Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Sep. 27, 2013 | Jan. 31, 2013 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Jul-13 | ||
Current Fiscal Year End Date | -24 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2013 | ||
Entity Registrant Name | COMTECH TELECOMMUNICATIONS CORP /DE/ | ||
Entity Central Index Key | 23197 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 16,458,591 | ||
Entity Public Float | $440,114,000 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
Current assets: | ||
Cash and cash equivalents | $356,642,000 | $367,894,000 |
Accounts receivable, net | 49,915,000 | 56,242,000 |
Inventories, net | 65,482,000 | 72,361,000 |
Prepaid expenses and other current assets | 7,428,000 | 8,196,000 |
Deferred tax asset, net | 10,184,000 | 12,183,000 |
Total current assets | 489,651,000 | 516,876,000 |
Property, plant and equipment, net | 20,333,000 | 22,832,000 |
Goodwill | 137,354,000 | 137,354,000 |
Intangibles with finite lives, net | 32,505,000 | 38,833,000 |
Deferred tax asset, net, non-current | 0 | 438,000 |
Deferred financing costs, net | 1,093,000 | 2,487,000 |
Other assets, net | 879,000 | 958,000 |
Total assets | 681,815,000 | 719,778,000 |
Current liabilities: | ||
Convertible senior notes, current | 200,000,000 | 0 |
Accounts payable | 18,390,000 | 20,967,000 |
Accrued expenses and other current liabilities | 29,892,000 | 40,870,000 |
Dividends payable | 4,531,000 | 4,773,000 |
Customer advances and deposits | 14,749,000 | 14,516,000 |
Interest payable | 1,529,000 | 1,529,000 |
Total current liabilities | 269,091,000 | 82,655,000 |
Convertible senior notes, non-current | 0 | 200,000,000 |
Other liabilities | 3,958,000 | 5,098,000 |
Income taxes payable | 2,963,000 | 2,624,000 |
Deferred tax liability | 1,741,000 | 0 |
Total liabilities | 277,753,000 | 290,377,000 |
Commitments and contingencies (See Note 14) | ||
Stockholders' equity: | ||
Preferred stock, par value $.10 per share; shares authorized and unissued 2,000,000 | 0 | 0 |
Common stock, par value $.10 per share; authorized 100,000,000 shares; issued 29,066,792 shares and 28,931,679 shares at July 31, 2013 and 2012, respectively | 2,907,000 | 2,893,000 |
Additional paid-in capital | 363,888,000 | 361,458,000 |
Retained earnings | 403,398,000 | 404,227,000 |
Stockholders' equity before treasury stock | 770,193,000 | 768,578,000 |
Less: Treasury stock, at cost (12,608,501 shares and 11,564,059 shares at July 31, 2013 and 2012, respectively) | -366,131,000 | -339,177,000 |
Total stockholders' equity | 404,062,000 | 429,401,000 |
Total liabilities and stockholders' equity | $681,815,000 | $719,778,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $0.10 | $0.10 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares Issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 29,066,792 | 28,931,679 |
Treasury stock, shares (in shares) | 12,608,501 | 11,564,059 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |||||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | ||||
Net sales | $319,797,000 | $425,070,000 | $612,379,000 | |||
Cost of sales | 178,967,000 | 241,561,000 | 371,333,000 | |||
Gross profit | 140,830,000 | 183,509,000 | 241,046,000 | |||
Expenses: | ||||||
Selling, general and administrative | 63,265,000 | 87,106,000 | 94,141,000 | |||
Research and development | 36,748,000 | 38,489,000 | 43,516,000 | |||
Amortization of intangibles | 6,328,000 | 6,637,000 | 8,091,000 | |||
Merger termination fee, net | 0 | 0 | -12,500,000 | |||
Total operating expenses | 106,341,000 | 132,232,000 | 133,248,000 | |||
Operating income | 34,489,000 | 51,277,000 | 107,798,000 | |||
Other expenses (income): | ||||||
Interest expense | 8,163,000 | 8,832,000 | 8,415,000 | |||
Interest income and other | -1,167,000 | -1,595,000 | -2,421,000 | |||
Income before provision for income taxes | 27,493,000 | 44,040,000 | 101,804,000 | |||
Provision for income taxes | 9,685,000 | 11,624,000 | 33,909,000 | |||
Net income | $17,808,000 | $32,416,000 | $67,895,000 | |||
Net income per share: | ||||||
Basic | $1.05 | $1.62 | $2.53 | |||
Diluted | $0.97 | [1] | $1.42 | [1] | $2.22 | [1] |
Weighted average number of common shares outstanding - basic | 16,963,000 | 19,995,000 | 26,842,000 | |||
Weighted average number of common and common equivalent shares outstanding - diluted | 23,064,000 | 25,991,000 | 32,623,000 | |||
Dividends declared per issued and outstanding common share as of the applicable dividend record date | $1.10 | $1.10 | $1 | |||
[1] | * Income per share information for the full fiscal year may not equal the total of the quarters within the year. |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Beginning balance at Jul. 31, 2010 | $701,632,000 | $2,854,000 | $347,514,000 | $351,449,000 | ($185,000) |
Treasury stock shares outstanding, beginning of period (in shares) at Jul. 31, 2010 | 210,937 | ||||
Common stock shares issued, beginning of period (in shares) at Jul. 31, 2010 | 28,542,535 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity-classified stock award compensation | 5,366,000 | 5,366,000 | |||
Proceeds from exercise of options (in shares) | 139,885 | ||||
Proceeds from exercise of options | 2,838,000 | 14,000 | 2,824,000 | ||
Proceeds from issuance of employee stock purchase plan shares (in shares) | 48,845 | ||||
Proceeds from issuance of employee stock purchase plan shares | 1,140,000 | 5,000 | 1,135,000 | ||
Cash dividends declared | -26,235,000 | -26,235,000 | |||
Net excess income tax benefit (shortfall) from stock-based award exercises | -53,000 | -53,000 | |||
Reversal of deferred tax assets associated with expired and unexercised stock-based awards | -1,785,000 | -1,785,000 | |||
Repurchases of common stock (in shares) | 4,297,508 | ||||
Repurchases of common stock | -121,618,000 | -121,618,000 | |||
Net income | 67,895,000 | 67,895,000 | |||
Ending balance at Jul. 31, 2011 | 629,180,000 | 2,873,000 | 355,001,000 | 393,109,000 | -121,803,000 |
Common stock shares issued, end of period (in shares) at Jul. 31, 2011 | 28,731,265 | ||||
Treasury stock shares outstanding, end of period (in shares) at Jul. 31, 2011 | 4,508,445 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity-classified stock award compensation | 3,519,000 | 3,519,000 | |||
Proceeds from exercise of options (in shares) | 155,145 | ||||
Proceeds from exercise of options | 3,202,000 | 15,000 | 3,187,000 | ||
Proceeds from issuance of employee stock purchase plan shares (in shares) | 45,269 | ||||
Proceeds from issuance of employee stock purchase plan shares | 1,088,000 | 5,000 | 1,083,000 | ||
Cash dividends declared | -21,298,000 | -21,298,000 | |||
Net excess income tax benefit (shortfall) from stock-based award exercises | 45,000 | 45,000 | |||
Reversal of deferred tax assets associated with expired and unexercised stock-based awards | -1,377,000 | -1,377,000 | |||
Repurchases of common stock (in shares) | 7,055,614 | 7,055,614 | |||
Repurchases of common stock | -217,374,000 | -217,374,000 | |||
Net income | 32,416,000 | 32,416,000 | |||
Ending balance at Jul. 31, 2012 | 429,401,000 | 2,893,000 | 361,458,000 | 404,227,000 | -339,177,000 |
Common stock shares issued, end of period (in shares) at Jul. 31, 2012 | 28,931,679 | 28,931,679 | |||
Treasury stock shares outstanding, end of period (in shares) at Jul. 31, 2012 | 11,564,059 | 11,564,059 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity-classified stock award compensation | 3,159,000 | 3,159,000 | |||
Proceeds from exercise of options (in shares) | 90,883 | ||||
Proceeds from exercise of options | 1,182,000 | 9,000 | 1,173,000 | ||
Issuance of restricted stock (in shares) | 2,076 | ||||
Issuance of restricted stock | 0 | 0 | 0 | ||
Proceeds from issuance of employee stock purchase plan shares (in shares) | 42,154 | ||||
Proceeds from issuance of employee stock purchase plan shares | 908,000 | 5,000 | 903,000 | ||
Cash dividends declared | -18,637,000 | -18,637,000 | |||
Net excess income tax benefit (shortfall) from stock-based award exercises | 258,000 | 258,000 | |||
Reversal of deferred tax assets associated with expired and unexercised stock-based awards | -3,063,000 | -3,063,000 | |||
Repurchases of common stock (in shares) | 1,044,442 | 1,044,442 | |||
Repurchases of common stock | -26,954,000 | -26,954,000 | |||
Net income | 17,808,000 | 17,808,000 | |||
Ending balance at Jul. 31, 2013 | $404,062,000 | $2,907,000 | $363,888,000 | $403,398,000 | ($366,131,000) |
Common stock shares issued, end of period (in shares) at Jul. 31, 2013 | 29,066,792 | 29,066,792 | |||
Treasury stock shares outstanding, end of period (in shares) at Jul. 31, 2013 | 12,608,501 | 12,608,501 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Cash flows from operating activities: | |||
Net income | $17,808,000 | $32,416,000 | $67,895,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property, plant and equipment | 7,837,000 | 10,205,000 | 14,253,000 |
Amortization of intangible assets with finite lives | 6,328,000 | 6,637,000 | 8,091,000 |
Amortization of stock-based compensation | 3,130,000 | 3,572,000 | 5,357,000 |
Deferred financing costs | 1,419,000 | 1,652,000 | 1,391,000 |
Change in fair value of contingent earn-out liability | -3,267,000 | -918,000 | 0 |
Loss on disposal of property, plant and equipment | 9,000 | 14,000 | 7,000 |
(Benefit from) provision for allowance for doubtful accounts | -422,000 | 458,000 | 244,000 |
Provision for excess and obsolete inventory | 2,810,000 | 3,862,000 | 4,091,000 |
Excess income tax benefit from stock-based award exercises | -265,000 | -231,000 | -225,000 |
Deferred income tax expense (benefit) | 1,115,000 | -4,570,000 | 761,000 |
Changes in assets and liabilities, net of effects of acquisition: | |||
Accounts receivable | 6,591,000 | 14,101,000 | 64,795,000 |
Inventories | 4,093,000 | -4,407,000 | -5,224,000 |
Prepaid expenses and other current assets | 216,000 | 1,427,000 | 1,606,000 |
Other Assets | 79,000 | 201,000 | 737,000 |
Accounts payable | -2,577,000 | -2,534,000 | -54,343,000 |
Accrued expenses and other current liabilities | -9,484,000 | -5,221,000 | -4,866,000 |
Customer advances and deposits | 391,000 | 3,505,000 | -1,927,000 |
Other liabilities | 735,000 | 877,000 | 789,000 |
Interest payable | 0 | -2,000 | 0 |
Income taxes payable | 1,149,000 | -7,551,000 | -6,072,000 |
Net cash provided by operating activities | 37,695,000 | 53,493,000 | 97,360,000 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | -5,347,000 | -6,413,000 | -7,138,000 |
Purchases of other intangibles with finite lives | 0 | 0 | -50,000 |
Payments for business acquisitions | 0 | 0 | -2,850,000 |
Net cash used in investing activities | -5,347,000 | -6,413,000 | -10,038,000 |
Cash flows from financing activities: | |||
Repurchases of common stock | -26,954,000 | -219,375,000 | -119,617,000 |
Cash dividends paid | -18,879,000 | -22,625,000 | -20,135,000 |
Proceeds from exercises of stock options | 1,182,000 | 3,202,000 | 2,838,000 |
Proceeds from issuance of employee stock purchase plan shares | 908,000 | 1,088,000 | 1,140,000 |
Excess income tax benefit from stock-based award exercises | 265,000 | 231,000 | 225,000 |
Payment of contingent consideration related to business acquisition | -97,000 | -195,000 | -24,000 |
Fees related to line of credit | -25,000 | -316,000 | -539,000 |
Net cash used in financing activities | -43,600,000 | -237,990,000 | -136,112,000 |
Net decrease in cash and cash equivalents | -11,252,000 | -190,910,000 | -48,790,000 |
Cash and cash equivalents at beginning of period | 367,894,000 | 558,804,000 | 607,594,000 |
Cash and cash equivalents at end of period | 356,642,000 | 367,894,000 | 558,804,000 |
Cash paid during the period for: | |||
Interest | 6,350,000 | 6,509,000 | 6,407,000 |
Income taxes | 7,420,000 | 23,746,000 | 39,498,000 |
Non cash investing and financing activities: | |||
Business acquisition liabilities | 0 | 0 | 4,170,000 |
Cash dividends declared | 4,531,000 | 4,773,000 | 6,100,000 |
Accrued repurchases of common stock | $0 | $0 | $2,001,000 |
Summary_of_Significant_Account
Summary of Significant Accounting and Reporting Policies | 12 Months Ended | ||||||||||
Jul. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Summary of Significant Accounting and Reporting Policies | (1) Summary of Significant Accounting and Reporting Policies | ||||||||||
(a) | Principles of Consolidation | ||||||||||
The accompanying consolidated financial statements include the accounts of Comtech Telecommunications Corp. and its subsidiaries (“Comtech,” “we,” “us,” or “our”), all of which are wholly-owned. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||
(b) | Nature of Business | ||||||||||
We design, develop, produce and market innovative products, systems and services for advanced communications solutions. | |||||||||||
Our business is highly competitive and characterized by rapid technological change. Our growth and financial position depends, among other things, on our ability to keep pace with such changes and developments and to respond to the sophisticated requirements of an increasing variety of electronic equipment users. Many of our competitors are substantially larger, and have significantly greater financial, marketing and operating resources and broader product lines than us. A significant technological breakthrough by others, including smaller competitors or new companies, could have a material adverse effect on our business. In addition, certain of our customers have technological capabilities in our product areas and could choose to replace our products with their own. | |||||||||||
International sales expose us to certain risks, including barriers to trade, fluctuations in foreign currency exchange rates (which may make our products less price competitive), political and economic instability, availability of suitable export financing, export license requirements, tariff regulations, and other United States (“U.S.”) and foreign regulations that may apply to the export of our products, as well as the generally greater difficulties of doing business abroad. We attempt to reduce the risk of doing business in foreign countries by seeking contracts denominated in U.S. dollars, advance or milestone payments, credit insurance and irrevocable letters of credit in our favor. | |||||||||||
The vast majority of sales in our mobile data communications segment have historically come from sales relating to the U.S. Army's MTS and BFT-1 programs. Our combined MTS and BFT-1 net sales for fiscal 2011 through fiscal 2013 were as follows: | |||||||||||
Net Sales | Percentage of | Percentage of | |||||||||
Mobile Data | Consolidated | ||||||||||
Communications | Net Sales | ||||||||||
Segment Net Sales | |||||||||||
2013 | $ | 29,061,000 | 76 | % | 9.1 | % | |||||
2012 | 87,769,000 | 78 | % | 20.6 | % | ||||||
2011 | 248,578,000 | 86.2 | % | 40.6 | % | ||||||
We are currently providing BFT-1 sustainment services and licensing certain of our intellectual property to the U.S. Army pursuant to a two-year $43,629,000 indefinite delivery/indefinite quantity ("IDIQ") BFT-1 sustainment contract, which replaced a prior three-year IDIQ BFT-1 sustainment contract that had not a not-to-exceed value of $80,731,000. In April 2013, due to budget pressures and administrative issues placed on the U.S. Army by the Continuing Resolution and Sequester, the U.S. government requested, and we agreed, to modify the terms of the three-year BFT-1 sustainment contract. Funding for Year One of the two-year BFT-1 sustainment contract (which had a performance period from April 1, 2012 through March 31, 2013) was definitized at $22,773,000 (including the annual $10,000,000 intellectual property license fee) and funding for Year Two (which has a performance period from April 1, 2013 through March 31, 2014) was definitized at $20,856,000 (including the annual $10,000,000 intellectual property license fee). Under the terms of the two-year contract, we agreed to perform certain satellite network and related engineering services (including program management) on a cost-plus-fixed-fee basis and the U.S. Army is required to pay us an annual $10,000,000 intellectual property license fee. Specific terms and conditions related to the intellectual property license are covered by a separate licensing agreement that provides for annual renewals, at the U.S. Army's option, for up to a five-year period ending March 31, 2017, after which time the U.S. Army will have a limited non-exclusive right to use certain of our intellectual property for no additional intellectual property licensing fee. | |||||||||||
(c) | Revenue Recognition | ||||||||||
Revenue is generally recognized when the earnings process is complete, upon shipment or customer acceptance. Revenue from contracts relating to the design, development or manufacture of complex electronic equipment to a buyer’s specification or to provide services relating to the performance of such contracts is generally recognized in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 605-35 “Revenue Recognition — Construction-Type and Production-Type Contracts” (“ASC 605-35”). We primarily apply the percentage-of-completion method and generally recognize revenue based on the relationship of total costs incurred to total projected costs, or, alternatively, based on output measures, such as units delivered or produced. Profits expected to be realized on such contracts are based on total estimated sales for the contract compared to total estimated costs, including warranty costs, at completion of the contract. These estimates are reviewed and revised periodically throughout the lives of the contracts, and adjustments to profits resulting from such revisions are made cumulative to the date of the change. Provision for anticipated losses on uncompleted contracts is made in the period in which such losses become evident. Long-term, U.S. government, cost-reimbursable type contracts are also specifically covered by FASB ASC 605-35. | |||||||||||
We have historically demonstrated an ability to estimate contract revenues and expenses in applying the percentage-of-completion method of accounting. However, there exist inherent risks and uncertainties in estimating future revenues and expenses, particularly on larger or longer-term contracts. Changes to such estimates could have a material effect on our consolidated financial condition and results of operations. | |||||||||||
Revenue recognized in excess of amounts billable under long-term contracts accounted for under the percentage-of-completion method are recorded as unbilled receivables in the accompanying consolidated balance sheets. Unbilled receivables are billable upon various events, including the attainment of performance milestones, delivery of hardware, submission of progress bills based on time and materials, or completion of the contract. We do not recognize revenue, or record unbilled receivables, until we receive fully funded orders. | |||||||||||
In fiscal 2013, 85.6% and 14.4% of our consolidated U.S. government net sales were derived from firm fixed-price and cost-reimbursable type contracts, respectively. Under firm fixed-price contracts, we perform for an agreed-upon price and we can derive benefits from cost savings, but bear the risk of cost overruns. Our cost-reimbursable type contracts typically provide for reimbursement of allowable costs incurred plus a negotiated fee. Cost-plus-incentive-fee orders typically provide for sharing with the U.S. government savings accrued from orders performed for less than the target costs and costs incurred in excess of targets up to a negotiated ceiling price (which is higher than the target cost), and for the supplier to carry the entire burden of costs exceeding the negotiated ceiling price. | |||||||||||
Most government contracts have termination for convenience clauses that provide the customer with the right to terminate the contract at any time. Historically, we have not experienced material contract terminations or write-offs of unbilled receivables. We address customer acceptance provisions in assessing our ability to perform our contractual obligations under long-term contracts. Historically, we have been able to perform on our long-term contracts. | |||||||||||
Revenues from contracts that contain multiple elements that are not accounted for under the percentage-of-completion method are accounted for in accordance with FASB ASC 605-25 “Revenue Recognition — Multiple Element Arrangements,” as amended by FASB Accounting Standards Update (“ASU”) No. 2009-13, which, among other things, requires revenue to be allocated to each element based on the relative selling price method. | |||||||||||
(d) | Cash and Cash Equivalents | ||||||||||
Our cash equivalents are short-term, highly liquid investments that are both readily convertible to known amounts of cash and have insignificant risk of change in value as a result of changes in interest rates. Our cash and cash equivalents, as of July 31, 2013 and 2012, amounted to $356,642,000 and $367,894,000, respectively, and primarily consist of money market mutual funds (both government and commercial), certificates of deposit, bank deposits and U.S. Treasury securities (with maturities at the time of purchase of three months or less). Many of our money market mutual funds invest in direct obligations of the U.S. government, bank securities guaranteed by the Federal Deposit Insurance Corporation, certificates of deposits and commercial paper and other securities issued by other companies. None of our cash equivalents include municipal auction-rate securities. Cash equivalents are carried at cost, which approximates fair market value. | |||||||||||
(e) | Inventories | ||||||||||
Raw materials and components and finished goods inventory are stated at the lower of cost or market, computed on the first-in, first-out (“FIFO”) method. | |||||||||||
Work-in-process inventory reflects all accumulated production costs, which are comprised of direct production costs and overhead, and is reduced by amounts recorded in cost of sales as the related revenue is recognized. These inventories are reduced to their estimated net realizable value by a charge to cost of sales in the period such excess costs are determined. Indirect costs relating to long-term contracts, which include expenses such as general and administrative, are charged to expense as incurred and are not included in our work-in-process (including our contracts-in-progress) inventory or cost of sales. | |||||||||||
(f) | Long-Lived Assets | ||||||||||
Our machinery and equipment, which are recorded at cost, are depreciated or amortized over their estimated useful lives (three to eight years) under the straight-line method. Capitalized values of properties and leasehold improvements under leases are amortized over the life of the lease or the estimated life of the asset, whichever is less. | |||||||||||
Goodwill represents the excess cost of a business acquisition over the fair value of the net assets acquired. In accordance with the FASB ASC 350, “Intangibles – Goodwill and Other,” goodwill is not amortized. We periodically, at least on an annual basis in the first quarter of each fiscal year, review goodwill, considering factors such as projected cash flows and revenue and earnings multiples, to determine whether the carrying value of the goodwill is impaired. If the goodwill is deemed to be impaired, the difference between the carrying amount reflected in the financial statements and the estimated fair value is recognized as an expense in the period in which the impairment occurs. We define our reporting units to be the same as our operating segments. | |||||||||||
We performed our annual goodwill impairment test for fiscal 2014 on August 1, 2013 (the start of our first quarter of fiscal 2014). See Note (15) - "Goodwill" for more information on goodwill impairment testing. Unless there are future indicators of impairment, such as a significant adverse change in our future financial performance, our next impairment review for goodwill will be performed and completed in the first quarter of fiscal 2015. Any impairment charges that we may take in the future could be material to our results of operations and financial condition. | |||||||||||
We assess the recoverability of the carrying value of our other long-lived assets, including identifiable intangible assets with finite useful lives, whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. We evaluate the recoverability of such assets based upon the expectations of undiscounted cash flows from such assets. If the sum of the expected future undiscounted cash flows were less than the carrying amount of the asset, a loss would be recognized for the difference between the fair value and the carrying amount. | |||||||||||
(g) | Research and Development Costs | ||||||||||
We charge research and development costs to operations as incurred, except in those cases in which such costs are reimbursable under customer funded contracts. In fiscal 2013, 2012 and 2011, we were reimbursed by customers for such activities in the amount of $5,172,000, $5,665,000 and $10,703,000, respectively. These amounts are not reflected in the reported research and development expenses in each of the respective periods, but are included in net sales with the related costs included in cost of sales in each of the respective periods. | |||||||||||
(h) | Income Taxes | ||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||
We determine the uncertain tax positions taken or expected to be taken in income tax returns in accordance with the provisions of FASB ASC 740-10-25, which prescribes a two-step evaluation process for tax positions. The first step is recognition based on a determination of whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is to measure a tax position that meets the more-likely-than-not threshold. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. If a tax position does not meet the more-likely-than-not recognition threshold, the benefit of that position is not recognized in the financial statements. Our policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. | |||||||||||
(i) | Earnings Per Share | ||||||||||
