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Document and Entity Information	3 Months Ended
Document and Entity Information	Oct. 31, 2012 shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 31, 2012
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Entity Registrant Name	Guidewire Software, Inc.
Entity Central Index Key	0001528396
Entity Filer Category	Non-accelerated Filer
Current Fiscal Year End Date	--07-31
Entity Common Stock, Shares Outstanding	55,405,248

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2012	Jul. 31, 2012
CURRENT ASSETS:
Cash and cash equivalents	$ 185,472	$ 205,718
Restricted cash, current portion	2,121	3,726
Accounts receivable	38,132	32,313
Deferred tax asset, current portion	14,359	13,442
Prepaid expenses and other current assets	6,275	7,266
Total current assets	246,359	262,465
Property and equipment, net	11,535	11,924
Deferred tax asset, net of current portion	9,313	9,313
Other assets	534	545
TOTAL ASSETS	267,741	284,247
CURRENT LIABILITIES:
Accounts payable	6,517	9,781
Accrued employee compensation	14,695	26,502
Deferred revenues, current portion	41,549	52,947
Other current liabilities	3,942	3,957
Total current liabilities	66,703	93,187
Deferred revenues, net of current portion	2,057	2,569
Other liabilities	5,362	4,529
Total liabilities	74,122	100,285
STOCKHOLDERS' EQUITY:
Common stock	5	5
Additional paid-in capital	216,850	207,624
Accumulated other comprehensive loss	(512)	(496)
Accumulated deficit	(22,724)	(23,171)
Total stockholders' equity	193,619	183,962
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 267,741	$ 284,247

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2012	Oct. 31, 2011
Revenues:
License	$ 20,812	$ 20,815
Maintenance	9,370	7,106
Services	33,119	24,459
Total revenues	63,301	52,380
Cost of revenues:
License	167	299
Maintenance	1,564	1,266
Services	25,826	17,925
Total cost of revenues	27,557	19,490
Gross profit:
License	20,645	20,516
Maintenance	7,806	5,840
Services	7,293	6,534
Total gross profit	35,744	32,890
Operating expenses:
Research and development	14,764	10,959
Sales and marketing	12,376	7,361
General and administrative	8,666	6,438
Total operating expenses	35,806	24,758
Income (loss) from operations	(62)	8,132
Interest income, net	90	40
Other income (expense), net	141	(316)
Income before provision for (benefit from) income taxes	169	7,856
Provision for (benefit from) income taxes	(278)	3,044
Net income	$ 447	$ 4,812
Net income per share:
Basic (in dollars per share)	$ 0.01	$ 0.10
Diluted (in dollars per share)	$ 0.01	$ 0.09
Shares used in computing net income per share:
Basic (in shares)	54,814,044	14,554,428
Diluted (in shares)	61,185,270	21,153,440
Statement of Other Comprehensive Income
Foreign currency translation adjustment	$ (16)	$ (9)
Total comprehensive income	$ 431	$ 4,803

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2012	Oct. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 447	$ 4,812
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	1,100	679
Stock-based compensation	9,784	3,312
Excess tax benefit from exercise of stock options and vesting of RSUs	(114)	0
Deferred tax assets	(917)	2,819
Changes in operating assets and liabilities:
Accounts receivable	(5,847)	(7,749)
Prepaid expenses and other assets	1,016	1,543
Accounts payable	827	644
Accrued employee compensation	(11,604)	(9,000)
Other liabilities	929	(10,366)
Deferred revenues	(11,900)	(13,779)
Net cash used in operating activities	(16,279)	(27,085)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(4,810)	(490)
Decrease in restricted cash	1,605	0
Net cash used in investing activities	(3,205)	(490)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock upon exercise of stock options	3,163	402
Taxes remitted on RSU awards vested	(4,164)	0
Costs paid in connection with public offerings	0	(973)
Excess tax benefit from exercise of stock options and vesting of RSUs	114	0
Net cash used in financing activities	(887)	(571)
Effect of foreign exchange rate changes on cash and cash equivalents	125	(308)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(20,246)	(28,454)
CASH AND CASH EQUIVALENTS-Beginning of period	205,718	59,625
CASH AND CASH EQUIVALENTS-End of period	185,472	31,171
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income taxes	681	455
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Accounts payable and other liabilities related to property and equipment	$ 280	$ 0

The Company and Summary of Significant Accounting Policies and Estimates

3 Months Ended

Oct. 31, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company and Summary of Significant Accounting Policies and Estimates


	The Company and Summary of Significant Accounting Policies and Estimates

Business

Guidewire Software, Inc., a Delaware corporation, was incorporated on September 20, 2001. Guidewire Software, Inc., together with its subsidiaries (the “Company”), provides Internet-based software platforms for core insurance operations, including underwriting and policy administration, claim management and billing. The Company’s customers include insurance carriers for property and casualty and workers’ compensation insurance. The Company has wholly-owned subsidiaries in Australia, Canada, China, France, Germany, Hong Kong, Ireland, Italy, Japan, Poland and the United Kingdom.

