0001628280-21-004473 | 10-Q | XBRL Viewer

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Cover Page - shares	6 Months Ended
Cover Page - shares	Jan. 31, 2021	Mar. 01, 2021
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jan. 31, 2021
Document Transition Report	false
Entity File Number	001-35319
Entity Registrant Name	Steel Connect, Inc.
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000914712
Current Fiscal Year End Date	--07-31
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-2921333
Entity Address, Address Line One	2000 Midway Ln
Entity Address, City or Town	Smyrna
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37167
City Area Code	914
Local Phone Number	461-1276
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		63,000,314
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	STCN
Security Exchange Name	NASDAQ
Series D Preferred Stock
Entity Information [Line Items]
No Trading Symbol Flag	true
Title of 12(b) Security	Rights to Purchase Series D Junior Participating Preferred Stock
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 31, 2021	Jul. 31, 2020
Current Assets
Cash and cash equivalents	$ 87,649	$ 75,887
Accounts receivable, trade, net of allowance for doubtful accounts of $49 and $134 at January 31, 2021 and July 31, 2020, respectively	86,455	93,072
Inventories, net	13,942	15,354
Funds held for clients	6,604	18,755
Prepaid expenses and other current assets	24,680	20,475
Total current assets	219,330	223,543
Property and equipment, net	70,684	79,678
Goodwill	257,128	257,128
Other intangible assets, net	123,369	135,263
Operating lease right-of-use assets	48,903	56,140
Other assets	6,482	7,420
Total assets	725,896	759,172
Current Liabilities
Accounts payable	56,779	70,002
Accrued expenses	111,251	111,380
Funds held for clients	6,604	18,755
Current portion of long-term debt	5,582	5,527
Current lease obligations	13,246	14,318
Other current liabilities	29,843	29,950
Total current liabilities	223,305	249,932
Convertible note payable	8,659	8,054
Long-term debt, excluding current portion	362,638	365,468
Long-term lease obligations	37,181	43,211
Other long-term liabilities	11,186	8,509
Total long-term liabilities	419,664	425,242
Total liabilities	642,969	675,174
Contingently redeemable preferred stock, $0.01 par value per share. 35,000 shares authorized, issued and outstanding at January 31, 2021 and July 31, 2020	35,180	35,180
Stockholders' equity:
Preferred stock, $0.01 par value per share. 4,965,000 shares authorized at January 31, 2021 and July 31, 2020; zero shares issued and outstanding at January 31, 2021 and July 31, 2020	0	0
Common stock, $0.01 par value per share. Authorized 1,400,000,000 shares; 63,000,314 issued and outstanding shares at January 31, 2021; 62,787,919 issued and outstanding shares at July 31, 2020	630	628
Additional paid-in capital	7,478,395	7,478,047
Accumulated deficit	(7,440,514)	(7,433,700)
Accumulated other comprehensive income	9,236	3,843
Total stockholders' equity	47,747	48,818
Total liabilities, contingently redeemable preferred stock and stockholders' equity	$ 725,896	$ 759,172

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jan. 31, 2021	Jul. 31, 2020
Accounts receivable, trade, allowance for doubtful accounts	$ 49	$ 134
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)	63,000,314	62,787,919
Common stock, shares outstanding (in shares)	63,000,314	62,787,919
Contingent Redeemable Preferred Stock
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	35,000	35,000
Preferred stock, shares issued (in shares)	35,000	35,000
Preferred stock, shares outstanding (in shares)	35,000	35,000

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Condensed Income Statements, Captions [Line Items]
Revenues	$ 156,047	$ 215,452	$ 325,981	$ 440,605
Cost of revenue	120,197	170,203	249,663	351,110
Gross profit	35,850	45,249	76,318	89,495
Operating expenses:
Selling, general and administrative	21,810	31,165	48,668	53,392
Amortization of intangible assets	5,359	6,911	11,894	14,188
Total operating expenses	27,169	38,076	60,562	67,580
Operating income	8,681	7,173	15,756	21,915
Other income (expense):
Interest income	0	14	20	30
Interest expense	(7,825)	(8,733)	(15,648)	(17,902)
Other losses, net	(2,161)	(823)	(4,180)	(265)
Total other expense	(9,986)	(9,542)	(19,808)	(18,137)
(Loss) income before income taxes	(1,305)	(2,369)	(4,052)	3,778
Income tax expense	891	1,188	1,695	2,543
Net (loss) income	(2,196)	(3,557)	(5,747)	1,235
Less: Preferred dividends on redeemable preferred stock	(530)	(531)	(1,067)	(1,067)
Net (loss) income attributable to common stockholders	$ (2,726)	$ (4,088)	$ (6,814)	$ 168
Basic net (loss) earnings per share attributable to common stockholders (in usd per share)	$ (0.04)	$ (0.07)	$ (0.11)	$ 0.00
Diluted net (loss) earnings per share attributable to common stockholders (in usd per share)	$ (0.04)	$ (0.07)	$ (0.11)	$ 0.00
Weighted average common shares used in:
Basic (loss) earnings per share (in shares)	62,028	61,538	61,961	61,469
Diluted (loss) earnings per share (in shares)	62,028	61,538	61,961	61,482
Products
Condensed Income Statements, Captions [Line Items]
Revenues	$ 91,155	$ 123,117	$ 196,863	$ 256,120
Cost of revenue	68,740	94,630	149,932	199,220
Services
Condensed Income Statements, Captions [Line Items]
Revenues	64,892	92,335	129,118	184,485
Cost of revenue	$ 51,457	$ 75,573	$ 99,731	$ 151,890

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (2,196)	$ (3,557)	$ (5,747)	$ 1,235
Other comprehensive income (loss):
Foreign currency translation adjustment	2,420	664	5,393	677
Net unrealized holding loss on securities, net of tax	0	(96)	0	(96)
Pension liability adjustments, net of tax	0	0	0	(2)
Other comprehensive income	2,420	568	5,393	579
Comprehensive income (loss)	$ 224	$ (2,989)	$ (354)	$ 1,814

- Definition

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

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+ Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income
Beginning balance (in shares) at Jul. 31, 2019		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) income	1,235			1,235
Preferred dividends	(1,067)			(1,067)
Issuance of common stock pursuant to employee stock purchase plan (in shares)		9,179
Issuance of common stock pursuant to employee stock purchase plan	4		4
Restricted stock grants (in shares)		560,523
Restricted stock grants	0	$ 6	(6)
Share-based compensation	372		372
Other comprehensive items	579				579
Ending balance (in shares) at Jan. 31, 2020		62,375,558
Ending balance at Jan. 31, 2020	53,815	$ 624	7,477,697	(7,426,119)	1,613
Beginning balance (in shares) at Oct. 31, 2019		61,810,253
Beginning balance at Oct. 31, 2019	57,137	$ 618	7,477,505	(7,422,031)	1,045
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(3,557)			(3,557)
Preferred dividends	(531)			(531)
Issuance of common stock pursuant to employee stock purchase plan (in shares)		4,782
Issuance of common stock pursuant to employee stock purchase plan	2		2
Restricted stock grants (in shares)		560,523
Restricted stock grants	0	$ 6	(6)
Share-based compensation	196		196
Other comprehensive items	568				568
Ending balance (in shares) at Jan. 31, 2020		62,375,558
Ending balance at Jan. 31, 2020	$ 53,815	$ 624	7,477,697	(7,426,119)	1,613
Beginning balance (in shares) at Jul. 31, 2020	62,787,919	62,787,919
Beginning balance at Jul. 31, 2020	$ 48,818	$ 628	7,478,047	(7,433,700)	3,843
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(5,747)			(5,747)
Preferred dividends	(1,067)			(1,067)
Issuance of common stock pursuant to employee stock purchase plan (in shares)		8,430
Issuance of common stock pursuant to employee stock purchase plan	4		4
Restricted stock grants (in shares)		236,860
Restricted stock grants	0	$ 2	(2)
Restricted stock forfeitures (in shares)		(32,895)
Share-based compensation	346		346
Other comprehensive items	$ 5,393				5,393
Ending balance (in shares) at Jan. 31, 2021	63,000,314	63,000,314
Ending balance at Jan. 31, 2021	$ 47,747	$ 630	7,478,395	(7,440,514)	9,236
Beginning balance (in shares) at Oct. 31, 2020		62,793,969
Beginning balance at Oct. 31, 2020	47,894	$ 628	7,478,238	(7,437,788)	6,816
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(2,196)			(2,196)
Preferred dividends	(530)			(530)
Issuance of common stock pursuant to employee stock purchase plan (in shares)		1,448
Issuance of common stock pursuant to employee stock purchase plan	1		1
Restricted stock grants (in shares)		204,897
Restricted stock grants	0	$ 2	(2)
Share-based compensation	158		158
Other comprehensive items	$ 2,420				2,420
Ending balance (in shares) at Jan. 31, 2021	63,000,314	63,000,314
Ending balance at Jan. 31, 2021	$ 47,747	$ 630	$ 7,478,395	$ (7,440,514)	$ 9,236