Our basic earnings per share (“EPS”) is computed based on the weighted average number of shares, including fully-vested stock units and vested restricted stock units ("RSUs"), outstanding during each respective period. Our diluted EPS reflects the dilution from potential common stock issuable pursuant to the exercise of equity-classified stock-based awards and convertible senior notes, if dilutive, outstanding during each respective period. Pursuant to FASB ASC 260, "Earnings Per Share," equity-classified stock-based awards that are subject to performance conditions are not considered in our diluted EPS calculations until the respective performance conditions have been satisfied. When calculating our diluted earnings per share, we consider (i) the amount an employee must pay upon assumed exercise of stock-based awards; (ii) the amount of stock-based compensation cost attributed to future services and not yet recognized; and (iii) the amount of excess tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of in-the-money stock-based awards. This excess tax benefit is the amount resulting from a tax deduction for compensation in excess of compensation expense, based on the Black Scholes option pricing model, recognized for financial reporting purposes. | |||||||||||
Equity-classified stock-based awards to purchase 2,701,000, 2,169,000 and 2,486,000 shares for fiscal 2013, 2012 and 2011, respectively, were not included in our diluted EPS calculation because their effect would have been anti-dilutive. | |||||||||||
Our EPS calculations exclude 39,000 and 5,000 weighted average RSUs with performance measures (known as performance shares) outstanding for fiscal 2013 and 2012, respectively, as the respective performance conditions have not yet been satisfied. However, the compensation expense related to these awards is included in net income (the numerator) for EPS calculations for each respective period. In fiscal 2011, there were no outstanding performance shares. | |||||||||||
The weighted-average basic and diluted shares outstanding for the fiscal years ended July 31, 2013, 2012 and 2011 reflect a reduction of approximately 453,000, 4,350,000 and 1,781,000 shares as a result of the repurchase of our common shares during the respective periods. See Note (17) – “Stockholders’ Equity” for more information on our stock repurchase program. | |||||||||||
Liability-classified stock-based awards do not impact and are not included in the denominator for EPS calculations. | |||||||||||
The following table reconciles the numerators and denominators used in the basic and diluted EPS calculations: | |||||||||||
Fiscal Years Ended July 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Numerator: | |||||||||||
Net income for basic calculation | $ | 17,808,000 | 32,416,000 | 67,895,000 | |||||||
Effect of dilutive securities: | |||||||||||
Interest expense (net of tax) on 3.0% convertible senior notes | 4,468,000 | 4,468,000 | 4,468,000 | ||||||||
Numerator for diluted calculation | $ | 22,276,000 | 36,884,000 | 72,363,000 | |||||||
Denominator: | |||||||||||
Denominator for basic calculation | 16,963,000 | 19,995,000 | 26,842,000 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock-based awards | 91,000 | 228,000 | 215,000 | ||||||||
Conversion of 3.0% convertible senior notes | 6,010,000 | 5,768,000 | 5,566,000 | ||||||||
Denominator for diluted calculation | 23,064,000 | 25,991,000 | 32,623,000 | ||||||||
(j) | Fair Value Measurements and Financial Instruments | ||||||||||
In accordance with FASB ASC 825, “Financial Instruments,” we determined that, as of July 31, 2013 and 2012, the fair value of our 3.0% convertible senior notes was approximately $208,080,000 and $211,920,000, respectively, based on quoted market prices in an active market. Our 3.0% convertible senior notes are not marked-to-market and are shown on the accompanying balance sheet at their original issuance value. As such, changes in the estimated fair value of our 3.0% convertible senior notes are not recorded in our consolidated financial statements. | |||||||||||
As of July 31, 2013 and 2012, we had approximately $50,182,000 and $84,610,000, respectively, of money market mutual funds which are classified as cash and cash equivalents in our Consolidated Balance Sheets. These money market mutual funds are recorded at their current fair value. FASB ASC 820, “Fair Value Measurements and Disclosures,” requires us to define fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, using the fair value hierarchy described in FASB ASC 820, we valued our money market mutual funds using Level 1 inputs that were based on quoted market prices. | |||||||||||
At July 31, 2013 and 2012, we had a contingent earn-out liability relating to our acquisition of Stampede Technologies, Inc. (“Stampede”) of $288,000 and $3,519,000, respectively, which is recorded at current fair value using Level 3 inputs, primarily management's estimates of future sales and cash flows relating to the earn-out, which also incorporated market participant expectations. See Note (2) - "Acquisitions." | |||||||||||
As of July 31, 2013 and 2012, other than our cash and cash equivalents and our contingent earn-out liability, we had no other assets or liabilities included in our Consolidated Balance Sheets recorded at current fair value. If we acquire different types of assets or incur different types of liabilities in the future, we might be required to use different FASB ASC fair value methodologies. | |||||||||||
(k) | Use of Estimates | ||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. We make significant estimates in many areas of our accounting, including but not limited to the following: long-term contracts, stock-based compensation, intangible assets including goodwill, provision for excess and obsolete inventory, allowance for doubtful accounts, warranty obligations and income taxes. Actual results may differ from those estimates. | |||||||||||
(l) | Comprehensive Income | ||||||||||
In accordance with FASB ASC 220, “Comprehensive Income,” we report all changes in equity during a period, except those resulting from investment by owners and distribution to owners, for the period in which they are recognized. Comprehensive income is the total of net income and all other non-owner changes in equity (or other comprehensive income) such as unrealized gains/losses on securities classified as available-for-sale, foreign currency translation adjustments and minimum pension liability adjustments. Comprehensive income was the same as net income in fiscal 2013, 2012 and 2011. | |||||||||||
(m) | Reclassifications | ||||||||||
Certain reclassifications have been made to previously reported consolidated financial statements to conform to the fiscal 2013 presentation. | |||||||||||
(n) | Adoption of Accounting Standards and Updates | ||||||||||
We are required to prepare our consolidated financial statements in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) which is the source for all authoritative U.S. generally accepted accounting principles, which is commonly referred to as “GAAP.” The FASB ASC is subject to updates by FASB, which are known as Accounting Standards Updates (“ASU”). The following FASB ASUs have been issued and incorporated into the FASB ASC and adopted by us in fiscal 2013: | |||||||||||
• | On February 1, 2013, we adopted FASB ASU No. 2013-02, which requires, among other things, entities to provide information about the amounts reclassified out of accumulated other comprehensive income. Our adoption of this ASU did not have any impact on our consolidated financial statements or disclosures, because we do not have any other component of comprehensive income except for net income. | ||||||||||
• | On July 17, 2013, we adopted FASB ASU No. 2013-10, which included the "Fed Funds Effective Swap Rate" as a permitted U.S. benchmark interest rate for hedge accounting purposes under ASC Topic 815 - "Derivatives and Hedging." Prior to this ASU, only the interest rates on direct Treasury obligations of the U.S. government or the LIBOR swap rate were considered acceptable benchmark interest rates for hedge accounting purposes. This ASU also removed the restriction on using different benchmark rates for similar hedges. This ASU is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. Our adoption of this ASU did not have any impact on our consolidated financial statements or disclosures, because we do not have any hedges. |
Acquisitions
Acquisitions | 12 Months Ended |
Jul. 31, 2012 | |
Business Combinations [Abstract] | |
Acquisitions | (2) Acquisitions |
Stampede | |
In October 2010, we acquired the WAN optimization technology assets and assumed certain liabilities of Stampede for an estimated total purchase price of approximately $5,303,000. Almost all of the purchase price for Stampede was allocated to the estimated fair value of technologies acquired and was assigned an estimated amortizable life of five years. As of July 31, 2013, we maintain a liability of approximately $288,000 for contingent earn-out payments through October 1, 2013, based on our estimate of certain revenue and related gross margin milestones. We review our estimates and updated forecasts on a quarterly basis and record adjustments in the fair value of the earn-out liability as required. In fiscal 2013 and fiscal 2012, we recorded a benefit of $3,267,000 and $918,000, respectively, related to changes in the fair value of the contingent earn-out liability. These adjustments are reflected as a reduction to selling, general and administrative expenses in our Consolidated Statement of Operations for the respective periods. There was no change in the fair value of the contingent earn-out liability in fiscal 2011. | |
Interest accreted on the contingent earn-out liability for the years ended July 31, 2013, 2012 and 2011 was $133,000, $462,000 and $391,000, respectively. Total interest accreted through July 31, 2013 was $986,000. As of July 31, 2013, we paid $1,816,000 of the total purchase price in cash, including $316,000 of earn-out payments. | |
Stampede was immediately combined with our existing business and is now part of the telecommunications transmission reportable operating segment. Sales and income related to the Stampede acquisition were not material to our results of operations for the fiscal years ended July 31, 2013, 2012 and 2011, and the effects of the acquisition would not have been material to our historical consolidated financial statements. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | |||||||
Jul. 31, 2013 | ||||||||
Accounts Receivable Additional Disclosures [Abstract] | ||||||||
Accounts Receivable | (3) Accounts Receivable | |||||||
Accounts receivable consist of the following at July 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Billed receivables from commercial customers | $ | 40,005,000 | 41,139,000 | |||||
Billed receivables from the U.S. government and its agencies | 8,114,000 | 11,927,000 | ||||||
Unbilled receivables on contracts-in-progress | 2,399,000 | 4,764,000 | ||||||
Total accounts receivable | 50,518,000 | 57,830,000 | ||||||
Less allowance for doubtful accounts | 603,000 | 1,588,000 | ||||||
Accounts receivable, net | $ | 49,915,000 | 56,242,000 | |||||
Unbilled receivables on contracts-in-progress include $699,000 and $3,320,000 at July 31, 2013 and 2012, respectively, due from the U.S. government and its agencies. We had virtually no retainage included in unbilled receivables at both July 31, 2013 and 2012, respectively. In the opinion of management, a substantial portion of the unbilled balances will be billed and collected within one year. |
Inventories
Inventories | 12 Months Ended | |||||||
Jul. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | (4) Inventories | |||||||
Inventories consist of the following at July 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Raw materials and components | $ | 52,169,000 | 55,404,000 | |||||
Work-in-process and finished goods | 29,539,000 | 33,243,000 | ||||||
Total inventories | 81,708,000 | 88,647,000 | ||||||
Less reserve for excess and obsolete inventories | 16,226,000 | 16,286,000 | ||||||
Inventories, net | $ | 65,482,000 | 72,361,000 | |||||
At July 31, 2013 and 2012, the amount of total inventory directly related to long-term contracts (including contracts-in-progress) was $1,910,000 and $2,041,000, respectively. | ||||||||
At July 31, 2013 and 2012, $592,000 and $1,070,000, respectively, of the inventory balance above related to contracts from third party commercial customers who outsource their manufacturing to us. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
Jul. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant and Equipment | (5) Property, Plant and Equipment | |||||||
Property, plant and equipment consist of the following at July 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Machinery and equipment | $ | 103,812,000 | 101,272,000 | |||||
Leasehold improvements | 11,558,000 | 11,162,000 | ||||||
115,370,000 | 112,434,000 | |||||||
Less accumulated depreciation and amortization | 95,037,000 | 89,602,000 | ||||||
Property, plant and equipment, net | $ | 20,333,000 | 22,832,000 | |||||
Depreciation and amortization expense on property, plant and equipment amounted to $7,837,000, $10,205,000 and $14,253,000 for the fiscal years ended July 31, 2013, 2012 and 2011, respectively. |
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 12 Months Ended | |||||||
Jul. 31, 2013 | ||||||||
Accrued Liabilities, Current [Abstract] | ||||||||
Accrued Expenses and Other Current Liabilities | (6) Accrued Expenses and Other Current Liabilities | |||||||
Accrued expenses and other current liabilities consist of the following at July 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Accrued wages and benefits | $ | 11,526,000 | 16,467,000 | |||||
Accrued warranty obligations | 7,797,000 | 7,883,000 | ||||||
Accrued commissions and royalties | 4,206,000 | 3,946,000 | ||||||
Accrued business acquisition payments | 288,000 | 1,752,000 | ||||||
Other | 6,075,000 | 10,822,000 | ||||||
Accrued expenses and other current liabilities | $ | 29,892,000 | 40,870,000 | |||||
We provide warranty coverage for most of our products for a period of at least one year from the date of shipment. We record a liability for estimated warranty expense based on historical claims, product failure rates and other factors. Some of our product warranties are provided under long-term contracts, the costs of which are incorporated into our estimates of total contract costs. | ||||||||
Changes in our product warranty liability during the fiscal years ended July 31, 2013 and 2012 were as follows: | ||||||||
2013 | 2012 | |||||||
Balance at beginning of period | $ | 7,883,000 | 9,120,000 | |||||
Provision for warranty obligations | 5,316,000 | 5,598,000 | ||||||
Charges incurred | (5,402,000 | ) | (6,835,000 | ) | ||||
Balance at end of period | $ | 7,797,000 | 7,883,000 | |||||
Cost_Reduction_Actions
Cost Reduction Actions | 12 Months Ended | |||||||||||||
Jul. 31, 2013 | ||||||||||||||
Cost Reduction Actions [Abstract] | ||||||||||||||
Cost Reduction Actions | (7) Cost Reduction Actions | |||||||||||||
Wind-Down of Microsatellite Product Line | ||||||||||||||
During fiscal 2013, we completed our fiscal 2012 plan to wind-down our mobile data communications segment's microsatellite product line. In connection with this plan, we recorded a net pre-tax restructuring charge of $458,000 in fiscal 2013, almost all of which was recorded in selling, general and administrative expenses in our Consolidated Statement of Operations. In fiscal 2012, we recorded a pre-tax restructuring charge of $2,577,000 related to this plan, of which $1,270,000 was recorded in cost of sales and the remainder in selling, general and administrative expenses in our Consolidated Statement of Operations. | ||||||||||||||
The activity pertaining to the accruals with respect to this plan, since July 31, 2012, is summarized as follows: | ||||||||||||||
Facility exit costs | Severance and related costs | Other | Total | |||||||||||
Balance as of July 31, 2012 | $ | 496,000 | 310,000 | 330,000 | $ | 1,136,000 | ||||||||
Additions/(reversals) | 644,000 | 76,000 | (262,000 | ) | 458,000 | |||||||||
Payments made | (727,000 | ) | (386,000 | ) | (18,000 | ) | (1,131,000 | ) | ||||||
Balance as of July 31, 2013 | $ | 413,000 | — | 50,000 | $ | 463,000 | ||||||||
Of the total remaining microsatellite product line wind-down liabilities of $463,000, $278,000 is included in accrued expenses and other current liabilities and $185,000 is included in other long-term liabilities in our Consolidated Balance Sheet as of July 31, 2013. As of July 31, 2012, $1,136,000 is included in accrued expenses and other current liabilities in our Consolidated Balance Sheet. In connection with the wind-down of our mobile data communication segment's microsatellite product line, during fiscal 2013, we transferred certain miscellaneous assets and liabilities to third parties for no cash consideration. As the estimated fair values of the assets transferred and liabilities relinquished were approximately equal, these transactions did not result in any gain or loss. | ||||||||||||||
Radyne Acquisition-Related Restructuring Plan | ||||||||||||||
In connection with our August 1, 2008 acquisition of Radyne, we adopted a restructuring plan for which we recorded $2,713,000 of estimated restructuring costs. Of this amount, $613,000 relates to severance for Radyne employees which was paid in fiscal 2009. The remaining estimated amounts relate to facility exit costs and were determined as follows: | ||||||||||||||
At August 1, 2008 | ||||||||||||||
Total non-cancelable lease obligations | $ | 12,741,000 | ||||||||||||
Less: Estimated sublease income | 8,600,000 | |||||||||||||
Total net estimated facility exit costs | 4,141,000 | |||||||||||||
Less: Interest expense to be accreted | 2,041,000 | |||||||||||||
Present value of estimated facility exit costs | $ | 2,100,000 | ||||||||||||
Our total non-cancelable lease obligations were based on the actual lease term which runs from November 1, 2008 through October 31, 2018. We estimated sublease income based on (i) the terms of a fully executed sublease agreement, whose lease term runs from November 1, 2008 through October 31, 2015 and (ii) our assessment of future uncertainties relating to the commercial real estate market. Based on our assessment of commercial real estate market conditions, we currently believe that it is not probable that we will be able to sublease the facility beyond the current sublease terms. As such, in accordance with grandfathered accounting standards that were not incorporated into the FASB’s ASC, we recorded these costs, at fair value, as assumed liabilities as of August 1, 2008, with a corresponding increase to goodwill. | ||||||||||||||
As of July 31, 2013, the amount of the acquisition-related restructuring reserve is as follows: | ||||||||||||||
Cumulative Activity Through July 31, 2013 | ||||||||||||||
Present value of estimated facility exit costs at August 1, 2008 | $ | 2,100,000 | ||||||||||||
Cash payments made | (5,327,000 | ) | ||||||||||||
Cash payments received | 5,722,000 | |||||||||||||
Accreted interest recorded | 836,000 | |||||||||||||
Net liability as of July 31, 2013 | 3,331,000 | |||||||||||||
Amount recorded as prepaid expenses in the Consolidated Balance Sheet | 442,000 | |||||||||||||
Amount recorded as other liabilities in the Consolidated Balance Sheet | $ | 3,773,000 | ||||||||||||
As of July 31, 2012, the present value of the estimated facility exit costs was $2,916,000. During the fiscal year ended July 31, 2013, we made cash payments of $1,026,000 and we received cash payments of $1,224,000. Interest accreted for the fiscal years ended July 31, 2013, 2012 and 2011 was $217,000, $189,000 and $161,000, respectively, and is included in interest expense for each respective fiscal period. | ||||||||||||||
As of July 31, 2013, future cash payments associated with our restructuring plan are summarized below: | ||||||||||||||
As of July 31, 2013 | ||||||||||||||
Future lease payments to be made in excess of anticipated sublease payments | $ | 3,773,000 | ||||||||||||
Less net cash to be received in next twelve months | (442,000 | ) | ||||||||||||
Interest expense to be accreted in future periods | 1,204,000 | |||||||||||||
Total remaining net cash payments | $ | 4,535,000 | ||||||||||||
Other Cost Reduction Actions | ||||||||||||||
In addition to the items above, we continue to implement other cost reduction actions; principally headcount reductions. The costs for these actions were not material for the fiscal years ended July 31, 2013, 2012 and 2011, respectively. |
Credit_Facility
Credit Facility | 12 Months Ended |
Jul. 31, 2013 | |
Line of Credit Facility [Abstract] | |
Credit Facility | 8) Credit Facility |
We have a committed $100,000,000 secured revolving credit facility (the “Credit Facility”) with a syndicate of bank lenders, as amended on June 6, 2012. The Credit Facility expires on April 30, 2014 but may be extended by us to December 31, 2016, subject to certain conditions relating primarily to the repurchase, redemption or conversion of our 3.0% convertible senior notes and compliance with all other Credit Facility covenants. | |
The Credit Facility provides for the extension of credit to us in the form of revolving loans, including letters of credit, at any time and from time to time during its term, in an aggregate principal amount at any time outstanding not to exceed $100,000,000 for both revolving loans and letters of credit, with sub-limits of $15,000,000 for commercial letters of credit and $35,000,000 for standby letters of credit. The Credit Facility may be used for acquisitions, equity securities repurchases, dividends, working capital and other general corporate purposes. | |
At our election, borrowings under the Credit Facility will bear interest either at LIBOR plus an applicable margin or at the base rate plus an applicable margin, as amended. The interest rate margin over LIBOR ranges from 1.75 percent up to a maximum amount of 2.50 percent. The base rate is a fluctuating rate equal to the highest of (i) the Prime Rate; (ii) the Federal Funds Effective Rate from time to time plus 0.50 percent; and (iii) two hundred (200) basis points in excess of the floating rate of interest determined, on a daily basis, in accordance with the terms of the agreement. The interest rate margin over the base rate ranges from 0.75 percent up to a maximum amount of 1.50 percent. In both cases, the applicable interest rate margin is based on the ratio of our consolidated total indebtedness to our consolidated earnings before interest, taxes, depreciation and amortization (“Consolidated Adjusted EBITDA”). As defined in the Credit Facility, Consolidated Adjusted EBITDA is adjusted for certain items and, in the event of an acquisition with a purchase price in excess of $10,000,000, provides for the inclusion of the last twelve months of consolidated EBITDA of a target. | |
The Credit Facility contains covenants, including covenants limiting certain debt, certain liens on assets, certain sales of assets and receivables, certain payments (including dividends), certain repurchases of equity securities, certain sale and leaseback transactions, certain guaranties and certain investments. The Credit Facility also contains financial condition covenants requiring that we (i) not exceed a maximum ratio of consolidated total indebtedness to Consolidated Adjusted EBITDA (each as defined in the Credit Facility); (ii) not exceed a maximum ratio of consolidated senior secured indebtedness to Consolidated Adjusted EBITDA (each as defined in the Credit Facility); (iii) maintain a minimum fixed charge ratio (as defined in the Credit Facility); (iv) maintain a minimum consolidated net worth; in each case measured on the last day of each fiscal quarter and (v) in the event total consolidated indebtedness (as defined in the Credit Facility) is less than $200,000,000, we maintain a minimum level of Consolidated Adjusted EBITDA (as defined in the Credit Facility). | |
At July 31, 2013, we had $1,248,000 of standby letters of credit outstanding related to our guarantees of future performance on certain customer contracts and no outstanding commercial letters of credit. | |
At July 31, 2013, had borrowings been outstanding under the Credit Facility, the applicable interest rate would have been approximately 2.70 percent (LIBOR plus 2.50 percent). We are also subject to an undrawn line fee based on the ratio of our consolidated total indebtedness to our Consolidated Adjusted EBITDA, as defined and adjusted for certain items in the Credit Facility. Interest expense, including amortization of deferred financing costs, related to our credit facility recorded during fiscal 2013, 2012 and 2011 was $726,000, $1,089,000 and $752,000 respectively. | |
At July 31, 2013, based on our Consolidated Adjusted EBITDA (as defined in the Credit Facility) and our business outlook and related business plans, we believe we will be able to meet or obtain waivers for the applicable financial covenants that we are required to maintain. |
3_Convertible_Senior_Notes
3% Convertible Senior Notes | 12 Months Ended |
Jul. 31, 2013 | |
Debt Disclosure [Abstract] | |
3% Convertible Senior Notes | (9) 3.0% Convertible Senior Notes |
In May 2009, we issued $200,000,000 of our 3.0% convertible senior notes in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. The net proceeds from this transaction were $194,541,000 after deducting the initial purchasers' discount and other transaction costs of $5,459,000. | |
The 3.0% convertible senior notes bear interest at an annual rate of 3.0%. Pursuant to the terms of the 3.0% convertible senior notes indenture, cash dividends require an adjustment to the conversion rate, effective on the record date. Effective July 19, 2013 (the record date of our dividend declared on June 6, 2013), the 3.0% convertible senior notes are convertible into shares of our common stock at a conversion price of $32.47 per share (a conversion rate of 30.7966 shares per $1,000 original principal amount of notes) at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, subject to adjustment in certain circumstances. | |
We may, at our option, redeem some or all of the 3.0% convertible senior notes on or after May 5, 2014. Holders of the 3.0% convertible senior notes will have the right to require us to repurchase some or all of the outstanding 3.0% convertible senior notes, solely for cash, on May 1, 2014, May 1, 2019 and May 1, 2024 and upon certain events, including a change in control. If not redeemed by us or repaid pursuant to the holders' right to require repurchase, the 3.0% convertible senior notes mature on May 1, 2029. | |
Because it is possible that the holders of our 3.0% convertible senior notes will require us to repurchase some or all of the outstanding notes on May 1, 2014, our 3.0% convertible senior notes are reflected as a current liability in our consolidated balance sheet at July 31, 2013. | |
The 3.0% convertible notes are senior unsecured obligations of Comtech. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||||||
Jul. 31, 2013 | ||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||