The Company offers a suite of applications to enable core property and casualty (“P&C”) insurance operations comprised of the following products: PolicyCenter, ClaimCenter and BillingCenter. The Company also provides maintenance support and provides professional services to the extent requested by its customers.

Public Offerings

On January 30, 2012, the Company closed its initial public offering (“IPO”) whereby 10,177,500 shares of common stock were sold to the public, including the underwriters’ full exercise of their overallotment option of 1,327,500 shares of common stock, at a price of $13.00 per share. The Company received aggregate proceeds of approximately $123.0 million from the IPO, including the exercise of the underwriters’ overallotment option, net of underwriters’ discounts and commissions, but before deduction of offering costs of approximately $3.5 million, including $2.8 million of capitalized costs. Upon the closing of the IPO, all shares of the Company’s outstanding convertible preferred stock automatically converted into 25,357,721 shares of common stock, and outstanding warrants to purchase 69,529 shares of convertible preferred stock at $5.03 per share were contractually adjusted to purchase 69,529 shares of common stock at $5.03 per share. Subsequent to the Company's IPO and during April 2012 all eligible warrants were converted and the remainder were canceled.

On April 24, 2012, the Company closed its follow-on public offering of 9,200,000 shares of its common stock, which included 750,000 shares of common stock sold by the Company and 8,450,000 shares of common stock sold by selling stockholders, including the underwriters’ full exercise of their overallotment option from the Company and selling stockholders. The public offering price of the shares sold in the offering was $28.25 per share. The Company received aggregate proceeds of approximately $20.4 million from the follow-on offering, net of underwriters’ discounts and commissions applicable to the sale of shares by the Company, but before deduction of offering costs of approximately $1.0 million payable by the Company, including $0.7 million of capitalized costs. The Company did not receive any proceeds from the sale of shares by the selling stockholders.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and accompanying notes of the Company reflect all adjustments (all of which are normal and recurring in nature) that, in the opinion of management, are necessary for a fair presentation of the interim periods presented. All intercompany balances and transactions have been eliminated in consolidation. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted under the rules and regulations of the Securities and Exchange Commission (“SEC”).

These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and related notes, together with management’s discussion and analysis of financial condition and results of operations, presented in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2012 . There have been no changes in the Company’s significant accounting policies from those that were disclosed in the Company’s audited consolidated financial statements for the fiscal year ended July 31, 2012 included in the Company’s Annual Report on Form 10-K.

Use of Estimates

The preparation of the accompanying condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Significant items subject to such estimates include revenue recognition, the useful lives of property and equipment, allowance for doubtful accounts, valuation allowance for deferred tax assets, stock-based compensation, annual bonus attainment, income tax uncertainties and contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management regularly evaluates its estimates and assumptions using historical experience and other factors; however, actual results could differ significantly from these estimates.

Fair Value of Financial Instruments

The carrying values of the Company’s financial instruments, principally cash equivalents, accounts receivable, restricted cash and accounts payable approximated their fair values due to the short period of time to maturity or repayment. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value measurements defines a three-level valuation hierarchy for disclosures as follows:

Level I—Unadjusted quoted prices in active markets for identical assets or liabilities;

Level II—Inputs other than quoted prices included within Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and

Level III—Unobservable inputs that are supported by little or no market activity, which requires the Company to develop its own assumptions.

The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s cash equivalents and restricted cash are classified as Level I because they are valued using quoted market prices.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash, cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with high quality financial institutions with investment grade ratings. The Company markets its products and services in the United States and in foreign countries through its direct sales force.

No customer accounted for 10% or more of the Company’s revenues for the three months ended October 31, 2012. One customer accounted for 13% of the Company's revenues for the three months ended October 31, 2011. The Company had one customer that accounted for 16% of total accounts receivable as of October 31, 2012. The Company had no customers that accounted for 10% of total accounts receivable as of July 31, 2012.

