Cost Reduction

6 Months Ended

Jan. 31, 2024

Restructuring and Related Activities [Abstract]

Cost Reduction

Cost Reduction

In fiscal 2023, we transformed and integrated our individual businesses into two segments to improve operational performance. This transformation has provided insight into opportunities to manage costs, streamline operations, improve efficiency, and accelerate decision-making by eliminating management layers and other redundancies. In doing so, during fiscal 2023, we recorded $3,872,000 of severance costs in selling, general and administrative expenses in our Condensed Consolidated Statements of Operations, of which $1,989,000, $1,220,000 and $663,000 related to our Satellite and Space Communications, Terrestrial and Wireless Networks and Unallocated segments, respectively. We paid $2,320,000 of severance costs during fiscal 2023 and our severance liability as of July 31, 2023 was $1,552,000.

In fiscal 2024, we recorded additional severance costs of $1,155,000 related to the continued transformation and integration of our individual businesses to improve operational performance, in selling, general and administrative expenses in our Condensed Consolidated Statements of Operations, of which a substantial portion was related to our Satellite and Space segment. After fiscal 2024 net payments of $1,961,000, our severance liability as of January 31, 2024 was $746,000.