Income Taxes | (10) Income Taxes | |||||||||||||||||||
Income before provision for income taxes consists of the following: | ||||||||||||||||||||
Fiscal Years Ended July 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
U.S. | $ | 28,930,000 | 44,930,000 | 102,159,000 | ||||||||||||||||
Foreign | (1,437,000 | ) | (890,000 | ) | (355,000 | ) | ||||||||||||||
$ | 27,493,000 | 44,040,000 | 101,804,000 | |||||||||||||||||
The provision for income taxes included in the accompanying consolidated statements of operations consists of the following: | ||||||||||||||||||||
Fiscal Years Ended July 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Federal – current | $ | 7,129,000 | 14,389,000 | 29,735,000 | ||||||||||||||||
Federal – deferred | 385,000 | (4,194,000 | ) | 683,000 | ||||||||||||||||
State and local – current | 1,393,000 | 2,045,000 | 3,683,000 | |||||||||||||||||
State and local – deferred | 35,000 | (380,000 | ) | 62,000 | ||||||||||||||||
Foreign – current | 48,000 | (240,000 | ) | (270,000 | ) | |||||||||||||||
Foreign – deferred | 695,000 | 4,000 | 16,000 | |||||||||||||||||
$ | 9,685,000 | 11,624,000 | 33,909,000 | |||||||||||||||||
The provision for income taxes differed from the amounts computed by applying the U.S. Federal income tax rate as a result of the following: | ||||||||||||||||||||
Fiscal Years Ended July 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||
Computed “expected” tax expense | $ | 9,623,000 | 35 | % | 15,414,000 | 35 | % | 35,632,000 | 35 | % | ||||||||||
Increase (reduction) in income taxes resulting from: | ||||||||||||||||||||
State and local income taxes, net of Federal benefit | 782,000 | 2.8 | 995,000 | 2.3 | 2,614,000 | 2.6 | ||||||||||||||
Nondeductible stock-based compensation | 71,000 | 0.3 | 86,000 | 0.2 | 94,000 | 0.1 | ||||||||||||||
Domestic production activities deduction | (1,344,000 | ) | (4.9 | ) | (1,436,000 | ) | (3.3 | ) | (2,893,000 | ) | (2.9 | ) | ||||||||
Research and experimentation credits | (888,000 | ) | (3.2 | ) | (241,000 | ) | (0.5 | ) | (1,255,000 | ) | (1.3 | ) | ||||||||
Change in the beginning of the year valuation allowance for deferred tax assets | 693,000 | 2.5 | — | — | — | — | ||||||||||||||
Audit settlements | (141,000 | ) | (0.5 | ) | (2,841,000 | ) | (6.5 | ) | 20,000 | 0.1 | ||||||||||
Foreign income taxes | 640,000 | 2.3 | 99,000 | 0.2 | 151,000 | 0.2 | ||||||||||||||
Other | 249,000 | 0.9 | (452,000 | ) | (1.0 | ) | (454,000 | ) | (0.5 | ) | ||||||||||
$ | 9,685,000 | 35.2 | % | 11,624,000 | 26.4 | % | 33,909,000 | 33.3 | % | |||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at July 31, 2013 and 2012 are presented below. | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | 217,000 | 576,000 | |||||||||||||||||
Inventory and warranty reserves | 7,559,000 | 7,684,000 | ||||||||||||||||||
Compensation and commissions | 1,705,000 | 1,890,000 | ||||||||||||||||||
State and foreign research and experimentation credits | 2,736,000 | 1,691,000 | ||||||||||||||||||
Stock-based compensation | 8,068,000 | 10,133,000 | ||||||||||||||||||
Net operating losses | — | 101,000 | ||||||||||||||||||
Other | 2,478,000 | 4,922,000 | ||||||||||||||||||
Less valuation allowance | (2,225,000 | ) | (1,162,000 | ) | ||||||||||||||||
Total deferred tax assets | 20,538,000 | 25,835,000 | ||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||
Plant and equipment | (1,424,000 | ) | (2,137,000 | ) | ||||||||||||||||
Intangibles | (10,187,000 | ) | (11,077,000 | ) | ||||||||||||||||
Total deferred tax liabilities | (11,611,000 | ) | (13,214,000 | ) | ||||||||||||||||
Net deferred tax assets | $ | 8,927,000 | 12,621,000 | |||||||||||||||||
We provide for income taxes under the provisions of FASB ASC 740, “Income Taxes.” FASB ASC 740 requires an asset and liability based approach in accounting for income taxes. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of them will not be realized. If management determines that it is more likely than not that some or all of its deferred tax assets will not be realized, a valuation allowance will be recorded against such deferred tax assets. | ||||||||||||||||||||
As of July 31, 2013, our net deferred tax assets include approximately $484,000 of deferred tax assets relating to foreign research and experimentation credits which are recorded as other assets in our Consolidated Balance Sheet. As of July 31, 2013 and 2012, our deferred tax assets have been offset by a valuation allowance primarily related to research and experimentation credits which may not be utilized in future periods. | ||||||||||||||||||||
We must generate approximately $62,100,000 of taxable income in the future to fully utilize our gross deferred tax assets as of July 31, 2013. Management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the net deferred tax assets. In addition, as of July 31, 2013, we had a hypothetical additional paid-in capital (“APIC”) pool related to stock-based compensation of approximately $19,981,000. To the extent that previously issued and outstanding stock-based awards either expire unexercised or are exercised for an intrinsic value less than the original fair-market value recorded at the time of issuance, the difference between the related deferred tax asset amount originally recorded and the actual tax benefit would be recorded against the hypothetical APIC pool. Once this hypothetical APIC pool is reduced to zero, future shortfalls would be recorded as income tax expense in the period of stock-based award expiration or exercise. | ||||||||||||||||||||
At July 31, 2013 and 2012, total unrecognized tax benefits, all of which were recorded as non-current income taxes payable in our Consolidated Balance Sheets, were $2,963,000 and $2,624,000, respectively, including interest of $90,000 and $95,000, respectively. Of these amounts, $2,348,000 and $1,990,000, respectively, net of the reversal of the federal benefit recognized as a deferred tax asset relating to state reserves, would positively impact our effective tax rate, if recognized. Unrecognized tax benefits result from income tax positions taken or expected to be taken on our income tax returns for which a tax benefit has not been recorded in our financial statements. | ||||||||||||||||||||
Our policy is to recognize interest and penalties relating to uncertain tax positions in income tax expense. The following table summarizes the activity related to our unrecognized tax benefits for fiscal years 2013 and 2012: | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Balance as of July 31 | $ | 2,529,000 | 6,763,000 | |||||||||||||||||
Increase related to current period | 585,000 | 432,000 | ||||||||||||||||||
Increase related to prior periods | 175,000 | 417,000 | ||||||||||||||||||
Expiration of statute of limitations | (207,000 | ) | (1,401,000 | ) | ||||||||||||||||
Decrease related to prior periods | (209,000 | ) | (3,309,000 | ) | ||||||||||||||||
Settlements with taxing authorities | — | (373,000 | ) | |||||||||||||||||
Balance as of July 31 | $ | 2,873,000 | 2,529,000 | |||||||||||||||||
Our federal income tax returns for fiscal 2010 through 2013 are subject to potential future IRS audit. Future tax assessments or settlements could have a material adverse effect on our consolidated results of operations and financial condition. |
StockBased_Compensation_Notes
Stock-Based Compensation (Notes) | 12 Months Ended | |||||||||||||
Jul. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Stock-Based Compensation | (11) Stock-Based Compensation | |||||||||||||
Overview | ||||||||||||||
We issue stock-based awards to certain of our employees and our Board of Directors pursuant to our 2000 Stock Incentive Plan, as amended, (the “Plan”) and our 2001 Employee Stock Purchase Plan (the “ESPP”) and recognize related stock-based compensation for both equity and liability-classified stock-based awards in our consolidated financial statements. The Plan provides for the granting to employees and consultants of Comtech (including prospective employees and consultants) incentive and non-qualified stock options, restricted stock units (“RSUs”), RSUs with performance measures (known as “performance shares”), restricted stock, stock units and stock appreciation rights (“SARs”), among other types of awards. Our non-employee directors are eligible to receive non-discretionary grants of stock-based awards, subject to certain limitations. The aggregate number of shares of common stock which may be issued, pursuant to the Plan, may not exceed 8,962,500. Stock options granted may not have a term exceeding ten years or, in the case of an incentive stock award granted to a stockholder who owns stock representing more than 10.0% of the voting power, no more than five years. We expect to settle all outstanding awards under the Plan and ESPP with new shares, except for SARs which may only be settled with cash. | ||||||||||||||
As of July 31, 2013, we had granted stock-based awards pursuant to the Plan representing the right to purchase and/or acquire an aggregate of 6,972,337 shares (net of 2,282,000 expired and canceled awards), of which an aggregate of 3,822,093 have been exercised. No RSUs, performance shares, restricted stock or stock units granted to date have been converted into our common stock. As of July 31, 2013, the following stock-based awards, by award type, were outstanding: | ||||||||||||||
July 31, 2013 | ||||||||||||||
Stock options | 3,031,910 | |||||||||||||
Performance shares | 63,661 | |||||||||||||
RSUs and restricted stock | 37,326 | |||||||||||||
Stock units | 1,347 | |||||||||||||
SARs | 16,000 | |||||||||||||
Total | 3,150,244 | |||||||||||||
Our ESPP, approved by our shareholders on December 12, 2000, provides for the issuance of 675,000 shares of our common stock. Our ESPP is intended to provide our eligible employees the opportunity to acquire our common stock at 85% of fair market value at the date of issuance. Through July 31, 2013, we have cumulatively issued 516,172 shares of our common stock to participating employees in connection with our ESPP. | ||||||||||||||
Stock-based compensation for awards issued is reflected in the following line items in our Consolidated Statements of Operations: | ||||||||||||||
Fiscal Years Ended July 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Cost of sales | $ | 174,000 | 284,000 | 410,000 | ||||||||||
Selling, general and administrative expenses | 2,470,000 | 2,716,000 | 3,976,000 | |||||||||||
Research and development expenses | 486,000 | 572,000 | 971,000 | |||||||||||
Stock-based compensation expense before income tax benefit | 3,130,000 | 3,572,000 | 5,357,000 | |||||||||||
Estimated income tax benefit | (1,198,000 | ) | (1,308,000 | ) | (1,913,000 | ) | ||||||||
Net stock-based compensation expense | $ | 1,932,000 | 2,264,000 | 3,444,000 | ||||||||||
Stock-based compensation for equity-classified awards is measured at the date of grant, based on an estimate of the fair value of the award and is generally expensed over the vesting period of the award. Stock-based compensation for liability-classified awards is determined the same way, except that the fair value of liability-classified awards is remeasured at the end of each reporting period until the award is settled, with changes in fair value recognized pro-rata for the portion of the requisite service period rendered. At July 31, 2013, unrecognized stock-based compensation of $8,516,000, net of estimated forfeitures of $814,000, is expected to be recognized over a weighted average period of 3.4 years. Total stock-based compensation capitalized and included in ending inventory at July 31, 2013 and 2012 was $72,000 and $48,000, respectively. Included in accrued expenses at July 31, 2013 and 2012 is $1,000 and $6,000, respectively, relating to the potential cash settlement of liability-classified SARs. | ||||||||||||||
Stock-based compensation expense, by award type, is summarized as follows: | ||||||||||||||
Fiscal Years Ended July 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Stock options | $ | 2,400,000 | 3,279,000 | 5,139,000 | ||||||||||
Performance shares | 382,000 | 52,000 | — | |||||||||||
ESPP | 189,000 | 232,000 | 270,000 | |||||||||||
RSUs and restricted stock | 140,000 | 13,000 | — | |||||||||||
Stock units | 24,000 | 12,000 | — | |||||||||||
SARs | (5,000 | ) | (16,000 | ) | (52,000 | ) | ||||||||
Stock-based compensation expense before income tax benefit | 3,130,000 | 3,572,000 | 5,357,000 | |||||||||||
Estimated income tax benefit | (1,198,000 | ) | (1,308,000 | ) | (1,913,000 | ) | ||||||||
Net stock-based compensation expense | $ | 1,932,000 | 2,264,000 | 3,444,000 | ||||||||||
Compensation expense related to performance shares assumes achievement of the pre-established performance goals is probable. If such goals are ultimately not met, no compensation expense related to such awards will be recognized. ESPP stock-based compensation expense primarily relates to the 15% discount offered to employees participating in the ESPP. | ||||||||||||||
The estimated income tax benefit, as shown in the above tables, was computed using income tax rates expected to apply when the awards are settled and results in a deferred tax asset which is netted in our long-term deferred tax liability in our Consolidated Balance Sheet. The actual income tax benefit recognized for tax reporting is based on the fair market value of our common stock at the time of settlement and can significantly differ from the estimated income tax benefit recorded for financial reporting. | ||||||||||||||
The following table provides the components of the actual income tax benefit recognized for tax reporting for awards settled in each respective period: | ||||||||||||||
Fiscal Years Ended July 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Actual income tax benefit recorded for the tax deductions relating to the settlement of stock-based awards | $ | 420,000 | $ | 438,000 | $ | 306,000 | ||||||||
Less: Tax benefit initially recognized on settled stock-based awards vesting subsequent to the adoption of accounting standards that require us to expense stock-based awards, excluding income tax shortfalls | 155,000 | 197,000 | 81,000 | |||||||||||
Excess income tax benefit recorded as an increase to additional paid-in capital | 265,000 | 241,000 | 225,000 | |||||||||||
Less: Tax benefit initially disclosed but not previously recognized on settled equity-classified stock-based awards vesting prior to the adoption of accounting standards that require us to expense stock-based awards | — | 10,000 | — | |||||||||||
Excess income tax benefit from settled equity-classified stock-based awards reported as a cash flow from financing activities in our Consolidated Statements of Cash Flows | $ | 265,000 | 231,000 | 225,000 | ||||||||||
As of July 31, 2013 and 2012, the amount of hypothetical tax benefits related to stock-based awards, recorded as a component of additional paid-in-capital, was $19,981,000 and $22,786,000, respectively. These amounts represent the initial hypothetical tax benefit of $8,593,000 determined upon adoption of ASC 718 (which reflects our estimate of cumulative actual tax deductions for awards issued and settled prior to the August 1, 2005), adjusted for actual excess income tax benefits or shortfalls since that date. During fiscal 2013, 2012 and 2011, we recorded net reductions of $2,805,000, $1,332,000 and $1,838,000, respectively, as a reduction to additional paid-in capital and accumulated hypothetical tax benefits, which primarily represents the reversal of unrealized deferred tax assets associated with certain vested equity-classified stock-based awards that expired during the respective periods. | ||||||||||||||
Stock Options | ||||||||||||||
The following table summarizes the Plan's stock option activity (including SARs): | ||||||||||||||
Awards | Weighted Average | Weighted Average | Aggregate | |||||||||||
(in Shares) | Exercise Price | Remaining Contractual | Intrinsic Value | |||||||||||
Term (Years) | ||||||||||||||
Outstanding at July 31, 2010 | 3,520,667 | $ | 32.75 | |||||||||||
Granted | 680,750 | 27.64 | ||||||||||||
Expired/canceled | (481,364 | ) | 35.79 | |||||||||||
Exercised | (139,885 | ) | 20.29 | |||||||||||
Outstanding at July 31, 2011 | 3,580,168 | 31.86 | ||||||||||||
Granted | 423,528 | 29.24 | ||||||||||||
Expired/canceled | (390,148 | ) | 35.71 | |||||||||||
Exercised | (155,145 | ) | 20.64 | |||||||||||
Outstanding at July 31, 2012 | 3,458,403 | 31.61 | ||||||||||||
Granted | 296,525 | 26.07 | ||||||||||||
Expired/canceled | (616,135 | ) | 39.96 | |||||||||||
Exercised | (90,883 | ) | 13.01 | |||||||||||
Outstanding at July 31, 2013 | 3,047,910 | $ | 29.94 | 4.82 | $ | 2,198,000 | ||||||||
Exercisable at July 31, 2013 | 1,896,030 | $ | 31.18 | 2.73 | $ | 1,895,000 | ||||||||
Vested and expected to vest at July 31, 2013 | 2,945,608 | $ | 30 | 4.7 | $ | 2,182,000 | ||||||||
Stock options (including SARs) outstanding as of July 31, 2013 have exercise prices ranging between $11.67 - $48.89. The total intrinsic value relating to stock options (including SARs) exercised during the fiscal years ended July 31, 2013, 2012 and 2011 was $1,272,000, $1,654,000 and $1,177,000, respectively. Stock options granted during the fiscal years ended July 31, 2013, 2012 and 2011 had exercise prices equal to the fair market value of our common stock on the date of grant, a contractual term of five or ten years and a vesting period of three or five years. There were no SARs issued during the prior three fiscal years. The estimated per-share weighted average grant-date fair value of stock options granted during fiscal 2013, 2012 and 2011 was $4.45, $6.53 and $6.51, respectively and was determined using the Black-Scholes option pricing model, which included the following assumptions: | ||||||||||||||
Fiscal Years Ended July 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Expected dividend yield | 4.22 | % | 3.76 | % | 3.62 | % | ||||||||
Expected volatility | 30.09 | % | 36.63 | % | 36.31 | % | ||||||||
Risk-free interest rate | 1.02 | % | 0.64 | % | 1.58 | % | ||||||||
Expected life (years) | 5.39 | 5.29 | 5.1 | |||||||||||
Expected dividend yield is the expected annual dividend as a percentage of the fair market value of our common stock on the date of grant, based on our Board's annual dividend target at the time of grant, which was $1.10 per share for grants in fiscal 2013 and 2012 and $1.00 per share for grants in fiscal 2011. We estimate expected volatility by considering the historical volatility of our stock, the implied volatility of publicly-traded call options on our stock, the implied volatility of call options embedded in our 3.0% convertible senior notes and our expectations of volatility for the expected life of awards. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for an instrument which closely approximates the expected term. The expected term is the number of years we estimate that awards will be outstanding prior to exercise and is determined by employee groups with sufficiently distinct behavior patterns. Assumptions used in computing the fair value of stock-based awards reflect our best estimates, but involve uncertainties relating to market and other conditions, many of which are outside of our control. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by recipients of stock-based awards. | ||||||||||||||
Performance Shares, RSUs, Restricted Stock and Stock Unit Awards | ||||||||||||||
The following table summarizes the Plan's activity relating to performance shares, RSUs, restricted stock and stock units: | ||||||||||||||
Awards (in Shares) | Weighted Average | Aggregate | ||||||||||||
Grant Date | Intrinsic Value | |||||||||||||
Fair Value | ||||||||||||||
Outstanding at July 31, 2011 | — | $ | — | |||||||||||
Granted | 48,081 | 26.28 | ||||||||||||
Converted to common stock | — | — | ||||||||||||
Forfeited | — | — | ||||||||||||
Outstanding at July 31, 2012 | 48,081 | 26.28 | ||||||||||||
Granted | 54,253 | 25.37 | ||||||||||||
Converted to common stock | — | — | ||||||||||||
Forfeited | — | — | ||||||||||||
Outstanding at July 31, 2013 | 102,334 | $ | 25.8 | $ | 2,771,000 | |||||||||
Vested at July 31, 2013 | 4,515 | $ | 26.71 | $ | 122,000 | |||||||||
Vested and expected to vest at July 31, 2013 | 98,174 | $ | 25.8 | $ | 2,659,000 | |||||||||
Performance shares, all of which have been granted to employees, vest over a 5.3 year period, beginning on the date of grant if pre-established performance goals are attained, and are convertible into shares of our common stock generally at the time of vesting, on a one-for-one basis for no cash consideration. On October 2, 2013, our Board of Directors determined that the pre-established performance goals for 35,003 performance shares granted in fiscal 2012 had been attained and, as a result, the first tranche of 6,996 performance shares vested and converted into 3,496 net shares of our common stock, after reduction for shares retained to satisfy minimum tax withholding and deferral requirements. | ||||||||||||||
RSUs and restricted stock granted to non-employee directors have a vesting period of three years and are convertible into shares of our common stock generally at the time of termination, on a one-for-one basis for no cash consideration, or earlier under certain circumstances. RSUs granted to employees have a vesting period of five years and are convertible into shares of our common stock generally at the time of vesting, on a one-for-one basis for no cash consideration. | ||||||||||||||
Stock units, to date, have only been issued to non-employee directors who have elected to receive stock units in lieu of their cash retainer. These stock units are vested when issued and are convertible into shares of our common stock generally at the time of termination, on a one-for-one basis for no cash consideration, or earlier under certain circumstances. | ||||||||||||||
The fair value of performance shares, RSUs, restricted stock and stock units is determined using the closing market price of our common stock on the date of grant, less the present value of any estimated future dividends such awards are not entitled to receive. RSUs and performance shares granted in fiscal 2012 are not entitled to dividend equivalents. RSUs, performance shares and restricted stock granted in fiscal 2013 are entitled to dividend equivalents unless forfeited before vesting occurs; however, performance shares granted in fiscal 2013 are not entitled to dividend equivalents until our Board of Directors has determined that the pre-established performance goals have been met. Stock units granted to date are not entitled to dividend equivalents while the underlying shares are unissued. | ||||||||||||||
Stock-Based Awards Granted Subsequent to July 31, 2013 | ||||||||||||||
In August and October 2013, our Board of Directors authorized the issuance of 245,000 non-qualified stock options and 62,834 performance shares, respectively, to certain officers and key employees. The stock options vest over a five year period and have a ten year contractual term. The performance shares were granted at a target level and vest at the end of a three-year performance period if pre-established performance goals are attained or as specified pursuant to the Plan and related agreements. Total unrecognized compensation expense related to such awards, net of estimated forfeitures and assuming achievement of the pre-established performance goal at a target level, approximated $2,728,000. |
Customer_and_Geographic_Inform
Customer and Geographic Information | 12 Months Ended | |||||||||
Jul. 31, 2013 | ||||||||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||||||||
Customer and Geographic Information | (12) Customer and Geographic Information | |||||||||
Sales by geography and customer type, as a percentage of consolidated net sales, are as follows: | ||||||||||
Fiscal Years Ended July 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
United States | ||||||||||
U.S. government | 34.7 | % | 48.9 | % | 61.7 | % | ||||
Commercial | 15.2 | % | 12.4 | % | 8.1 | % | ||||
Total United States | 49.9 | % | 61.3 | % | 69.8 | % | ||||
International | 50.1 | % | 38.7 | % | 30.2 | % | ||||
Sales to U.S. government customers include the DoD and intelligence and civilian agencies, as well as sales directly to or through prime contractors. International sales for fiscal 2013, 2012 and 2011, which include sales to U.S. domestic companies for inclusion in products that will be sold to international customers, were $160,217,000, $164,503,000 and $184,848,000, respectively. | ||||||||||
For fiscal 2013, 2012 and 2011, except for sales to U.S. customers, no other customer or individual country, including sales to U.S. domestic companies for inclusion in products that will be sold to a foreign country, represented more than 10% of consolidated net sales. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||||
Jul. 31, 2013 | ||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||
Segment Information | (13) Segment Information | |||||||||||||||||
Reportable operating segments are determined based on Comtech’s management approach. The management approach, as defined by FASB ASC 280, “Segment Reporting,” is based on the way that the chief operating decision-maker organizes the segments within an enterprise for making decisions about resources to be allocated and assessing their performance. Our chief operating decision-maker is our President and Chief Executive Officer. | ||||||||||||||||||
While our results of operations are primarily reviewed on a consolidated basis, the chief operating decision-maker also manages the enterprise in three operating segments: (i) telecommunications transmission, (ii) RF microwave amplifiers, and (iii) mobile data communications. | ||||||||||||||||||
Telecommunications transmission products include satellite earth station products (such as analog and digital modems, frequency converters, power amplifiers, transceivers and voice gateways) and over-the-horizon microwave communications products and systems (such as digital troposcatter modems). | ||||||||||||||||||
RF microwave amplifier products include traveling wave tube amplifiers and solid-state, high-power broadband amplifier products that use the microwave and radio frequency spectrums. | ||||||||||||||||||