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Cash flows from operating activities:
Net (loss) income	$ (5,747)	$ 1,235
Adjustments to reconcile net (loss) income to cash flows from operating activities:
Depreciation	11,117	11,374
Amortization of intangible assets	11,894	14,188
Amortization of deferred financing costs	260	146
Accretion of debt discount	605	830
Share-based compensation	346	372
Other losses, net	5,795	265
Changes in operating assets and liabilities:
Accounts receivable, net	7,143	(6,157)
Inventories, net	1,658	(606)
Prepaid expenses and other current assets	(4,195)	(3,258)
Accounts payable and accrued expenses	(15,756)	(2,712)
Refundable and accrued income taxes, net	225	55
Other assets and liabilities	(8,159)	(859)
Net cash provided by operating activities	5,186	14,873
Cash flows from investing activities:
Additions of property and equipment	(2,160)	(10,370)
Proceeds from the disposition of property and equipment	0	23
Proceeds from the sale of available-for-sale securities	0	163
Net cash used in investing activities	(2,160)	(10,184)
Cash flows from financing activities:
Long-term debt repayments	(3,000)	(3,000)
Preferred dividend payments	(1,067)	(1,077)
Payment of debt financing costs	0	(414)
Repayments on capital lease obligations	(35)	(79)
Proceeds from issuance of common stock	4	12
Net cash used in financing activities	(4,098)	(4,558)
Net effect of exchange rate changes on cash, cash equivalents and restricted cash	683	(21)
Net (decrease) increase in cash, cash equivalents and restricted cash	(389)	110
Cash, cash equivalents and restricted cash, beginning of period	94,642	46,064
Cash, cash equivalents and restricted cash, end of period	94,253	46,174
Cash and cash equivalents, end of period	87,649	30,197
Funds held for clients, end of period	$ 6,604	$ 15,977

NATURE OF OPERATIONS	6 Months Ended
NATURE OF OPERATIONS	Jan. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NATURE OF OPERATIONS Steel Connect, Inc., together with its consolidated subsidiaries (the "Company"), operates through its wholly-owned subsidiaries, IWCO Direct Holdings, Inc. ("IWCO Direct," "IWCO" or "Direct Marketing") 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 with Cerberus Business Finance, LLC ("Cerberus"), and cash, if any, provided by operating activities. The Company's expectations regarding its ability to use its existing cash and available credit facilities to continue funding its operations are based on assumptions that may prove to be inaccurate, and the Company may require capital resources sooner than currently expected. While the Company believes it will be able to access this additional liquidity based on existing information, the assumptions underlying this belief may also later prove to be inaccurate. As of January 31, 2021 and July 31, 2020, the Company had cash and cash equivalents of $87.6 million and $75.9 million, respectively. As of January 31, 2021, the Company had a working capital deficit of $4.0 million, which includes accrued pricing liabilities and certain tax related liabilities which the Company believes will not require a cash outlay in the next twelve months. As of January 31, 2021, IWCO Direct had $25.0 million available borrowing capacity under its revolving facility. As of January 31, 2021, ModusLink had a readily available borrowing capacity under its revolving credit facility of $8.8 million. The Company believes it will generate sufficient cash to meet its debt covenants under its credit facilities to which certain of its subsidiaries are a party and that it will be able to obtain cash through its current and future credit facilities, if needed. Impact of COVID-19 In March 2020, the World Health Organization categorized the novel Coronavirus ("COVID-19") as a pandemic. The spread of the outbreak caused significant disruptions in certain sectors of the U.S. and global economies during 2020, and many economists expect the impact will be significant during the remainder of calendar 2021. 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 during the fiscal year ended July 31, 2020. Additionally, although IWCO operated and continues to operate as an essential business, it has reduced operating levels and labor shifts due to lower sales volume during the current and prior fiscal year. 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. To help mitigate the financial impact of the COVID-19 pandemic, the Company initiated cost reduction actions, including waiver of board fees, hiring freezes, staffing and force reductions, Company-wide salary reductions, bonus payment deferrals and temporary 401(k) match suspension. The temporary waiver of board fees and Company-wide salary reduction actions taken in the prior fiscal year were fully restored prior to the beginning of the current fiscal year, and the majority of salary reductions were repaid prior to the quarter ended January 31, 2021. The Company continues to focus on cash management and liquidity, which includes reduction of discretionary spending, aggressive working capital management, strict approvals for capital expenditures and other actions. The Company will evaluate further actions if circumstances warrant. 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 calendar 2021 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 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. Steel Holdings Expression of Interest On November 19, 2020, the Company's Board of Directors (the "Board") received a preliminary, non-binding expression of interest (the "Expression of Interest") from Steel Partners Holdings L.P. ("Steel Holdings") to acquire all of the outstanding shares of common stock not already owned by Steel Holdings or its affiliates for a combination of cash and Steel Holdings 6% Series A Preferred Units, which would imply a value per share of common stock in the range of $0.65 to $0.72 per share. The Board has established a special committee comprised solely of independent directors (the "Acquisition Proposal Special Committee") authorized to retain independent legal and financial advisors and to review, evaluate, negotiate and approve or disapprove the Expression of Interest, and to explore alternative strategies or transactions. The Acquisition Proposal Special Committee announced on January 11, 2021 that it had retained financial advisors and legal counsel. As set forth in the Expression of Interest, the proposed transaction will be subject to the approval of the Acquisition Proposal Special Committee, as well as a non-waivable condition requiring approval of a majority of the shares outstanding of the Company not owned by Steel Holdings and its affiliates and related parties. The Board resolutions establishing the Acquisition Proposal Special Committee expressly provide that the Board will not approve the proposed transaction contemplated by the Expression of Interest or any alternative thereto without a prior favorable recommendation by the Acquisition Proposal Special Committee. No decision has yet been made with respect to the Company's response to the Expression of Interest or any alternatives thereto. The Board has only received a proposal, which does not constitute an offer or proposal capable of acceptance and may be withdrawn at any time and in any manner. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that the transaction proposed in the Expression of Interest or any other transaction will be approved or completed. The Company is not obligated to disclose any further developments or updates on the progress of the proposed transaction until either the Company enters into a definitive agreement or the Acquisition Proposal Special Committee determines no such transaction will be approved.

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Jan. 31, 2021
Accounting Policies [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying condensed consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of a normal recurring nature) considered necessary for fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and related notes for the year ended July 31, 2020 (Fiscal Year 2020), which are contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 30, 2020. The results for the six months ended January 31, 2021 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 consolidated financial statements, but does not include all disclosures required by U.S. GAAP. All significant intercompany transactions and balances have been eliminated in consolidation. The Company considers events or transactions that occur after the balance sheet date but before the issuance of financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. For the six months ended January 31, 2021, 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 an adjustment to correct an out-of-period misstatement related to the Company's estimate for certain tax related liabilities, resulting in a $6.4 million reduction in selling, general and administrative expenses.

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Jan. 31, 2021
Accounting Policies [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 were effective in the first quarter of the Company's fiscal year ending July 31, 2021 (Fiscal Year 2021). The adoption of the accounting standard did not have a material impact on the Company's 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 became effective in the first quarter of the Company's Fiscal Year 2021. The adoption of the accounting standard did not have a material impact on the Company's 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 became effective for the Company's first quarter of Fiscal Year 2021. The adoption of the accounting standard did not have a material impact on the Company's consolidated 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 ASU 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 ASU will be effective for the Company beginning in the first quarter of the fiscal year ending July 31, 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 this guidance to determine the impact it may have on its consolidated financial statements. 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 the fiscal year ending July 31, 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 this guidance to determine the impact it may have on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40). The amendment in this update simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update also amends the guidance for the derivatives scope exception for contracts in an entity's own equity to reduce form-over-substance-based accounting conclusions and requires the application of the if-converted method for calculating diluted earnings per share. The update also requires entities to provide expanded disclosures about the terms and features of convertible instruments, how the instruments have been reported in the entity's financial statements and information about events, conditions and circumstances that can affect how to assess the amount or timing of an entity's future cash flows related to those instruments. The guidance is effective for interim and annual periods beginning in our fiscal year ending July 31, 2025, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 24: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

INVENTORIES

6 Months Ended

Jan. 31, 2021

Inventory Disclosure [Abstract]

INVENTORIES

The table below presents the components of Inventories, net:


	January 31, 2021		July 31, 2020
	(In thousands)
Raw materials	$	12,816	$	14,216
Work-in-process	277		253
Finished goods	849		885
	$	13,942	$	15,354

GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Jan. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

The Company's goodwill of $257.1 million as of January 31, 2021 relates to the Company's Direct Marketing reporting unit, which is the only reporting unit in the Direct Marketing reportable segment. The Company has not previously recognized any impairment losses for this reporting unit.

