present value of lease payments	59,746		193
Less: current maturities of lease obligations	14,034		70
Long-term lease obligations	$	45,712	$	123

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 April 30, 2020 were as follows:



	Operating Leases		Finance Leases
	(In thousands)
2020	$	4,054	$	19
2021	15,644		76
2022	12,426		76
2023	7,786		37
2024	5,482		—
Thereafter	23,622		—
Total lease payments	69,014		208
Less: imputed interest	9,268		15
Present value of lease payments	59,746		193
Less: current maturities of lease obligations	14,034		70
Long-term lease obligations	$	45,712	$	123

Additional lease information

Additional information related to the Company's leases as of April 30, 2020 was as follows:



Weighted average remaining lease term:
Operating leases	6.3	years
Finance leases	2.7	years

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

DEBT (Tables)

9 Months Ended

Apr. 30, 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:



	April 30, 2020			July 31, 2019
	(In thousands)
Cerberus term loan	$	372,049		$	375,125
7.50% Convertible senior note	14,940			14,940
Principal amount of long-term debt	386,989			390,065
Unamortized debt discount	(6,268		)	(7,508		)
Unamortized debt issuance costs	(1,094		)	(888		)
Carrying amount of long-term debt	$	379,627		$	381,669

Schedule of Debt

The following table reflects the components of the Term Loan:



	April 30, 2020			July 31, 2019
	(In thousands)
Principal amount outstanding on the Term Loan	$	372,049		$	375,125
Unamortized debt issuance costs	(1,094		)	(888		)
Net carrying value of the Term Loan	$	370,955		$	374,237

Net Carrying Value of SPG Note

As of April 30, 2020 and July 31, 2019, the net carrying value of the SPHG Note was $8.7 million and $7.4 million, respectively.



	April 30, 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	(6,268		)	(7,508		)
Net carrying amount	$	8,672		$	7,432

Summary of Interest Expense



	Three Months Ended April 30, 2020		Nine Months Ended April 30, 2020
	(In thousands)
Interest expense related to contractual interest coupon	$	280	$	840
Interest expense related to accretion of the discount	410		1,240
	$	690	$	2,080

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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+ Details

REVENUE RECOGNITION (Tables)

9 Months Ended

Apr. 30, 2020

Revenue from Contract with Customer [Abstract]

Summary of reconciliation of the disaggregated revenue



	Three Months Ended April 30, 2020						Three Months Ended April 30, 2019
	Direct Marketing		Supply Chain		Consolidated Total		Direct Marketing		Supply Chain		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Marketing solutions offerings	$	98,284	$	—	$	98,284	$	116,006	$	—	$	116,006
Supply chain management services	—		78,626		78,626		—		77,508		77,508
Other	—		441		441		—		489		489
	$	98,284	$	79,067	$	177,351	$	116,006	$	77,997	$	194,003
Timing of Revenue Recognition
Goods transferred over time	$	98,284	$	—	$	98,284	$	116,006	$	—	$	116,006
Services transferred over time	—		79,067		79,067		—		77,997		77,997
	$	98,284	$	79,067	$	177,351	$	116,006	$	77,997	$	194,003



	Nine Months Ended April 30, 2020						Nine Months Ended April 30, 2019
	Direct Marketing		Supply Chain		Consolidated Total		Direct Marketing		Supply Chain		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Marketing solutions offerings	$	354,404	$	—	$	354,404	$	362,547	$	—	$	362,547
Supply chain management services	—		262,242		262,242		—		251,300		251,300
Other	—		1,310		1,310		—		1,512		1,512
	$	354,404	$	263,552	$	617,956	$	362,547	$	252,812	$	615,359
Timing of Revenue Recognition
Goods transferred over time	$	354,404	$	—	$	354,404	$	362,547	$	—	$	362,547
Services transferred over time	—		263,552		263,552		—		252,812		252,812
	$	354,404	$	263,552	$	617,956	$	362,547	$	252,812	$	615,359

Summary of changes in deferred revenue

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



	April 30, 2020		July 31, 2019
	(In thousands)
Accounts receivable, trade, net	$	83,000	$	112,141
Contract assets	$	14,305	$	21,473

Deferred revenue - current	$	3,810	$	2,967
Deferred revenue - long-term	69		62
Total deferred revenue	$	3,879	$	3,029