Mobile data communications products and services include mobile satellite transceivers, satellite network and related engineering services (including program management) on a cost-plus-fixed-fee basis and the licensing of intellectual property for the support and sustainment of the U.S. Army's Blue Force Tracking (“BFT-1”) and the U.S. Army's Movement Tracking System (“MTS”) programs. These programs are currently in a sustainment mode. Other mobile data communications products include Sensor Enabled Notification System commercial asset tracking systems known as "SENS" and geoOps™ Enterprise Location Management System. Prior to July 31, 2012, we designed, manufactured and sold microsatellites, primarily to U.S. government customers. In fiscal 2013, we discontinued the sale of microsatellite products and, in October 2013, we sold certain of our SENS technology and products, including certain intellectual property, to one of our customers for approximately $2,000,000. We retain the right to use certain of this technology and, going forward, only expect to generate a modest amount of ongoing royalties. | ||||||||||||||||||
Corporate management defines and reviews segment profitability based on the same allocation methodology as presented in the segment data tables below: | ||||||||||||||||||
Fiscal Year Ended July 31, 2013 | ||||||||||||||||||
Telecommunications | RF Microwave | Mobile Data | Unallocated | Total | ||||||||||||||
Transmission | Amplifiers | Communications | ||||||||||||||||
Net sales | $ | 194,643,000 | 86,939,000 | 38,215,000 | — | $ | 319,797,000 | |||||||||||
Operating income (loss) | 31,686,000 | 4,104,000 | 12,288,000 | (13,589,000 | ) | 34,489,000 | ||||||||||||
Interest income and other (expense) | (38,000 | ) | (42,000 | ) | 18,000 | 1,229,000 | 1,167,000 | |||||||||||
Interest expense | 352,000 | — | (7,000 | ) | 7,818,000 | 8,163,000 | ||||||||||||
Depreciation and amortization | 9,591,000 | 3,939,000 | 500,000 | 3,265,000 | 17,295,000 | |||||||||||||
Expenditure for long-lived assets, including intangibles | 4,179,000 | 842,000 | 317,000 | 9,000 | 5,347,000 | |||||||||||||
Total assets at July 31, 2013 | 225,626,000 | 96,298,000 | 7,873,000 | 352,018,000 | 681,815,000 | |||||||||||||
Fiscal Year Ended July 31, 2012 | ||||||||||||||||||
Telecommunications | RF Microwave | Mobile Data | Unallocated | Total | ||||||||||||||
Transmission | Amplifiers | Communications | ||||||||||||||||
Net sales | $ | 210,006,000 | 102,497,000 | 112,567,000 | — | $ | 425,070,000 | |||||||||||
Operating income (loss) | 41,709,000 | 7,622,000 | 19,924,000 | (17,978,000 | ) | 51,277,000 | ||||||||||||
Interest income and other (expense) | 42,000 | (21,000 | ) | 30,000 | 1,544,000 | 1,595,000 | ||||||||||||
Interest expense | 651,000 | — | — | 8,181,000 | 8,832,000 | |||||||||||||
Depreciation and amortization | 10,088,000 | 4,395,000 | 2,173,000 | 3,758,000 | 20,414,000 | |||||||||||||
Expenditure for long-lived assets, including intangibles | 5,490,000 | 733,000 | 190,000 | — | 6,413,000 | |||||||||||||
Total assets at July 31, 2012 | 244,285,000 | 98,864,000 | 11,217,000 | 365,412,000 | 719,778,000 | |||||||||||||
Fiscal Year Ended July 31, 2011 | ||||||||||||||||||
Telecommunications | RF Microwave | Mobile Data | Unallocated | Total | ||||||||||||||
Transmission | Amplifiers | Communications | ||||||||||||||||
Net sales | $ | 231,957,000 | 91,973,000 | 288,449,000 | — | $ | 612,379,000 | |||||||||||
Operating income (loss) | 49,913,000 | 1,063,000 | 64,945,000 | (8,123,000 | ) | 107,798,000 | ||||||||||||
Interest income and other (expense) | 89,000 | (8,000 | ) | 43,000 | 2,297,000 | 2,421,000 | ||||||||||||
Interest expense | 562,000 | — | 10,000 | 7,843,000 | 8,415,000 | |||||||||||||
Depreciation and amortization | 11,241,000 | 4,576,000 | 6,282,000 | 5,602,000 | 27,701,000 | |||||||||||||
Expenditure for long-lived assets, including intangibles | 10,607,000 | 1,069,000 | 922,000 | 43,000 | 12,641,000 | |||||||||||||
Total assets at July 31, 2011 | 252,839,000 | 98,261,000 | 31,265,000 | 555,144,000 | 937,509,000 | |||||||||||||
Operating income in our telecommunications transmission segment for fiscal 2013 and 2012 includes $3,267,000 and $918,000, respectively, of a benefit related to a change in fair value of the earn-out liability associated with our acquisition of Stampede. See Note (2) - “Acquisitions.” | ||||||||||||||||||
Operating income in our mobile data communications segment for fiscal 2013 and fiscal 2012 includes $458,000 and $2,577,000 respectively, of restructuring charges related to the wind-down of our microsatellite product line. See Note (7) – “Cost Reduction Actions.” | ||||||||||||||||||
Unallocated operating loss for fiscal 2012 includes $2,638,000 of professional fees related to a withdrawn contested proxy solicitation in connection with our fiscal 2011 annual meeting of stockholders. Unallocated operating loss during fiscal 2011 includes the receipt of a net termination fee of $12,500,000 related to a Termination and Release Agreement dated September 7, 2010, by which we and CPI International, Inc. (“CPI”) terminated a previously announced Merger Agreement dated May 8, 2010. | ||||||||||||||||||
Unallocated expenses result from such corporate expenses as executive compensation, accounting, legal and other regulatory compliance related costs. In addition, for fiscal 2013, 2012 and 2011, unallocated expenses include $3,130,000, $3,572,000 and $5,357,000, respectively, of stock-based compensation expense. Interest expense (which includes amortization of deferred financing costs) associated with our convertible senior notes and our Credit Facility is not allocated to the operating segments. Depreciation and amortization includes amortization of stock-based compensation. Unallocated assets consist principally of cash, deferred financing costs and deferred tax assets. Substantially all of our long-lived assets are located in the U.S. | ||||||||||||||||||
Intersegment sales in fiscal 2013, 2012 and 2011 by the telecommunications transmission segment to the RF microwave amplifiers segment were $2,312,000, $5,378,000 and $3,810,000, respectively. | ||||||||||||||||||
Intersegment sales in fiscal 2013, 2012 and 2011 by the telecommunications transmission segment to the mobile data communications segment were $2,656,000, $11,161,000 and $36,959,000, respectively. | ||||||||||||||||||
Intersegment sales in fiscal 2013, 2012 and 2011 by the RF microwave amplifiers segment to the telecommunications transmission segment were $9,000, $382,000 and $90,000, respectively. | ||||||||||||||||||
All intersegment sales have been eliminated from the tables above. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Jul. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | (14) Commitments and Contingencies | |||
(a) Operating Leases | ||||
At July 31, 2013, future minimum lease payments, net of subleases, under non-cancelable operating lease agreements are as follows: | ||||
2014 | $ | 5,807,000 | ||
2015 | 4,497,000 | |||
2016 | 4,875,000 | |||
2017 | 3,889,000 | |||
2018 | 3,499,000 | |||
Thereafter | 3,418,000 | |||
Total | $ | 25,985,000 | ||
Lease expense charged to operations was $5,983,000, $7,060,000 and $6,891,000 in fiscal 2013, 2012 and 2011, respectively. Lease expense excludes satellite lease expenditures incurred of $2,472,000, $40,827,000 and $46,356,000 in fiscal 2013, 2012 and 2011, respectively, relating to our mobile data communications segment. Satellite lease expenditures are allocated to individual contracts and expensed to cost of sales. | ||||
We lease our Melville, New York production facility from a partnership controlled by our Chairman, Chief Executive Officer and President. Lease payments made in fiscal 2013 were $587,000. The current lease provides for our use of the premises as they exist through December 2021 with an option for an additional 10 years. The annual rent of the facility for calendar year 2014 is $609,000 and is subject to customary adjustments. We have a right of first refusal in the event of a sale of the facility. | ||||
(b) Legal Proceedings and Other Matters | ||||
U.S. Government Investigations | ||||
In June 2012, certain officers and employees of the Company received subpoenas issued by the United States District Court for the Eastern District of New York (“EDNY”) seeking certain documents and records relating to our Chief Executive Officer (“CEO”). Although the EDNY subpoenas make no specific allegations, we believe the subpoenas relate to a grand jury investigation stemming from our CEO's contacts with a scientific attaché to the Israeli Purchasing Mission in the United States who our CEO met in connection with the sale of our equipment to the State of Israel during the 1980's. This scientific attaché was later alleged to have conducted intelligence operations in the U.S. In August 2012, we were informed by the U.S. government that our CEO's security clearance was suspended. In order to maintain our qualification for government contracts requiring facility security clearance, we have made certain internal organizational realignments. These changes restrict access to classified information to other Comtech senior executives, management and other employees who maintain the required level of clearance. | ||||
Separately, in connection with an investigation by the Securities and Exchange Commission (“SEC”) into trading in securities of CPI International, Inc. (“CPI”), we and our CEO, among others, received subpoenas in 2012 for documents from the SEC concerning transactions in CPI stock by our CEO and other persons (including one subsidiary employee). Our CEO purchased CPI stock in November 2010, after the September 2010 termination of our May 2010 agreement to acquire CPI. | ||||
We and our CEO have cooperated with the U.S. government regarding the above matters and have not been contacted by the government with respect to either matter since September 2012. The independent members of our Board of Directors have monitored these matters with the assistance of independent counsel. | ||||
The outcome of any investigation is inherently difficult, if not impossible, to predict. However, based on our work to date in respect of the subpoenas in each matter, we do not believe that it is likely that either investigation will result in a legal proceeding against our CEO or the Company. If either of these investigations results in a legal proceeding, it could have a material adverse effect on our business and results of operations. | ||||
Defense Contract Audit Agency (“DCAA”) Audit | ||||
In May 2011, we were notified that our original BFT-1 contract, which was awarded to us on August 31, 2007 (our fiscal 2008), was selected for a post award audit by the DCAA. We received total funded orders against this contract, which expired December 31, 2011, of $376,246,000. A post award audit (sometimes referred to as a Truth in Negotiations Act or “TINA” audit) generally focuses on whether the contractor disclosed current, accurate and complete cost or pricing data in the contract negotiation process pursuant to TINA and the Federal Acquisition Regulation (“FAR”). Shortly after this audit began, the Defense Contract Management Agency (“DCMA”) advised us that the fiscal 2008 award of the BFT-1 contract triggered full coverage under the Cost Accounting Standards (“CAS”) and that we should submit an initial CAS disclosure statement. The CAS is a set of specialized rules and standards that the U.S. government uses for determining costs on large, negotiated contracts. We have cooperated fully with the DCAA and DCMA and provided them information that supports our view that the August 2007 BFT-1 contract is subject to a CAS and TINA exemption for fixed price commercial contract line items (such as our mobile satellite transceivers and other hardware), as defined by the FAR. | ||||
In March 2013, DCMA advised us that it was not making any determination with regard to the commerciality of our products and that it withdrew its request, at that time, for a CAS disclosure statement. | ||||
In May 2013, the DCAA provided a draft audit report which stated that the commercial item exemption to TINA did not apply because there was no official determination of commerciality for Delivery Order No. 1 at the time of award. Thus, according to the DCAA, TINA applied and we were required to disclose current, accurate and complete cost or pricing data. The DCAA recommended a price adjustment of $11,819,000 (plus interest). This recommended price adjustment is essentially the same amount that was included in a draft audit report that was presented to us in December 2012. | ||||
Consistent with the position we have taken throughout the audit, we informed the DCAA that we believe the May 2013 draft audit report is erroneous. For example, we noted that the U.S. Army had previously determined, in July 2007, that the MT 2011F mobile satellite transceiver was a commercial item on a separate contract awarded to us. We also noted that the same contracting officer who signed the August 2007 BFT-1 contract, in an email sent four days after the BFT-1 contract was signed, indicated that certain of our mobile satellite transceivers and other equipment on the August 2007 BFT-1 contract were commercial. We advised the DCAA that, although the August 2007 BFT-1 contract did not initially incorporate FAR commercial clauses, the contract was modified in January 2008 to incorporate those clauses, and that an Administrative Contracting Officer confirmed, in January 2008, that Delivery Order No. 1 was for commercial items. Regardless of the commerciality determination, we informed the DCAA that we provided the U.S. Army with all information required under TINA and the FAR prior to August 31, 2007. We disagree with the DCAA's draft audit report and provided a written response in May 2013. We have not heard back from the DCAA since submitting our written response. | ||||
Unless the matter is resolved with the DCAA, it will issue a final audit report to the Contracting Officer for resolution. If the matter is not subsequently resolved in our favor with the Contracting Officer, the U.S. government will issue a demand in the form of a Contracting Officer's Final Decision which triggers our appeal rights. If it is ultimately determined that a cost or price adjustment for our BFT-1 contract is appropriate, we would be required to refund monies to the U.S. government, with interest. These amounts could have a material adverse effect on our results of operations in the period that we believe it is probable that we are required to refund monies to the U.S. government. However, based on our analysis of the facts and circumstances regarding this matter, we do not believe this matter will ultimately have a material adverse effect on our consolidated financial condition. | ||||
Other Proceedings | ||||
There are certain other pending and threatened legal actions, which arise in the normal course of business. Although the ultimate outcome of litigation is difficult to accurately predict, we believe that the outcome of these other pending and threatened actions will not have a material adverse effect on our consolidated financial condition or results of operations. | ||||
(c) Employment Change of Control and Indemnification Agreements | ||||
We have an employment agreement with our Chairman of the Board, Chief Executive Officer and President. The employment agreement generally provides for an annual salary and bonus award. We have also entered into change of control agreements with certain of our executive officers and certain key employees. All of these agreements may require payments by us, in certain circumstances, including, but not limited to, a change in control of our Company. | ||||
During fiscal 2012, pursuant to an indemnification agreement with our CEO (see Exhibit 10.1, "Form of Indemnification Agreement" in our Current Report on Form 8-K filed with the Securities and Exchange Commission ("SEC") on March 8, 2007), our Board of Directors agreed to pay, on behalf of our CEO, expenses incurred by him in connection with an investigation currently being conducted by the SEC and an investigation by the United States Attorney for the Eastern District Court of New York, on the condition that Mr. Kornberg repay such amounts to the extent that it is ultimately determined that he is not entitled to be indemnified by us. To date, legal expenses paid on behalf of our CEO have been nominal; however, we have incurred approximately $1,500,000 of expenses (of which approximately $1,000,000 was incurred in fiscal 2012 and approximately $500,000 was incurred in fiscal 2013) responding to the subpoenas. See Note (14)(b) – "Legal Proceedings and Other Matters." Any amounts that may be advanced to our CEO in the future may be material. |
Goodwill
Goodwill | 12 Months Ended | ||||||||||||||
Jul. 31, 2013 | |||||||||||||||
Goodwill [Abstract] | |||||||||||||||
Goodwill | (15) Goodwill | ||||||||||||||
The carrying amount of goodwill by segment as of July 31, 2013 and 2012 are as follows: | |||||||||||||||
Telecommunications | RF Microwave | Mobile Data | Total | ||||||||||||
Transmission | Amplifiers | Communications | |||||||||||||
Goodwill | $ | 107,779,000 | 29,575,000 | 13,249,000 | $ | 150,603,000 | |||||||||
Accumulated impairment | — | — | (13,249,000 | ) | (13,249,000 | ) | |||||||||
Balance | $ | 107,779,000 | 29,575,000 | — | $ | 137,354,000 | |||||||||
In accordance with FASB ASC 350, “Intangibles - Goodwill and Other,” we perform goodwill impairment testing at least annually, unless indicators of impairment exist in interim periods. The impairment test for goodwill uses a two-step approach. Step one compares the estimated fair value of a reporting unit with goodwill to its carrying value. If the carrying value exceeds the estimated fair value, step two must be performed. Step two compares the carrying value of the reporting unit to the fair value of all of the assets and liabilities of the reporting unit (including any unrecognized intangibles) as if the reporting unit was acquired in a business combination. If the carrying amount of a reporting unit's goodwill exceeds the implied fair value of its goodwill, an impairment loss is recognized in an amount equal to the excess. | |||||||||||||||
For purposes of reviewing impairment and the recoverability of goodwill and other intangible assets, each of our three operating segments constitutes a reporting unit and we must make various assumptions in determining the fair values of the reporting unit. | |||||||||||||||
On August 1, 2013 (the first day of our fiscal 2014), we performed our annual impairment test and estimated the fair value of each of our reporting units based on the income approach (also known as the discounted cash flow (“DCF”) method, which utilizes the present value of cash flows to estimate fair value). The future cash flows for our reporting units were projected based on our estimates, at that time, of future revenues, operating income and other factors (such as working capital and capital expenditures). We took into account expected challenging global industry and market conditions, including expected significant reductions in the overall budget for U.S. defense spending. As such, although both our telecommunications transmission and RF microwave amplifiers reporting units have historically achieved significant long-term revenue and operating income growth, we assumed growth rate estimates in our projections that were below our actual long-term expectations and below each reporting unit's actual historical growth rate. The discount rates used in our DCF method were based on a weighted-average cost of capital (“WACC”) determined from relevant market comparisons, adjusted upward for specific reporting unit risks (primarily the uncertainty of achieving projected operating cash flows). A terminal value growth rate was applied to the final year of the projected period and reflected our estimate of stable, perpetual growth. We then calculated a present value of the respective cash flows for each reporting unit to arrive at an estimate of fair value under the income approach and then used the market approach to corroborate this value. Under the market approach, we estimated a fair value based on comparable companies' market multiples of revenues and earnings before interest, taxes, depreciation and amortization and factored in a control premium. In each case, the estimated fair value determined under the market approach exceeded our estimate of fair value determined under the income approach. Finally, we compared our estimates to our August 1, 2013 total public market capitalization and assessed implied control premiums. Based on the aforementioned, we concluded that the estimated fair value determined under the income approach for each of our reporting units, as of August 1, 2013, was reasonable. In each case, the estimated fair value exceeded the respective carrying value and, as such, we concluded that the goodwill assigned to our telecommunications transmission and RF microwave amplifiers reporting units, as of August 1, 2013, was not impaired. We also concluded that our telecommunications transmission reporting unit was currently not at risk of failing step one of the goodwill impairment test as prescribed under the ASC. However, we concluded that as of August 1, 2013, our RF microwave amplifiers reporting unit was at risk of failing step one of the goodwill impairment test. | |||||||||||||||
As of August 1, 2013, we determined that our RF microwave amplifiers reporting unit had an estimated fair value in excess of its respective carrying value of at least 13.2%, which represents an increase from the at least 5.0% excess we previously calculated as of January 31, 2013 (when we performed an interim fiscal 2013 impairment test). The increase from 5.0% to 13.2% was primarily driven by a decrease in the WACC from 12.0% to 11.0%. The WACC for any given impairment test is based on current market data as of the respective valuation date. Had we utilized a WACC of 12.0% for the fiscal 2014 annual impairment test, our RF microwave amplifiers reporting unit's estimated fair value would still exceed its carrying value as of August 1, 2013. The WACC of 11.0% used in our annual impairment test for fiscal 2014 was equal to the WACC utilized in our annual impairment test for fiscal 2013. | |||||||||||||||
This estimated fair value of our RF microwave amplifiers reporting unit is closely aligned with the ultimate amount of revenue and operating income that it achieves over the projected period. Our discounted cash flows, for goodwill impairment testing purposes, assumed that, through fiscal 2019, this reporting unit would achieve a compounded annual revenue growth rate of approximately 1.0% and 4.0% from its actual fiscal 2012 and 2013 revenues of $102,497,000 and $86,939,000, respectively. Beyond fiscal 2019, we assumed a long-term revenue growth rate of 3.5% in the terminal year. Given current challenging market conditions, we believe these modest long-term growth rates and the WACC are appropriate to use for our future cash flow assumptions. We also believe that it is possible that our actual revenue growth rates could be significantly higher due to a number of factors, including: (i) continued reliance by our customers on our advanced communications systems; (ii) the continued shift toward information-based, network-centric warfare; and (iii) the need for developing countries to upgrade their communication systems. If we do not at least meet the assumed revenue growth utilized in this goodwill impairment analysis, our RF microwave amplifiers reporting unit will likely fail step one of a goodwill impairment test in a future period. Modest changes in other key assumptions used in our impairment analysis may also result in the requirement to proceed to step two of the goodwill impairment test in future periods. For example, keeping all other variables constant, a 160 basis point increase in the WACC applied to our RF microwave amplifiers reporting unit or an increase to our RF microwave amplifiers carrying value of more than $13,200,000 would likely result in a step one failure. If this reporting unit fails step one in the future, we would be required to perform step two of the goodwill impairment test. If we perform step two, up to $44,025,000 of goodwill and intangibles assigned to this reporting unit could be written off in the period that the impairment is triggered. | |||||||||||||||
Our goodwill impairment analyses for the telecommunications transmission and RF microwave amplifiers reporting units are sensitive to the ultimate spending decisions by our global customers. Accordingly, we will continue to monitor key assumptions and other factors required to be utilized in evaluating impairment of goodwill. It is possible that, during fiscal 2014, business conditions (both in the U.S. and internationally) could deteriorate from the current state and our current or prospective customers could materially postpone, reduce or even forgo purchases of our products and services to a greater extent than we currently anticipate. A significant decline in defense spending that is greater than we anticipate or a shift in funding priorities may also have a negative effect on future orders, sales, income and cash flows and we might be required to perform a step one interim goodwill impairment test during fiscal 2014 for these two reporting units. In any event, we are required to perform the next annual step one goodwill impairment test on August 1, 2014 (the start of our fiscal 2015). If our assumptions and related estimates change in the future, or if we change our reporting structure or other events and circumstances change (e.g., such as a sustained decrease in the price of our common stock (considered on both absolute terms and relative to peers)), we may be required to record impairment charges when we perform these tests or in other future periods. Any impairment charges that we may take in the future could be material to our results of operations and financial condition. | |||||||||||||||
During the fourth quarter of our fiscal 2010, we were notified by the U.S. Army that we were not selected as the vendor or program manager for the BFT-2 program. As a result, we experienced a significant and sustained decline in our stock price and we determined that it was appropriate to conduct an interim impairment test for all three of our reporting units in that fiscal quarter. Based on that interim impairment analysis, we determined that all of our mobile data communications reporting unit’s goodwill was impaired. As a result, we recorded a goodwill impairment charge of $13,249,000 for the fiscal year ended July 31, 2010. |
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||||||||
Jul. 31, 2013 | ||||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||||
Intangible Assets | (16) Intangible Assets | |||||||||||||
Intangible assets with finite lives as of July 31, 2013 and 2012 are as follows: | ||||||||||||||
July 31, 2013 | ||||||||||||||
Weighted Average | Gross Carrying | Accumulated | Net Carrying | |||||||||||
