Marketable Securities

9 Months Ended

Apr. 30, 2018

Note 4—Marketable Securities

The following is a summary of marketable securities:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
Available-for-sale securities:
April 30, 2018:
Certificates of deposit*	$	5,649	$	—	$	—		$	5,649
Equity		78		27		—			105
U.S. Treasury notes		1,690		—		(1	)		1,689
Municipal bonds		3,132		—		(5	)		3,127

Total	$	10,549	$	27	$	(6	)	$	10,570
July 31, 2017:
Certificates of deposit*	$	29,011	$	1	$	(7	)	$	29,005
Federal Government Sponsored Enterprise notes		3,992		—		(14	)		3,978
International agency notes		291		—		—			291
Mutual funds		5,353		77		—			5,430
Corporate bonds		4,643		—		—			4,643
Equity		74		—		(26	)		48
U.S. Treasury notes		6,673		—		—			6,673
Municipal bonds		8,201		4		(1	)		8,204

Total	$	58,238	$	82	$	(48	)	$	58,272

Each of the Company’s certificates of deposit has a CUSIP, was purchased in the secondary market through a broker, and may be sold in the secondary market.

At April 30, 2018 and July 31, 2017, the Company owned 24,923 and 23,227 shares, respectively, of Zedge, Inc. Class B common stock that had a fair value of $0.1 million and $48,000, respectively.

Proceeds from maturities and sales of available-for-sale securities were $5.0 million and $14.0 million in the three months ended April 30, 2018 and 2017, respectively, and $36.7 million and $30.8 million in the nine months ended April 30, 2018 and 2017, respectively. The gross realized losses that were included in earnings as a result of sales were $7,000 and $16,000 in the three and nine months ended April 30, 2018, respectively. The gross realized gains that were included in earnings as a result of sales were $26,000 and $0.3 million in the three and nine months ended April 30, 2017, respectively. The Company uses the specific identification method in computing the gross realized gains and gross realized losses on the sales of marketable securities.

The contractual maturities of the Company’s available-for-sale debt securities at April 30, 2018 were as follows:

	Fair Value
	(in thousands)
Within one year	$	10,161
After one year through five years		304
After five years through ten years		—
After ten years		—

Total	$	10,465

The following available-for-sale securities were in an unrealized loss position for which other-than-temporary impairments have not been recognized:

	Unrealized Losses		Fair Value
	(in thousands)
April 30, 2018:
U.S. Treasury notes	$	1	$	1,689
Municipal bonds		5		3,127

Total	$	6	$	4,816
July 31, 2017:
Certificates of deposit	$	7	$	12,155
Federal Government Sponsored Enterprise notes		14		3,529
Equity		26		48
Municipal bonds		1		3,349

Total	$	48	$	19,081

At July 31, 2017, there were no securities in a continuous unrealized loss position for 12 months or longer. At April 30, 2018, the following available-for-sale securities included in the table above were in a continuous unrealized loss position for 12 months or longer:

	Unrealized Losses		Fair Value
	(in thousands)
Municipal bonds	$	1	$	343

At April 30, 2018, the Company did not intend to sell the securities that were in a continuous unrealized loss position for 12 months or longer, and it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases, which may be at maturity.