Revenue Recognition

The Company enters into arrangements to deliver multiple products or services (multiple-elements). The Company applies software revenue recognition rules and allocates the total revenues among elements based on vendor-specific objective evidence ("VSOE") of fair value of each element. The Company recognizes revenue on a net basis excluding taxes collected from customers and remitted to government authorities.

Revenues are derived from three sources:


(i)	License fees, related to term (or time-based) and perpetual software license revenue;


(ii)	Maintenance fees, related to email and phone support, bug fixes and unspecified software updates and upgrades released when, and if available during the maintenance term; and


(iii)	Services fees, related to professional services related to implementation of our software, reimbursable travel and training.

Revenues are recognized when all of the following criteria are met:


•	Persuasive evidence of an arrangement exists. Evidence of an arrangement consists of a written contract signed by both the customer and management prior to the end of the period.


•	Delivery or performance has occurred. The Company’s software is delivered electronically to the customer. Delivery is considered to have occurred when the Company provides the customer access to the software along with login credentials.

•

Fees are fixed or determinable. Arrangements where a significant portion of the fee is due beyond 90 days from delivery are not considered to be fixed or determinable. Revenues from such arrangements is recognized as payments become due, assuming all other revenue recognition criteria have been met. Fees from term licenses are generally due in annual or, in certain cases, quarterly, installments over the term of the agreement beginning on the effective date of the license. Accordingly, fees from term licenses are not considered to be fixed or determinable until they become due.

•

Collectability is probable. Collectability is assessed on a customer-by-customer basis, based primarily on creditworthiness as determined by credit checks and analysis, as well as customer payment history. Payment terms generally range from 30 to 90 days from invoice date. If it is determined prior to revenue recognition that collection of an arrangement fee is not probable, revenues are deferred until collection becomes probable or cash is collected, assuming all other revenue recognition criteria are satisfied.

VSOE of fair value does not exist for the Company’s software licenses; therefore, for all arrangements that do not include services that are essential to the functionality of the software, the Company allocates revenues to software licenses using the residual method. Under the residual method, the amount recognized for license fees is the difference between the total fixed and determinable fees and the VSOE of fair value for the undelivered elements under the arrangement.

The VSOE of fair value for elements of an arrangement is based upon the normal pricing and discounting practices for those elements when sold separately. VSOE of fair value for maintenance is established using the stated maintenance renewal rate in the customer’s contract. The Company generally enters into term licenses ranging from 3 to 7 years. For term licenses with a duration of one year or less, no VSOE of fair value for maintenance exists. The Company began using stated maintenance renewal rates in customers’ contracts during fiscal year 2008. Prior to that, customers’ contracts did not have stated maintenance renewal rates and the Company was unable to establish VSOE of maintenance. VSOE of fair value for services is established if a substantial majority of historical stand-alone selling prices for a service fall within a narrow price range.

If VSOE of fair value for one or more undelivered elements does not exist, the total arrangement fee is not recognized until delivery of those elements occurs or when VSOE of fair value is established.

If the undelivered elements are all service elements and VSOE of fair value does not exist for one or more service element, the total arrangement fee is recognized ratably over the longest service period starting at software delivery, assuming all the related services have been made available to the customer.

When implementation services are sold with a license arrangement, the Company evaluates whether those services are essential to the functionality of the software. Prior to fiscal year 2008, implementation services were determined to be essential to the software because the implementation services were generally not available from other third party vendors. By the beginning of fiscal year 2008, third party vendors were providing implementation services for ClaimCenter and it was concluded that implementation services generally were not essential to the functionality of the ClaimCenter software. By the beginning of fiscal year 2011, third party vendors were providing implementation services for PolicyCenter and BillingCenter and it was concluded that implementation services were no longer essential to the functionality of the PolicyCenter and BillingCenter software.

In cases where professional services are deemed to be essential to the functionality of the software, the arrangement is accounted for using contract accounting until the essential services are complete. If reliable estimates of total project costs and the extent of progress toward completion can be made, the Company applies the percentage-of-completion method in recognizing the arrangement fee. The percentage toward completion is measured by using the ratio of service billings to date compared to total estimated service billings for the consulting services. Service billings approximate labor hours as an input measure since they are billed monthly on a time and material basis. For term licenses with license fees due in equal installments over the term, the license revenues subject to percentage of completion recognition includes only those payments that are due and payable within the reporting period. The fees related to the maintenance are recognized over the period the maintenance is provided.