Amortization Period | Amount | Amortization | Amount | |||||||||||
Technologies | 11.7 | $ | 47,494,000 | 33,264,000 | $ | 14,230,000 | ||||||||
Customer relationships | 10 | 29,831,000 | 15,081,000 | 14,750,000 | ||||||||||
Trademarks and other | 20 | 5,944,000 | 2,419,000 | 3,525,000 | ||||||||||
Total | $ | 83,269,000 | 50,764,000 | $ | 32,505,000 | |||||||||
July 31, 2012 | ||||||||||||||
Weighted Average | Gross Carrying | Accumulated | Net Carrying | |||||||||||
Amortization Period | Amount | Amortization | Amount | |||||||||||
Technologies | 11.7 | $ | 47,694,000 | 30,321,000 | $ | 17,373,000 | ||||||||
Customer relationships | 10 | 29,931,000 | 12,231,000 | 17,700,000 | ||||||||||
Trademarks and other | 20 | 6,044,000 | 2,284,000 | 3,760,000 | ||||||||||
Total | $ | 83,669,000 | 44,836,000 | $ | 38,833,000 | |||||||||
The weighted average amortization period in the above table excludes fully amortized intangible assets. | ||||||||||||||
Amortization expense for the years ended July 31, 2013, 2012 and 2011 was $6,328,000, $6,637,000 and $8,091,000, respectively. | ||||||||||||||
The estimated amortization expense for the fiscal years ending July 31, 2014, 2015, 2016, 2017 and 2018 is $6,285,000, $6,211,000, $4,962,000, $4,782,000 and $4,782,000, respectively. | ||||||||||||||
In connection with the wind-down of our mobile data communications segment's microsatellite product line, certain fully amortized intangible assets related to this product line are no longer reflected in the gross carrying amount or accumulated amortization of our intangible assets as of July 31, 2013. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Jul. 31, 2013 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | (17) Stockholders’ Equity |
Stock Repurchase Program | |
During the fiscal year ended July 31, 2013, we repurchased 1,044,442 shares of our common stock in open-market transactions with an average price per share of $25.81 and at an aggregate cost of $26,954,000 (including transaction costs). | |
As of July 31, 2013, we were authorized to repurchase up to an additional $34,334,000 of our common stock, pursuant to our current $50,000,000 stock repurchase program that was authorized by our Board of Directors in December 2012. The $50,000,000 stock repurchase program has no time restrictions and repurchases may be made in open-market or privately negotiated transactions and may be made pursuant to SEC Rule 10b5-1 trading plans. As of October 2, 2013, $34,334,000 remains available for repurchases of our common stock. | |
In February 2013, we completed a $250,000,000 stock repurchase program that was authorized by our Board of Directors in September 2011. | |
In fiscal 2012, we purchased 7,055,614 shares with an average price per share of $30.81, at an aggregate cost of $217,374,000 (including transaction costs). | |
Dividends | |
In September 2011, our Board of Directors raised our annual targeted dividend from $1.00 per common share to $1.10 per common share. | |
During the fiscal year ended July 31, 2013, our Board of Directors declared quarterly dividends of $0.275 per common share on September 26, 2012, December 6, 2012, March 7, 2013, and June 6, 2013 which were paid to shareholders on November 20, 2012, December 27, 2012, May 21, 2013 and August 20, 2013, respectively. During the fiscal year ended July 31, 2012, our Board of Directors declared four quarterly cash dividends of $0.275 per common share. | |
On October 3, 2013, our Board of Directors declared a dividend of $0.275 per common share, payable on November 19, 2013 to shareholders of record at the close of business on October 18, 2013. |
Unaudited_Quarterly_Financial_
Unaudited Quarterly Financial Data | 12 Months Ended | ||||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||
Unaudited Quarterly Financial Data | (18) Unaudited Quarterly Financial Data | ||||||||||||||||||
The following is a summary of unaudited quarterly operating results: | |||||||||||||||||||
Fiscal 2013 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | ||||||||||||||
Net sales | $ | 90,953,000 | 74,577,000 | 69,856,000 | 84,411,000 | 319,797,000 | |||||||||||||
Gross profit | 41,803,000 | 32,240,000 | 31,427,000 | 35,360,000 | 140,830,000 | ||||||||||||||
Net income | 7,435,000 | 2,365,000 | 2,852,000 | 5,156,000 | 17,808,000 | ||||||||||||||
Diluted income per share | 0.36 | 0.14 | 0.17 | 0.28 | 0.97 | * | |||||||||||||
Fiscal 2012 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | ||||||||||||||
Net sales | $ | 113,361,000 | 99,141,000 | 99,793,000 | 112,775,000 | 425,070,000 | |||||||||||||
Gross profit | 51,280,000 | 41,416,000 | 41,678,000 | 49,135,000 | 183,509,000 | ||||||||||||||
Net income | 12,601,000 | 5,821,000 | 6,066,000 | 7,928,000 | 32,416,000 | ||||||||||||||
Diluted income per share | 0.47 | 0.27 | 0.29 | 0.38 | 1.42 | * | |||||||||||||
Fiscal 2011 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | ||||||||||||||
Net sales | $ | 178,160,000 | 162,811,000 | 131,081,000 | 140,327,000 | 612,379,000 | |||||||||||||
Gross profit | 64,234,000 | 60,910,000 | 56,971,000 | 58,931,000 | 241,046,000 | ||||||||||||||
Net income | 25,656,000 | 16,096,000 | 14,255,000 | 11,888,000 | 67,895,000 | ||||||||||||||
Diluted income per share | 0.79 | 0.52 | 0.47 | 0.42 | 2.22 | * | |||||||||||||
* Income per share information for the full fiscal year may not equal the total of the quarters within the year. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts and Reserves | 12 Months Ended | |||||||||||||||||||||||
Jul. 31, 2013 | ||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||||
Valuation and Qualifying Accounts and Reserves | Valuation and Qualifying Accounts and Reserves | |||||||||||||||||||||||
Fiscal Years Ended July 31, 2013, 2012 and 2011 | ||||||||||||||||||||||||
Column A | Column B | Column C Additions | Column D | Column E | ||||||||||||||||||||
Description | Balance at | Charged to | Charged to | Transfers | Balance at | |||||||||||||||||||
beginning of | cost and | other accounts | (deductions) | end of | ||||||||||||||||||||
period | expenses | - describe | - describe | period | ||||||||||||||||||||
Allowance for doubtful accounts receivable: | ||||||||||||||||||||||||
Year ended July 31, | ||||||||||||||||||||||||
2013 | $ | 1,588,000 | (422,000 | ) | (A) | — | (563,000 | ) | (B) | $ | 603,000 | |||||||||||||
2012 | 1,220,000 | 458,000 | (A) | — | (90,000 | ) | (B) | 1,588,000 | ||||||||||||||||
2011 | 1,127,000 | 244,000 | (A) | — | (151,000 | ) | (B) | 1,220,000 | ||||||||||||||||
Inventory reserves: | ||||||||||||||||||||||||
Year ended July 31, | ||||||||||||||||||||||||
2013 | $ | 16,286,000 | 2,810,000 | (C) | — | (2,870,000 | ) | (E) | $ | 16,226,000 | ||||||||||||||
2012 | 13,316,000 | 3,862,000 | (C) | 2,776,000 | (D) | (3,668,000 | ) | (E) | 16,286,000 | |||||||||||||||
2011 | 13,791,000 | 4,091,000 | (C) | — | (4,566,000 | ) | (E) | 13,316,000 | ||||||||||||||||
Valuation allowance for deferred tax assets: | ||||||||||||||||||||||||
Year ended July 31, | ||||||||||||||||||||||||
2013 | $ | 1,162,000 | 1,063,000 | (F) | — | — | $ | 2,225,000 | ||||||||||||||||
2012 | 1,162,000 | — | — | — | 1,162,000 | |||||||||||||||||||
2011 | 1,162,000 | — | — | — | 1,162,000 | |||||||||||||||||||
(A) | (Benefit from) provision for doubtful accounts. | |||||||||||||||||||||||
(B) | Write-off of uncollectible receivables. | |||||||||||||||||||||||
(C) | Provision for excess and obsolete inventory. | |||||||||||||||||||||||
(D) | Reclassification of contract loss accrued in fiscal 2011. | |||||||||||||||||||||||
(E) | Write-off of inventory. | |||||||||||||||||||||||
(F) | Change in valuation allowance. |
Summary_of_Significant_Account1
Summary of Significant Accounting and Reporting Policies (Policy) | 12 Months Ended | ||||||||||
Jul. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Principles of Consolidation | |||||||||||
(a) | Principles of Consolidation | ||||||||||
The accompanying consolidated financial statements include the accounts of Comtech Telecommunications Corp. and its subsidiaries (“Comtech,” “we,” “us,” or “our”), all of which are wholly-owned. All significant intercompany balances and transactions have been eliminated in consolidation. | |||||||||||
Nature of Business | |||||||||||
(b) | Nature of Business | ||||||||||
We design, develop, produce and market innovative products, systems and services for advanced communications solutions. | |||||||||||
Our business is highly competitive and characterized by rapid technological change. Our growth and financial position depends, among other things, on our ability to keep pace with such changes and developments and to respond to the sophisticated requirements of an increasing variety of electronic equipment users. Many of our competitors are substantially larger, and have significantly greater financial, marketing and operating resources and broader product lines than us. A significant technological breakthrough by others, including smaller competitors or new companies, could have a material adverse effect on our business. In addition, certain of our customers have technological capabilities in our product areas and could choose to replace our products with their own. | |||||||||||
International sales expose us to certain risks, including barriers to trade, fluctuations in foreign currency exchange rates (which may make our products less price competitive), political and economic instability, availability of suitable export financing, export license requirements, tariff regulations, and other United States (“U.S.”) and foreign regulations that may apply to the export of our products, as well as the generally greater difficulties of doing business abroad. We attempt to reduce the risk of doing business in foreign countries by seeking contracts denominated in U.S. dollars, advance or milestone payments, credit insurance and irrevocable letters of credit in our favor. | |||||||||||
The vast majority of sales in our mobile data communications segment have historically come from sales relating to the U.S. Army's MTS and BFT-1 programs. Our combined MTS and BFT-1 net sales for fiscal 2011 through fiscal 2013 were as follows: | |||||||||||
Net Sales | Percentage of | Percentage of | |||||||||
Mobile Data | Consolidated | ||||||||||
Communications | Net Sales | ||||||||||
Segment Net Sales | |||||||||||
2013 | $ | 29,061,000 | 76 | % | 9.1 | % | |||||
2012 | 87,769,000 | 78 | % | 20.6 | % | ||||||
2011 | 248,578,000 | 86.2 | % | 40.6 | % | ||||||
We are currently providing BFT-1 sustainment services and licensing certain of our intellectual property to the U.S. Army pursuant to a two-year $43,629,000 indefinite delivery/indefinite quantity ("IDIQ") BFT-1 sustainment contract, which replaced a prior three-year IDIQ BFT-1 sustainment contract that had not a not-to-exceed value of $80,731,000. In April 2013, due to budget pressures and administrative issues placed on the U.S. Army by the Continuing Resolution and Sequester, the U.S. government requested, and we agreed, to modify the terms of the three-year BFT-1 sustainment contract. Funding for Year One of the two-year BFT-1 sustainment contract (which had a performance period from April 1, 2012 through March 31, 2013) was definitized at $22,773,000 (including the annual $10,000,000 intellectual property license fee) and funding for Year Two (which has a performance period from April 1, 2013 through March 31, 2014) was definitized at $20,856,000 (including the annual $10,000,000 intellectual property license fee). Under the terms of the two-year contract, we agreed to perform certain satellite network and related engineering services (including program management) on a cost-plus-fixed-fee basis and the U.S. Army is required to pay us an annual $10,000,000 intellectual property license fee. Specific terms and conditions related to the intellectual property license are covered by a separate licensing agreement that provides for annual renewals, at the U.S. Army's option, for up to a five-year period ending March 31, 2017, after which time the U.S. Army will have a limited non-exclusive right to use certain of our intellectual property for no additional intellectual property licensing fee. | |||||||||||
Revenue Recognition, Policy | |||||||||||
(c) | Revenue Recognition | ||||||||||
Revenue is generally recognized when the earnings process is complete, upon shipment or customer acceptance. Revenue from contracts relating to the design, development or manufacture of complex electronic equipment to a buyer’s specification or to provide services relating to the performance of such contracts is generally recognized in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 605-35 “Revenue Recognition — Construction-Type and Production-Type Contracts” (“ASC 605-35”). We primarily apply the percentage-of-completion method and generally recognize revenue based on the relationship of total costs incurred to total projected costs, or, alternatively, based on output measures, such as units delivered or produced. Profits expected to be realized on such contracts are based on total estimated sales for the contract compared to total estimated costs, including warranty costs, at completion of the contract. These estimates are reviewed and revised periodically throughout the lives of the contracts, and adjustments to profits resulting from such revisions are made cumulative to the date of the change. Provision for anticipated losses on uncompleted contracts is made in the period in which such losses become evident. Long-term, U.S. government, cost-reimbursable type contracts are also specifically covered by FASB ASC 605-35. | |||||||||||
We have historically demonstrated an ability to estimate contract revenues and expenses in applying the percentage-of-completion method of accounting. However, there exist inherent risks and uncertainties in estimating future revenues and expenses, particularly on larger or longer-term contracts. Changes to such estimates could have a material effect on our consolidated financial condition and results of operations. | |||||||||||
Revenue recognized in excess of amounts billable under long-term contracts accounted for under the percentage-of-completion method are recorded as unbilled receivables in the accompanying consolidated balance sheets. Unbilled receivables are billable upon various events, including the attainment of performance milestones, delivery of hardware, submission of progress bills based on time and materials, or completion of the contract. We do not recognize revenue, or record unbilled receivables, until we receive fully funded orders. | |||||||||||
In fiscal 2013, 85.6% and 14.4% of our consolidated U.S. government net sales were derived from firm fixed-price and cost-reimbursable type contracts, respectively. Under firm fixed-price contracts, we perform for an agreed-upon price and we can derive benefits from cost savings, but bear the risk of cost overruns. Our cost-reimbursable type contracts typically provide for reimbursement of allowable costs incurred plus a negotiated fee. Cost-plus-incentive-fee orders typically provide for sharing with the U.S. government savings accrued from orders performed for less than the target costs and costs incurred in excess of targets up to a negotiated ceiling price (which is higher than the target cost), and for the supplier to carry the entire burden of costs exceeding the negotiated ceiling price. | |||||||||||
Most government contracts have termination for convenience clauses that provide the customer with the right to terminate the contract at any time. Historically, we have not experienced material contract terminations or write-offs of unbilled receivables. We address customer acceptance provisions in assessing our ability to perform our contractual obligations under long-term contracts. Historically, we have been able to perform on our long-term contracts. | |||||||||||
Revenues from contracts that contain multiple elements that are not accounted for under the percentage-of-completion method are accounted for in accordance with FASB ASC 605-25 “Revenue Recognition — Multiple Element Arrangements,” as amended by FASB Accounting Standards Update (“ASU”) No. 2009-13, which, among other things, requires revenue to be allocated to each element based on the relative selling price method. | |||||||||||
Cash and Cash Equivalents | |||||||||||
(d) | Cash and Cash Equivalents | ||||||||||
Our cash equivalents are short-term, highly liquid investments that are both readily convertible to known amounts of cash and have insignificant risk of change in value as a result of changes in interest rates. Our cash and cash equivalents, as of July 31, 2013 and 2012, amounted to $356,642,000 and $367,894,000, respectively, and primarily consist of money market mutual funds (both government and commercial), certificates of deposit, bank deposits and U.S. Treasury securities (with maturities at the time of purchase of three months or less). Many of our money market mutual funds invest in direct obligations of the U.S. government, bank securities guaranteed by the Federal Deposit Insurance Corporation, certificates of deposits and commercial paper and other securities issued by other companies. None of our cash equivalents include municipal auction-rate securities. Cash equivalents are carried at cost, which approximates fair market value. | |||||||||||
Inventories | |||||||||||
(e) | Inventories | ||||||||||
Raw materials and components and finished goods inventory are stated at the lower of cost or market, computed on the first-in, first-out (“FIFO”) method. | |||||||||||
Work-in-process inventory reflects all accumulated production costs, which are comprised of direct production costs and overhead, and is reduced by amounts recorded in cost of sales as the related revenue is recognized. These inventories are reduced to their estimated net realizable value by a charge to cost of sales in the period such excess costs are determined. Indirect costs relating to long-term contracts, which include expenses such as general and administrative, are charged to expense as incurred and are not included in our work-in-process (including our contracts-in-progress) inventory or cost of sales. | |||||||||||
Long-Lived Assets | |||||||||||
(f) | Long-Lived Assets | ||||||||||
Our machinery and equipment, which are recorded at cost, are depreciated or amortized over their estimated useful lives (three to eight years) under the straight-line method. Capitalized values of properties and leasehold improvements under leases are amortized over the life of the lease or the estimated life of the asset, whichever is less. | |||||||||||
Goodwill represents the excess cost of a business acquisition over the fair value of the net assets acquired. In accordance with the FASB ASC 350, “Intangibles – Goodwill and Other,” goodwill is not amortized. We periodically, at least on an annual basis in the first quarter of each fiscal year, review goodwill, considering factors such as projected cash flows and revenue and earnings multiples, to determine whether the carrying value of the goodwill is impaired. If the goodwill is deemed to be impaired, the difference between the carrying amount reflected in the financial statements and the estimated fair value is recognized as an expense in the period in which the impairment occurs. We define our reporting units to be the same as our operating segments. | |||||||||||
We performed our annual goodwill impairment test for fiscal 2014 on August 1, 2013 (the start of our first quarter of fiscal 2014). See Note (15) - "Goodwill" for more information on goodwill impairment testing. Unless there are future indicators of impairment, such as a significant adverse change in our future financial performance, our next impairment review for goodwill will be performed and completed in the first quarter of fiscal 2015. Any impairment charges that we may take in the future could be material to our results of operations and financial condition. | |||||||||||
We assess the recoverability of the carrying value of our other long-lived assets, including identifiable intangible assets with finite useful lives, whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. We evaluate the recoverability of such assets based upon the expectations of undiscounted cash flows from such assets. If the sum of the expected future undiscounted cash flows were less than the carrying amount of the asset, a loss would be recognized for the difference between the fair value and the carrying amount. | |||||||||||
Research and Development Costs | |||||||||||
(g) | Research and Development Costs | ||||||||||
We charge research and development costs to operations as incurred, except in those cases in which such costs are reimbursable under customer funded contracts. In fiscal 2013, 2012 and 2011, we were reimbursed by customers for such activities in the amount of $5,172,000, $5,665,000 and $10,703,000, respectively. These amounts are not reflected in the reported research and development expenses in each of the respective periods, but are included in net sales with the related costs included in cost of sales in each of the respective periods. | |||||||||||
Income Taxes | |||||||||||
(h) | Income Taxes | ||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||
We determine the uncertain tax positions taken or expected to be taken in income tax returns in accordance with the provisions of FASB ASC 740-10-25, which prescribes a two-step evaluation process for tax positions. The first step is recognition based on a determination of whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is to measure a tax position that meets the more-likely-than-not threshold. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. If a tax position does not meet the more-likely-than-not recognition threshold, the benefit of that position is not recognized in the financial statements. Our policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. | |||||||||||
Earnings Per Share | |||||||||||
(i) | Earnings Per Share | ||||||||||
Our basic earnings per share (“EPS”) is computed based on the weighted average number of shares, including fully-vested stock units and vested restricted stock units ("RSUs"), outstanding during each respective period. Our diluted EPS reflects the dilution from potential common stock issuable pursuant to the exercise of equity-classified stock-based awards and convertible senior notes, if dilutive, outstanding during each respective period. Pursuant to FASB ASC 260, "Earnings Per Share," equity-classified stock-based awards that are subject to performance conditions are not considered in our diluted EPS calculations until the respective performance conditions have been satisfied. When calculating our diluted earnings per share, we consider (i) the amount an employee must pay upon assumed exercise of stock-based awards; (ii) the amount of stock-based compensation cost attributed to future services and not yet recognized; and (iii) the amount of excess tax benefits, if any, that would be credited to additional paid-in capital assuming exercise of in-the-money stock-based awards. This excess tax benefit is the amount resulting from a tax deduction for compensation in excess of compensation expense, based on the Black Scholes option pricing model, recognized for financial reporting purposes. | |||||||||||
Equity-classified stock-based awards to purchase 2,701,000, 2,169,000 and 2,486,000 shares for fiscal 2013, 2012 and 2011, respectively, were not included in our diluted EPS calculation because their effect would have been anti-dilutive. | |||||||||||
Our EPS calculations exclude 39,000 and 5,000 weighted average RSUs with performance measures (known as performance shares) outstanding for fiscal 2013 and 2012, respectively, as the respective performance conditions have not yet been satisfied. However, the compensation expense related to these awards is included in net income (the numerator) for EPS calculations for each respective period. In fiscal 2011, there were no outstanding performance shares. | |||||||||||
The weighted-average basic and diluted shares outstanding for the fiscal years ended July 31, 2013, 2012 and 2011 reflect a reduction of approximately 453,000, 4,350,000 and 1,781,000 shares as a result of the repurchase of our common shares during the respective periods. See Note (17) – “Stockholders’ Equity” for more information on our stock repurchase program. | |||||||||||
Liability-classified stock-based awards do not impact and are not included in the denominator for EPS calculations. | |||||||||||
The following table reconciles the numerators and denominators used in the basic and diluted EPS calculations: | |||||||||||
Fiscal Years Ended July 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Numerator: | |||||||||||
Net income for basic calculation | $ | 17,808,000 | 32,416,000 | 67,895,000 | |||||||
Effect of dilutive securities: | |||||||||||
Interest expense (net of tax) on 3.0% convertible senior notes | 4,468,000 | 4,468,000 | 4,468,000 | ||||||||
Numerator for diluted calculation | $ | 22,276,000 | 36,884,000 | 72,363,000 | |||||||
Denominator: | |||||||||||
Denominator for basic calculation | 16,963,000 | 19,995,000 | 26,842,000 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock-based awards | 91,000 | 228,000 | 215,000 | ||||||||
Conversion of 3.0% convertible senior notes | 6,010,000 | 5,768,000 | 5,566,000 | ||||||||
Denominator for diluted calculation | 23,064,000 | 25,991,000 | 32,623,000 | ||||||||
Fair Value Measurements and Financial Instruments | |||||||||||
(j) | Fair Value Measurements and Financial Instruments | ||||||||||
In accordance with FASB ASC 825, “Financial Instruments,” we determined that, as of July 31, 2013 and 2012, the fair value of our 3.0% convertible senior notes was approximately $208,080,000 and $211,920,000, respectively, based on quoted market prices in an active market. Our 3.0% convertible senior notes are not marked-to-market and are shown on the accompanying balance sheet at their original issuance value. As such, changes in the estimated fair value of our 3.0% convertible senior notes are not recorded in our consolidated financial statements. | |||||||||||
As of July 31, 2013 and 2012, we had approximately $50,182,000 and $84,610,000, respectively, of money market mutual funds which are classified as cash and cash equivalents in our Consolidated Balance Sheets. These money market mutual funds are recorded at their current fair value. FASB ASC 820, “Fair Value Measurements and Disclosures,” requires us to define fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, using the fair value hierarchy described in FASB ASC 820, we valued our money market mutual funds using Level 1 inputs that were based on quoted market prices. | |||||||||||