Remaining Performance Obligations

Remaining performance obligations are comprised of deferred revenue. Changes in deferred revenue during the nine months ended April 30, 2020, were as follows:



	Nine Months Ended April 30, 2020
	(In thousands)
Balance at beginning of period	$	3,029
Deferral of revenue	3,804
Recognition of deferred amounts upon satisfaction of performance obligation	(2,954		)
Balance at end of period	$	3,879

EARNINGS (LOSS) PER SHARE (Tables)

9 Months Ended

Apr. 30, 2020

Earnings Per Share [Abstract]

Reconciliation of earnings per share

The following table reconciles earnings (loss) per share for the three and nine months ended months ended April 30, 2020 and 2019:



	Three Months Ended April 30,						Nine Months Ended April 30,
	2020			2019			2020			2019
	(In thousands, except per share data)
Net loss	$	(6,159	)	$	(9,627	)	$	(4,924	)	$	(28,745	)
Less: Preferred dividends on redeemable preferred stock	(525		)	(525		)	(1,592		)	(1,598		)
Net loss attributable to common stockholders	$	(6,684	)	$	(10,152	)	$	(6,516	)	$	(30,343	)

Weighted average common shares outstanding	61,815			61,393			61,583			61,111
Weighted average common equivalent shares arising from restricted stock	—			—			—			—
Weighted average number of common and potential common shares	61,815			61,393			61,583			61,111
Basic net loss per share attributable to common stockholders	$	(0.11	)	$	(0.17	)	$	(0.11	)	$	(0.50	)
Diluted net loss per share attributable to common stockholders	$	(0.11	)	$	(0.17	)	$	(0.11	)	$	(0.50	)

COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Apr. 30, 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	(2,387		)	—			—			(2,387		)
Net unrealized holding loss on securities	—			—			(96		)	(96		)
Pension liability adjustments	—			(131		)	—			(131		)
Net current-period other comprehensive income (loss)	(2,387		)	(131		)	(96		)	(2,614		)
Accumulated other comprehensive income (loss) at April 30, 2020	$	2,630		$	(4,210	)	$	—		$	(1,580	)



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

SEGMENT INFORMATION (Tables)

9 Months Ended

Apr. 30, 2020

Segment Reporting [Abstract]

Summarized Financial Information of Continuing Operations

Summarized financial information by operating segment is as follows:



	Three Months Ended April 30,						Nine Months Ended April 30,
	2020			2019			2020			2019
	(In thousands)
Net revenue:
Direct Marketing	$	98,284		$	116,006		$	354,404		$	362,547
Supply Chain	79,067			77,997			263,552			252,812
	$	177,351		$	194,003		$	617,956		$	615,359
Operating income (loss):
Direct Marketing	$	(3,041	)	$	5,308		$	12,379		$	16,770
Supply Chain	6,535			(716		)	18,808			825
Total segment operating income	3,494			4,592			31,187			17,595
Corporate-level activity	(2,427		)	(2,435		)	(8,205		)	(9,776		)
Total operating income	1,067			2,157			22,982			7,819
Total other expense	(5,741		)	(10,386		)	(23,878		)	(32,650		)
Loss before income taxes	$	(4,674	)	$	(8,229	)	$	(896	)	$	(24,831	)

Total Assets of Continuing Operations



	April 30, 2020		July 31, 2019
	(In thousands)
Total assets:
Direct Marketing	$	615,579	$	600,390
Supply Chain	134,718		112,712
Sub-total—segment assets	750,297		713,102
Corporate	34,369		18,461
	$	784,666	$	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 April 30,				Nine Months Ended April 30,
	2020		2019		2020		2019
	(In thousands)
Products:
Direct Marketing	$	98,284	$	116,006	$	354,404	$	362,547
Services:
Supply Chain	79,067		77,997		263,552		252,812
	$	177,351	$	194,003	$	617,956	$	615,359

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



	Three Months Ended April 30,				Nine Months Ended April 30,
	2020		2019		2020		2019
	(In thousands)
United States	$	117,315	$	133,790	$	417,028	$	416,228
China	28,100		32,257		99,898		106,762
Netherlands	9,467		11,534		31,185		40,881
Other	22,469		16,422		69,845		51,488
	$	177,351	$	194,003	$	617,956	$	615,359

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Apr. 30, 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 April 30, 2020 and July 31, 2019, classified by fair value hierarchy:



