REVENUE RECOGNITION (Tables)

9 Months Ended

Apr. 30, 2019

Revenue from Contract with Customer [Abstract]

Summary of reconciliation of the disaggregated revenue

The following table presents the Company’s revenues disaggregated by major good or service line, timing of revenue recognition, and sales channel. The table also includes a reconciliation of the disaggregated revenue with the reportable segments.

	Three Months Ended April 30, 2019
	Americas		Asia		Europe		Direct Marketing		e- Business		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Supply chain management services	$	17,164	$	39,312	$	16,747	$	—	$	4,285	$	77,508
Perpetual software licenses	—		—		—		—		—		—
Marketing solutions offerings	—		—		—		116,006		—		116,006
Other	—		—		—		—		489		489
	$	17,164	$	39,312	$	16,747	$	116,006	$	4,774	$	194,003
Timing of Revenue Recognition
Goods transferred over time	$	—	$	—	$	—	$	116,006	$	—	$	116,006
Services transferred over time	17,164		39,312		16,747		—		4,774		77,997
	$	17,164	$	39,312	$	16,747	$	116,006	$	4,774	$	194,003
Total Revenue
Revenue from contracts with customers	$	17,164	$	39,312	$	16,747	$	116,006	$	4,774	$	194,003
	$	17,164	$	39,312	$	16,747	$	116,006	$	4,774	$	194,003

Over the three month period ended April 30, 2019, the Company had no revenue recognized at a point in time.

	Nine Months Ended April 30, 2019
	Americas		Asia		Europe		Direct Marketing		e- Business		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Supply chain management services	$	51,313	$	128,123	$	56,718	$	—	$	15,146	$	251,300
Perpetual software licenses	—		—		—		—		—		—
Marketing solutions offerings	—		—		—		362,547		—		362,547
Other	—		—		—		—		1,512		1,512
	$	51,313	$	128,123	$	56,718	$	362,547	$	16,658	$	615,359
Timing of Revenue Recognition
Goods transferred over time	$	—	$	—	$	—	$	362,547	$	—	$	362,547
Services transferred over time	51,313		128,123		56,718		—		16,658		252,812
	$	51,313	$	128,123	$	56,718	$	362,547	$	16,658	$	615,359
Total Revenue
Revenue from contracts with customers	$	51,313	$	128,123	$	56,718	$	362,547	$	16,658	$	615,359
	$	51,313	$	128,123	$	56,718	$	362,547	$	16,658	$	615,359

Summary of changes in deferred revenue

Changes in deferred revenue during the nine months ended April 30, 2019, were as follows (in thousands):

Nine Months Ended April 30, 2019
Balance at beginning of period	$	3,858
Deferral of revenue	3,583
Recognition of deferred amounts upon satisfaction of performance obligation	(4,415		)
Balance at end of period	$	3,026

Cumulative effect of the changes to consolidated balance sheet for the adoption of topic 606

The cumulative effect of the changes made to the Company’s consolidated August 1, 2018 balance sheet for the adoption of Topic 606 were as follows (in thousands):

Balance Sheet
	July 31, 2018			Adjustments Due to ASU 2014-09			August 1, 2018
Assets
Inventories, net	$	47,786		$	(21,233	)	$	26,553
Prepaid expenses and other current assets	13,415			24,041			37,456
Total current assets	264,281			2,808			267,089
Total assets	$	827,050		$	2,808		$	829,858
Liabilities
Other current liabilities	$	42,029		$	(3,330	)	$	38,699
Total current liabilities	276,356			(3,330		)	273,026
Total liabilities	684,230			(3,330		)	680,900
Stockholders’ equity
Accumulated deficit	(7,363,569		)	6,138			(7,357,431		)
Total stockholders’ equity	107,628			6,138			113,766
Total liabilities, contingently redeemable preferred stock and stockholders’ equity	$	827,050		$	2,808		$	829,858

Impact of the adoption on consolidated balance sheet and statement of operations

In accordance with the requirements of the new standard, the disclosure of the impact of the adoption on the Company’s consolidated balance sheet and statement of operations was as follows (in thousands, except per share amounts):

Balance Sheet:	April 30, 2019
	As  Reported			Balances without Adoption of  ASC 606			Effect of  Change Higher/(Lower)
Assets
Inventories, net	$	25,404		$	47,950		$	(22,546	)
Prepaid expenses and other current assets	33,399			10,975			22,424
Total current assets	202,441			202,563			(122		)
Total assets	$	734,750		$	734,872		$	(122	)
Liabilities
Other current liabilities	$	43,753		$	50,811		$	(7,058	)
Total current liabilities	220,499			227,557			(7,058		)
Total liabilities	607,166			614,224			(7,058		)
Stockholders’ equity
Accumulated deficit	(7,387,774		)	(7,394,710		)	6,936
Total stockholders’ equity	92,386			85,450			6,936
Total liabilities, contingently redeemable preferred stock and stockholders’ equity	$	734,750		$	734,872		$	(122	)

Statement of Operations:	Three Months Ended April 30, 2019
	As Reported			Balances without Adoption of ASC 606			Effect of Change Higher/(Lower)
Net revenue	$	194,003		$	191,514		$	2,489
Cost of revenue	157,142			155,482			1,660
Gross profit	36,861			36,032			829
Loss before income taxes	(8,229		)	(9,058		)	829
Net loss	(9,627		)	(10,456		)	829
Net loss attributable to common stockholders	$	(10,152	)	$	(10,981	)	$	829
Basic and diluted net loss per share attributable to common stockholders:	$	(0.17	)	$	(0.18	)	$	0.01

The impact to revenues for the three month period ended April 30, 2019 was an increase of $2.5 million as a result of applying Topic 606 primarily related to the acceleration of revenue related to IWCO’s marketing solutions arrangements for certain contracts with customers that under Topic 606 are being recognized over time based on an input method of efforts expended which depicts the transfer of value to the customer.

Statement of Operations:	Nine Months Ended April 30, 2019
	As Reported			Balances without Adoption of ASC 606			Effect of Change Higher/(Lower)
Net revenue	$	615,359		$	613,248		$	2,111
Cost of revenue	502,755			501,442			1,313
Gross profit	112,604			111,806			798
Loss before income taxes	(24,831		)	(25,629		)	798
Net loss	(28,745		)	(29,543		)	798
Net loss attributable to common stockholders	$	(30,343	)	$	(31,141	)	$	798
Basic and diluted net loss per share attributable to common stockholders:	$	(0.50	)	$	(0.51	)	$	0.01