At July 31, 2013 and 2012, we had a contingent earn-out liability relating to our acquisition of Stampede Technologies, Inc. (“Stampede”) of $288,000 and $3,519,000, respectively, which is recorded at current fair value using Level 3 inputs, primarily management's estimates of future sales and cash flows relating to the earn-out, which also incorporated market participant expectations. See Note (2) - "Acquisitions." | |||||||||||
As of July 31, 2013 and 2012, other than our cash and cash equivalents and our contingent earn-out liability, we had no other assets or liabilities included in our Consolidated Balance Sheets recorded at current fair value. If we acquire different types of assets or incur different types of liabilities in the future, we might be required to use different FASB ASC fair value methodologies. | |||||||||||
Use of Estimates | |||||||||||
(k) | Use of Estimates | ||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. We make significant estimates in many areas of our accounting, including but not limited to the following: long-term contracts, stock-based compensation, intangible assets including goodwill, provision for excess and obsolete inventory, allowance for doubtful accounts, warranty obligations and income taxes. Actual results may differ from those estimates. | |||||||||||
Comprehensive Income | |||||||||||
(l) | Comprehensive Income | ||||||||||
In accordance with FASB ASC 220, “Comprehensive Income,” we report all changes in equity during a period, except those resulting from investment by owners and distribution to owners, for the period in which they are recognized. Comprehensive income is the total of net income and all other non-owner changes in equity (or other comprehensive income) such as unrealized gains/losses on securities classified as available-for-sale, foreign currency translation adjustments and minimum pension liability adjustments. Comprehensive income was the same as net income in fiscal 2013, 2012 and 2011. | |||||||||||
Reclassifications | |||||||||||
(m) | Reclassifications | ||||||||||
Certain reclassifications have been made to previously reported consolidated financial statements to conform to the fiscal 2013 presentation. | |||||||||||
Adoption of New Accounting Standards | |||||||||||
(n) | Adoption of Accounting Standards and Updates | ||||||||||
We are required to prepare our consolidated financial statements in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) which is the source for all authoritative U.S. generally accepted accounting principles, which is commonly referred to as “GAAP.” The FASB ASC is subject to updates by FASB, which are known as Accounting Standards Updates (“ASU”). The following FASB ASUs have been issued and incorporated into the FASB ASC and adopted by us in fiscal 2013: | |||||||||||
• | On February 1, 2013, we adopted FASB ASU No. 2013-02, which requires, among other things, entities to provide information about the amounts reclassified out of accumulated other comprehensive income. Our adoption of this ASU did not have any impact on our consolidated financial statements or disclosures, because we do not have any other component of comprehensive income except for net income. | ||||||||||
• | On July 17, 2013, we adopted FASB ASU No. 2013-10, which included the "Fed Funds Effective Swap Rate" as a permitted U.S. benchmark interest rate for hedge accounting purposes under ASC Topic 815 - "Derivatives and Hedging." Prior to this ASU, only the interest rates on direct Treasury obligations of the U.S. government or the LIBOR swap rate were considered acceptable benchmark interest rates for hedge accounting purposes. This ASU also removed the restriction on using different benchmark rates for similar hedges. This ASU is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. Our adoption of this ASU did not have any impact on our consolidated financial statements or disclosures, because we do not have any hedges. |
Summary_of_Significant_Account2
Summary of Significant Accounting and Reporting Policies (Tables) | 12 Months Ended | ||||||||||
Jul. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Schedule of combined MTS and BFT-1 sales | |||||||||||
Net Sales | Percentage of | Percentage of | |||||||||
Mobile Data | Consolidated | ||||||||||
Communications | Net Sales | ||||||||||
Segment Net Sales | |||||||||||
2013 | $ | 29,061,000 | 76 | % | 9.1 | % | |||||
2012 | 87,769,000 | 78 | % | 20.6 | % | ||||||
2011 | 248,578,000 | 86.2 | % | 40.6 | % | ||||||
Schedule of numerators and denominators used in basic and diluted EPS calculations | |||||||||||
Fiscal Years Ended July 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Numerator: | |||||||||||
Net income for basic calculation | $ | 17,808,000 | 32,416,000 | 67,895,000 | |||||||
Effect of dilutive securities: | |||||||||||
Interest expense (net of tax) on 3.0% convertible senior notes | 4,468,000 | 4,468,000 | 4,468,000 | ||||||||
Numerator for diluted calculation | $ | 22,276,000 | 36,884,000 | 72,363,000 | |||||||
Denominator: | |||||||||||
Denominator for basic calculation | 16,963,000 | 19,995,000 | 26,842,000 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock-based awards | 91,000 | 228,000 | 215,000 | ||||||||
Conversion of 3.0% convertible senior notes | 6,010,000 | 5,768,000 | 5,566,000 | ||||||||
Denominator for diluted calculation | 23,064,000 | 25,991,000 | 32,623,000 | ||||||||
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | |||||||
Jul. 31, 2013 | ||||||||
Accounts Receivable Additional Disclosures [Abstract] | ||||||||
Accounts Receivable | ||||||||
2013 | 2012 | |||||||
Billed receivables from commercial customers | $ | 40,005,000 | 41,139,000 | |||||
Billed receivables from the U.S. government and its agencies | 8,114,000 | 11,927,000 | ||||||
Unbilled receivables on contracts-in-progress | 2,399,000 | 4,764,000 | ||||||
Total accounts receivable | 50,518,000 | 57,830,000 | ||||||
Less allowance for doubtful accounts | 603,000 | 1,588,000 | ||||||
Accounts receivable, net | $ | 49,915,000 | 56,242,000 | |||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Jul. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | ||||||||
2013 | 2012 | |||||||
Raw materials and components | $ | 52,169,000 | 55,404,000 | |||||
Work-in-process and finished goods | 29,539,000 | 33,243,000 | ||||||
Total inventories | 81,708,000 | 88,647,000 | ||||||
Less reserve for excess and obsolete inventories | 16,226,000 | 16,286,000 | ||||||
Inventories, net | $ | 65,482,000 | 72,361,000 | |||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Jul. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property, Plant, and Equipment | ||||||||
2013 | 2012 | |||||||
Machinery and equipment | $ | 103,812,000 | 101,272,000 | |||||
Leasehold improvements | 11,558,000 | 11,162,000 | ||||||
115,370,000 | 112,434,000 | |||||||
Less accumulated depreciation and amortization | 95,037,000 | 89,602,000 | ||||||
Property, plant and equipment, net | $ | 20,333,000 | 22,832,000 | |||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended | |||||||
Jul. 31, 2013 | ||||||||
Accrued Liabilities, Current [Abstract] | ||||||||
Accrued expenses and other current liabilities | ||||||||
2013 | 2012 | |||||||
Accrued wages and benefits | $ | 11,526,000 | 16,467,000 | |||||
Accrued warranty obligations | 7,797,000 | 7,883,000 | ||||||
Accrued commissions and royalties | 4,206,000 | 3,946,000 | ||||||
Accrued business acquisition payments | 288,000 | 1,752,000 | ||||||
Other | 6,075,000 | 10,822,000 | ||||||
Accrued expenses and other current liabilities | $ | 29,892,000 | 40,870,000 | |||||
Product warranty rollforward | ||||||||
2013 | 2012 | |||||||
Balance at beginning of period | $ | 7,883,000 | 9,120,000 | |||||
Provision for warranty obligations | 5,316,000 | 5,598,000 | ||||||
Charges incurred | (5,402,000 | ) | (6,835,000 | ) | ||||
Balance at end of period | $ | 7,797,000 | 7,883,000 | |||||
Cost_Reduction_Actions_Tables
Cost Reduction Actions (Tables) | 12 Months Ended | |||||||||||||
Jul. 31, 2013 | ||||||||||||||
Cost Reduction Actions [Abstract] | ||||||||||||||
Rollforward of restructuring liability by type of cost related to the wind-down of the microsatellite product line | ||||||||||||||
Facility exit costs | Severance and related costs | Other | Total | |||||||||||
Balance as of July 31, 2012 | $ | 496,000 | 310,000 | 330,000 | $ | 1,136,000 | ||||||||
Additions/(reversals) | 644,000 | 76,000 | (262,000 | ) | 458,000 | |||||||||
Payments made | (727,000 | ) | (386,000 | ) | (18,000 | ) | (1,131,000 | ) | ||||||
Balance as of July 31, 2013 | $ | 413,000 | — | 50,000 | $ | 463,000 | ||||||||
Determination of estimated facility exit costs table | ||||||||||||||
At August 1, 2008 | ||||||||||||||
Total non-cancelable lease obligations | $ | 12,741,000 | ||||||||||||
Less: Estimated sublease income | 8,600,000 | |||||||||||||
Total net estimated facility exit costs | 4,141,000 | |||||||||||||
Less: Interest expense to be accreted | 2,041,000 | |||||||||||||
Present value of estimated facility exit costs | $ | 2,100,000 | ||||||||||||
Summary of the acquisition-related restructuring liabilities | ||||||||||||||
Cumulative Activity Through July 31, 2013 | ||||||||||||||
Present value of estimated facility exit costs at August 1, 2008 | $ | 2,100,000 | ||||||||||||
Cash payments made | (5,327,000 | ) | ||||||||||||
Cash payments received | 5,722,000 | |||||||||||||
Accreted interest recorded | 836,000 | |||||||||||||
Net liability as of July 31, 2013 | 3,331,000 | |||||||||||||
Amount recorded as prepaid expenses in the Consolidated Balance Sheet | 442,000 | |||||||||||||
Amount recorded as other liabilities in the Consolidated Balance Sheet | $ | 3,773,000 | ||||||||||||
Summary of future cash payments associated with estimated facility exit costs | ||||||||||||||
As of July 31, 2013 | ||||||||||||||
Future lease payments to be made in excess of anticipated sublease payments | $ | 3,773,000 | ||||||||||||
Less net cash to be received in next twelve months | (442,000 | ) | ||||||||||||
Interest expense to be accreted in future periods | 1,204,000 | |||||||||||||
Total remaining net cash payments | $ | 4,535,000 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||||||
Jul. 31, 2013 | ||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||
Income before provision for income taxes | ||||||||||||||||||||
Fiscal Years Ended July 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
U.S. | $ | 28,930,000 | 44,930,000 | 102,159,000 | ||||||||||||||||
Foreign | (1,437,000 | ) | (890,000 | ) | (355,000 | ) | ||||||||||||||
$ | 27,493,000 | 44,040,000 | 101,804,000 | |||||||||||||||||
Provision for income taxes | ||||||||||||||||||||
Fiscal Years Ended July 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Federal – current | $ | 7,129,000 | 14,389,000 | 29,735,000 | ||||||||||||||||
Federal – deferred | 385,000 | (4,194,000 | ) | 683,000 | ||||||||||||||||
State and local – current | 1,393,000 | 2,045,000 | 3,683,000 | |||||||||||||||||
State and local – deferred | 35,000 | (380,000 | ) | 62,000 | ||||||||||||||||
Foreign – current | 48,000 | (240,000 | ) | (270,000 | ) | |||||||||||||||
Foreign – deferred | 695,000 | 4,000 | 16,000 | |||||||||||||||||
$ | 9,685,000 | 11,624,000 | 33,909,000 | |||||||||||||||||
Provision for income taxes differed from amounts computed by applying the U.S. Federal income tax rate | ||||||||||||||||||||
Fiscal Years Ended July 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||
Computed “expected” tax expense | $ | 9,623,000 | 35 | % | 15,414,000 | 35 | % | 35,632,000 | 35 | % | ||||||||||
Increase (reduction) in income taxes resulting from: | ||||||||||||||||||||
State and local income taxes, net of Federal benefit | 782,000 | 2.8 | 995,000 | 2.3 | 2,614,000 | 2.6 | ||||||||||||||
Nondeductible stock-based compensation | 71,000 | 0.3 | 86,000 | 0.2 | 94,000 | 0.1 | ||||||||||||||
Domestic production activities deduction | (1,344,000 | ) | (4.9 | ) | (1,436,000 | ) | (3.3 | ) | (2,893,000 | ) | (2.9 | ) | ||||||||
Research and experimentation credits | (888,000 | ) | (3.2 | ) | (241,000 | ) | (0.5 | ) | (1,255,000 | ) | (1.3 | ) | ||||||||
Change in the beginning of the year valuation allowance for deferred tax assets | 693,000 | 2.5 | — | — | — | — | ||||||||||||||
Audit settlements | (141,000 | ) | (0.5 | ) | (2,841,000 | ) | (6.5 | ) | 20,000 | 0.1 | ||||||||||
Foreign income taxes | 640,000 | 2.3 | 99,000 | 0.2 | 151,000 | 0.2 | ||||||||||||||
Other | 249,000 | 0.9 | (452,000 | ) | (1.0 | ) | (454,000 | ) | (0.5 | ) | ||||||||||
$ | 9,685,000 | 35.2 | % | 11,624,000 | 26.4 | % | 33,909,000 | 33.3 | % | |||||||||||
Tax effects of temporary differences | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Deferred tax assets: | ||||||||||||||||||||
Allowance for doubtful accounts receivable | $ | 217,000 | 576,000 | |||||||||||||||||
Inventory and warranty reserves | 7,559,000 | 7,684,000 | ||||||||||||||||||
Compensation and commissions | 1,705,000 | 1,890,000 | ||||||||||||||||||
State and foreign research and experimentation credits | 2,736,000 | 1,691,000 | ||||||||||||||||||
Stock-based compensation | 8,068,000 | 10,133,000 | ||||||||||||||||||
Net operating losses | — | 101,000 | ||||||||||||||||||
Other | 2,478,000 | 4,922,000 | ||||||||||||||||||
Less valuation allowance | (2,225,000 | ) | (1,162,000 | ) | ||||||||||||||||
Total deferred tax assets | 20,538,000 | 25,835,000 | ||||||||||||||||||
Deferred tax liabilities: | ||||||||||||||||||||
Plant and equipment | (1,424,000 | ) | (2,137,000 | ) | ||||||||||||||||
Intangibles | (10,187,000 | ) | (11,077,000 | ) | ||||||||||||||||
Total deferred tax liabilities | (11,611,000 | ) | (13,214,000 | ) | ||||||||||||||||
Net deferred tax assets | $ | 8,927,000 | 12,621,000 | |||||||||||||||||
Summary of unrecognized tax benefits | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Balance as of July 31 | $ | 2,529,000 | 6,763,000 | |||||||||||||||||
Increase related to current period | 585,000 | 432,000 | ||||||||||||||||||
Increase related to prior periods | 175,000 | 417,000 | ||||||||||||||||||
Expiration of statute of limitations | (207,000 | ) | (1,401,000 | ) | ||||||||||||||||
Decrease related to prior periods | (209,000 | ) | (3,309,000 | ) | ||||||||||||||||
Settlements with taxing authorities | — | (373,000 | ) | |||||||||||||||||
Balance as of July 31 | $ | 2,873,000 | 2,529,000 | |||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Jul. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Summary of Stock-based Awards Outstanding by Award Type | ||||||||||||||
July 31, 2013 | ||||||||||||||
Stock options | 3,031,910 | |||||||||||||
Performance shares | 63,661 | |||||||||||||
RSUs and restricted stock | 37,326 | |||||||||||||
Stock units | 1,347 | |||||||||||||
SARs | 16,000 | |||||||||||||
Total | 3,150,244 | |||||||||||||
Stock-based compensation for awards detailing where recorded in Consolidated Statement of Operations | ||||||||||||||
Fiscal Years Ended July 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Cost of sales | $ | 174,000 | 284,000 | 410,000 | ||||||||||
Selling, general and administrative expenses | 2,470,000 | 2,716,000 | 3,976,000 | |||||||||||
Research and development expenses | 486,000 | 572,000 | 971,000 | |||||||||||
Stock-based compensation expense before income tax benefit | 3,130,000 | 3,572,000 | 5,357,000 | |||||||||||
Estimated income tax benefit | (1,198,000 | ) | (1,308,000 | ) | (1,913,000 | ) | ||||||||
Net stock-based compensation expense | $ | 1,932,000 | 2,264,000 | 3,444,000 | ||||||||||
Summary of net stock-based compensation expense by award type | ||||||||||||||
Fiscal Years Ended July 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Stock options | $ | 2,400,000 | 3,279,000 | 5,139,000 | ||||||||||
Performance shares | 382,000 | 52,000 | — | |||||||||||
ESPP | 189,000 | 232,000 | 270,000 | |||||||||||
RSUs and restricted stock | 140,000 | 13,000 | — | |||||||||||
Stock units | 24,000 | 12,000 | — | |||||||||||
SARs | (5,000 | ) | (16,000 | ) | (52,000 | ) | ||||||||
Stock-based compensation expense before income tax benefit | 3,130,000 | 3,572,000 | 5,357,000 | |||||||||||
Estimated income tax benefit | (1,198,000 | ) | (1,308,000 | ) | (1,913,000 | ) | ||||||||
Net stock-based compensation expense | $ | 1,932,000 | 2,264,000 | 3,444,000 | ||||||||||
Components of actual Income tax benefit recognized for tax deductions relating to settlement of stock-based awards | ||||||||||||||
Fiscal Years Ended July 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Actual income tax benefit recorded for the tax deductions relating to the settlement of stock-based awards | $ | 420,000 | $ | 438,000 | $ | 306,000 | ||||||||
Less: Tax benefit initially recognized on settled stock-based awards vesting subsequent to the adoption of accounting standards that require us to expense stock-based awards, excluding income tax shortfalls | 155,000 | 197,000 | 81,000 | |||||||||||
Excess income tax benefit recorded as an increase to additional paid-in capital | 265,000 | 241,000 | 225,000 | |||||||||||
Less: Tax benefit initially disclosed but not previously recognized on settled equity-classified stock-based awards vesting prior to the adoption of accounting standards that require us to expense stock-based awards | — | 10,000 | — | |||||||||||
Excess income tax benefit from settled equity-classified stock-based awards reported as a cash flow from financing activities in our Consolidated Statements of Cash Flows | $ | 265,000 | 231,000 | 225,000 | ||||||||||
Summary of the Plan's activity relating to stock options (including SARs) | ||||||||||||||
Awards | Weighted Average | Weighted Average | Aggregate | |||||||||||
(in Shares) | Exercise Price | Remaining Contractual | Intrinsic Value | |||||||||||
Term (Years) | ||||||||||||||
Outstanding at July 31, 2010 | 3,520,667 | $ | 32.75 | |||||||||||
Granted | 680,750 | 27.64 | ||||||||||||
Expired/canceled | (481,364 | ) | 35.79 | |||||||||||
Exercised | (139,885 | ) | 20.29 | |||||||||||
Outstanding at July 31, 2011 | 3,580,168 | 31.86 | ||||||||||||
Granted | 423,528 | 29.24 | ||||||||||||
Expired/canceled | (390,148 | ) | 35.71 | |||||||||||
Exercised | (155,145 | ) | 20.64 | |||||||||||
Outstanding at July 31, 2012 | 3,458,403 | 31.61 | ||||||||||||
Granted | 296,525 | 26.07 | ||||||||||||
Expired/canceled | (616,135 | ) | 39.96 | |||||||||||
Exercised | (90,883 | ) | 13.01 | |||||||||||
Outstanding at July 31, 2013 | 3,047,910 | $ | 29.94 | 4.82 | $ | 2,198,000 | ||||||||
Exercisable at July 31, 2013 | 1,896,030 | $ | 31.18 | 2.73 | $ | 1,895,000 | ||||||||
Vested and expected to vest at July 31, 2013 | 2,945,608 | $ | 30 | 4.7 | $ | 2,182,000 | ||||||||
Certain weighted average assumptions used to estimate initial fair value of stock options | ||||||||||||||
Fiscal Years Ended July 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Expected dividend yield | 4.22 | % | 3.76 | % | 3.62 | % | ||||||||
Expected volatility | 30.09 | % | 36.63 | % | 36.31 | % | ||||||||
Risk-free interest rate | 1.02 | % | 0.64 | % | 1.58 | % | ||||||||
Expected life (years) | 5.39 | 5.29 | 5.1 | |||||||||||
Summary of the Plan's activity relating to performance shares, RSUs, restricted stock and stock units | ||||||||||||||
Awards (in Shares) | Weighted Average | Aggregate | ||||||||||||
Grant Date | Intrinsic Value | |||||||||||||
Fair Value | ||||||||||||||
Outstanding at July 31, 2011 | — | $ | — | |||||||||||
Granted | 48,081 | 26.28 | ||||||||||||
Converted to common stock | — | — | ||||||||||||
Forfeited | — | — | ||||||||||||
Outstanding at July 31, 2012 | 48,081 | 26.28 | ||||||||||||
Granted | 54,253 | 25.37 | ||||||||||||
Converted to common stock | — | — | ||||||||||||
Forfeited | — | — | ||||||||||||
Outstanding at July 31, 2013 | 102,334 | $ | 25.8 | $ | 2,771,000 | |||||||||
Vested at July 31, 2013 | 4,515 | $ | 26.71 | $ | 122,000 | |||||||||
Vested and expected to vest at July 31, 2013 | 98,174 | $ | 25.8 | $ | 2,659,000 | |||||||||
Customer_and_Geographic_Inform1
Customer and Geographic Information (Tables) | 12 Months Ended | |||||||||
Jul. 31, 2013 | ||||||||||
Geographic Areas, Revenues from External Customers [Abstract] | ||||||||||
Schedule of net sales as a percentage, by geography and customer type | ||||||||||
Fiscal Years Ended July 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
United States | ||||||||||
U.S. government | 34.7 | % | 48.9 | % | 61.7 | % | ||||
Commercial | 15.2 | % | 12.4 | % | 8.1 | % | ||||
Total United States | 49.9 | % | 61.3 | % | 69.8 | % | ||||
International | 50.1 | % | 38.7 | % | 30.2 | % |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||
Jul. 31, 2013 | ||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||
Segment profitability allocation methodology | ||||||||||||||||||
Fiscal Year Ended July 31, 2013 | ||||||||||||||||||
Telecommunications | RF Microwave | Mobile Data | Unallocated | Total | ||||||||||||||
Transmission | Amplifiers | Communications | ||||||||||||||||
Net sales | $ | 194,643,000 | 86,939,000 | 38,215,000 | — | $ | 319,797,000 | |||||||||||
Operating income (loss) | 31,686,000 | 4,104,000 | 12,288,000 | (13,589,000 | ) | 34,489,000 | ||||||||||||
Interest income and other (expense) | (38,000 | ) | (42,000 | ) | 18,000 | 1,229,000 | 1,167,000 | |||||||||||
Interest expense | 352,000 | — | (7,000 | ) | 7,818,000 | 8,163,000 | ||||||||||||
Depreciation and amortization | 9,591,000 | 3,939,000 | 500,000 | 3,265,000 | 17,295,000 | |||||||||||||
Expenditure for long-lived assets, including intangibles | 4,179,000 | 842,000 | 317,000 | 9,000 | 5,347,000 | |||||||||||||
Total assets at July 31, 2013 | 225,626,000 | 96,298,000 | 7,873,000 | 352,018,000 | 681,815,000 | |||||||||||||
Fiscal Year Ended July 31, 2012 | ||||||||||||||||||
Telecommunications | RF Microwave | Mobile Data | Unallocated | Total | ||||||||||||||
Transmission | Amplifiers | Communications | ||||||||||||||||
Net sales | $ | 210,006,000 | 102,497,000 | 112,567,000 | — | $ | 425,070,000 | |||||||||||
Operating income (loss) | 41,709,000 | 7,622,000 | 19,924,000 | (17,978,000 | ) | 51,277,000 | ||||||||||||
Interest income and other (expense) | 42,000 | (21,000 | ) | 30,000 | 1,544,000 | 1,595,000 | ||||||||||||
Interest expense | 651,000 | — | — | 8,181,000 | 8,832,000 | |||||||||||||
Depreciation and amortization | 10,088,000 | 4,395,000 | 2,173,000 | 3,758,000 | 20,414,000 | |||||||||||||
Expenditure for long-lived assets, including intangibles | 5,490,000 | 733,000 | 190,000 | — | 6,413,000 | |||||||||||||
Total assets at July 31, 2012 | 244,285,000 | 98,864,000 | 11,217,000 | 365,412,000 | 719,778,000 | |||||||||||||
Fiscal Year Ended July 31, 2011 | ||||||||||||||||||
Telecommunications | RF Microwave | Mobile Data | Unallocated | Total | ||||||||||||||
Transmission | Amplifiers | Communications | ||||||||||||||||
Net sales | $ | 231,957,000 | 91,973,000 | 288,449,000 | — | $ | 612,379,000 | |||||||||||
Operating income (loss) | 49,913,000 | 1,063,000 | 64,945,000 | (8,123,000 | ) | 107,798,000 | ||||||||||||
Interest income and other (expense) | 89,000 | (8,000 | ) | 43,000 | 2,297,000 | 2,421,000 | ||||||||||||
Interest expense | 562,000 | — | 10,000 | 7,843,000 | 8,415,000 | |||||||||||||
Depreciation and amortization | 11,241,000 | 4,576,000 | 6,282,000 | 5,602,000 | 27,701,000 | |||||||||||||
Expenditure for long-lived assets, including intangibles | 10,607,000 | 1,069,000 | 922,000 | 43,000 | 12,641,000 | |||||||||||||
Total assets at July 31, 2011 | 252,839,000 | 98,261,000 | 31,265,000 | 555,144,000 | 937,509,000 | |||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Jul. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Future minimum lease payments, net of subleases | ||||
2014 | $ | 5,807,000 | ||
2015 | 4,497,000 | |||
2016 | 4,875,000 | |||
2017 | 3,889,000 | |||
2018 | 3,499,000 | |||
Thereafter | 3,418,000 | |||
Total | $ | 25,985,000 | ||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||||||||
Jul. 31, 2013 | |||||||||||||||
Goodwill [Abstract] | |||||||||||||||
Schedule of goodwill by segment | |||||||||||||||
Telecommunications | RF Microwave | Mobile Data | Total | ||||||||||||
Transmission | Amplifiers | Communications | |||||||||||||
Goodwill | $ | 107,779,000 | 29,575,000 | 13,249,000 | $ | 150,603,000 | |||||||||
Accumulated impairment | — | — | (13,249,000 | ) | (13,249,000 | ) | |||||||||
Balance | $ | 107,779,000 | 29,575,000 | — | $ | 137,354,000 | |||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||||||||
Jul. 31, 2013 | ||||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||||
Intangible assets with finite lives | ||||||||||||||
July 31, 2013 | ||||||||||||||
Weighted Average | Gross Carrying | Accumulated | Net Carrying | |||||||||||
Amortization Period | Amount | Amortization | Amount | |||||||||||
Technologies | 11.7 | $ | 47,494,000 | 33,264,000 | $ | 14,230,000 | ||||||||
Customer relationships | 10 | 29,831,000 | 15,081,000 | 14,750,000 | ||||||||||
Trademarks and other | 20 | 5,944,000 | 2,419,000 | 3,525,000 | ||||||||||
Total | $ | 83,269,000 | 50,764,000 | $ | 32,505,000 | |||||||||
July 31, 2012 | ||||||||||||||
Weighted Average | Gross Carrying | Accumulated | Net Carrying | |||||||||||
Amortization Period | Amount | Amortization | Amount | |||||||||||
Technologies | 11.7 | $ | 47,694,000 | 30,321,000 | $ | 17,373,000 | ||||||||
Customer relationships | 10 | 29,931,000 | 12,231,000 | 17,700,000 | ||||||||||
Trademarks and other | 20 | 6,044,000 | 2,284,000 | 3,760,000 | ||||||||||
Total | $ | 83,669,000 | 44,836,000 | $ | 38,833,000 | |||||||||
Unaudited_Quarterly_Financial_1
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||
Jul. 31, 2013 | |||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||
Unaudited Quarterly Financial Data | |||||||||||||||||||
Fiscal 2013 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | ||||||||||||||
Net sales | $ | 90,953,000 | 74,577,000 | 69,856,000 | 84,411,000 | 319,797,000 | |||||||||||||
Gross profit | 41,803,000 | 32,240,000 | 31,427,000 | 35,360,000 | 140,830,000 | ||||||||||||||
Net income | 7,435,000 | 2,365,000 | 2,852,000 | 5,156,000 | 17,808,000 | ||||||||||||||
Diluted income per share | 0.36 | 0.14 | 0.17 | 0.28 | 0.97 | * | |||||||||||||
Fiscal 2012 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | ||||||||||||||
Net sales | $ | 113,361,000 | 99,141,000 | 99,793,000 | 112,775,000 | 425,070,000 | |||||||||||||
Gross profit | 51,280,000 | 41,416,000 | 41,678,000 | 49,135,000 | 183,509,000 | ||||||||||||||
Net income | 12,601,000 | 5,821,000 | 6,066,000 | 7,928,000 | 32,416,000 | ||||||||||||||