			Fair Value Measurements at Reporting Date Using
(In thousands)	April 30, 2020		Level 1		Level 2		Level 3
Assets:
Money market funds	$	513	$	513	$	—	$	—



			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 Thousands	Apr. 30, 2020	Jul. 31, 2019
Nature Of Operations [Line Items]
Cash and cash equivalents	$ 90,200	$ 32,500
Working capital	(40,200)
Line of credit, current	25,000	6,000
PNC Bank Credit Facility
Nature Of Operations [Line Items]
Credit facility, readily available borrowing capacity	5,700
Cerberus Credit Facility
Nature Of Operations [Line Items]
Credit facility, readily available borrowing capacity	0
Line of Credit \| Cerberus Credit Facility
Nature Of Operations [Line Items]
Line of credit, current	$ 25,000	$ 6,000

BASIS OF PRESENTATION Error Corrections and Prior Period Adjustments (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Apr. 30, 2020	Oct. 31, 2019	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019	Jul. 31, 2019
Quantifying Misstatement in Current Year Financial Statements [Line Items]
Operating expenses	$ 32,403		$ 34,704	$ 99,983	$ 104,785
Net loss	$ (6,159)		$ (9,627)	$ (4,924)	$ (28,745)
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	Apr. 30, 2020	Aug. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right of use assets	$ 58,487
Operating lease liability	$ 59,746
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	Apr. 30, 2020	Jul. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 18,060	$ 21,322
Work-in-process	309	587
Finished goods	1,153	1,765
Inventories, net	$ 19,522	$ 23,674

GOODWILL AND INTANGIBLE ASSETS - Additional Information (Detail) - USD ($)	9 Months Ended
	Apr. 30, 2020	Jul. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 257,128,000	$ 257,128,000
Gross carrying amount	213,250,000	213,250,000
Accumulated amortization	71,451,000	50,732,000
Intangible assets	$ 141,799,000	162,518,000
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	15 years
Gross carrying amount	$ 192,730,000	192,730,000
Accumulated amortization	55,206,000	39,617,000
Intangible assets	$ 137,524,000	153,113,000
Trademarks and Trade Names
Finite-Lived Intangible Assets [Line Items]
Estimated useful life	3 years
Gross carrying amount	$ 20,520,000	20,520,000
Accumulated amortization	16,245,000	11,115,000
Intangible assets	4,275,000	$ 9,405,000
Direct Marketing
Finite-Lived Intangible Assets [Line Items]
Goodwill	257,100,000
Reporting unit, amount of fair value in excess of carrying amount	30,000,000
Goodwill impairment	$ 0

GOODWILL AND INTANGIBLE ASSETS Schedule of amortization expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 6,531	$ 7,278	$ 20,719	$ 23,168
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	4,825	5,564	15,589	18,038
Trademarks and Trade Names
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 1,706	$ 1,714	$ 5,130	$ 5,130

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components of Accrued Expenses (Detail) - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
Payables and Accruals [Abstract]
Accrued taxes	$ 56,722	$ 59,057
Accrued compensation	21,526	22,584
Accrued worker's compensation	4,698	4,549
Accrued audit, tax and legal	3,918	3,148
Accrued contract labor	826	1,650
Accrued interest	180	467
Accrued other	20,048	21,203
Accrued expenses	$ 107,918	$ 112,658

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
Payables and Accruals [Abstract]
Accrued pricing liabilities	$ 14,309	$ 14,309
Customer postage deposits	7,697	11,816
Revolving credit facility	25,000	6,000
Other	9,919	6,794
Other current liabilities	$ 56,925	$ 38,919

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2019	Apr. 30, 2020	Jul. 31, 2019
Liability for Claims and Claims Adjustment Expense [Line Items]
Accrued taxes		$ 56,722	$ 59,057
Accrued pricing liabilities		$ 14,309	$ 14,309
Adjustment of Tax Related Liabilities
Liability for Claims and Claims Adjustment Expense [Line Items]
Adjustments of tax related liabilities	$ 6,400

LEASES - Narrative (Details)	9 Months Ended
LEASES - Narrative (Details)	Apr. 30, 2020
Leases [Abstract]
Remaining lease term	11 years

LEASES - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
LEASES - Lease Costs (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Apr. 30, 2020
Lease, Cost [Abstract]
Operating lease cost	$ 2,837	$ 12,469
Short-term lease expense	1,802	2,254
Variable lease cost	4	50
Amortization of finance lease assets	2	38
Interest on finance lease liabilities	1	9
Total lease cost	$ 4,646	$ 14,820