Other intangible assets, net, as of January 31, 2021, include trademarks and tradenames, and customer relationships. The trademarks and tradenames intangible assets, which were fully amortized as of January 31, 2021, were being amortized on a straight-line basis and the customer relationship intangible assets are amortized using an accelerated method, which reflects the pattern in which the Company receives the economic benefit of the asset.

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


		January 31, 2021						July 31, 2020
	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	$	69,361	$	123,369	$	192,730	$	60,032	$	132,698
Trademarks and trade names	3	20,520		20,520		—		20,520		17,955		2,565
Total		$	213,250	$	89,881	$	123,369	$	213,250	$	77,987	$	135,263

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


	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands)
Customer relationships	$	4,504	$	5,197	$	9,329	$	10,764
Trademarks and trade names	855		1,714		2,565		3,424
Total	$	5,359	$	6,911	$	11,894	$	14,188

In December 2020, a significant customer informed IWCO of its plan to transition the majority of its direct marketing services. This customer represents approximately 7.2% and 8.6% of IWCO's revenue for the six months ended January 31, 2021 and the year ended July 31, 2020, respectively. As a result, the Company performed an interim impairment test of Direct Marketing's goodwill and other long-lived assets as of January 31, 2021, and the Company determined goodwill and other long-lived assets were not impaired. The fair value of the Direct Marketing reporting unit was 6% higher than its carrying value as of January 31, 2021.

The fair value was calculated using a discounted cash flow model (a form of the income approach) using the Company's current projections, which are subject to various risks and uncertainties associated with its forecasted revenue, expenses and cash flows, as well as the duration and expected impact on its business from the COVID-19 pandemic. The Company's significant assumptions in the analysis include, but are not limited to, future cash flow projections, the weighted average cost of capital, the

terminal growth rate and the tax rate. The Company's estimates of future cash flows are based on current economic climates, recent operating results and planned business strategies. These estimates could be negatively affected by changes in regulations, further economic downturns, decreased customer demand for IWCO's services, increased customer attrition or an inability to execute IWCO's business strategies. Future cash flow estimates are, by their nature, subjective, and actual results may differ materially from the Company's estimates. If the Company's ongoing cash flow projections are not met, the Company may have to record impairment charges in future periods.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

6 Months Ended

Jan. 31, 2021

Payables and Accruals [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

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


	January 31, 2021		July 31, 2020
Accrued Expenses	(In thousands)
Accrued taxes	$	63,521	$	60,744
Accrued compensation	22,375		25,439
Accrued worker's compensation	2,539		3,949
Accrued audit, tax and legal	3,290		3,399
Accrued contract labor	1,395		981
Accrued interest	476		476
Accrued other	17,655		16,392
	$	111,251	$	111,380


	January 31, 2021		July 31, 2020
Other Current Liabilities	(In thousands)
Accrued pricing liabilities	$	13,499	$	13,499
Customer postage deposits	8,278		8,551

Other	8,066		7,900
	$	29,843	$	29,950

As of January 31, 2021 and July 31, 2020, the Company had accrued taxes of $63.5 million and $60.7 million, respectively, which reflected the Company's estimate for certain tax related liabilities. As of both January 31, 2021 and July 31, 2020, the Company had accrued pricing liabilities of approximately $13.5 million. As previously reported by the Company, several principal adjustments were made to its historic financial statements for periods ending on or before January 31, 2012, the most significant of which related to the treatment of vendor rebates in its pricing policies. Where the retention of a rebate or a mark-up was determined to have been inconsistent with a client contract, the Company concluded that these amounts were not properly recorded as revenue. Accordingly, revenue was reduced by an equivalent amount for the period that the rebate was estimated to have been affected. A corresponding liability for the same amount was recorded in that period (referred to as accrued pricing liabilities). The Company believes that it may not ultimately be required to pay all or any of the accrued pricing liabilities based upon the expiration of statutes of limitations, and due in part to the nature of the interactions with its clients. The remaining accrued pricing liabilities as of January 31, 2021 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

6 Months Ended

Jan. 31, 2021

Leases [Abstract]

LEASES

LEASESThe table below presents the components of the Company's lease expense:


	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands)
Operating lease cost	$	4,131	$	4,816	$	8,359	$	9,632
Short-term lease expense	533		226		940		452
Variable lease cost	11		6		19		46
Amortization of finance lease assets	—		18		—		36
Interest on finance lease liabilities	1		4		3		8
	$	4,676	$	5,070	$	9,321	$	10,174

Supplemental Cash Flow Information

Supplemental cash flow information related to the Company's leases was as follows:


	Six Months Ended January 31,
	2021		2020
	(In thousands)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	8,377	$	8,769
Operating cash flows from finance leases	$	3	$	5
Financing cash flows from finance leases	$	35	$	79

LEASES

LEASESThe table below presents the components of the Company's lease expense:


	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands)
Operating lease cost	$	4,131	$	4,816	$	8,359	$	9,632
Short-term lease expense	533		226		940		452
Variable lease cost	11		6		19		46
Amortization of finance lease assets	—		18		—		36
Interest on finance lease liabilities	1		4		3		8
	$	4,676	$	5,070	$	9,321	$	10,174

Supplemental Cash Flow Information

Supplemental cash flow information related to the Company's leases was as follows:


	Six Months Ended January 31,
	2021		2020
	(In thousands)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	8,377	$	8,769
Operating cash flows from finance leases	$	3	$	5
Financing cash flows from finance leases	$	35	$	79

DEBT

6 Months Ended

Jan. 31, 2021

Debt Disclosure [Abstract]

DEBT

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


	January 31, 2021		July 31, 2020
	(In thousands)
Secured
Cerberus Term Loan due December 15, 2022	$	368,972	$	371,972
Unsecured
7.50% Convertible Senior Note due March 1, 2024	14,940		14,940
Credit Facilities
Cerberus Bank Credit Facility	—		—
MidCap Credit Facility	—		—
Less: unamortized discounts and issuance costs	(7,033)		(7,863)
Total debt, net	376,879		379,049
Less: current portion of debt, net	(5,582)		(5,527)
Total long-term debt, net	$	371,297	$	373,522

7.50% Convertible Senior Note

On February 28, 2019, the Company entered into a 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"). 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, subject to, and in accordance with, the settlement provisions of the SPHG Note. As of January 31, 2021, the if-converted value of the SPHG Note did not exceed the principal value of the SPHG Note. As of January 31, 2021, the remaining period over which the unamortized discount will be amortized is 37 months. As of January 31, 2021 and July 31, 2020, the net carrying value of the SPHG Note was $8.7 million and $8.1 million, respectively. The effective interest rate on the SPHG Note, including accretion of the discount, is 27.8%. The following tables reflect the components of the SPHG Note:


					January 31, 2021		July 31, 2020
					(In thousands)
Carrying amount of equity component					$	8,200	$	8,200

Principal amount of note					$	14,940	$	14,940
Unamortized debt discount					(6,281)		(6,886)
Net carrying amount					$	8,659	$	8,054

	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands)
Interest expense related to contractual interest coupon	$	287	$	280	$	573	$	560
Interest expense related to accretion of the discount	313		421		605		830
	$	600	$	701	$	1,178	$	1,390

Amendment to MidCap Credit Facility

On December 9, 2020, ModusLink entered into a First Amendment to the MidCap credit agreement ("Amendment No. 1") by and among ModusLink, certain of ModusLink's subsidiaries identified on the signature pages thereto, and MidCap as lender and agent.

Amendment No. 1 amends the MidCap credit agreement to permit special cash dividends to be made on or prior to July 31, 2021 in an aggregate amount not to exceed $50.0 million (the "Special Distributions") to Steel Connect, Inc., its parent. Payment of the Special Distributions will eliminate the availability of the general dividend basket for the fiscal year ending July 31, 2021. Special Distributions totaling $40.0 million were made to Steel Connect, Inc. during the quarter ended January 31, 2021. In addition, Amendment No. 1 incorporates a new minimum liquidity financial covenant, which requires that the sum of excess availability under the MidCap credit agreement and the amount of qualified cash and cash equivalents of the borrower is not less than $3.0 million until the earlier of July 31, 2021 or the date on which the borrower has either distributed the maximum amount of the Special Distributions or waived the ability to make further Special Distributions. Among other things, Amendment No. 1 also increases the percentage of eligible accounts included in the borrowing base from 50% to 75% and amends the condition for borrowing of revolving loans after the effective date of Amendment No. 1 to require evidence that specified availability (the sum of excess availability and the difference between the borrowing base and the aggregate revolving loan commitments) is not less than $3.0 million prior to giving effect to any such borrowing.