When VSOE for maintenance has not been established and the arrangement includes implementation services which are deemed essential to the functionality of the software and it is reasonably assured that no loss will be incurred under the arrangement, revenues are recognized pursuant to the zero gross margin method. Under this method, revenues recognized are limited to the costs incurred for the implementation services. As a result, billed license and maintenance fees and the profit margin on the professional services are generally deferred until the essential services are completed and then recognized over the remaining term of the maintenance period.

If the Company cannot make reliable estimates of total project implementation and it is reasonably assured that no loss will be incurred under such arrangements, the zero profit margin method is applied whereby an amount of revenues equal to the incurred costs of the project is recognized as well as the incurred costs, producing a zero margin until project estimates become reliable. The percentage-of-completion method is applied when project estimates become reliable, resulting in a cumulative effect adjustment for deferred license revenues to the extent of progress toward completion, and the related deferred professional service margin is recognized in full as revenues. Such cumulative effect adjustment for license revenues was $3.2 million for the three months ended October 31, 2012, and none for the three months ended October 31, 2011, and for service revenues was $1.7 million for the three months ended October 31, 2012, and none for the three months ended October 31, 2011.

Deferred Revenues

Deferred revenues represent amounts billed to or collected from customers for which the related revenues have not been recognized because one or more of the revenue recognition criteria have not been met. The current portion of deferred revenues represents the amount that is expected to be recognized as revenues within one year from the balance sheet date, and the noncurrent portion of deferred revenues represents the amount that is expected to be recognized more than one year from the balance sheet date.. The Company generally invoices fees for licenses and maintenance to its customers in annual or, in certain cases, quarterly installments payable in advance. Accordingly, the deferred revenues balance does not represent the total contract value of annual or multi-year, non-cancellable arrangements.

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 enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets related to excess tax benefits are recorded when utilized. 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. The Company records a valuation allowance to reduce deferred tax assets to an amount of which realization is more likely than not.

Accounting guidance related to accounting for uncertainties in income taxes provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits of the position. This interpretation also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

The Company records interest and penalties related to unrecognized tax benefits as income tax expense in its condensed consolidated statement of income.

Stock-Based Compensation

The Company recognizes compensation expense related to its stock options and restricted stock units (“RSUs”) granted to employees based on the estimated fair value of the awards on the date of grant, net of estimated forfeitures. The RSUs are subject to time-based vesting, which generally occurs over a period of 4 years, and for those awards granted prior to the Company's IPO, a performance-based condition, which was satisfied 180 days after the Company's IPO. If an employee terminates employment from the Company prior to the occurrence of the performance-based condition, the employee does not forfeit the RSUs to the extent the time-based vesting requirements were satisfied prior to termination. The awards expire 10 years from the grant date. The Company estimates the grant date fair value, and the resulting stock-based compensation expense, of our stock options using the Black-Scholes option-pricing model. The grant date fair value of the stock-based awards is generally recognized using the accelerated multiple option approach over the requisite service period, which is generally the vesting period of the respective awards. Compensation cost for RSUs is generally recognized over the time-based vesting period regardless of the occurrence of the performance-based condition noted above for awards granted prior to IPO, since this condition is not subject to employment.

Net Income per Share

For the three months ended October 31, 2011, the Company’s basic and diluted net income per share are presented in conformity with the two-class method, which is required because the Company issued securities other than common stock that participate in dividends with the common stock (“participating securities”), to compute the net income per share attributable to common stockholders. The Company determined that it had participating securities in the form of noncumulative convertible preferred stock for the periods up to their conversion immediately prior to the closing of the Company’s IPO on January 30, 2012 when all convertible preferred shares were converted to common stock. For the three months ended October 31, 2012, the two-class method did not apply since the convertible preferred shares were not outstanding at any point during the quarterly period.

The two-class method requires that the Company calculate the net income per share using net income attributable to the common stockholders, which will differ from the Company’s net income. Net income attributable to the common stockholders is generally equal to the net income less assumed periodic preferred stock dividends with any remaining earnings, after deducting assumed dividends, to be allocated on a pro rata basis between the outstanding common and preferred stock as of the end of each period. The basic net income per share attributable to common stockholders is calculated by dividing the net income attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. The diluted net income per share attributable to common stockholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, convertible preferred stock, options to purchase common stock and restricted stock units are considered to be common stock equivalents.

For the three months ended October 31, 2012, the Company calculated basic net income per share by dividing the net income by the weighted average number of shares of common stock outstanding for the period. The diluted net income per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock and restricted stock units are considered to be common stock equivalents.