LEASES - Lease Commitments (Details) $ in Thousands	Apr. 30, 2020 USD ($)
Operating Leases
2020	$ 4,054
2021	15,644
2022	12,426
2023	7,786
2024	5,482
Thereafter	23,622
Total lease payments	69,014
Less: imputed interest	9,268
Present value of lease payments	59,746
Less: current maturities of lease obligations	14,034
Long-term lease obligations	45,712
Finance Leases
2020	19
2021	76
2022	76
2023	37
2024	0
Thereafter	0
Total lease payments	208
Less: imputed interest	15
Present value of lease payments	193
Less: current maturities of lease obligations	70
Long-term lease obligations	$ 123

LEASES - Lease Information (Details)	Apr. 30, 2020
Weighted average remaining lease term:
Operating leases	6 years 4 months
Finance leases	2 years 8 months 25 days
Weighted average discount rate:
Operating leases	4.40%
Finance leases	3.80%

LEASES - Supplemental Cash Flow Information (Details) $ in Thousands	9 Months Ended
	Apr. 30, 2020 USD ($)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$ 11,677
Operating cash flows from finance leases	7
Financing cash flows from finance leases	$ 83

DEBT - Component of Debt and Reconciliation (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019	Feb. 28, 2019
Line of Credit Facility [Line Items]
Principal amount of long-term debt	$ 386,989	$ 390,065
Unamortized debt discount	(6,268)	(7,508)
Unamortized debt issuance costs	(1,094)	(888)
Net carrying value of the term loan	379,627	381,669
Convertible Senior Note
Line of Credit Facility [Line Items]
Principal amount of long-term debt	14,940	14,940
Cerberus Credit Facility
Line of Credit Facility [Line Items]
Principal amount of long-term debt	372,049	375,125
SPHG Holdings \| 7.50% Convertible Senior Debt
Line of Credit Facility [Line Items]
Debt instrument, stated interest rate			7.50%
SPHG Holdings \| Convertible Senior Note
Line of Credit Facility [Line Items]
Unamortized debt discount	(6,268)	(7,508)
Net carrying value of the term loan	$ 8,672	$ 7,432

DEBT - Additional Information (Detail)					3 Months Ended		9 Months Ended
DEBT - Additional Information (Detail)	Mar. 30, 2020 USD ($)	Feb. 28, 2019 USD ($) $ / shares	Dec. 15, 2017 USD ($)	Dec. 15, 2017	Apr. 30, 2020 USD ($)	Mar. 31, 2018 USD ($)	Apr. 30, 2020 USD ($)	Mar. 29, 2020 USD ($)	Jul. 31, 2019 USD ($)
Debt Instrument [Line Items]
Line of credit, current					$ 25,000,000		$ 25,000,000		$ 6,000,000
Redemption price percentage		100.00%
Carrying amount of equity component					8,200,000		8,200,000		8,200,000
Long-term debt					$ 379,627,000		$ 379,627,000		381,669,000
Debt instrument, interest rate, effective percentage					18.47%		18.47%
Unused line fee					0.50%		0.50%
Cerberus Credit Facility
Debt Instrument [Line Items]
Term loan facility			$ 393,000,000
Revolving credit facility			$ 25,000,000
Line of credit facility, term				5 years
Aggregate amount of each consecutive quarterly scheduled principal installment						$ 1,500,000
Leverage ratio					350.00%		350.00%
Periodic principal payment deferral amount	$ 3,000,000
Maximum amount distributed to Company for management fees and tax sharing	5,000,000
Financing agreement liquidity requirement	14,500,000							$ 15,000,000
Credit facility, readily available borrowing capacity					$ 0		$ 0
MidCap Credit Facility
Debt Instrument [Line Items]
Line of credit facility, term					3 years
Debt instrument, percentage points added to the reference rate							4.00%
Line of credit facility, maximum credit commitment					$ 12,500,000.0		$ 12,500,000.0
Credit facility, readily available borrowing capacity					5,700,000		5,700,000
Base Rate \| Cerberus Credit Facility
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate				3.75%
London Interbank Offered Rate (LIBOR) \| Cerberus Credit Facility
Debt Instrument [Line Items]
Debt instrument, percentage points added to the reference rate				6.50%
Scenario 1 \| Cerberus Credit Facility
Debt Instrument [Line Items]
Excess cash flow payment percentage			50.00%
Amount of principal payment forgone	$ 4,300,000
Scenario 2 \| Cerberus Credit Facility
Debt Instrument [Line Items]
Excess cash flow payment percentage			25.00%
Letter of Credit Sublimit \| MidCap Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment					5,000,000.0		5,000,000.0
Inventory Sublimit \| MidCap Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment					4,500,000.0		4,500,000.0
Line of Credit \| Cerberus Credit Facility
Debt Instrument [Line Items]
Line of credit facility, maximum credit commitment					0		0
Line of credit, current					25,000,000		25,000,000		6,000,000
SPHG Holdings
Debt Instrument [Line Items]
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]
Debt instrument, stated interest rate		7.50%
Principal amount		$ 14,940,000			$ 14,940,000		14,940,000		14,940,000
SPHG Holdings \| Convertible Senior Note
Debt Instrument [Line Items]
Debt instrument amortization period					46 months
Long-term debt					$ 8,672,000		$ 8,672,000		$ 7,432,000

DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
Debt Instrument [Line Items]
Principal amount outstanding	$ 386,989	$ 390,065
Unamortized debt issuance costs	(1,094)	(888)
Net carrying value of the term loan	379,627	381,669
Cerberus Credit Facility
Debt Instrument [Line Items]
Principal amount outstanding	372,049	375,125
Cerberus Credit Facility \| Term Loan
Debt Instrument [Line Items]
Principal amount outstanding	372,049	375,125
Unamortized debt issuance costs	(1,094)	(888)
Net carrying value of the term loan	$ 370,955	$ 374,237

DEBT - Net Carrying Value of the Notes (Detail) - USD ($)	Apr. 30, 2020	Jul. 31, 2019	Feb. 28, 2019
Debt Instrument [Line Items]
Carrying amount of equity component	$ 8,200,000	$ 8,200,000
Unamortized debt discount	(6,268,000)	(7,508,000)
Net carrying value of the term loan	379,627,000	381,669,000
SPHG Holdings \| 7.50% Convertible Senior Debt
Debt Instrument [Line Items]
Principal amount	14,940,000	14,940,000	$ 14,940,000
SPHG Holdings \| Convertible Senior Note
Debt Instrument [Line Items]
Unamortized debt discount	(6,268,000)	(7,508,000)
Net carrying value of the term loan	$ 8,672,000	$ 7,432,000

DEBT - Summary of Interest Expense (Detail) - SPHG Holdings - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Apr. 30, 2020	Apr. 30, 2020
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	$ 690	$ 2,080
Coupon Interest
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	280	840
Accretion
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	$ 410	$ 1,240

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	Apr. 30, 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		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 177,351	$ 194,003	$ 617,956	$ 615,359
Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenues	98,284	116,006	354,404	362,547
Supply chain management services
Disaggregation of Revenue [Line Items]
Revenues	78,626	77,508	262,242	251,300
Other
Disaggregation of Revenue [Line Items]
Revenues	441	489	1,310	1,512
Products
Disaggregation of Revenue [Line Items]
Revenues	98,284	116,006	354,404	362,547
Products \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	98,284	116,006	354,404	362,547
Services
Disaggregation of Revenue [Line Items]
Revenues	79,067	77,997	263,552	252,812
Services \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	79,067	77,997	263,552	252,812
Direct Marketing
Disaggregation of Revenue [Line Items]
Revenues	98,284	116,006	354,404	362,547
Direct Marketing \| Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenues	98,284	116,006	354,404	362,547
Direct Marketing \| Supply chain management services
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Direct Marketing \| Other
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Direct Marketing \| Products \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	98,284	116,006	354,404	362,547
Direct Marketing \| Services \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Supply Chain
Disaggregation of Revenue [Line Items]
Revenues	79,067	77,997	263,552	252,812
Supply Chain \| Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Supply Chain \| Supply chain management services
Disaggregation of Revenue [Line Items]
Revenues	78,626	77,508	262,242	251,300
Supply Chain \| Other
Disaggregation of Revenue [Line Items]
Revenues	441	489	1,310	1,512
Supply Chain \| Products \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Supply Chain \| Services \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	$ 79,067	$ 77,997	$ 263,552	$ 252,812