Diluted income per share | 0.47 | 0.27 | 0.29 | 0.38 | 1.42 | * | |||||||||||||
Fiscal 2011 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | ||||||||||||||
Net sales | $ | 178,160,000 | 162,811,000 | 131,081,000 | 140,327,000 | 612,379,000 | |||||||||||||
Gross profit | 64,234,000 | 60,910,000 | 56,971,000 | 58,931,000 | 241,046,000 | ||||||||||||||
Net income | 25,656,000 | 16,096,000 | 14,255,000 | 11,888,000 | 67,895,000 | ||||||||||||||
Diluted income per share | 0.79 | 0.52 | 0.47 | 0.42 | 2.22 | * | |||||||||||||
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts and Reserves (Tables) | 12 Months Ended | |||||||||||||||||||||||
Jul. 31, 2013 | ||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||||
Schedule of valuation and qualifying accounts and reserves | ||||||||||||||||||||||||
Column A | Column B | Column C Additions | Column D | Column E | ||||||||||||||||||||
Description | Balance at | Charged to | Charged to | Transfers | Balance at | |||||||||||||||||||
beginning of | cost and | other accounts | (deductions) | end of | ||||||||||||||||||||
period | expenses | - describe | - describe | period | ||||||||||||||||||||
Allowance for doubtful accounts receivable: | ||||||||||||||||||||||||
Year ended July 31, | ||||||||||||||||||||||||
2013 | $ | 1,588,000 | (422,000 | ) | (A) | — | (563,000 | ) | (B) | $ | 603,000 | |||||||||||||
2012 | 1,220,000 | 458,000 | (A) | — | (90,000 | ) | (B) | 1,588,000 | ||||||||||||||||
2011 | 1,127,000 | 244,000 | (A) | — | (151,000 | ) | (B) | 1,220,000 | ||||||||||||||||
Inventory reserves: | ||||||||||||||||||||||||
Year ended July 31, | ||||||||||||||||||||||||
2013 | $ | 16,286,000 | 2,810,000 | (C) | — | (2,870,000 | ) | (E) | $ | 16,226,000 | ||||||||||||||
2012 | 13,316,000 | 3,862,000 | (C) | 2,776,000 | (D) | (3,668,000 | ) | (E) | 16,286,000 | |||||||||||||||
2011 | 13,791,000 | 4,091,000 | (C) | — | (4,566,000 | ) | (E) | 13,316,000 | ||||||||||||||||
Valuation allowance for deferred tax assets: | ||||||||||||||||||||||||
Year ended July 31, | ||||||||||||||||||||||||
2013 | $ | 1,162,000 | 1,063,000 | (F) | — | — | $ | 2,225,000 | ||||||||||||||||
2012 | 1,162,000 | — | — | — | 1,162,000 | |||||||||||||||||||
2011 | 1,162,000 | — | — | — | 1,162,000 | |||||||||||||||||||
(A) | (Benefit from) provision for doubtful accounts. | |||||||||||||||||||||||
(B) | Write-off of uncollectible receivables. | |||||||||||||||||||||||
(C) | Provision for excess and obsolete inventory. | |||||||||||||||||||||||
(D) | Reclassification of contract loss accrued in fiscal 2011. | |||||||||||||||||||||||
(E) | Write-off of inventory. | |||||||||||||||||||||||
(F) | Change in valuation allowance. |
Summary_of_Significant_Account3
Summary of Significant Accounting and Reporting Policies (Narrative) (Details) (USD $) | 12 Months Ended | |||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2010 | |
Net sales from firm fixed-price contracts as a percentage of consolidated U.S. government net sales | 85.60% | |||
Net sales from cost-reimbursable contracts as a percentage of consolidated U.S. government net sales | 14.40% | |||
Cash and cash equivalents | $356,642,000 | $367,894,000 | $558,804,000 | $607,594,000 |
Research and development expenses reimbursed by customers | 5,172,000 | 5,665,000 | 10,703,000 | |
Measurement of uncertain tax position, percentage that likelihood of tax benefit being realized upon ultimate settlement must be greater than | 50.00% | |||
Debt instrument fair value | 208,080,000 | 211,920,000 | ||
Amount invested in money market mutual funds disclosed at fair value. | 50,182,000 | 84,610,000 | ||
Minimum [Member] | ||||
Machinery and equipment, estimated useful lives | 3 years | |||
Maximum [Member] | ||||
Machinery and equipment, estimated useful lives | 8 years | |||
Acquisition of Stampede Technologies, Inc. [Member] | ||||
Business acquisition, contingent consideration, at fair value | $288,000 | $3,519,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting and Reporting Policies (Nature of Business) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2011 | Jul. 31, 2011 | Apr. 30, 2011 | Jan. 31, 2011 | Oct. 31, 2010 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Net sales | $84,411,000 | $69,856,000 | $74,577,000 | $90,953,000 | $112,775,000 | $99,793,000 | $99,141,000 | $113,361,000 | $140,327,000 | $131,081,000 | $162,811,000 | $178,160,000 | $319,797,000 | $425,070,000 | $612,379,000 |
BFT-1 Sustainment Contract [Member] | Current Contract, Definitized [Member] | |||||||||||||||
Length of contract | 2 years | ||||||||||||||
Contract value, not to exceed amount | 43,629,000 | ||||||||||||||
Intellectual property license fee included in contract value, annual amount | 10,000,000 | ||||||||||||||
Maximum number of years that the intellectual property licensing agreement can be extended at customer's option | 5 years | ||||||||||||||
Maximum extension of the intellectual property licensing agreement at customer's option, end date | 31-Mar-17 | ||||||||||||||
BFT-1 Sustainment Contract [Member] | Current Contract, Definitized [Member] | Year One [Member] | |||||||||||||||
Performance period, start date | 1-Apr-12 | ||||||||||||||
Performance period, end date | 31-Mar-13 | ||||||||||||||
Contract value, not to exceed amount | 22,773,000 | ||||||||||||||
BFT-1 Sustainment Contract [Member] | Current Contract, Definitized [Member] | Year Two [Member] | |||||||||||||||
Performance period, start date | 1-Apr-13 | ||||||||||||||
Performance period, end date | 31-Mar-14 | ||||||||||||||
Contract value, not to exceed amount | 20,856,000 | ||||||||||||||
BFT-1 Sustainment Contract [Member] | Prior Contract [Member] | |||||||||||||||
Length of contract | 3 years | ||||||||||||||
Contract value, not to exceed amount | 80,731,000 | ||||||||||||||
Mobile Data Communications Segment [Member] | |||||||||||||||
Net sales | 38,215,000 | 112,567,000 | 288,449,000 | ||||||||||||
Mobile Data Communications Segment [Member] | US Army MTS And BFT-1 Programs [Member] | |||||||||||||||
Net sales | $29,061,000 | $87,769,000 | $248,578,000 | ||||||||||||
Net sales from long-term contracts as a percentage of segment net sales | 76.00% | 78.00% | 86.20% | ||||||||||||
Net sales from long-term contracts as a percentage of consolidated net sales | 9.10% | 20.60% | 40.60% |
Summary_of_Significant_Account5
Summary of Significant Accounting and Reporting Policies (Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2011 | Jul. 31, 2011 | Apr. 30, 2011 | Jan. 31, 2011 | Oct. 31, 2010 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Accounting Policies [Abstract] | |||||||||||||||
Net income for basic calculation | $5,156,000 | $2,852,000 | $2,365,000 | $7,435,000 | $7,928,000 | $6,066,000 | $5,821,000 | $12,601,000 | $11,888,000 | $14,255,000 | $16,096,000 | $25,656,000 | $17,808,000 | $32,416,000 | $67,895,000 |
Interest expense (net of tax) on 3.0% convertible senior notes | 4,468,000 | 4,468,000 | 4,468,000 | ||||||||||||
Numerator for diluted calculation | $22,276,000 | $36,884,000 | $72,363,000 | ||||||||||||
Denominator for basic calculation (in shares) | 16,963,000 | 19,995,000 | 26,842,000 | ||||||||||||
Dilutive effect on shares of stock-based awards (in shares) | 91,000 | 228,000 | 215,000 | ||||||||||||
Dilutive effect on shares of conversion of 3.0% convertible senior notes (in shares) | 6,010,000 | 5,768,000 | 5,566,000 | ||||||||||||
Denominator for diluted calculation (in shares) | 23,064,000 | 25,991,000 | 32,623,000 | ||||||||||||
Weighted average performance shares outstanding during the period that are excluded from EPS calculation | 39,000 | 5,000 | |||||||||||||
Reduction in weighted average shares as a result of the repurchase of common shares | 453,000 | 4,350,000 | 1,781,000 | ||||||||||||
Stock-based Awards [Member] | |||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||
Antidilutive equity-classified stock-based awards not included in calculation of diluted earnings per share (in shares) | 2,701,000 | 2,169,000 | 2,486,000 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | 36 Months Ended | |||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Oct. 31, 2010 | |
Business Acquisition [Line Items] | |||||
Benefit related to a change in fair value of contingent earn-out liability | $3,267,000 | $918,000 | $0 | ||
Payment of contingent consideration related to business acquisition | 97,000 | 195,000 | 24,000 | ||
Acquisition of Stampede Technologies, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Effective date of acquisition | 1-Oct-10 | ||||
Name of Acquired Entity | Stampede Technologies, Inc. | ||||
Aggregate purchase price | 5,303,000 | ||||
Finite-lived intangible asset, useful life | 5 years | ||||
Business acquisition, contingent consideration, at fair value | 288,000 | 3,519,000 | 288,000 | ||
Contingent earn-out period end date | 1-Oct-13 | ||||
Benefit related to a change in fair value of contingent earn-out liability | 3,267,000 | 918,000 | 0 | ||
Purchase price paid in cash as of the balance sheet date | 1,816,000 | 1,816,000 | |||
Payment of contingent consideration related to business acquisition | 316,000 | ||||
Business acquisition contingent consideration interest accretion expense | $133,000 | $462,000 | $391,000 | $986,000 | |
Technologies [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible asset, useful life | 11 years 8 months 12 days | 11 years 8 months 12 days |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
Total accounts receivable | $50,518,000 | $57,830,000 |
Less: Allowance for doubtful accounts | 603,000 | 1,588,000 |
Accounts receivable, net | 49,915,000 | 56,242,000 |
Unbilled receivables on contracts-in-progress due from U.S. government and its agencies | 699,000 | 3,320,000 |
Retainage included in unbilled receivables | 0 | 0 |
Billed Receivables [Member] | Commercial Customers [Member] | ||
Total accounts receivable | 40,005,000 | 41,139,000 |
Billed Receivables [Member] | U.S. Government and Its Agencies [Member] | ||
Total accounts receivable | 8,114,000 | 11,927,000 |
Unbilled Receivables on Contracts-In-Progress [Member] | ||
Total accounts receivable | $2,399,000 | $4,764,000 |
Inventories_Details
Inventories (Details) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
Inventory Disclosure [Abstract] | ||
Raw materials and components | $52,169,000 | $55,404,000 |
Work-in-process and finished goods | 29,539,000 | 33,243,000 |
Total Inventories | 81,708,000 | 88,647,000 |
Less reserve for excess and obsolete inventories | 16,226,000 | 16,286,000 |
Inventories, net | 65,482,000 | 72,361,000 |
Inventory directly related to long-term contracts | 1,910,000 | 2,041,000 |
Inventory related to contracts from third party commercial customers who outsource their manufacturing to us | $592,000 | $1,070,000 |
Property_Plant_and_Equipment_D
Property Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $115,370,000 | $112,434,000 | |
Less accumulated depreciation and amortization | 95,037,000 | 89,602,000 | |
Property, plant and equipment, net | 20,333,000 | 22,832,000 | |
Depreciation and amortization | 7,837,000 | 10,205,000 | 14,253,000 |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 103,812,000 | 101,272,000 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $11,558,000 | $11,162,000 |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities (Details) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 |
Accrued Liabilities, Current [Abstract] | |||
Accrued wages and benefits | $11,526,000 | $16,467,000 | |
Accrued warranty obligations | 7,797,000 | 7,883,000 | 9,120,000 |
Accrued commissions and royalties | 4,206,000 | 3,946,000 | |
Accrued business acquisition payments | 288,000 | 1,752,000 | |
Other | 6,075,000 | 10,822,000 | |
Accrued expenses and other current liabilities | $29,892,000 | $40,870,000 |
Accrued_Expenses_and_Other_Cur3
Accrued Expenses and Other Current Liabilities (Product Warranty Rollforward) (Details) (USD $) | 12 Months Ended | |
Jul. 31, 2013 | Jul. 31, 2012 | |
Accrued Liabilities, Current [Abstract] | ||
Minimum coverage period of product warranty from the date of shipment | 1 year | |
Changes in Product Warranty Liability | ||
Accrued warranty obligations, as of the beginning of the period | $7,883,000 | $9,120,000 |
Provision for warranty obligations | 5,316,000 | 5,598,000 |
Charges incurred | -5,402,000 | -6,835,000 |
Accrued warranty obligations, as of the end of the period | $7,797,000 | $7,883,000 |
Cost_Reduction_Actions_WindDow
Cost Reduction Actions Wind-Down of Microsatellite Product Line (Details) (USD $) | 12 Months Ended | |
Jul. 31, 2013 | Jul. 31, 2012 | |
Restructuring Reserve, Noncurrent | $3,773,000 | |
Wind-Down of Microsatellite Product Line [Member] | ||
Restructuring reserve, current | 278,000 | 1,136,000 |
Restructuring Reserve, Noncurrent | 185,000 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 1,136,000 | |
Pre-tax restructuring charge (benefit) | 458,000 | 2,577,000 |
Payments made | -1,131,000 | |
Restructuring reserve, ending balance | 463,000 | 1,136,000 |
Wind-Down of Microsatellite Product Line [Member] | Cost of Sales [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Pre-tax restructuring charge (benefit) | 1,270,000 | |
Wind-Down of Microsatellite Product Line [Member] | Facility exit costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 496,000 | |
Pre-tax restructuring charge (benefit) | 644,000 | |
Payments made | -727,000 | |
Restructuring reserve, ending balance | 413,000 | |
Wind-Down of Microsatellite Product Line [Member] | Severance and related costs [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 310,000 | |
Pre-tax restructuring charge (benefit) | 76,000 | |
Payments made | -386,000 | |
Restructuring reserve, ending balance | 0 | |
Wind-Down of Microsatellite Product Line [Member] | Other [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 330,000 | |
Pre-tax restructuring charge (benefit) | -262,000 | |
Payments made | -18,000 | |
Restructuring reserve, ending balance | $50,000 |
Cost_Reduction_Actions_Summary
Cost Reduction Actions - Summary of Radyne Acquisition Related Restructuring Plan (Details) (USD $) | 3 Months Ended | |||
Oct. 31, 2008 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2008 | |
Cost Reduction Actions [Abstract] | ||||
Business acquisition restructuring costs, total estimated costs | $2,713,000 | |||
Business acquisition restructuring costs related to severance for employees | 613,000 | |||
Total non-cancelable lease obligations | 12,741,000 | |||
Less: Estimated sublease income | 8,600,000 | |||
Total net estimated facility-related exit costs | 4,141,000 | |||
Less: Interest expense to be accreted | 2,041,000 | |||
Present value of estimated facility-related exit costs | $2,100,000 | $3,331,000 | $2,916,000 | $2,100,000 |
Radyne lease expiration date | 31-Oct-18 | |||
Radyne sublease expiration date | 31-Oct-15 |
Cost_Reduction_Actions_Activit
Cost Reduction Actions - Activity of Facility Related Exit Costs (Details) (USD $) | 12 Months Ended | 57 Months Ended | |||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2008 | |
Restructuring Reserve [Roll Forward] | |||||
Present value of estimated facility-related exit costs, beginning balance | $2,916,000 | $2,100,000 | $2,100,000 | ||
Cash payments made | 1,026,000 | -5,327,000 | |||
Cash payments received | 1,224,000 | 5,722,000 | |||
Accreted interest recorded | 217,000 | 189,000 | 161,000 | 836,000 | |
Present value of estimated facility-related exit costs, ending balance | 3,331,000 | 2,916,000 | 3,331,000 | 2,100,000 | |
Amount recorded as prepaid expenses in the Consolidated Balance Sheet | 442,000 | 442,000 | |||
Amount recorded as other liabilities in the Consolidated Balance Sheet | $3,773,000 | $3,773,000 |
Cost_Reduction_Actions_Details
Cost Reduction Actions - Details of Future Cash Payments (Details) (USD $) | Jul. 31, 2013 |
Cost Reduction Actions [Abstract] | |
Future lease payments to be made in excess of anticipated sublease payments | $3,773,000 |
Less net cash to be received in next twelve months | -442,000 |
Interest expense to be accreted in future periods | 1,204,000 |
Total remaining net cash payments | $4,535,000 |
Credit_Facility_Details
Credit Facility (Details) (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Line of Credit Facility [Abstract] | |||
Line of credit facility, expiration date | 30-Apr-14 | ||
Date the credit facility may be extended to | 31-Dec-16 | ||
Line of credit facility, maximum borrowing capacity | $100,000,000 | ||
Credit facility sub-limit for commercial letters of credit | 15,000,000 | ||
Credit facility sub-limit for standby letters of credit | 35,000,000 | ||
Minimum applicable interest rate margin over LIBOR at which the revolving credit facility may bear interest | 1.75% | ||
Maximum applicable interest rate margin over LIBOR at which the revolving credit facility may bear interest | 2.50% | ||
Percentage added to the Federal Funds Effective Rate to determine a base rate | 0.50% | ||
Basis points (expressed as a %) added to the daily floating interest rate to determine a base rate | 2.00% | ||
Minimum applicable interest rate margin over the base rate at which the credit facility may bear interest | 0.75% | ||
Maximum applicable interest rate margin over the base rate at which the credit facility may bear interest | 1.50% | ||
Amount an acquisition target purchase price must exceed in order to provide for the target's historical EBITDA to be included when determining compliance with debt covenants | 10,000,000 | ||
Minimum level of total consolidated indebtedness, if maintained, that would not trigger a minimum level of Consolidated Adjusted EBITDA covenant requirement | 200,000,000 | ||
Outstanding standby letters of credit at period end | 1,248,000 | ||
Outstanding commercial letters of credit at period end | 0 | ||
Line of Credit Facility, Interest Rate at Period End | 2.70% | ||
Applicable interest rate margin over LIBOR at period end | 2.50% | ||
Interest expense related to credit facility | $726,000 | $1,089,000 | $752,000 |
3_Convertible_Senior_Notes_Det
3% Convertible Senior Notes (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Jul. 31, 2009 | Jul. 31, 2013 | |
Debt Disclosure [Abstract] | ||
Debt instrument, issuance date | 8-May-09 | |
Debt instrument, face amount | $200,000,000 | |
Net proceeds from debt issuance | 194,541,000 | |
Aggregate amount of initial purchasers' discount and other transaction costs related to debt issuance | 5,459,000 | |
Debt instrument, interest rate, stated percentage | 3.00% | |
Date of Record | 19-Jul-13 | |
Date Declared | 6-Jun-13 | |
Debt Instrument, convertible, conversion price | $32.47 | |
Debt Instrument, convertible, conversion ratio | 30.7966 | |
Original principal amount of each 3.0% convertible senior note | $1,000 | |
Debt instrument, call date, earliest | 5-May-14 | |
Debt instrument, first put date | 1-May-14 | |
Debt instrument, second put date | 1-May-19 | |
Debt instrument, third put date | 1-May-24 | |
Debt instrument, maturity date | 1-May-29 |
Income_Taxes_Income_Before_Pro
Income Taxes (Income Before Provision for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $28,930,000 | $44,930,000 | $102,159,000 |
Foreign | -1,437,000 | -890,000 | -355,000 |
Income before provision for income taxes | $27,493,000 | $44,040,000 | $101,804,000 |
Income_Taxes_Provision_for_Inc
Income Taxes (Provision for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Income Tax Disclosure [Abstract] | |||
Federal - current | $7,129,000 | $14,389,000 | $29,735,000 |
Federal - deferred | 385,000 | -4,194,000 | 683,000 |
State and local - current | 1,393,000 | 2,045,000 | 3,683,000 |
State and local - deferred | 35,000 | -380,000 | 62,000 |
Foreign - current | 48,000 | -240,000 | -270,000 |
Foreign - deferred | 695,000 | 4,000 | 16,000 |
Total provision for income taxes | $9,685,000 | $11,624,000 | $33,909,000 |
Income_Taxes_Provision_for_Inc1
Income Taxes (Provision for Income Taxes Differed from Amounts Computed by the U.S. Federal Income Tax Rate) (Details) (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Income Tax Disclosure [Abstract] | |||
Computed expected tax expense | $9,623,000 | $15,414,000 | $35,632,000 |
Computed expected tax rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of Federal benefit | 782,000 | 995,000 | 2,614,000 |
State and local income taxes, net of Federal benefit effective tax rate | 2.80% | 2.30% | 2.60% |
Nondeductible stock-based compensation | 71,000 | 86,000 | 94,000 |
Effective income tax rate reconciliation, nondeductible expense, share-based compensation cost | 0.30% | 0.20% | 0.10% |
Domestic production activities deduction | -1,344,000 | -1,436,000 | -2,893,000 |
Effective income tax rate reconciliation, deductions, qualified production activities | -4.90% | -3.30% | -2.90% |
Research and experimentation credits | -888,000 | -241,000 | -1,255,000 |
Effective income tax rate reconciliation, tax credits, research | -3.20% | -0.50% | -1.30% |
Change in the beginning of the year valuation allowance for deferred tax assets | 693,000 | 0 | 0 |
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance | 2.50% | 0.00% | 0.00% |
Income tax reconciliation, tax settlements | -141,000 | -2,841,000 | 20,000 |
Effective income tax rate reconciliation, tax settlements | -0.50% | -6.50% | 0.10% |
Foreign income taxes | 640,000 | 99,000 | 151,000 |
Effective income tax rate reconciliation, foreign income tax rate differential | 2.30% | 0.20% | 0.20% |
Other | 249,000 | -452,000 | -454,000 |
Effective income tax rate reconciliation, other adjustments | 0.90% | -1.00% | -0.50% |
Total provision for income taxes | $9,685,000 | $11,624,000 | $33,909,000 |
Income tax effective tax rate, continuing operations | 35.20% | 26.40% | 33.30% |
Income_Taxes_Tax_Effects_of_Te
Income Taxes (Tax Effects of Temporary Differences) (Details) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 |
Deferred tax assets | ||
Allowance for doubtful accounts receivable | $217,000 | $576,000 |
Inventory and warranty reserves | 7,559,000 | 7,684,000 |
Compensation and commissions | 1,705,000 | 1,890,000 |
State and foreign research and experimentation credits | 2,736,000 | 1,691,000 |
Stock-based compensation | 8,068,000 | 10,133,000 |
Net operating losses | 0 | 101,000 |
Other | 2,478,000 | 4,922,000 |
Less valuation allowance | -2,225,000 | -1,162,000 |
Total deferred tax assets | 20,538,000 | 25,835,000 |
Deferred tax liabilities | ||
Plant and equipment | -1,424,000 | -2,137,000 |
Intangibles | -10,187,000 | -11,077,000 |
Total deferred tax liabilities | 11,611,000 | 13,214,000 |
Net deferred tax assets | $8,927,000 | $12,621,000 |
Income_Taxes_Summary_of_Unreco
Income Taxes (Summary of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
Jul. 31, 2013 | Jul. 31, 2012 | |
Activity Related to Unrecognized Tax Benefits [Roll Forward] | ||
Beginning Balance | $2,529,000 | $6,763,000 |
Increase related to current period | 585,000 | 432,000 |
Increase related to prior periods | 175,000 | 417,000 |
Expiration of statute of limitations | -207,000 | -1,401,000 |
Decrease related to prior periods | -209,000 | -3,309,000 |
Settlements with taxing authorities | 0 | -373,000 |
Ending Balance | $2,873,000 | $2,529,000 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | Jul. 31, 2013 | Jul. 31, 2012 | Aug. 01, 2005 |
Income Tax Disclosure [Abstract] | |||
Foreign research and experimentation credits | $484,000 | ||
Minimum taxable income in the future to fully utilize gross deferred tax assets | 62,100,000 | ||
Hypothetical tax benefits related to stock-based awards | 19,981,000 | 22,786,000 | 8,593,000 |
Total unrecognized tax benefit recorded as non-current income taxes payable | 2,963,000 | 2,624,000 | |
Interest accrued relating to income taxes | 90,000 | 95,000 | |
Unrecognized tax benefits that would positively impact our effective tax rate, if recognized | $2,348,000 | $1,990,000 |
Overview_Details
Overview (Details) | 12 Months Ended |
Jul. 31, 2013 | |
2000 Stock Incentive Plan [Member] | |
Stock-Based Awards Outstanding By Award Type (In Shares) | |
Number of total stock-based awards outstanding | 3,150,244 |
2000 Stock Incentive Plan | |
Aggregate maximum number of shares of common stock which may be issued under stock option plan | 8,962,500 |
Maximum term for incentive stock-based awards granted to stockholders who own more than 10% of the voting power | 5 years |
Percentage of a stockholder's voting power that limits the contractual term of an incentive stock-based award | 10.00% |
Aggregate net number of stock-based awards granted | 6,972,337 |
Aggregate number of stock based awards expired and canceled | 2,282,000 |
Aggregate number of stock-based awards exercised | 3,822,093 |
2000 Stock Incentive Plan [Member] | Stock Options [Member] | |
Stock-Based Awards Outstanding By Award Type (In Shares) | |
Number of stock-based awards outstanding at period end | 3,031,910 |
2000 Stock Incentive Plan | |
Maximum term for grants of incentive and non-qualified stock-based awards, excluding incentive stock-based awards granted to stockholders who own more than 10% of the voting power | 10 years |
2000 Stock Incentive Plan [Member] | Performance Shares [Member] | |
Stock-Based Awards Outstanding By Award Type (In Shares) | |
Number of stock-based awards outstanding at period end | 63,661 |
2000 Stock Incentive Plan [Member] | RSUs and restricted stock [Member] | |
Stock-Based Awards Outstanding By Award Type (In Shares) | |
Number of stock-based awards outstanding at period end | 37,326 |
2000 Stock Incentive Plan [Member] | Stock units [Member] | |
Stock-Based Awards Outstanding By Award Type (In Shares) | |
Number of stock-based awards outstanding at period end | 1,347 |
2000 Stock Incentive Plan [Member] | Stock appreciation rights (SARs) [Member] | |
Stock-Based Awards Outstanding By Award Type (In Shares) | |
Number of stock-based awards outstanding at period end | 16,000 |
2001 Employee Stock Purchase Plan [Member] | |
2001 Employee Stock Purchase Plan | |
Total number of common shares reserved for issuance under employee stock purchase plan | 675,000 |
Discount rate from market value, on purchase date, offered to employees participating in the Employee Stock Purchase Plan (ESPP) | 85.00% |
Total number of shares of common stock issued to employees under employee stock purchase plan and through the end of the reporting period | 516,172 |
StockBased_Compensation_StockB
Stock-Based Compensation Stock-Based Compensation Expenses (Details) (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Stock-based Compensation Expenses | |||
Stock-based compensation expense before income tax benefit | $3,130,000 | $3,572,000 | $5,357,000 |
Estimated Income tax benefit | -1,198,000 | -1,308,000 | -1,913,000 |