CONTINGENCIES	6 Months Ended
CONTINGENCIES	Jan. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIESOn 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 Board, Warren G. Lichtenstein, Glen M. Kassan, William T. Fejes, Jack L. Howard, Jeffrey J. Fenton, Philip E. Lengyel and Jeffrey S. Wald; and stockholders 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 Messrs. 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, and trial dates have been set for this matter to begin in February 2022. 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.

REVENUE RECOGNITION

6 Months Ended

Jan. 31, 2021

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

Disaggregation of Revenue

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


	Three Months Ended January 31, 2021						Three Months Ended January 31, 2020
	Direct Marketing		Supply Chain		Consolidated Total		Direct Marketing		Supply Chain		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Marketing solutions offerings	$	91,155	$	—	$	91,155	$	123,117	$	—	$	123,117
Supply chain management services	—		64,342		64,342		—		91,911		91,911
Other	—		550		550		—		424		424
	$	91,155	$	64,892	$	156,047	$	123,117	$	92,335	$	215,452
Timing of Revenue Recognition
Goods transferred over time	$	91,155	$	—	$	91,155	$	123,117	$	—	$	123,117
Services transferred over time	—		64,892		64,892		—		92,335		92,335
	$	91,155	$	64,892	$	156,047	$	123,117	$	92,335	$	215,452

	Six Months Ended January 31, 2021						Six Months Ended January 31, 2020
	Direct Marketing		Supply Chain		Consolidated Total		Direct Marketing		Supply Chain		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Marketing solutions offerings	$	196,863	$	—	$	196,863	$	256,120	$	—	$	256,120
Supply chain management services	—		128,129		128,129		—		183,616		183,616
Other	—		989		989		—		869		869
	$	196,863	$	129,118	$	325,981	$	256,120	$	184,485	$	440,605
Timing of Revenue Recognition
Goods transferred over time	$	196,863	$	—	$	196,863	$	256,120	$	—	$	256,120
Services transferred over time	—		129,118		129,118		—		184,485		184,485
	$	196,863	$	129,118	$	325,981	$	256,120	$	184,485	$	440,605

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's contract assets are all short-term in nature and are included in prepaid expenses and other current assets in the condensed consolidated balance sheets.

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

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


	January 31, 2021		July 31, 2020
	(In thousands)
Accounts receivable, trade, net	$	86,455	$	93,072
Contract assets	$	16,589	$	13,016

Deferred revenue - current	$	5,292	$	2,860
Deferred revenue - long-term	202		85
Total deferred revenue	$	5,494	$	2,945

Remaining Performance Obligations

Remaining performance obligations are comprised of deferred revenue. Changes in deferred revenue during the six months ended January 31, 2021 and January 31, 2020, were as follows:


	Six Months Ended January 31,
	2021		2020
	(In thousands)
Balance at beginning of period	$	2,945	$	3,029
Deferral of revenue	4,417		2,669
Recognition of deferred amounts upon satisfaction of performance obligation	(1,868)		(1,705)
Balance at end of period	$	5,494	$	3,993

We expect to recognize approximately $5.3 million of the deferred revenue over the next twelve months and the remaining $0.2 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.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

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

INCOME TAXES	6 Months Ended
INCOME TAXES	Jan. 31, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company operates in multiple taxing jurisdictions, both within and outside of the United States. For the six months ended January 31, 2021, the Company was profitable in certain jurisdictions, resulting in an income tax expense using enacted rates in those jurisdictions. As of January 31, 2021 and July 31, 2020, the total amount of the liability for unrecognized tax benefits related to federal, state and foreign taxes was approximately $2.6 million and $2.8 million, respectively. 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, including temporary changes to the future limitations on interest deductions related to section 163j and deferral of payment of the employer portion of social security taxes through the end of calendar year 2020. The Company elected to defer the employer-paid portion of social security taxes, which is expected to provide the Company with approximately $5.3 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. Uncertain Tax Positions In accordance with the Company's accounting policy, interest related to unrecognized tax benefits is included in the income tax expense line of the condensed consolidated statements of operations. As of January 31, 2021 and July 31, 2020, the liabilities for interest expense related to uncertain tax positions were $0.3 million and $0.3 million, respectively. The Company has accrued $0.4 million for penalties related to income tax positions. The Company expects $0.6 million of unrecognized tax benefits and related interest 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, 2017 through July 31, 2020. 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 2012 through 2019 tax years remain subject to examination in most locations, while the Company's 2008 through 2019 tax years remain subject to examination in most Asia locations.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

(LOSS) EARNINGS PER SHARE

6 Months Ended

Jan. 31, 2021

Earnings Per Share [Abstract]

(LOSS) EARNINGS PER SHARE

The following table reconciles (loss) earnings per share for the three and six months ended January 31, 2021 and 2020:


	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands, except per share data)
Net (loss) income	$	(2,196)	$	(3,557)	$	(5,747)	$	1,235
Less: Preferred dividends on redeemable preferred stock	(530)		(531)		(1,067)		(1,067)
Net (loss) income attributable to common stockholders	(2,726)		(4,088)		(6,814)		168
7.50% Convertible Senior Note	—		—		—		—
Redeemable preferred stock	—		—		—		—
Net (loss) income attributable to common stockholders after assumed conversions	$	(2,726)	$	(4,088)	$	(6,814)	$	168

Weighted average common shares outstanding	62,028		61,538		61,961		61,469
Weighted average common equivalent shares arising from dilutive stock options, restricted stock, convertible note and convertible preferred stock	—		—		—		13
Weighted average number of common and potential common shares	62,028		61,538		61,961		61,482
Basic net (loss) income per share attributable to common stockholders	$	(0.04)	$	(0.07)	$	(0.11)	$	0.00
Diluted net (loss) income per share attributable to common stockholders	$	(0.04)	$	(0.07)	$	(0.11)	$	0.00

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

For the three months ended January 31, 2021 and 2020, approximately 24.2 million and 24.5 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 loss per share as their inclusion would have been antidilutive. For the six months ended January 31, 2021 and 2020, approximately 24.2 million and 24.5 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 per share as their inclusion would have been antidilutive.

COMPREHENSIVE INCOME (LOSS)

6 Months Ended

Jan. 31, 2021

Equity [Abstract]

COMPREHENSIVE INCOME (LOSS)

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		Total
	(In thousands)
Accumulated other comprehensive income (loss) as of July 31, 2020	$	5,025	$	(1,182)	$	3,843
Foreign currency translation adjustment	5,393		—		5,393


Net current-period other comprehensive income	5,393		—		5,393
Accumulated other comprehensive income (loss) as of January 31, 2021	$	10,418	$	(1,182)	$	9,236


	Foreign Currency Items		Pension Items		Unrealized Gains on Securities		Total
	(In thousands)
Accumulated other comprehensive income (loss) as of July 31, 2019	$	5,017	$	(4,079)	$	96	$	1,034
Foreign currency translation adjustment	677		—		—		677
Net unrealized holding loss on securities, net of tax	—		—		(96)		(96)
Pension liability adjustments, net of tax	—		(2)		—		(2)
Net current-period other comprehensive income (loss)	677		(2)		(96)		579
Accumulated other comprehensive income (loss) as of January 31, 2020	$	5,694	$	(4,081)	$	—	$	1,613

SEGMENT INFORMATION

6 Months Ended

Jan. 31, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

The Company has two operating segments which are the same as its reportable segments: Direct Marketing and Supply Chain. The Company also has Corporate-level activity, which consists primarily of costs associated with certain corporate administrative functions such as legal, finance and share-based compensation, which are not allocated to the Company's reportable segments. The Corporate-level balance sheet information includes cash and cash equivalents, debt and other assets and liabilities which are not identifiable to the operations of the Company's operating segments. All significant intra-segment amounts have been eliminated. Management evaluates segment performance based on segment net revenue and operating income (loss).