REVENUE RECOGNITION - Additional Information (Detail) - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract assets	$ 14,305	$ 21,473
Deferred revenue - current	3,810	2,967
Deferred revenue - long-term	69	62
Total deferred revenue	3,879	3,029
Trade Accounts Receivable
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, trade, net	$ 83,000	$ 112,141

REVENUE RECOGNITION - Summary of Changes in Deferred Revenue (Detail) $ in Thousands	9 Months Ended
	Apr. 30, 2020 USD ($)
Change in Deferred Revenue
Balance at beginning of period	$ 3,029
Deferral of revenue	3,804
Recognition of deferred amounts upon satisfaction of performance obligation	(2,954)
Balance at end of period	$ 3,879

REVENUE RECOGNITION - Performance Obligations (Details) $ in Millions	Apr. 30, 2020 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-05-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 3.8
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]
Remaining performance obligations	$ 0.1
Unearned revenue, timing of satisfaction

INCOME TAXES - Additional Information (Detail)	9 Months Ended
INCOME TAXES - Additional Information (Detail)	Apr. 30, 2020 USD ($) day	Jul. 31, 2019 USD ($)
Income Taxes [Line Items]
Unrecognized tax benefits related to federal, state and foreign taxes	$ 2,000,000	$ 2,400,000
Deferred employer-paid portion of social security taxes	4,000,000
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		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Earnings Per Share [Abstract]
Net loss	$ (6,159)	$ (9,627)	$ (4,924)	$ (28,745)
Less: Preferred dividends on redeemable preferred stock	(525)	(525)	(1,592)	(1,598)
Net loss attributable to common stockholders	$ (6,684)	$ (10,152)	$ (6,516)	$ (30,343)
Weighted average common shares outstanding (in shares)	61,815	61,393	61,583	61,111
Weighted average common equivalent shares arising from restricted stock (in shares)	0	0	0	0
Weighted average number of common and potential common shares (in usd per share)	$ 61,815,000	$ 61,393,000	$ 61,583,000	$ 61,111,000
Basic net earnings (loss) per share attributable to common stockholders (in usd per share)	(0.11)	(0.17)	(0.11)	(0.50)
Diluted net earnings (loss) per share attributable to common stockholders (in usd per share)	$ (0.11)	$ (0.17)	$ (0.11)	$ (0.50)

- 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		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Earnings Per Share [Abstract]
Common stock equivalent shares excluded from the denominator in the calculation of diluted loss per share (in shares)	25.0	22.5	24.5	19.6

COMPREHENSIVE INCOME (LOSS) - Accumulated Other Comprehensive Income Items (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 53,815	$ 94,537	$ 52,692	$ 107,628
Foreign currency translation adjustment	(3,064)	(608)	(2,387)	(276)
Net unrealized holding loss on securities			(96)	(86)
Pension liability adjustments	(129)	0	(131)	(64)
Other comprehensive loss	(3,193)	(605)	(2,614)	(426)
Ending balance	44,151	92,386	44,151	92,386
Foreign Currency Items
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			5,017	6,348
Foreign currency translation adjustment			(2,387)	(276)
Net unrealized holding loss on securities			0	0
Pension liability adjustments			0	0
Other comprehensive loss			(2,387)	(276)
Ending balance	2,630	6,072	2,630	6,072
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			(131)	(64)
Other comprehensive loss			(131)	(64)
Ending balance	(4,210)	(3,859)	(4,210)	(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)	(86)
Pension liability adjustments			0	0
Other comprehensive loss			(96)	(86)
Ending balance	0	95	0	95
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1,613	2,913	1,034	2,734
Other comprehensive loss	(3,193)	(605)	(2,614)	(426)
Ending balance	$ (1,580)	$ 2,308	$ (1,580)	$ 2,308

SEGMENT INFORMATION - Additional Information (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020 USD ($)	Apr. 30, 2019 USD ($)	Apr. 30, 2020 USD ($) segment	Apr. 30, 2019 USD ($)	Jul. 31, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments \| segment			2
Number of reportable segments \| segment			2
Total assets	$ 784,666		$ 784,666		$ 731,563
Revenues	177,351	$ 194,003	617,956	$ 615,359
United States
Segment Reporting Information [Line Items]
Revenues	117,315	133,790	417,028	416,228
China
Segment Reporting Information [Line Items]
Revenues	28,100	32,257	99,898	106,762
Netherlands
Segment Reporting Information [Line Items]
Revenues	9,467	11,534	31,185	40,881
Other
Segment Reporting Information [Line Items]
Revenues	$ 22,469	$ 16,422	$ 69,845	$ 51,488