Fair Value of Financial Instruments

3 Months Ended

Oct. 31, 2012

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

The following table summarizes the Company’s financial instruments measured at fair value on a recurring basis:



	October 31, 2012		July 31, 2012
	(in thousands)
Money market funds	$	105,143	$	105,107
Certificates of deposit	2,121		3,726
Total	$	107,264	$	108,833

The Company's cash equivalents and restricted cash are classified as Level I because they are valued on a recurring basis using quoted market prices or actual cash balances.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 44A, 44B
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Paragraph 15A
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Balance Sheet Components

3 Months Ended

Oct. 31, 2012

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Disclosures


	Balance Sheet Components

Prepaid expenses and other current assets consist of the following:



	October 31, 2012		July 31, 2012
	(in thousands)
Prepaid income taxes	$	1,568	$	1,437
Other prepaid expenses	2,162		2,623
Other current assets	2,545		3,206
Total	$	6,275	$	7,266

Property and equipment consist of the following:



	October 31, 2012			July 31, 2012
	(in thousands)
Computer hardware	$	7,510		$	8,125
Software	3,722			3,599
Furniture and fixtures	2,013			1,854
Leasehold improvements	5,680			5,600
Total property and equipment	18,925			19,178
Less accumulated depreciation and amortization	(7,390		)	(7,254		)
Property and equipment, net	$	11,535		$	11,924

As of October 31, 2012 and July 31, 2012, no property and equipment was pledged as collateral against borrowings. Amortization of leasehold improvements is included in depreciation expense.

Accrued employee compensation consists of the following:



	October 31, 2012		July 31, 2012
	(in thousands)
Accrued bonuses	$	2,831	$	12,718
Accrued commission	1,788		4,068
Accrued vacation	6,047		5,684
Payroll accruals	4,029		4,032
Total	$	14,695	$	26,502

Net Income per Share

3 Months Ended

Oct. 31, 2012

Earnings Per Share [Abstract]

Net Income per Share

The following table sets forth the computation of the Company’s basic and diluted net income per share for the three months ended October 31, 2012 and 2011:



	Three Months Ended October 31,
	2012		2011
	(in thousands, except share and per share amounts)
Numerator:
Net income	$	447	$	4,812
Non-cumulative dividends to preferred stockholders	—		(823		)
Undistributed earnings allocated to preferred stockholders	—		(2,534		)
Net income, basic	447		1,455
Adjustments to net income for dilutive options and restricted stock options	—		358
Net income, diluted	$	447	$	1,813
Net income per share:
Basic	$	0.01	$	0.10
Diluted	$	0.01	$	0.09
Denominator:
Weighted average shares used in computing net income per share:
Basic	54,814,044		14,554,428
Weighted average effect of diluted stock options	4,247,804		3,630,168
Weighted average effect of dilutive restricted stock units	2,123,422		2,937,891
Weighted average effect of dilutive stock warrants (1)	—		30,953
Diluted	61,185,270		21,153,440


(1)	Series C convertible preferred stock warrants were automatically converted to equivalent common stock warrants upon the Company’s IPO on January 24, 2012 and were converted or cancelled as of April 30, 2012.

The following outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share for the periods presented because including them would have been antidilutive:



	Three Months Ended October 31,
	2012	2011
Stock options to purchase common stock	199,368	510,288
Restricted stock units	195,552	—

