REVENUE RECOGNITION (Tables)

3 Months Ended

Oct. 31, 2018

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 (in thousands). The table also includes a reconciliation of the disaggregated revenue with the reportable segments.

	Three Months Ended October 31, 2018
	Americas		Asia		Europe		Direct Marketing		e-Business		Consolidated Total
	(In thousands)
Major Goods/Service Lines
Supply chain management services	$	17,440	$	44,256	$	19,521	$	—	$	5,409	$	86,626
Perpetual software licenses		—		—		—		—		—		—
Marketing solutions offerings		—		—		—		128,094		—		128,094
Other		—		—		—		—		413		413
		17,440		44,256		19,521		128,094		5,822		215,133
Timing of Revenue Recognition
Goods transferred over time		—		—		—		128,094		—		128,094
Services transferred over time		17,440		44,256		19,521		—		5,822		87,039
		17,440		44,256		19,521		128,094		5,822		215,133
Total Revenue
Revenue from contracts with customers		17,440		44,256		19,521		128,094		5,822		215,133
	$	17,440	$	44,256	$	19,521	$	128,094	$	5,822	$	215,133

Summary of Changes in Deferred Revenue

Changes in deferred revenue during the three months ended October 31, 2018, were as follows (in thousands):

Balance at beginning of period	$	3,858
Deferral of revenue		503
Recognition of deferred amounts upon satisfaction of performance obligation		(720	)
Balance at end of period	$	3,641

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):

	July 31,			Adjustments Due			August 1,
	2018			to ASU 2014-09			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	$	42,125		$	(3,330	)	$	38,795
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:

	October 31, 2018
				Balances without			Effect of Change
	As Reported			Adoption of ASC 606			Higher/(Lower)
Assets
Inventories, net	$	29,969		$	51,392		$	(21,423	)
Prepaid expenses and other current assets		34,187			11,524			22,663
Total current assets		276,054			274,814			1,240
Total assets	$	827,727		$	826,487		$	1,240
Liabilities
Other Current Liabilities	$	38,408		$	44,041		$	(5,633	)
Total current liabilities		280,197			285,830			(5,633	)
Total liabilities		687,098			692,731			(5,633	)
Stockholders’ equity
Accumulated deficit		(7,365,332	)		(7,372,205	)		6,873
Total stockholders’ equity		105,431			98,558			6,873
Total liabilities, contingently redeemable preferred stock and stockholders’ equity	$	827,727		$	826,487		$	1,240

Statement of Operations:

	Three Months Ended October 31, 2018
				Balances without			Effect of Change
	As Reported			Adoption of ASC 606			Higher/(Lower)
Net revenue	$	215,133		$	214,208		$	925
Cost of revenue		176,933			176,743			190
Gross profit		38,200			37,465			735
Loss before income taxes		(6,254	)		(6,989	)		735
Net loss		(7,365	)		(8,100	)		735
Net loss attributable to common stockholders	$	(7,901	)	$	(8,636	)	$	735
Basic and diluted net loss per share attributable to common stockholders:	$	(0.13	)	$	(0.14	)	$	0.01