SEGMENT INFORMATION - Summarized Financial Information of Continuing Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Segment Reporting Information [Line Items]
Revenue from contracts with customers	$ 177,351	$ 194,003	$ 617,956	$ 615,359
Operating income (loss)	1,067	2,157	22,982	7,819
Total other income (expense)	(5,741)	(10,386)	(23,878)	(32,650)
Loss before income taxes	(4,674)	(8,229)	(896)	(24,831)
Direct Marketing
Segment Reporting Information [Line Items]
Revenue from contracts with customers	98,284	116,006	354,404	362,547
Supply Chain
Segment Reporting Information [Line Items]
Revenue from contracts with customers	79,067	77,997	263,552	252,812
Operating Segments
Segment Reporting Information [Line Items]
Operating income (loss)	3,494	4,592	31,187	17,595
Operating Segments \| Direct Marketing
Segment Reporting Information [Line Items]
Revenue from contracts with customers	98,284	116,006	354,404	362,547
Operating income (loss)	(3,041)	5,308	12,379	16,770
Operating Segments \| Supply Chain
Segment Reporting Information [Line Items]
Revenue from contracts with customers	79,067	77,997	263,552	252,812
Operating income (loss)	6,535	(716)	18,808	825
Corporate-level activity
Segment Reporting Information [Line Items]
Operating income (loss)	$ (2,427)	$ (2,435)	$ (8,205)	$ (9,776)

SEGMENT INFORMATION - Total Assets of Continuing Operations (Detail) - USD ($) $ in Thousands	Apr. 30, 2020	Jul. 31, 2019
Segment Reporting Information [Line Items]
Total assets	$ 784,666	$ 731,563
Operating Segments
Segment Reporting Information [Line Items]
Total assets	750,297	713,102
Operating Segments \| Direct Marketing
Segment Reporting Information [Line Items]
Total assets	615,579	600,390
Operating Segments \| Supply Chain
Segment Reporting Information [Line Items]
Total assets	134,718	112,712
Corporate-level activity
Segment Reporting Information [Line Items]
Total assets	$ 34,369	$ 18,461

SEGMENT INFORMATION - Summarized Financial Information of Net Revenue from External Customers by Group of Services (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	$ 177,351	$ 194,003	$ 617,956	$ 615,359
Direct Marketing
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	98,284	116,006	354,404	362,547
Supply Chain
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	79,067	77,997	263,552	252,812
Direct Marketing
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	98,284	116,006	354,404	362,547
Supply Chain
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	$ 79,067	$ 77,997	$ 263,552	$ 252,812

RELATED PARTY TRANSACTIONS (Detail) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Dec. 15, 2017	Apr. 30, 2020	Apr. 30, 2019	Apr. 30, 2020	Apr. 30, 2019	Jul. 31, 2019	Feb. 28, 2019
Related Party Transaction [Line Items]
Long-term debt		$ 379,627		$ 379,627		$ 381,669
Preferred stock, shares issued (in shares)		0		0		0
SPHG Holdings \| Convertible Senior Note
Related Party Transaction [Line Items]
Long-term debt		$ 8,672		$ 8,672		$ 7,432
Steel Holdings \| 5.25% Convertible Senior Notes
Related Party Transaction [Line Items]
Principal amount convertible senior notes held of		14,900		14,900		14,900	$ 14,900
Debt instrument, stated interest rate							7.50%
SPHG Holdings \| Purchase Agreement \| Series C Convertible Preferred Stock
Related Party Transaction [Line Items]
Preferred stock, shares issued (in shares)	35,000
Price per share (in usd per share)	$ 1,000
Proceeds from issuance of preferred stock	$ 35,000
Steel Services Ltd. \| Management Services Agreement
Related Party Transaction [Line Items]
Total expenses incurred related to Management Services Agreement and Transfer Agreement		900	$ 300	2,600	$ 1,000
SP Corporate Services Llc and Steel Services Limited \| Management Services Agreement
Related Party Transaction [Line Items]
Amount due to related parties		$ 300		$ 300		$ 500
Steel Connect, Inc. \| SPHG Holdings
Related Party Transaction [Line Items]
Ownership percentage in capital stock		55.90%		55.90%

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	Apr. 30, 2020	Jul. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 513	$ 365
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	513	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