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Oct. 31, 2012
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies There has been no material change in the Company's contractual obligations and commitments other than in the ordinary course of business since the Company's fiscal year ended July 31, 2012. See the Annual Report on Form 10-K for the fiscal year ended July 31, 2012 for additional information regarding our contractual obligations. Leases The Company leases certain facilities and equipment under operating leases. On December 5, 2011, the Company entered into a seven-year lease for a facility to serve as its corporate headquarters, located in Foster City, California, for approximately 97,674 square feet of space which commenced on August 1, 2012. In connection with this lease, the Company opened a letter of credit with Silicon Valley Bank for $1.2 million. Lease expense for all worldwide facilities and equipment, which is being recognized on a straight-line basis over terms of the various leases, was $1.2 million and $0.9 million during the three months ended October 31, 2012 and 2011, respectively. This expense was reduced by sublease income of $0.3 million for the three months ended October 31, 2011. Letters of Credit In addition to the letter of credit noted above, the Company had two and three outstanding letters of credit required by certain customers to secure contractual commitments and prepayments as of October 31, 2012 and July 31, 2012, respectively. The first of these letters of credit is fully secured by cash balances, which we have classified as restricted cash in our consolidated balance sheets as of October 31, 2012 and July 31, 2012, and a secured letter of credit expired in August 2012. In July 2012, we entered into an unsecured letter of credit agreement related to another customer arrangement for PLN 10.0 million (approximately $3.1 million as of October 31, 2012) to secure contractual commitments and prepayments. No amounts were outstanding under our unsecured letters of credit as of October 31, 2012 or July 31, 2012. Legal Proceedings In December 2007, Accenture Global Services GmbH and Accenture LLP (collectively, “Accenture”) filed a lawsuit against the Company in the U.S. District Court for the District of Delaware, or the Delaware Court (Accenture Global Services GmbH and Accenture LLP v. Guidewire Software, Inc., Case No 07-826-SLR). Accenture alleged infringement of U.S. Patent No. 7,013,284, ("the '284 patent"), among others, by the Company’s products; trade-secret misappropriation; and tortious interference with business relations. Accenture sought damages and an injunction. The Company denied Accenture’s claims, and it asserted counterclaims seeking a declaration that the Company's products do not infringe either patent, that the patents are invalid and that the '284 patent is unenforceable. The Company also asserted counterclaims against Accenture for breach of contract and trade secret misappropriation. In March 2011, the USPTO granted a third re-examination against the '284 patent, after having rejected all claims in the '284 patent on two prior re-examinations. On May 31, 2011, the Delaware Court granted the Company’s motion for summary judgment finding that Accenture’s '284 patent is invalid. In July 2011, Accenture filed an appeal to the Federal Circuit Court of Appeals (the "Appeals Court") of the Delaware Court’s judgment of invalidity of the '284 patent. We believe that the Delaware Court was correct in finding the '284 patent invalid and we intend to vigorously defend the Delaware Court's judgment in the appeal. On August 6, 2012, the oral argument of this appeal was held by the Appeals Court and their ruling is pending. However, at this time, the Company is unable to predict the likelihood of success of Accenture's appeal. In October 2011, the Company agreed with Accenture to resolve all outstanding patent litigation concerning their respective insurance claims management software. In connection with the settlement, the Company has paid $10.0 million to Accenture with a potential additional payment based on the final outcome of Accenture’s pending appeal regarding the validity of its ‘284 patent. If Accenture is successful in its appeal, the Company has agreed to pay them an additional $20.0 million. At any time prior to an initial determination by the appeals court, the Company may instead pay Accenture $15.0 million to discharge this potential obligation. If Accenture is not successful in its appeal, no further payments would be due in connection with the settlement. As part of the settlement, the Company has also agreed to a royalty free cross license of all current patents and patent applications with Accenture. The Company expensed the $10.0 million litigation provision in fiscal year 2011. In addition to the matters described above, from time to time, the Company is involved in various other legal proceedings and receives claims from time to time, arising from the normal course of business activities. The Company has accrued for estimated losses in the accompanying condensed consolidated financial statements for matters with respect to which we believe the likelihood of an adverse outcome is probable and the amount of the loss is reasonably estimable. Indemnification The Company sells software licenses and services to its customers under contracts (“Software License”). Each Software License contains the terms of the contractual arrangement with the customer and generally includes certain provisions for defending the customer against any claims that the Company’s software infringes upon a patent, copyright, trademark, or other proprietary right of a third party. The Software License also indemnifies the customer against losses, expenses, and liabilities from damages that may be assessed against the customer in the event the Company’s software is found to infringe upon such third party rights. The Company has not had to reimburse any of its customers for losses related to indemnification provisions and no material claims against the Company are outstanding as of October 31, 2012 and July 31, 2012. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases under the Software License, the Company cannot estimate the amount of potential future payments, if any, related to indemnification provisions. The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of these persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that may enable the Company to recover a portion of any future amounts paid.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stockholders' Equity and Stock-based Compensation

3 Months Ended

Oct. 31, 2012

Stockholders' Equity and Stock-based Compensation [Abstract]

Stockholders' Equity and Stock-based Compensation

Stockholders’ Equity and Stock-based Compensation

Stock-based Compensation Expenses

Stock-based compensation expenses related to all employee and non-employee stock-based awards was as follows:



