Stockholders' Equity and Stock-based Compensation (Tables)

9 Months Ended

Apr. 30, 2013

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation expenses related to all employee and non-employee stock-based awards was as follows:



	Three Months Ended April 30,				Nine Months Ended April 30,
	2013		2012		2013 ⁽¹⁾		2012 ⁽²⁾
Stock-based compensation expenses:	(in thousands)
Cost of maintenance revenues	$	313	$	86	$	914	$	271
Cost of services revenues	3,150		907		9,205		2,648
Research and development	2,056		836		6,544		2,939
Sales and marketing	676		905		4,269		1,929
General and administrative	2,077		1,540		7,498		6,091
Total stock-based compensation expenses	$	8,272	$	4,274	$	28,430	$	13,878

(1) Includes $1.0 million of expense related to the modification of RSUs upon accelerated vesting terms for the retirement of one of the Company's officers and $1.0 million reversal of expense related to the termination of one of the Company's executive officers.

(2) Includes $1.2 million of expense related to the satisfaction of performance-based criteria upon successful close of the Company's IPO.

Unrecognized compensation cost, adjusted for estimated forfeitures

As of April 30, 2013, total unrecognized compensation cost, adjusted for estimated forfeitures, was as follows:



	As of April 30, 2013
	Unrecognized Expense		Average Expected Recognition Period
	(in thousands)		(in years)
Restricted stock units	$	39,165	1.3
Stock options	3,443		1.1
	$	42,608

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

RSUs

RSU activity under the Company's equity incentive plans for the period presented is as follows:



	RSUs Outstanding
	Number of RSUs Outstanding		Weighted Average Grant Date Fair Value
Balance as of July 31, 2012	3,992,177		$	8.00
Granted	1,697,979		32.44
Released	(1,230,687	)	9.30
Cancelled	(296,092	)	15.96
Balance as of April 30, 2013	4,163,377		$	17.48

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

Stock Options

The options exercisable as of April 30, 2013 include options that are exercisable prior to vesting. The total intrinsic value of options exercised was approximately $23.3 million and $10.5 million for the three months ended April 30, 2013 and 2012, respectively, and $76.4 million and $20.3 million for the nine months ended April 30, 2013 and 2012, respectively.



	Stock Options Outstanding
	Number of Stock Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value⁽¹⁾
					(in years)	(in thousands)
Balance as of July 31, 2012	6,486,641		$	3.74	6.1	$	142,321
Granted	377,412		32.36
Exercised	(2,653,065	)	2.98
Cancelled	(194,445	)	10.58
Balance as of April 30, 2013	4,016,543		$	6.60	5.9	$	134,471
Vested and expected to vest as of April 30, 2013	3,953,905		$	6.40	5.8	$	133,158
Exercisable as of April 30, 2013	3,628,247		$	4.34	5.5	$	129,663


⁽¹⁾	Aggregate intrinsic value represents the difference between the Company's closing stock price of $40.08 and $25.66 on April 30, 2013 and July 31, 2012, respectively, and the exercise price of outstanding, in-the-money options.

Black-Scholes valuation assumptions

The per share fair value of each stock option was determined on the date of grant using the Black-Scholes option pricing model and the following assumptions:



	Three Months Ended April 30,		Nine Months Ended April 30,
	2013	2012	2013	2012
Expected life (in years)	6.1	5.3	5.1 - 6.1	5.3 - 6.3
Risk-free interest rate	1.2%	1.5%	0.6% - 1.2%	1.2% - 1.5%
Expected volatility	46.9%	46.4%	45.1% - 48.7%	44.1% - 46.4%
Expected dividend yield	—%	—%	—%	—%

Common Stock Reserved for Issuance

As of April 30, 2013 and July 31, 2012, the Company was authorized to issue 500,000,000 shares of common stock with a par value of $0.0001 per share. As of April 30, 2013 and July 31, 2012, the Company had reserved shares of common stock for issuance as follows:



	April 30, 2013	July 31, 2012
Exercise of stock options to purchase common stock	4,016,543	6,486,641
Vesting of restricted stock units	4,163,377	3,992,177
Issuances of shares available under stock plans	9,308,740	7,655,332
Total common stock reserved for issuance	17,488,660	18,134,150

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

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