Summarized financial information by operating segment is as follows:


	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands)
Net revenue:
Direct Marketing	$	91,155	$	123,117	$	196,863	$	256,120
Supply Chain	64,892		92,335		129,118		184,485
	$	156,047	$	215,452	$	325,981	$	440,605
Operating income:
Direct Marketing	$	5,769	$	4,217	$	10,706	$	15,420
Supply Chain	4,957		5,763		10,108		12,273
Total segment operating income	10,726		9,980		20,814		27,693
Corporate-level activity	(2,045)		(2,807)		(5,058)		(5,778)
Total operating income	8,681		7,173		15,756		21,915
Total other expense	(9,986)		(9,542)		(19,808)		(18,137)
(Loss) income before income taxes	$	(1,305)	$	(2,369)	$	(4,052)	$	3,778


	January 31, 2021		July 31, 2020
	(In thousands)
Total assets:
Direct Marketing	$	568,424	$	584,477
Supply Chain	112,476		169,490
Sub-total—segment assets	680,900		753,967
Corporate	44,996		5,205
	$	725,896	$	759,172

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


	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands)
Products:
Direct Marketing	$	91,155	$	123,117	$	196,863	$	256,120
Services:
Supply Chain	64,892		92,335		129,118		184,485
	$	156,047	$	215,452	$	325,981	$	440,605

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


	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands)
United States	$	108,280	$	145,293	$	229,763	$	299,714
China	22,409		32,569		42,049		72,026
Netherlands	5,387		11,071		13,182		21,719
Other	19,971		26,519		40,987		47,146
	$	156,047	$	215,452	$	325,981	$	440,605

- Definition

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

+ References

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+ Details

RELATED PARTY TRANSACTIONS	6 Months Ended
RELATED PARTY TRANSACTIONS	Jan. 31, 2021
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS As of January 31, 2021, SPHG Holdings and its affiliates, including Steel Holdings, Handy & Harman Ltd. and Steel Partners, Ltd., beneficially owned approximately 54.8% 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 Inc. ("Steel Holdings GP"), the manager of Steel Holdings. 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. SPHG Note Transaction On February 28, 2019, the Company entered into a SPHG Note Purchase Agreement with SPHG Holdings, whereby SPHG Holdings agreed to loan the Company $14.9 million in exchange for the SPHG Note. As of both January 31, 2021 and July 31, 2020, SPHG Holdings held $14.9 million principal amount of the SPHG Note. As of January 31, 2021 and July 31, 2020, the net carrying value of the SPHG Note was $8.7 million and $8.1 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 Convertible 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 June 14, 2019, the Company entered into an agreement (the "2019 Management Services Agreement") with Steel Services Ltd., an indirect wholly-owned subsidiary of Steel Holdings. The 2019 Management Services Agreement was effective as of June 1, 2019. Total expenses incurred related to the 2019 Management Services Agreement for the three months ended January 31, 2021 and 2020 were $1.3 million and $0.9 million, respectively. Total expenses incurred related to the 2019 Management Services Agreement for the six months ended January 31, 2021 and 2020 were $2.5 million and $1.7, respectively. As of January 31, 2021 and July 31, 2020, amounts due to Steel Services Ltd. were $1.4 million and $0.8 million, respectively.

FAIR VALUE MEASUREMENTS

6 Months Ended

Jan. 31, 2021

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 January 31, 2021 and July 31, 2020, classified by fair value hierarchy:


			Fair Value Measurements at Reporting Date Using
(In thousands)	January 31, 2021		Level 1		Level 2		Level 3
Assets:
Money market funds	$	45,121	$	45,121	$	—	$	—


			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2020		Level 1		Level 2		Level 3
Assets:
Money market funds	$	5,117	$	5,117	$	—	$	—

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 consolidated 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. The Company believes that the carrying value of the liability component of the SPHG Note and our long-term debt approximates fair value because the stated interest rates of this debt is consistent with current market rates. Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets are money market funds. These are valued at quoted market prices in active markets.

- Definition

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

+ References + Details

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	6 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	Jan. 31, 2021
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 ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of a normal recurring nature) considered necessary for fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and related notes for the year ended July 31, 2020 (Fiscal Year 2020), which are contained in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 30, 2020. The results for the six months ended January 31, 2021 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 consolidated financial statements, but does not include all disclosures required by U.S. GAAP.
Consolidation	All significant intercompany transactions and balances have been eliminated in consolidation.
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 were effective in the first quarter of the Company's fiscal year ending July 31, 2021 (Fiscal Year 2021). The adoption of the accounting standard did not have a material impact on the Company's 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 became effective in the first quarter of the Company's Fiscal Year 2021. The adoption of the accounting standard did not have a material impact on the Company's 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 became effective for the Company's first quarter of Fiscal Year 2021. The adoption of the accounting standard did not have a material impact on the Company's consolidated 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 ASU 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 ASU will be effective for the Company beginning in the first quarter of the fiscal year ending July 31, 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 this guidance to determine the impact it may have on its consolidated financial statements. 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 the fiscal year ending July 31, 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 this guidance to determine the impact it may have on its consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40). The amendment in this update simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments and convertible preferred stock. This update also amends the guidance for the derivatives scope exception for contracts in an entity's own equity to reduce form-over-substance-based accounting conclusions and requires the application of the if-converted method for calculating diluted earnings per share. The update also requires entities to provide expanded disclosures about the terms and features of convertible instruments, how the instruments have been reported in the entity's financial statements and information about events, conditions and circumstances that can affect how to assess the amount or timing of an entity's future cash flows related to those instruments. The guidance is effective for interim and annual periods beginning in our fiscal year ending July 31, 2025, with early adoption permitted. The Company is currently evaluating this guidance to determine the impact it 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)

6 Months Ended

Jan. 31, 2021

Inventory Disclosure [Abstract]

Schedule of inventories, net

The table below presents the components of Inventories, net:


	January 31, 2021		July 31, 2020
	(In thousands)
Raw materials	$	12,816	$	14,216
Work-in-process	277		253
Finished goods	849		885
	$	13,942	$	15,354

GOODWILL AND INTANGIBLE ASSETS (Tables)

6 Months Ended

Jan. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of finite-lived intangible assets

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


		January 31, 2021						July 31, 2020
	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	$	69,361	$	123,369	$	192,730	$	60,032	$	132,698
Trademarks and trade names	3	20,520		20,520		—		20,520		17,955		2,565
Total		$	213,250	$	89,881	$	123,369	$	213,250	$	77,987	$	135,263

Finite-lived intangible assets amortization expense

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


	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands)
Customer relationships	$	4,504	$	5,197	$	9,329	$	10,764
Trademarks and trade names	855		1,714		2,565		3,424
Total	$	5,359	$	6,911	$	11,894	$	14,188

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

6 Months Ended

Jan. 31, 2021

Payables and Accruals [Abstract]

Components of accrued expenses

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


	January 31, 2021		July 31, 2020
Accrued Expenses	(In thousands)
Accrued taxes	$	63,521	$	60,744
Accrued compensation	22,375		25,439
Accrued worker's compensation	2,539		3,949
Accrued audit, tax and legal	3,290		3,399
Accrued contract labor	1,395		981
Accrued interest	476		476
Accrued other	17,655		16,392
	$	111,251	$	111,380

Components of other current liabilities


	January 31, 2021		July 31, 2020
Other Current Liabilities	(In thousands)
Accrued pricing liabilities	$	13,499	$	13,499
Customer postage deposits	8,278		8,551

Other	8,066		7,900
	$	29,843	$	29,950

LEASES (Tables)

6 Months Ended

Jan. 31, 2021

Leases [Abstract]

Lease cost

The table below presents the components of the Company's lease expense:


	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands)
Operating lease cost	$	4,131	$	4,816	$	8,359	$	9,632
Short-term lease expense	533		226		940		452
Variable lease cost	11		6		19		46
Amortization of finance lease assets	—		18		—		36
Interest on finance lease liabilities	1		4		3		8
	$	4,676	$	5,070	$	9,321	$	10,174

Supplemental cash flow information related to the Company's leases was as follows:


	Six Months Ended January 31,
	2021		2020
	(In thousands)
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	8,377	$	8,769
Operating cash flows from finance leases	$	3	$	5
Financing cash flows from finance leases	$	35	$	79

DEBT (Tables)

6 Months Ended

Jan. 31, 2021

Debt Disclosure [Abstract]

Components of debt and reconciliation

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


	January 31, 2021		July 31, 2020
	(In thousands)
Secured
Cerberus Term Loan due December 15, 2022	$	368,972	$	371,972
Unsecured
7.50% Convertible Senior Note due March 1, 2024	14,940		14,940
Credit Facilities
Cerberus Bank Credit Facility	—		—
MidCap Credit Facility	—		—
Less: unamortized discounts and issuance costs	(7,033)		(7,863)
Total debt, net	376,879		379,049
Less: current portion of debt, net	(5,582)		(5,527)
Total long-term debt, net	$	371,297	$	373,522

Net carrying value of SPG note

The following tables reflect the components of the SPHG Note:


					January 31, 2021		July 31, 2020
					(In thousands)
Carrying amount of equity component					$	8,200	$	8,200

Principal amount of note					$	14,940	$	14,940
Unamortized debt discount					(6,281)		(6,886)
Net carrying amount					$	8,659	$	8,054

	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands)
Interest expense related to contractual interest coupon	$	287	$	280	$	573	$	560
Interest expense related to accretion of the discount	313		421		605		830
	$	600	$	701	$	1,178	$	1,390

- 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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-Paragraph 1
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-Subparagraph (SX 210.4-08.(e),(f))
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 505
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

REVENUE RECOGNITION (Tables)

6 Months Ended

Jan. 31, 2021

Revenue from Contract with Customer [Abstract]

