Debt Securities

3 Months Ended

Oct. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Debt Securities

Note 6—Debt Securities

The following is a summary of available-for-sale debt securities:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
October 31, 2023:
Certificates of deposit*	$	1,920	$	—	$	(3	)	$	1,917
U.S. Treasury bills and notes		25,085		—		(141	)		24,944
Government sponsored enterprise notes		3,047		—		(3	)		3,044
Corporate bonds		3,901		—		(564	)		3,337
Total	$	33,953	$	—	$	(711	)	$	33,242
July 31, 2023:
Certificates of deposit*	$	4,080	$	—	$	(4	)	$	4,076
U.S. Treasury bills and notes		31,186		—		(148	)		31,038
Government sponsored enterprise notes		3,881		—		(8	)		3,873
Corporate bonds		3,912		—		(485	)		3,427
Total	$	43,059	$	—	$	(645	)	$	42,414

* 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.

The gross unrealized losses in the table above are recorded in “Accumulated other comprehensive loss” in the consolidated balance sheets. As of October 31, 2023, the Company determined that the unrealized losses were due to changes in interest rates or market liquidity and were not due to credit losses. In addition, the Company does not intend to sell any of the securities with unrealized losses, and it is not more likely than not that the Company will be required to sell any of the securities with unrealized losses.

Proceeds from maturities and sales of debt securities and redemptions of equity investments were $17.1 million and $11.5 million in the three months ended October 31, 2023 and 2022, respectively. There were no realized gains or realized losses from sales of debt securities in the three months ended October 31, 2023 and 2022. The Company uses the specific identification method in computing the realized gains and realized losses on the sales of debt securities.

The contractual maturities of the Company’s available-for-sale debt securities at October 31, 2023 were as follows:

	Fair Value
		(in thousands)
Within one year	$	26,185
After one year through five years		5,904
After five years through ten years		1,110
After ten years		43
Total	$	33,242

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

	Unrealized Losses		Fair Value
	(in thousands)
October 31, 2023:
Certificates of deposit	$	3	$	1,917
U.S. Treasury bills and notes		141		24,944
Government sponsored enterprise notes		3		3,044
Corporate bonds		564		3,337
Total	$	711	$	33,242
July 31, 2023:
Certificates of deposit	$	4	$	3,356
U.S. Treasury bills and notes		148		31,038
Government sponsored enterprise notes		8		3,873
Corporate bonds		485		3,368
Total	$	645	$	41,635

The following available-for-sale debt securities included in the table above were in a continuous unrealized loss position for 12 months or longer:

	Unrealized Losses		Fair Value
	(in thousands)
October 31, 2023:
U.S. Treasury bills and notes	$	66	$	639
Corporate bonds		556		3,216
Total	$	622	$	3,855
July 31, 2023:
U.S. Treasury bills and notes	$	86	$	816
Corporate bonds		484		3,299
Total	$	570	$	4,115

At October 31, 2023 and July 31, 2023, the Company did not intend to sell any of the debt securities included in the table above, and it is not more likely than not that the Company will be required to sell any of these securities before recovery of the unrealized losses, which may be at maturity.