	Three Months Ended October 31,
	2012		2011
Stock-based compensation expenses:	(in thousands)
Cost of maintenance revenues	$	261	$	72
Cost of services revenues	2,616		686
Research and development	2,042		845
Marketing and sales	1,651		497
General and administrative	3,214		1,212
Total stock-based compensation expenses	$	9,784	$	3,312

As of October 31, 2012, total unrecognized compensation cost, adjusted for estimated forfeitures, was as follows:



	As of October 31, 2012
	Unrecognized Expense		Average Expected Recognition Period
	(in thousands)		(in years)
Restricted stock units	$	42,162	1.5
Stock options	4,630		1.2
	$	46,792

RSUs

RSU activity under the Company's equity incentive plans for the period presented is as follows:



	RSUs Outstanding
	Number of RSUs Outstanding		Weighted Average Grant Date Fair Value
Balance as of July 31, 2012	3,992,177		$	8.00
Granted	1,154,101		32.25
Released	(362,698	)	6.10
Cancelled	(53,375	)	14.97
Balance as of October 31, 2012	4,730,205		$	13.98

The fair value of RSUs released during the three months ended October 31, 2012 was $11.0 million.

Stock Options

The options exercisable as of October 31, 2012 include options that are exercisable prior to vesting. The total intrinsic value of options exercised was approximately $32.9 million and $1.7 million for the three months ended October 31, 2012 and 2011, respectively.



	Stock Options Outstanding
	Number of Stock Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value⁽¹⁾
					(in years)	(in thousands)
Balance as of July 31, 2012	6,486,641		$	3.74	6.1	$	142,321
Granted	298,360		32.25
Exercised	(1,212,775	)	2.61
Cancelled	(1,875	)	4.50
Balance as of October 31, 2012	5,570,351		$	5.51	6.2	$	140,507
Vested and expected to vest as of October 31, 2012	5,463,490		$	5.33	6.2	$	138,788
Exercisable as of October 31, 2012	5,160,027		$	3.93	6.0	$	137,813


⁽¹⁾	Aggregate intrinsic value represents the difference between the Company's closing stock price of $30.64 and $25.66 on October 31, 2012 and July 31, 2012, respectively, against the exercise price of outstanding, in-the-money options.

Valuation of Awards

The per share fair value of each stock option was determined on the date of grant using the Black-Scholes option pricing model and the following assumptions:



	Three Months Ended October 31,
	2012	2011
Expected life (in years)	5.1 - 6.0	5.9 - 6.0
Risk-free interest rate	0.6% - 0.8%	1.1% - 1.2%
Expected volatility	45.1% - 48.7%	44.5%
Expected dividend yield	—%	—%

Common Stock Reserved for Issuance

As of October 31, 2012 and July 31, 2012, the Company was authorized to issue 500,000,000 shares of common stock with a par value of $0.0001 per share. As of October 31, 2012 and July 31, 2012, the Company had reserved shares of common stock, on an as-if-converted basis, for issuance as follows:



	October 31, 2012	July 31, 2012
Exercise of stock options to purchase common stock	5,570,351	6,486,641
Vesting of restricted stock units	4,730,205	3,992,177
Issuances of shares available under stock plans	6,384,954	7,655,332
Total common stock reserved for issuance	16,685,510	18,134,150

Equity Incentive Plans

In February 2007, the Company’s board of directors (“Board”) adopted and the stockholders approved the 2006 Stock Plan (“2006 Plan”) as an amendment and restatement of the stockholder-approved 2002 Stock Option/Stock Issuance Plan, as amended, which provides for the issuance of incentive and nonstatutory options to employees and nonemployees of the Company and under which 14,102,510 shares had been reserved for issuance as of October 31, 2012.

In July 2009, the Board adopted and the stockholders approved the 2009 Stock Plan (“French Plan”). Under the French Plan, 31,000 shares had been reserved for issuance as of October 31, 2012. The number of shares exercised and issued under the French Plan reduced the corresponding number of shares available under the 2006 Plan.

In June 2010, the Board adopted and the stockholders approved the 2010 Restricted Stock Unit Plan (“2010 Plan”). As of October 31, 2012, the Company had reserved 4,436,579 shares of common stock for issuance under the 2010 Plan.