Summary of reconciliation of the disaggregated revenue


	Three Months Ended January 31, 2021						Three Months Ended January 31, 2020
	Direct Marketing		Supply Chain		Consolidated Total		Direct Marketing		Supply Chain		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Marketing solutions offerings	$	91,155	$	—	$	91,155	$	123,117	$	—	$	123,117
Supply chain management services	—		64,342		64,342		—		91,911		91,911
Other	—		550		550		—		424		424
	$	91,155	$	64,892	$	156,047	$	123,117	$	92,335	$	215,452
Timing of Revenue Recognition
Goods transferred over time	$	91,155	$	—	$	91,155	$	123,117	$	—	$	123,117
Services transferred over time	—		64,892		64,892		—		92,335		92,335
	$	91,155	$	64,892	$	156,047	$	123,117	$	92,335	$	215,452

	Six Months Ended January 31, 2021						Six Months Ended January 31, 2020
	Direct Marketing		Supply Chain		Consolidated Total		Direct Marketing		Supply Chain		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Marketing solutions offerings	$	196,863	$	—	$	196,863	$	256,120	$	—	$	256,120
Supply chain management services	—		128,129		128,129		—		183,616		183,616
Other	—		989		989		—		869		869
	$	196,863	$	129,118	$	325,981	$	256,120	$	184,485	$	440,605
Timing of Revenue Recognition
Goods transferred over time	$	196,863	$	—	$	196,863	$	256,120	$	—	$	256,120
Services transferred over time	—		129,118		129,118		—		184,485		184,485
	$	196,863	$	129,118	$	325,981	$	256,120	$	184,485	$	440,605

Summary of changes in deferred revenue

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


	January 31, 2021		July 31, 2020
	(In thousands)
Accounts receivable, trade, net	$	86,455	$	93,072
Contract assets	$	16,589	$	13,016

Deferred revenue - current	$	5,292	$	2,860
Deferred revenue - long-term	202		85
Total deferred revenue	$	5,494	$	2,945

Remaining Performance Obligations

Remaining performance obligations are comprised of deferred revenue. Changes in deferred revenue during the six months ended January 31, 2021 and January 31, 2020, were as follows:


	Six Months Ended January 31,
	2021		2020
	(In thousands)
Balance at beginning of period	$	2,945	$	3,029
Deferral of revenue	4,417		2,669
Recognition of deferred amounts upon satisfaction of performance obligation	(1,868)		(1,705)
Balance at end of period	$	5,494	$	3,993

(LOSS) EARNINGS PER SHARE (Tables)

6 Months Ended

Jan. 31, 2021

Earnings Per Share [Abstract]

Reconciliation of (loss) earnings per share

The following table reconciles (loss) earnings per share for the three and six months ended January 31, 2021 and 2020:


	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands, except per share data)
Net (loss) income	$	(2,196)	$	(3,557)	$	(5,747)	$	1,235
Less: Preferred dividends on redeemable preferred stock	(530)		(531)		(1,067)		(1,067)
Net (loss) income attributable to common stockholders	(2,726)		(4,088)		(6,814)		168
7.50% Convertible Senior Note	—		—		—		—
Redeemable preferred stock	—		—		—		—
Net (loss) income attributable to common stockholders after assumed conversions	$	(2,726)	$	(4,088)	$	(6,814)	$	168

Weighted average common shares outstanding	62,028		61,538		61,961		61,469
Weighted average common equivalent shares arising from dilutive stock options, restricted stock, convertible note and convertible preferred stock	—		—		—		13
Weighted average number of common and potential common shares	62,028		61,538		61,961		61,482
Basic net (loss) income per share attributable to common stockholders	$	(0.04)	$	(0.07)	$	(0.11)	$	0.00
Diluted net (loss) income per share attributable to common stockholders	$	(0.04)	$	(0.07)	$	(0.11)	$	0.00

COMPREHENSIVE INCOME (LOSS) (Tables)

6 Months Ended

Jan. 31, 2021

Equity [Abstract]

Accumulated other comprehensive items

Accumulated other comprehensive items consist of the following:


	Foreign Currency Items		Pension Items		Total
	(In thousands)
Accumulated other comprehensive income (loss) as of July 31, 2020	$	5,025	$	(1,182)	$	3,843
Foreign currency translation adjustment	5,393		—		5,393


Net current-period other comprehensive income	5,393		—		5,393
Accumulated other comprehensive income (loss) as of January 31, 2021	$	10,418	$	(1,182)	$	9,236


	Foreign Currency Items		Pension Items		Unrealized Gains on Securities		Total
	(In thousands)
Accumulated other comprehensive income (loss) as of July 31, 2019	$	5,017	$	(4,079)	$	96	$	1,034
Foreign currency translation adjustment	677		—		—		677
Net unrealized holding loss on securities, net of tax	—		—		(96)		(96)
Pension liability adjustments, net of tax	—		(2)		—		(2)
Net current-period other comprehensive income (loss)	677		(2)		(96)		579
Accumulated other comprehensive income (loss) as of January 31, 2020	$	5,694	$	(4,081)	$	—	$	1,613

SEGMENT INFORMATION (Tables)

6 Months Ended

Jan. 31, 2021

Segment Reporting [Abstract]

Summarized Financial Information of Continuing Operations

Summarized financial information by operating segment is as follows:


	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands)
Net revenue:
Direct Marketing	$	91,155	$	123,117	$	196,863	$	256,120
Supply Chain	64,892		92,335		129,118		184,485
	$	156,047	$	215,452	$	325,981	$	440,605
Operating income:
Direct Marketing	$	5,769	$	4,217	$	10,706	$	15,420
Supply Chain	4,957		5,763		10,108		12,273
Total segment operating income	10,726		9,980		20,814		27,693
Corporate-level activity	(2,045)		(2,807)		(5,058)		(5,778)
Total operating income	8,681		7,173		15,756		21,915
Total other expense	(9,986)		(9,542)		(19,808)		(18,137)
(Loss) income before income taxes	$	(1,305)	$	(2,369)	$	(4,052)	$	3,778

Total Assets of Continuing Operations


	January 31, 2021		July 31, 2020
	(In thousands)
Total assets:
Direct Marketing	$	568,424	$	584,477
Supply Chain	112,476		169,490
Sub-total—segment assets	680,900		753,967
Corporate	44,996		5,205
	$	725,896	$	759,172

Summarized Financial Information of Net Revenue from External Customers by Group of Services

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


	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands)
Products:
Direct Marketing	$	91,155	$	123,117	$	196,863	$	256,120
Services:
Supply Chain	64,892		92,335		129,118		184,485
	$	156,047	$	215,452	$	325,981	$	440,605

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


	Three Months Ended January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(In thousands)
United States	$	108,280	$	145,293	$	229,763	$	299,714
China	22,409		32,569		42,049		72,026
Netherlands	5,387		11,071		13,182		21,719
Other	19,971		26,519		40,987		47,146
	$	156,047	$	215,452	$	325,981	$	440,605

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jan. 31, 2021

Fair Value Disclosures [Abstract]

Financial assets measured at fair value on recurring basis and classified by fair value hierarchy

The following tables present the Company's financial assets measured at fair value on a recurring basis as of January 31, 2021 and July 31, 2020, classified by fair value hierarchy:


			Fair Value Measurements at Reporting Date Using
(In thousands)	January 31, 2021		Level 1		Level 2		Level 3
Assets:
Money market funds	$	45,121	$	45,121	$	—	$	—


			Fair Value Measurements at Reporting Date Using
(In thousands)	July 31, 2020		Level 1		Level 2		Level 3
Assets:
Money market funds	$	5,117	$	5,117	$	—	$	—

NATURE OF OPERATIONS - Nature of Operations (Detail) - USD ($) $ / shares in Units, $ in Millions	Jan. 31, 2021	Nov. 19, 2020	Jul. 31, 2020
Nature Of Operations [Line Items]
Cash and cash equivalents	$ 87.6		$ 75.9
Working capital deficit	$ 4.0
Preferred stock, par value (in usd per share)	$ 0.01		$ 0.01
Minimum \| Common Stock
Nature Of Operations [Line Items]
Preferred stock, par value (in usd per share)		$ 0.65
Maximum \| Common Stock
Nature Of Operations [Line Items]
Preferred stock, par value (in usd per share)		$ 0.72
PNC bank credit facility
Nature Of Operations [Line Items]
Credit facility, readily available borrowing capacity	$ 8.8
Cerberus Credit Facility
Nature Of Operations [Line Items]
Credit facility, readily available borrowing capacity	$ 25.0

BASIS OF PRESENTATION (Details) $ in Millions	3 Months Ended
BASIS OF PRESENTATION (Details) $ in Millions	Jan. 31, 2020 USD ($)
Adjustment of Tax Related Liabilities
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Adjustments of tax related liabilities	$ 6.4

INVENTORIES - Components of Inventories (Detail) - USD ($) $ in Thousands	Jan. 31, 2021	Jul. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 12,816	$ 14,216
Work-in-process	277	253
Finished goods	849	885
Inventories, net	$ 13,942	$ 15,354

