Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jul. 31, 2012

Aggregate Cash and Cash Equivalents and Short and Long Term Investments

As of July 31, 2012 and 2011, aggregate cash and cash equivalents and short and long term investments consisted of (in thousands):

July 31, 2012:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents	$	136,654	$	—	$	—		$	136,654
Government securities		302,695		66		(22	)		302,739
Total	$	439,349	$	66	$	(22	)	$	439,393

July 31, 2011:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Market Value
Cash and cash equivalents	$	60,765	$	—	$	—		$	60,765
Corporate securities		26,819		37		—			26,856
Government securities		353,907		27		(157	)		353,777
Total	$	441,491	$	64	$	(157	)	$	441,398

Contractual maturities of the Company's investment securities

At July 31, 2012, contractual maturities of the Company’s investment securities were as follows (in thousands):

	Amortized Cost		Fair Market Value
Less than one year	$	234,937	$	234,965
Due in one to three years		67,758		67,774
Total	$	302,695	$	302,739

Breakdown of the Investments with Unrealized Loss

The following tables provide the breakdown of the investments with unrealized losses at July 31, 2012 and 2011 (in thousands):

July 31, 2012

	Less than 12 Months					12 Months or Greater				Total
	Fair Market Value		Gross Unrealized Losses			Fair Market Value		Gross Unrealized Losses		Fair Market Value		Gross Unrealized Losses
Government securities	$	96,449	$	(22	)	$	—	$	—	$	96,449	$	(22	)
Total	$	96,449	$	(22	)	$	—	$	—	$	96,449	$	(22	)

July 31, 2011

	Less than 12 Months					12 Months or Greater				Total
	Fair Market Value		Gross Unrealized Losses			Fair Market Value		Gross Unrealized Losses		Fair Market Value		Gross Unrealized Losses
Government securities	$	283,591	$	(157	)	$	—	$	—	$	283,591	$	(157	)
Total	$	283,591	$	(157	)	$	—	$	—	$	283,591	$	(157	)

Estimated Useful Lives of the Assets

Property and equipment is stated at cost and depreciated over the estimated useful lives of the assets using the straight-line method, based upon the following asset lives:

Computer and telecommunications equipment .	2 to 3 years
Computer software .	3 years
Furniture and office equipment .	5 years
Leasehold improvements .	Shorter of lease term or useful life of asset

Summary of Allowance for Doubtful Accounts

Activity in the Company’s allowance for doubtful accounts is summarized as follows (in thousands):

	Year Ended July 31,
	2012			2011		2010
Beginning balance .	$	72		$	72	$	72
Adjustment		(30	)		—		—
Write off		—			—		—
Ending balance .	$	42		$	72	$	72

Computation of Basic and Diluted Net Loss Per Share

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data):

	Year Ended July 31,
	2012			2011			2010
Net loss .	$	(12,924	)	$	(17,798	)	$	(14,805	)
Denominator:
Weighted-average shares of common stock outstanding .		28,807			28,567			28,432
Weighted-average shares subject to repurchase .		—			—			(10	)
Shares used in per-share calculation—basic .		28,807			28,567			28,422
Weighted-average shares of common stock outstanding .		28,807			28,567			28,422
Weighted common stock equivalents .		—			—			—
Shares used in per-share calculation—diluted .		28,807			28,567			28,422
Net loss per share:
Basic . .	$	(0.45	)	$	(0.62	)	$	(0.52	)
Diluted .	$	(0.45	)	$	(0.62	)	$	(0.52	)