Net stock-based compensation expense | 1,932,000 | 2,264,000 | 3,444,000 |
Total remaining unrecognized compensation cost related to the unvested stock-based awards | 8,516,000 | ||
Estimated forfeitures related to unvested stock-based awards | 814,000 | ||
Weighted average number of years net compensation cost is expected to be recognized over | 3 years 4 months 24 days | ||
Stock-based compensation capitalized and included in ending inventory | 72,000 | 48,000 | |
Cost of Sales [Member] | |||
Stock-based Compensation Expenses | |||
Stock-based compensation expense before income tax benefit | 174,000 | 284,000 | 410,000 |
Selling, General and Administrative Expenses [Member] | |||
Stock-based Compensation Expenses | |||
Stock-based compensation expense before income tax benefit | 2,470,000 | 2,716,000 | 3,976,000 |
Research and Development Expense [Member] | |||
Stock-based Compensation Expenses | |||
Stock-based compensation expense before income tax benefit | 486,000 | 572,000 | 971,000 |
Stock Options [Member] | |||
Stock-based Compensation Expenses | |||
Stock-based compensation expense before income tax benefit | 2,400,000 | 3,279,000 | 5,139,000 |
Performance Shares [Member] | |||
Stock-based Compensation Expenses | |||
Stock-based compensation expense before income tax benefit | 382,000 | 52,000 | 0 |
Employee Stock Purchase Plan - ESPP [Member] | |||
Stock-based Compensation Expenses | |||
Stock-based compensation expense before income tax benefit | 189,000 | 232,000 | 270,000 |
Discount offered to employees participating in the ESPP as a percentage of market price | 15.00% | ||
Stock Appreciation Rights (SARs) [Member] | |||
Stock-based Compensation Expenses | |||
Stock-based compensation expense before income tax benefit | -5,000 | -16,000 | -52,000 |
Accrued expense related to the cash settlement of liability-classified stock appreciation rights | 1,000 | 6,000 | |
RSUs and restricted stock [Member] | |||
Stock-based Compensation Expenses | |||
Stock-based compensation expense before income tax benefit | 140,000 | 13,000 | 0 |
Stock units [Member] | |||
Stock-based Compensation Expenses | |||
Stock-based compensation expense before income tax benefit | $24,000 | $12,000 | $0 |
StockBased_Compensation_Income
Stock-Based Compensation Income Tax Benefit From Stock-based Awards (Details) (USD $) | 12 Months Ended | |||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Aug. 01, 2005 | |
Income Tax Benefits From Stock Based Awards [Abstract] | ||||
Actual income tax benefit recorded for the tax deductions relating to the settlement of stock-based awards | $420,000 | $438,000 | $306,000 | |
Less: Tax benefit initially recognized on settled stock-based awards vesting subsequent to the adoption of accounting standards that require us to expense stock-based awards, excluding income tax shortfalls | 155,000 | 197,000 | 81,000 | |
Excess income tax benefit recorded as an increase to additional paid in capital | 265,000 | 241,000 | 225,000 | |
Less: Tax benefit initially disclosed but not previously recognized on settled equity-classified stock-based awards vesting prior to the adoption of accounting standards that require us to expense stock-based awards | 0 | 10,000 | 0 | |
Excess tax benefit from settled equity-classified stock-based awards reported as a cash flow from financing activities in our Consolidated Statements of Cash Flows | 265,000 | 231,000 | 225,000 | |
Hypothetical tax benefits related to stock-based awards | 19,981,000 | 22,786,000 | 8,593,000 | |
Net reduction to APIC and hypothetical tax benefits, primarily due to the reversal of unrealized DTA associated with certain vested equity-classified stock-based awards that expired during the period | $2,805,000 | $1,332,000 | $1,838,000 |
StockBased_Compensation_Stock_
Stock-Based Compensation Stock Options (Details) (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Additional Disclosures | |||
Targeted annual dividend per share | $1.10 | $1.10 | $1 |
Stock options and SARs [Member] | |||
Awards (In Shares) | |||
Outstanding, Beginning Balance | 3,458,403 | 3,580,168 | 3,520,667 |
Granted | 296,525 | 423,528 | 680,750 |
Expired/canceled | -616,135 | -390,148 | -481,364 |
Exercised | -90,883 | -155,145 | -139,885 |
Outstanding, Ending Balance | 3,047,910 | 3,458,403 | 3,580,168 |
Exercisable, Ending Balance | 1,896,030 | ||
Vested and Expected to Vest, Ending Balance | 2,945,608 | ||
Weighted Average Exercise Price (Per Share) | |||
Outstanding, Beginning Balance | $31.61 | $31.86 | $32.75 |
Granted | $26.07 | $29.24 | $27.64 |
Expired/canceled | $39.96 | $35.71 | $35.79 |
Exercised | $13.01 | $20.64 | $20.29 |
Outstanding, Ending Balance | $29.94 | $31.61 | $31.86 |
Exercisable, Ending Balance | $31.18 | ||
Vested and Expected to Vest, Ending Balance | $30 | ||
Weighted Average Remaining Contractual Term (Years) | |||
Outstanding, Ending Balance | 4 years 9 months 26 days | ||
Exercisable, Ending Balance | 2 years 8 months 23 days | ||
Vested And Expected To Vest, Ending Balance | 4 years 8 months 12 days | ||
Aggregated Intrinsic Value | |||
Outstanding, Ending Balance | $2,198,000 | ||
Exercisable, Ending Balance | 1,895,000 | ||
Vested and Expected to Vest, Ending Balance | 2,182,000 | ||
Additional Disclosures | |||
Exercise price, lower range limit | $11.67 | ||
Exercise price, upper range limit | $48.89 | ||
Total intrinsic value of stock-based awards exercised | $1,272,000 | $1,654,000 | $1,177,000 |
Stock Options [Member] | |||
Additional Disclosures | |||
Per share weighted average grant date fair value of stock based awards granted | $4.45 | $6.53 | $6.51 |
Fair Value Assumptions | |||
Expected dividend yield | 4.22% | 3.76% | 3.62% |
Expected volatility | 30.09% | 36.63% | 36.31% |
Risk-free interest rate | 1.02% | 0.64% | 1.58% |
Expected life (in years) | 5 years 4 months 21 days | 5 years 3 months 15 days | 5 years 1 month 6 days |
Stock Options [Member] | Stock-based Awards with Five Year Contractual Term [Member] | |||
Additional Disclosures | |||
Contractual term (in years) | 5 years | 5 years | 5 years |
Vesting period (in years) | 3 years | 3 years | 3 years |
Stock Options [Member] | Stock-based Awards with Ten Year Contractual Term [Member] | |||
Additional Disclosures | |||
Contractual term (in years) | 10 years | 10 years | 10 years |
Vesting period (in years) | 5 years | 5 years | 5 years |
StockBased_Compensation_Perfor
Stock-Based Compensation Performance Shares, RSUs, Restricted Stock and Stock Unit Awards (Details) (USD $) | 12 Months Ended | |
Jul. 31, 2013 | Jul. 31, 2012 | |
Performance Shares, RSUs, Restricted Stock and Stock Units [Member] | ||
Awards (In Shares) | ||
Outstanding, Beginning Balance | 48,081 | 0 |
Granted | 54,253 | 48,081 |
Converted to common stock | 0 | 0 |
Forfeited | 0 | 0 |
Outstanding, Ending Balance | 102,334 | 48,081 |
Vested, Ending Balance | 4,515 | |
Vested and Expected to Vest, Ending Balance | 98,174 | |
Weighted Average Grant Date Fair Value | ||
Outstanding, Beginning Balance | $26.28 | $0 |
Granted | $25.37 | $26.28 |
Converted to common stock | $0 | $0 |
Forfeited | $0 | $0 |
Outstanding, Ending Balance | $25.80 | $26.28 |
Vested, Ending Balance | $26.71 | |
Vested and Expected to Vest, Ending Balance | $25.80 | |
Aggregate Intrinsic Value | ||
Outstanding, Ending Balance | $2,771,000 | |
Vested, Ending Balance | 122,000 | |
Vested and Expected to Vest, Ending Balance | $2,659,000 | |
Shares Vested and Issued In Subsequent Period | ||
Granted | 54,253 | 48,081 |
Performance Shares [Member] | Subsequent Event [Member] | ||
Awards (In Shares) | ||
Granted | 35,003 | |
Shares Vested and Issued In Subsequent Period | ||
Date that the Board of Directors determined the pre-established performance goal has been met | 2-Oct-13 | |
Granted | 35,003 | |
Vested | 6,996 | |
Shares converted into common stock, net of minimum tax withholding and deferral requirements | 3,496 | |
Performance Shares [Member] | Employees [Member] | ||
Additional Disclosures | ||
Vesting period (in years) | 5 years 3 months 19 days | |
RSUs and restricted stock [Member] | Non-Employee Director [Member] | ||
Additional Disclosures | ||
Vesting period (in years) | 3 years | |
RSUs and restricted stock [Member] | Employees [Member] | ||
Additional Disclosures | ||
Vesting period (in years) | 5 years |
StockBased_Compensation_StockB1
Stock-Based Compensation Stock-Based Awards Granted in Subsequent Period (Details) (Subsequent Event [Member], USD $) | 12 Months Ended |
Jul. 31, 2013 | |
Subsequent Event [Line Items] | |
Total unrecognized stock-based compensation, net of estimated forfeitures and assuming achievement of the pre-established performance goal at a target level, related to stock-based awards authorized for issuance. | 2,728,000 |
Stock Options [Member] | |
Subsequent Event [Line Items] | |
Date that the Board of Directors authorized the stock-based awards for issuance | 1-Aug-13 |
Number of stock-based awards authorized for issuance | 245,000 |
Vesting period (in years) | 5 years |
Contractual term (in years) | 10 years |
Performance Shares [Member] | |
Subsequent Event [Line Items] | |
Date that the Board of Directors authorized the stock-based awards for issuance | 2-Oct-13 |
Number of stock-based awards authorized for issuance | 62,834 |
Performance period (in years) | 3 years |
Customer_and_Geographic_Inform2
Customer and Geographic Information (Details) (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Revenue from External Customers [Line Items] | |||
International sales, including sales to U.S. domestic companies for inclusion in products sold to international customers | $160,217,000 | $164,503,000 | $184,848,000 |
Minimum percentage of consolidated net sales sold to one customer or individual country requiring additional and separate disclosure | 10.00% | 10.00% | 10.00% |
U S Government [Member] | |||
Revenue from External Customers [Line Items] | |||
Percentage of revenue generated from external customer type | 34.70% | 48.90% | 61.70% |
Commercial (United States) [Member] | |||
Revenue from External Customers [Line Items] | |||
Percentage of revenue generated from external customer type | 15.20% | 12.40% | 8.10% |
Total United States Sales [Member] | |||
Revenue from External Customers [Line Items] | |||
Percentage of revenue generated from external customer type | 49.90% | 61.30% | 69.80% |
International Sales [Member] | |||
Revenue from External Customers [Line Items] | |||
Percentage of revenue generated from external customer type | 50.10% | 38.70% | 30.20% |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||
Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2011 | Jul. 31, 2011 | Apr. 30, 2011 | Jan. 31, 2011 | Oct. 31, 2010 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Oct. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
operating_segment | operating_segment | operating_segment | Telecommunications Transmission Segment [Member] | Telecommunications Transmission Segment [Member] | Telecommunications Transmission Segment [Member] | RF Microwave Amplifiers Segment [Member] | RF Microwave Amplifiers Segment [Member] | RF Microwave Amplifiers Segment [Member] | Mobile Data Communications Segment [Member] | Mobile Data Communications Segment [Member] | Mobile Data Communications Segment [Member] | Mobile Data Communications Segment [Member] | Unallocated [Member] | Unallocated [Member] | Unallocated [Member] | Telecommunications Transmission Sales to RF Microwave Amplifiers [Member] | Telecommunications Transmission Sales to RF Microwave Amplifiers [Member] | Telecommunications Transmission Sales to RF Microwave Amplifiers [Member] | Telecommunications Transmissions Sales to Mobile Data Communications [Member] | Telecommunications Transmissions Sales to Mobile Data Communications [Member] | Telecommunications Transmissions Sales to Mobile Data Communications [Member] | RF Microwave Amplifiers Sales to Telecommunications Transmission [Member] | RF Microwave Amplifiers Sales to Telecommunications Transmission [Member] | RF Microwave Amplifiers Sales to Telecommunications Transmission [Member] | |||||||||||||
Sale of SENS Technology and Products | |||||||||||||||||||||||||||||||||||||
Segment Reporting Information | |||||||||||||||||||||||||||||||||||||
Number of operating segments | 3 | 3 | 3 | ||||||||||||||||||||||||||||||||||
Segment Reporting Information, Profit (Loss) | |||||||||||||||||||||||||||||||||||||
Net sales | $84,411,000 | $69,856,000 | $74,577,000 | $90,953,000 | $112,775,000 | $99,793,000 | $99,141,000 | $113,361,000 | $140,327,000 | $131,081,000 | $162,811,000 | $178,160,000 | $319,797,000 | $425,070,000 | $612,379,000 | $194,643,000 | $210,006,000 | $231,957,000 | $86,939,000 | $102,497,000 | $91,973,000 | $38,215,000 | $112,567,000 | $288,449,000 | $0 | $0 | $0 | ||||||||||
Operating Income (loss) | 34,489,000 | 51,277,000 | 107,798,000 | 31,686,000 | 41,709,000 | 49,913,000 | 4,104,000 | 7,622,000 | 1,063,000 | 12,288,000 | 19,924,000 | 64,945,000 | -13,589,000 | -17,978,000 | -8,123,000 | ||||||||||||||||||||||
Interest income and other (expense) | 1,167,000 | 1,595,000 | 2,421,000 | -38,000 | 42,000 | 89,000 | -42,000 | -21,000 | -8,000 | 18,000 | 30,000 | 43,000 | 1,229,000 | 1,544,000 | 2,297,000 | ||||||||||||||||||||||
Interest expense | 8,163,000 | 8,832,000 | 8,415,000 | 352,000 | 651,000 | 562,000 | 0 | 0 | 0 | -7,000 | 0 | 10,000 | 7,818,000 | 8,181,000 | 7,843,000 | ||||||||||||||||||||||
Depreciation and amortization | 17,295,000 | 20,414,000 | 27,701,000 | 9,591,000 | 10,088,000 | 11,241,000 | 3,939,000 | 4,395,000 | 4,576,000 | 500,000 | 2,173,000 | 6,282,000 | 3,265,000 | 3,758,000 | 5,602,000 | ||||||||||||||||||||||
Expenditure for long-lived assets, including intangibles | 5,347,000 | 6,413,000 | 12,641,000 | 4,179,000 | 5,490,000 | 10,607,000 | 842,000 | 733,000 | 1,069,000 | 317,000 | 190,000 | 922,000 | 9,000 | 0 | 43,000 | ||||||||||||||||||||||
Total assets | 681,815,000 | 719,778,000 | 937,509,000 | 681,815,000 | 719,778,000 | 937,509,000 | 225,626,000 | 244,285,000 | 252,839,000 | 96,298,000 | 98,864,000 | 98,261,000 | 7,873,000 | 11,217,000 | 31,265,000 | 352,018,000 | 365,412,000 | 555,144,000 | |||||||||||||||||||
Intersegment sales | 2,312,000 | 5,378,000 | 3,810,000 | 2,656,000 | 11,161,000 | 36,959,000 | 9,000 | 382,000 | 90,000 | ||||||||||||||||||||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes | |||||||||||||||||||||||||||||||||||||
Benefit related to a change in fair value of contingent earn-out liability | 3,267,000 | 918,000 | 0 | 3,267,000 | 918,000 | ||||||||||||||||||||||||||||||||
Restructuring charges related to the wind-down of microsatellite product line | 458,000 | 2,577,000 | |||||||||||||||||||||||||||||||||||
Costs related to a withdrawn contested proxy solicitation | 2,638,000 | ||||||||||||||||||||||||||||||||||||
Merger termination fee, net | 0 | 0 | 12,500,000 | 12,500,000 | |||||||||||||||||||||||||||||||||
Amortization of stock-based compensation | 3,130,000 | 3,572,000 | 5,357,000 | 3,130,000 | 3,572,000 | 5,357,000 | |||||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||
Disposal date | 1-Oct-13 | ||||||||||||||||||||||||||||||||||||
Sale of certain SENS technology and products | $2,000,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | 24 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | |
Future Minimum Lease Payments, Net Of Subleases, Under Operating Leases | ||||
2014 | $5,807,000 | $5,807,000 | ||
2015 | 4,497,000 | 4,497,000 | ||
2016 | 4,875,000 | 4,875,000 | ||
2017 | 3,889,000 | 3,889,000 | ||
2018 | 3,499,000 | 3,499,000 | ||
Thereafter | 3,418,000 | 3,418,000 | ||
Total | 25,985,000 | 25,985,000 | ||
Lease Expense | ||||
Lease expense charged to operations | 5,983,000 | 7,060,000 | 6,891,000 | |
Defense Contract Audit Agency (DCAA) Adit | ||||
Funded orders received under August 2007 BFT-1 contract | 376,246,000 | 376,246,000 | ||
Recommended DCAA Price Adjustment | 11,819,000 | 11,819,000 | ||
Employment change of control and indemnification agreement | ||||
Legal costs incurred by the Company in response to subpoenas | 500,000 | 1,000,000 | 1,500,000 | |
Chief Executive Officer [Member] | ||||
Related Party Transactions | ||||
Related party lease payments made | 587,000 | |||
New lease expiration date | 31-Dec-21 | |||
Additional term of related party lease agreement as an option to exercise (in years) | 10 years | |||
Rent amount in next calendar year for related party lease agreement | 609,000 | |||
Mobile Data Communications Segment [Member] | Cost of Sales [Member] | ||||
Cost of Revenue [Abstract] | ||||
Satellite lease expenditures incurred | $2,472,000 | $40,827,000 | $46,356,000 |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2011 | Jul. 31, 2011 | Apr. 30, 2011 | Jan. 31, 2011 | Oct. 31, 2010 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jan. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | Jul. 31, 2010 | |
operating_segment | operating_segment | operating_segment | Telecommunications Transmission Segment | Telecommunications Transmission Segment | Telecommunications Transmission Segment | RF Microwave Amplifiers Segment | RF Microwave Amplifiers Segment | RF Microwave Amplifiers Segment | RF Microwave Amplifiers Segment | RF Microwave Amplifiers Segment | RF Microwave Amplifiers Segment | Mobile Data Communications Segment | Mobile Data Communications Segment | Mobile Data Communications Segment | Mobile Data Communications Segment | |||||||||||||
Fiscal 2013 Revenue | Fiscal 2012 Revenue | |||||||||||||||||||||||||||
Goodwill [Line Items] | ||||||||||||||||||||||||||||
Number of Reportable Operating Segments | 3 | 3 | 3 | |||||||||||||||||||||||||
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||||||||||||||||||||||||||||
Goodwill gross | $150,603,000 | $150,603,000 | $150,603,000 | $150,603,000 | $107,779,000 | $107,779,000 | $29,575,000 | $29,575,000 | $13,249,000 | $13,249,000 | ||||||||||||||||||
Goodwill accumulated impairment | -13,249,000 | -13,249,000 | -13,249,000 | -13,249,000 | 0 | 0 | 0 | 0 | -13,249,000 | -13,249,000 | ||||||||||||||||||
Goodwill | 137,354,000 | 137,354,000 | 137,354,000 | 137,354,000 | 107,779,000 | 107,779,000 | 29,575,000 | 29,575,000 | 0 | 0 | ||||||||||||||||||
Step 1 of Goodwill Impairment Test [Abstract] | ||||||||||||||||||||||||||||
Estimated fair value of the reporting unit in excess of its carrying value, as a percentage | 5.00% | 13.20% | ||||||||||||||||||||||||||
Date of interim step one goodwill impairment test | 31-Jan-13 | |||||||||||||||||||||||||||
Fair Value Inputs, Discount Rate | 12.00% | 11.00% | ||||||||||||||||||||||||||
Compounded annual revenue growth rate over a specified period of time | 4.00% | 1.00% | ||||||||||||||||||||||||||
Net sales | 84,411,000 | 69,856,000 | 74,577,000 | 90,953,000 | 112,775,000 | 99,793,000 | 99,141,000 | 113,361,000 | 140,327,000 | 131,081,000 | 162,811,000 | 178,160,000 | 319,797,000 | 425,070,000 | 612,379,000 | 194,643,000 | 210,006,000 | 231,957,000 | 86,939,000 | 102,497,000 | 91,973,000 | 38,215,000 | 112,567,000 | 288,449,000 | ||||
Fair Value Inputs, Long-term Revenue Growth Rate | 3.50% | |||||||||||||||||||||||||||
Minimum basis point increase in the WACC (expressed as a percentage) applied to the reporting unit, that would likely result in step one failure | 1.60% | |||||||||||||||||||||||||||
Minimum amount of increase to the reporting unit's carrying value that would likely result in a step one failure | 13,200,000 | |||||||||||||||||||||||||||
Amount of goodwill and intangible assets assigned to the reporting unit that could be written off in the period that the impairment is triggered | 44,025,000 | |||||||||||||||||||||||||||
Goodwill, Impairment Loss | $13,249,000 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $83,269,000 | $83,669,000 | |
Accumulated amortization | 50,764,000 | 44,836,000 | |
Net carrying amount | 32,505,000 | 38,833,000 | |
Amortization of intangibles | 6,328,000 | 6,637,000 | 8,091,000 |
Estimated Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Amortization Expense - Year One | 6,285,000 | ||
Amortization Expense - Year Two | 6,211,000 | ||
Amortization Expense - Year Three | 4,962,000 | ||
Amortization Expense - Year Four | 4,782,000 | ||
Amortization Expense - Year Five | 4,782,000 | ||
Technologies [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average amortization period | 11 years 8 months 12 days | 11 years 8 months 12 days | |
Gross carrying amount | 47,494,000 | 47,694,000 | |
Accumulated amortization | 33,264,000 | 30,321,000 | |
Net carrying amount | 14,230,000 | 17,373,000 | |
Customer relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average amortization period | 10 years 0 months 0 days | 10 years 0 months 0 days | |
Gross carrying amount | 29,831,000 | 29,931,000 | |
Accumulated amortization | 15,081,000 | 12,231,000 | |
Net carrying amount | 14,750,000 | 17,700,000 | |
Trademarks and other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average amortization period | 20 years 0 months 0 days | 20 years 0 months 0 days | |
Gross carrying amount | 5,944,000 | 6,044,000 | |
Accumulated amortization | 2,419,000 | 2,284,000 | |
Net carrying amount | $3,525,000 | $3,760,000 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | ||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | |
Stock Repurchase Program | |||
Shares acquired | 1,044,442 | 7,055,614 | |
Average price per share of shares repurchased on the open market | $25.81 | $30.81 | |
Aggregate cost including transaction costs | $26,954,000 | $217,374,000 | $121,618,000 |
Amount that remains to be expended under the current board repurchase authorization | 34,334,000 | ||
Dividends | |||
Targeted annual dividend per share | $1.10 | $1.10 | $1 |
Number of quarterly cash dividends declared during the period | 4 | ||
Date declared | 6-Jun-13 | ||
Date of record | 19-Jul-13 | ||
Quarterly dividend payment amount per share | $0.28 | ||
Dividend Declared - Subsequent [Member] | |||
Dividends | |||
Date declared | 3-Oct-13 | ||
Date paid | 19-Nov-13 | ||
Date of record | 18-Oct-13 | ||
Quarterly dividend payment amount per share | $0.28 | ||
Dividend Declared - First [Member] | |||
Dividends | |||
Date declared | 26-Sep-12 | ||
Date paid | 20-Nov-12 | ||
Quarterly dividend payment amount per share | $0.28 | ||
Dividend Declared Second [Member] | |||
Dividends | |||
Date declared | 6-Dec-12 | ||
Date paid | 27-Dec-12 | ||
Quarterly dividend payment amount per share | $0.28 | ||
Dividend Declared - Third [Member] | |||
Dividends | |||
Date declared | 7-Mar-13 | ||
Date paid | 21-May-13 | ||
Quarterly dividend payment amount per share | $0.28 | ||
Dividend Declared - Fourth [Member] | |||
Dividends | |||
Date declared | 6-Jun-13 | ||
Date paid | 20-Aug-13 | ||
Quarterly dividend payment amount per share | $0.28 | ||
Second stock repurchase program [Member] | |||
Stock Repurchase Program | |||
Maximum amount authorized by the board of directors for the repurchase of shares of the company's common stock | 250,000,000 | ||
Date Board of Directors authorized stock repurchase program | 27-Sep-11 | ||
Date stock repurchase program was completed | 6-Feb-13 | ||
Third Stock Repurchase Program [Member] | |||
Stock Repurchase Program | |||
Maximum amount authorized by the board of directors for the repurchase of shares of the company's common stock | 50,000,000 | ||
Date Board of Directors authorized stock repurchase program | 6-Dec-12 | ||
Third Stock Repurchase Program [Member] | Remaining Authorization - Subsequent [Member] | |||
Stock Repurchase Program | |||
Amount that remains to be expended under the current board repurchase authorization | $34,334,000 |
Unaudited_Quarterly_Financial_2
Unaudited Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2012 | Jul. 31, 2012 | Apr. 30, 2012 | Jan. 31, 2012 | Oct. 31, 2011 | Jul. 31, 2011 | Apr. 30, 2011 | Jan. 31, 2011 | Oct. 31, 2010 | Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | ||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||
Net sales | $84,411,000 | $69,856,000 | $74,577,000 | $90,953,000 | $112,775,000 | $99,793,000 | $99,141,000 | $113,361,000 | $140,327,000 | $131,081,000 | $162,811,000 | $178,160,000 | $319,797,000 | $425,070,000 | $612,379,000 | |||
Gross profit | 35,360,000 | 31,427,000 | 32,240,000 | 41,803,000 | 49,135,000 | 41,678,000 | 41,416,000 | 51,280,000 | 58,931,000 | 56,971,000 | 60,910,000 | 64,234,000 | 140,830,000 | 183,509,000 | 241,046,000 | |||
Net income | $5,156,000 | $2,852,000 | $2,365,000 | $7,435,000 | $7,928,000 | $6,066,000 | $5,821,000 | $12,601,000 | $11,888,000 | $14,255,000 | $16,096,000 | $25,656,000 | $17,808,000 | $32,416,000 | $67,895,000 | |||
Diluted income per share | $0.28 | $0.17 | $0.14 | $0.36 | $0.38 | $0.29 | $0.27 | $0.47 | $0.42 | $0.47 | $0.52 | $0.79 | $0.97 | [1] | $1.42 | [1] | $2.22 | [1] |
[1] | * Income per share information for the full fiscal year may not equal the total of the quarters within the year. |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts and Reserves (Details) (USD $) | 12 Months Ended | |||||
Jul. 31, 2013 | Jul. 31, 2012 | Jul. 31, 2011 | ||||
Allowance for Doubtful Accounts, Current [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at beginning of period | $1,588,000 | $1,220,000 | $1,127,000 | |||
Charged to cost and expenses | -422,000 | [1] | 458,000 | [1] | 244,000 | [1] |
Charged to other accounts - describe | 0 | 0 | 0 | |||
Transfers (deductions) - describe | -563,000 | [2] | -90,000 | [2] | -151,000 | [2] |
Balance at end of period | 603,000 | 1,588,000 | 1,220,000 | |||
Inventory Reserves [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at beginning of period | 16,286,000 | 13,316,000 | 13,791,000 | |||
Charged to cost and expenses | 2,810,000 | [3] | 3,862,000 | [3] | 4,091,000 | [3] |
Charged to other accounts - describe | 0 | 2,776,000 | [4] | 0 | ||
Transfers (deductions) - describe | -2,870,000 | [5] | -3,668,000 | [5] | -4,566,000 | [5] |
Balance at end of period | 16,226,000 | 16,286,000 | 13,316,000 | |||
Valuation Allowance for Deferred Tax Assets [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at beginning of period | 1,162,000 | 1,162,000 | 1,162,000 | |||
Charged to cost and expenses | 1,063,000 | [6] | 0 | 0 | ||
Charged to other accounts - describe | 0 | 0 | 0 | |||
Transfers (deductions) - describe | 0 | 0 | 0 | |||
Balance at end of period | $2,225,000 | $1,162,000 | $1,162,000 | |||
[1] | (A)(Benefit from) provision for doubtful accounts. | |||||
[2] | (B)Write-off of uncollectible receivables. | |||||
[3] | (C)Provision for excess and obsolete inventory. | |||||
[4] | (D)Reclassification of contract loss accrued in fiscal 2011. | |||||
[5] | (E)Write-off of inventory. | |||||
[6] | (F)Change in valuation allowance. |