GOODWILL AND INTANGIBLE ASSETS - Additional Information (Detail) - USD ($)	6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jul. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 257,128,000		$ 257,128,000
Gross Carrying Amount	213,250,000		213,250,000
Accumulated Amortization	89,881,000		77,987,000
Net Carrying Amount	$ 123,369,000		135,263,000
Revenue Benchmark \| Customer Concentration Risk \| IWCO Direct Holdings, Inc.
Finite-Lived Intangible Assets [Line Items]
Concentration Risk, Percentage	7.20%	8.60%
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	15 years
Gross Carrying Amount	$ 192,730,000		192,730,000
Accumulated Amortization	69,361,000		60,032,000
Net Carrying Amount	$ 123,369,000		132,698,000
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	3 years
Gross Carrying Amount	$ 20,520,000		20,520,000
Accumulated Amortization	20,520,000		17,955,000
Net Carrying Amount	0		$ 2,565,000
Direct Marketing
Finite-Lived Intangible Assets [Line Items]
Goodwill	257,100,000
Reporting unit, amount of fair value in excess of carrying amount	$ 0.06

GOODWILL AND INTANGIBLE ASSETS Schedule of amortization expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 5,359	$ 6,911	$ 11,894	$ 14,188
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	4,504	5,197	9,329	10,764
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 855	$ 1,714	$ 2,565	$ 3,424

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components of Accrued Expenses (Detail) - USD ($) $ in Thousands	Jan. 31, 2021	Jul. 31, 2020
Payables and Accruals [Abstract]
Accrued taxes	$ 63,521	$ 60,744
Accrued compensation	22,375	25,439
Accrued worker's compensation	2,539	3,949
Accrued audit, tax and legal	3,290	3,399
Accrued contract labor	1,395	981
Accrued interest	476	476
Accrued other	17,655	16,392
Accrued expenses	$ 111,251	$ 111,380

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Components of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Jan. 31, 2021	Jul. 31, 2020
Payables and Accruals [Abstract]
Accrued pricing liabilities	$ 13,499	$ 13,499
Customer postage deposits	8,278	8,551
Other	8,066	7,900
Other current liabilities	$ 29,843	$ 29,950

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Narrative (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jul. 31, 2020
Payables and Accruals [Abstract]
Accrued taxes	$ 63,521	$ 60,744
Accrued pricing liabilities	$ 13,499	$ 13,499

LEASES - Lease Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
LEASES - Lease Costs (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Lease, Cost [Abstract]
Operating lease cost	$ 4,131	$ 4,816	$ 8,359	$ 9,632
Short-term lease expense	533	226	940	452
Variable lease cost	11	6	19	46
Amortization of finance lease assets	0	18	0	36
Interest on finance lease liabilities	1	4	3	8
Total lease cost	$ 4,676	$ 5,070	$ 9,321	$ 10,174

LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$ 8,377	$ 8,769
Operating cash flows from finance leases	3	5
Financing cash flows from finance leases	$ 35	$ 79	$ 35	$ 79

DEBT - Component of Debt and Reconciliation (Details) - USD ($) $ in Thousands	Jan. 31, 2021	Jul. 31, 2020
Line of Credit Facility [Line Items]
Less: unamortized discounts and issuance costs	$ (7,033)	$ (7,863)
Total debt, net	376,879	379,049
Less: current portion of debt, net	(5,582)	(5,527)
Total long-term debt, net	371,297	373,522
7.50% Convertible Senior Note due March 1, 2024
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	368,972	371,972
Revolving Credit Facility
Line of Credit Facility [Line Items]
Revolving credit facility	0	0
MidCap Credit Facility
Line of Credit Facility [Line Items]
Revolving credit facility	$ 0	$ 0

DEBT - Additional Information (Detail)			3 Months Ended
DEBT - Additional Information (Detail)	Dec. 09, 2020 USD ($)	Feb. 28, 2019 USD ($) $ / shares	Jan. 31, 2021 USD ($)	Dec. 08, 2020	Jul. 31, 2020 USD ($)
Debt Instrument [Line Items]
Long-term debt			$ 376,879,000		$ 379,049,000
Debt instrument, interest rate, effective percentage			27.80%
MidCap Credit Facility
Debt Instrument [Line Items]
Dividends			$ 40,000,000.0
MidCap Credit Facility \| First Amendment to the Credit Facility
Debt Instrument [Line Items]
Dividends, cash	$ 50,000,000.0
Minimum liquidity required	$ 3,000,000.0
Percentage of eligible accounts	75.00%			50.00%
SPHG Holdings
Debt Instrument [Line Items]
Conversion to common stock		$ 1,000
Debt conversion price (in usd per share) \| $ / shares		$ 2.37
Debt conversion ratio		0.4212655
SPHG Holdings \| 7.50% Convertible Senior Note due March 1, 2024
Debt Instrument [Line Items]
Debt instrument, stated interest rate		7.50%
Principal amount of note		$ 14,900,000	$ 14,940,000		14,940,000
Debt instrument amortization period			37 months
Long-term debt			$ 8,659,000		$ 8,054,000

DEBT - Net Carrying Value of the Notes (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020	Jul. 31, 2020	Feb. 28, 2019
Debt Instrument [Line Items]
Carrying amount of equity component	$ 8,200,000		$ 8,200,000		$ 8,200,000
Total debt, net	376,879,000		376,879,000		379,049,000
Interest expense	600,000	$ 701,000	1,178,000	$ 1,390,000
SPHG Holdings \| Interest expense related to contractual interest coupon
Debt Instrument [Line Items]
Interest expense	287,000	280,000	573,000	560,000
SPHG Holdings \| Interest expense related to accretion of the discount
Debt Instrument [Line Items]
Interest expense	313,000	$ 421,000	605,000	$ 830,000
SPHG Holdings \| 7.50% Convertible Senior Note due March 1, 2024
Debt Instrument [Line Items]
Principal amount of note	14,940,000		14,940,000		14,940,000	$ 14,900,000
Debt Instrument, Unamortized Discount	(6,281,000)		(6,281,000)		(6,886,000)
Total debt, net	$ 8,659,000		$ 8,659,000		$ 8,054,000

DEBT - Summary of Interest Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	$ 600	$ 701	$ 1,178	$ 1,390
SPHG Holdings \| Interest expense related to contractual interest coupon
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	287	280	573	560
SPHG Holdings \| Interest expense related to accretion of the discount
Interest Expense, Debt [Line Items]
Debt instrument, interest expense	$ 313	$ 421	$ 605	$ 830

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

REVENUE RECOGNITION - Disaggregated Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 156,047	$ 215,452	$ 325,981	$ 440,605
Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenues	91,155	123,117	196,863	256,120
Supply chain management services
Disaggregation of Revenue [Line Items]
Revenues	64,342	91,911	128,129	183,616
Other
Disaggregation of Revenue [Line Items]
Revenues	550	424	989	869
Products
Disaggregation of Revenue [Line Items]
Revenues	91,155	123,117	196,863	256,120
Products \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	91,155	123,117	196,863	256,120
Services
Disaggregation of Revenue [Line Items]
Revenues	64,892	92,335	129,118	184,485
Services \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	64,892	92,335	129,118	184,485
Direct Marketing
Disaggregation of Revenue [Line Items]
Revenues	91,155	123,117	196,863	256,120
Direct Marketing \| Marketing solutions offerings
Disaggregation of Revenue [Line Items]
Revenues	91,155	123,117	196,863	256,120
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	91,155	123,117	196,863	256,120
Direct Marketing \| Services \| Transferred over time
Disaggregation of Revenue [Line Items]
Revenues	0	0	0	0
Supply Chain
Disaggregation of Revenue [Line Items]
Revenues	64,892	92,335	129,118	184,485
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	64,342	91,911	128,129	183,616
Supply Chain \| Other
Disaggregation of Revenue [Line Items]
Revenues	550	424	989	869
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	$ 64,892	$ 92,335	$ 129,118	$ 184,485

REVENUE RECOGNITION - Additional Information (Detail) - USD ($) $ in Thousands	Jan. 31, 2021	Jul. 31, 2020	Jan. 31, 2020	Jul. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract assets	$ 16,589	$ 13,016
Deferred revenue - current	5,292	2,860
Deferred revenue - long-term	202	85
Total deferred revenue	5,494	2,945	$ 3,993	$ 3,029
Accounts receivable, trade, net
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, trade, net	$ 86,455	$ 93,072

REVENUE RECOGNITION - Summary of Changes in Deferred Revenue (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020
Change in Deferred Revenue
Balance at beginning of period	$ 2,945	$ 3,029
Deferral of revenue	4,417	2,669
Recognition of deferred amounts upon satisfaction of performance obligation	(1,868)	(1,705)
Balance at end of period	$ 5,494	$ 3,993

REVENUE RECOGNITION - Performance Obligations (Details) $ in Millions	Jan. 31, 2021 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 5.3
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-02-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 0.2
Revenue, remaining performance obligation, expected timing of satisfaction, period

INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions	Jan. 31, 2021	Jul. 31, 2020
Income Tax Disclosure [Abstract]
Unrecognized tax benefits related to federal, state and foreign taxes	$ 2.6	$ 2.8
Deferred employer-paid portion of social security taxes	5.3
Liabilities for interest expense related to uncertain tax positions	0.3	$ 0.3
Income tax penalties accrued	0.4
Expected unrecognized tax benefits to reverse in the next twelve months	$ 0.6

(LOSS) EARNINGS PER SHARE - Reconciliation of (Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Schedule of Earnings per Share Basic and Diluted [Line Items]
Net (loss) income	$ (2,196)	$ (3,557)	$ (5,747)	$ 1,235
Less: Preferred dividends on redeemable preferred stock	(530)	(531)	(1,067)	(1,067)
Net (loss) income attributable to common stockholders	(2,726)	(4,088)	(6,814)	168
Effect of dilutive securities
Net (loss) income attributable to common stockholders after assumed conversions	$ (2,726)	$ (4,088)	$ (6,814)	$ 168
Weighted average common shares outstanding (in shares)	62,028	61,538	61,961	61,469
Weighted average common equivalent shares arising from restricted stock (in shares)	0	0	0	13
Weighted average number of common and potential common shares (in usd per share)	62,028	61,538	61,961	61,482
Basic net (loss) income per share attributable to common stockholders (in usd per share)	$ (0.04)	$ (0.07)	$ (0.11)	$ 0.00
Diluted net (loss) income per share attributable to common stockholders (in usd per share)	$ (0.04)	$ (0.07)	$ (0.11)	$ 0.00
Convertible Senior Unsecured Note
Effect of dilutive securities
Dilutive securities	$ 0	$ 0	$ 0	$ 0
Contingent Redeemable Preferred Stock
Effect of dilutive securities
Dilutive securities	$ 0	$ 0	$ 0	$ 0

(LOSS) EARNINGS PER SHARE - Additional Information (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Earnings Per Share [Abstract]
Common stock equivalent shares excluded from the denominator in the calculation of diluted loss per share (in shares)	24.2	24.5	24.2	24.5

COMPREHENSIVE INCOME (LOSS) - Accumulated Other Comprehensive Income Items (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 47,894	$ 57,137	$ 48,818	$ 52,692
Foreign currency translation adjustment	2,420	664	5,393	677
Net unrealized holding loss on securities, net of tax	0	(96)	0	(96)
Pension liability adjustments, net of tax	0	0	0	(2)
Other comprehensive income	2,420	568	5,393	579
Ending balance	47,747	53,815	47,747	53,815
Accumulated Other Comprehensive Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	6,816	1,045	3,843	1,034
Foreign currency translation adjustment			5,393	677
Net unrealized holding loss on securities, net of tax				(96)
Pension liability adjustments, net of tax				(2)
Other comprehensive income	2,420	568	5,393	579
Ending balance	9,236	1,613	9,236	1,613
Foreign Currency Items
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			5,025	5,017
Foreign currency translation adjustment			5,393	677
Net unrealized holding loss on securities, net of tax				0
Pension liability adjustments, net of tax				0
Other comprehensive income			5,393	677
Ending balance	10,418	5,694	10,418	5,694
Pension Items
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			(1,182)	(4,079)
Foreign currency translation adjustment			0	0
Net unrealized holding loss on securities, net of tax				0
Pension liability adjustments, net of tax				(2)
Other comprehensive income			0	(2)
Ending balance	$ (1,182)	(4,081)	$ (1,182)	(4,081)
Unrealized Gains on Securities
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance				96
Foreign currency translation adjustment				0
Net unrealized holding loss on securities, net of tax				(96)
Pension liability adjustments, net of tax				0
Other comprehensive income				(96)
Ending balance		$ 0		$ 0

SEGMENT INFORMATION - Additional Information (Detail)	6 Months Ended
SEGMENT INFORMATION - Additional Information (Detail)	Jan. 31, 2021 segment
Segment Reporting [Abstract]
Number of operating segments	2
Number of reportable segments	2

SEGMENT INFORMATION - Summarized Financial Information of Continuing Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Segment Reporting Information [Line Items]
Revenue from contracts with customers	$ 156,047	$ 215,452	$ 325,981	$ 440,605
Operating income	8,681	7,173	15,756	21,915
Total other expense	(9,986)	(9,542)	(19,808)	(18,137)
(Loss) income before income taxes	(1,305)	(2,369)	(4,052)	3,778
Direct Marketing
Segment Reporting Information [Line Items]
Revenue from contracts with customers	91,155	123,117	196,863	256,120
Supply Chain
Segment Reporting Information [Line Items]
Revenue from contracts with customers	64,892	92,335	129,118	184,485
Operating segments
Segment Reporting Information [Line Items]
Operating income	10,726	9,980	20,814	27,693
Operating segments \| Direct Marketing
Segment Reporting Information [Line Items]
Revenue from contracts with customers	91,155	123,117	196,863	256,120
Operating income	5,769	4,217	10,706	15,420
Operating segments \| Supply Chain
Segment Reporting Information [Line Items]
Revenue from contracts with customers	64,892	92,335	129,118	184,485
Operating income	4,957	5,763	10,108	12,273
Corporate
Segment Reporting Information [Line Items]
Operating income	$ (2,045)	$ (2,807)	$ (5,058)	$ (5,778)

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
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-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

SEGMENT INFORMATION - Total Assets of Continuing Operations (Detail) - USD ($) $ in Thousands	Jan. 31, 2021	Jul. 31, 2020
Segment Reporting Information [Line Items]
Total assets	$ 725,896	$ 759,172
Operating segments
Segment Reporting Information [Line Items]
Total assets	680,900	753,967
Operating segments \| Direct Marketing
Segment Reporting Information [Line Items]
Total assets	568,424	584,477
Operating segments \| Supply Chain
Segment Reporting Information [Line Items]
Total assets	112,476	169,490
Corporate
Segment Reporting Information [Line Items]
Total assets	$ 44,996	$ 5,205

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(11))
-URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(12))
-URI http://asc.fasb.org/extlink&oid=120400017&loc=d3e572229-122910

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

+ Details

SEGMENT INFORMATION - Summarized Financial Information of Net Revenue from External Customers by Group of Services (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	$ 156,047	$ 215,452	$ 325,981	$ 440,605
Direct Marketing
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	91,155	123,117	196,863	256,120
Supply Chain
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	64,892	92,335	129,118	184,485
Direct Marketing
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	91,155	123,117	196,863	256,120
Supply Chain
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	64,892	92,335	129,118	184,485
United States
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	108,280	145,293	229,763	299,714
China
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	22,409	32,569	42,049	72,026
Netherlands
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	5,387	11,071	13,182	21,719
Other
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenue from contracts with customers	$ 19,971	$ 26,519	$ 40,987	$ 47,146

RELATED PARTY TRANSACTIONS (Detail) - USD ($)		3 Months Ended		6 Months Ended
RELATED PARTY TRANSACTIONS (Detail) - USD ($)	Dec. 15, 2017	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2021	Jan. 31, 2020	Jul. 31, 2020	Feb. 28, 2019
Related Party Transaction [Line Items]
Long-term debt		$ 376,879,000		$ 376,879,000		$ 379,049,000
Preferred stock, shares issued (in shares)		0		0		0
SPHG Holdings \| 7.50% Convertible Senior Note due March 1, 2024
Related Party Transaction [Line Items]
Principal amount convertible senior notes held of		$ 14,940,000		$ 14,940,000		$ 14,940,000	$ 14,900,000
Long-term debt		8,659,000		8,659,000		8,054,000
Steel Holdings \| Convertible debt
Related Party Transaction [Line Items]
Principal amount convertible senior notes held of		14,900,000		14,900,000		14,900,000	$ 14,900,000
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	$ 35,000,000.0
Steel Services Ltd. \| Management Services Agreement
Related Party Transaction [Line Items]
Total expenses incurred related to Management Services Agreement and Transfer Agreement		1,300,000	$ 900,000	2,500,000	$ 1,700,000
SP Corporate Services Llc and Steel Services Limited \| Management Services Agreement
Related Party Transaction [Line Items]
Amount due to related parties		$ 1,400,000		$ 1,400,000		$ 800,000
Steel Connect, Inc. \| SPHG Holdings
Related Party Transaction [Line Items]
Ownership percentage in capital stock		54.80%		54.80%

FAIR VALUE MEASUREMENTS - Financial Assets Measured at Fair Value on Recurring Basis and Classified by Fair Value Hierarchy (Detail) - Fair value, measurements, recurring - Money market funds - USD ($) $ in Thousands	Jan. 31, 2021	Jul. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 45,121	$ 5,117
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	45,121	5,117
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value disclosure, recurring	$ 0	$ 0