Income Taxes (Tables)

12 Months Ended

Jul. 31, 2012

Components of Provision (Benefit) for Income Taxes

The following table presents the components of our provision (benefit) for income taxes (in thousands):

	July 31,
	2012			2011		2010
Current:
Federal	$	(30	)	$	134	$	(611	)
State		4			19		14
Foreign		231			127		289
		205			280		(308	)
Deferred:
Federal		—			—		—
State		—			—		—
Foreign		(141	)		78		(58	)
		(141	)		78		(58	)
Total tax provision (benefit)	$	64		$	358	$	(366	)

Reconciliation of the Company's Statutory Federal Income Tax and the Company's Actual Tax Provision

A reconciliation between the statutory federal income tax and the Company’s actual tax provision follows (in thousands):

	July 31,
	2012			2011			2010
Statutory federal income tax benefit .	$	(4,500	)	$	(6,104	)	$	(5,310	)
State taxes, net of federal benefit .		(407	)		(560	)		(485	)
Research and development credits		—			—			(281	)
Valuation allowance .		4,545			6,625			6,101
Federal tax refund		—			—			(831	)
Other .		426			397			440
Tax provision (benefit)	$	64		$	358		$	(366	)

Net Deferred Tax Assets

The components of the Company’s net deferred tax assets at July 31, 2012 and 2011 are as follows (in thousands):

	2012			2011
Deferred tax assets:
Net operating loss carryforwards	$	288,381		$	284,269
Credit carryforwards		21,457			21,467
Restructuring and related accruals		4,442			4,405
Accrued expenses		810			847
Share based compensation expense		5,035			4,000
Capital loss carryforwards		783			934
Depreciation		5,646			5,829
Other, net		6,411			6,602
Total net deferred tax assets		332,965			328,353
Valuation allowance		(332,748	)		(328,277	)
Net deferred tax assets	$	217		$	76

Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands):

	2012			2011		2010
Beginning balance .	$	1,702		$	1,568	$	1,349
Increase for current year .		137			134		219
Reductions related to expiration of statute of limitations .		(166	)		—		—
Ending balance	$	1,673		$	1,702	$	1,568