On September 14, 2011, the Board, upon the recommendation of the Compensation Committee of the Board (“Committee”), adopted the 2011 Stock Plan (“2011 Plan”), which was subsequently approved by the Company’s stockholders in January 2012. The 2011 Plan provides flexibility to the Committee to use various equity-based incentive awards as compensation tools to motivate the Company’s workforce. The Company had initially reserved 7,500,000 shares of its common stock for the issuance of awards under the 2011 Plan. In addition, the number of shares remaining available for grant under the 2006 Plan and 2010 Plan immediately prior to the closing of the IPO were added to the shares available under the 2011 Plan. The number of shares remaining available for grant under the French Plan expired upon the IPO. The 2011 Plan provides that the number of shares reserved and available for issuance under the plan will automatically increase each January 1, beginning on January 1, 2013, by up to 5% of the outstanding number of shares of the Company’s common stock on the immediately preceding December 31. This number is subject to adjustment in the event of a stock split, stock dividend or other defined changes in the Company’s capitalization. With the adoption of the 2011 Plan upon the completion of the Company’s IPO, both option and RSU grants now reduce the 2011 Plan reserve. As of October 31, 2012, the Company had reserved 8,245,548 shares of common stock for issuance under the 2011 Plan.

The shares the Company issues under the 2011 Plan will be authorized but unissued shares or shares that are reacquired. The shares of common stock underlying any awards under the 2011 Plan, 2010 Plan and 2006 Plan that are forfeited, canceled, held back upon exercise or settlement of an award to satisfy the exercise price or tax withholding, reacquired by the Company prior to vesting, satisfied without any issuance of stock or are otherwise terminated (other than by exercise) are added back to the shares of common stock available for issuance under the 2011 Plan. The shares of common stock underlying any outstanding awards under the French Plan that are forfeited, canceled or otherwise not issued will expire and not be available for future issuance.

No awards may be granted under the 2011 Plan after the date that is 10 years from the effectiveness of the plan. No awards under the 2011 Plan were granted prior to the Company’s IPO. Following the closing of the IPO, no additional awards will be made under the 2006 Plan, French Plan and 2010 Plan.

Income Taxes	3 Months Ended
Income Taxes	Oct. 31, 2012
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The benefit from income taxes for the three months ended October 31, 2012 was $0.3 million and the provision for income taxes for the three months ended October 31, 2011 was $3.0 million. The change is primarily due to a decrease in profitability in the current period, as well as the benefit from incentive stock option (ISO) tax deduction. The effective tax rate of (164.5)% for the three months ended October 31, 2012 differs from the statutory U.S. federal income tax rate of 35% mainly due to the benefit for the ISO tax deduction discussed above, as well as a decrease in projected worldwide pretax income, permanent differences for stock based compensation, the impact of state income taxes, the tax rate differences between the United States and foreign countries and foreign tax credits. The Company provides U.S. income taxes on the earnings of foreign subsidiaries, unless the subsidiaries’ earnings are considered indefinitely reinvested outside the United States. As of October 31, 2012, U.S. income taxes were not provided for on the cumulative total of $10.4 million undistributed earnings from certain foreign subsidiaries. As of October 31, 2012, the unrecognized deferred tax liability for these earnings was approximately $1.3 million. During the three months ended October 31, 2012, there has been no change in the unrecognized tax benefits from the beginning of the period. Accordingly, as of October 31, 2012, the Company had unrecognized tax benefits of $1.6 million that, if recognized, would affect the Company’s effective tax rate.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
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-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
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-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Segment Information

3 Months Ended

Oct. 31, 2012

Segment Reporting [Abstract]

Segment Information

The Company operates in one segment. The Company’s chief operating decision maker (the “CODM”), its Chief Executive Officer, manages the Company’s operations on a consolidated basis for purposes of allocating resources. When evaluating the Company’s financial performance, the CODM reviews separate revenues information for the Company’s license, maintenance and professional services offerings, while all other financial information is reviewed on a consolidated basis. All of the Company’s principal operations and decision-making functions are located in the United States.

The following table sets forth revenues by country based on the billing address of the customer:



	Three Months Ended October 31,
	2012		2011
	(in thousands)
United States	$	35,387	$	32,399
Canada	10,081		4,616
Australia	4,039		6,666
United Kingdom	5,371		3,231
Other	8,423		5,468
Total revenues	$	63,301	$	52,380

No other country accounted for more than 10% of revenues during the three months ended October 31, 2012 and 2011.

The following table sets forth the Company’s property and equipment, net by geographic region:



	October 31, 2012		July 31, 2012
	(in thousands)
North America	$	11,158	$	11,522
Europe	364		388
Asia Pacific	13		14
Total net property and equipment	$	11,535	$	11,924

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

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-Publisher FASB
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

The Company and Summary of Significant Accounting Policies and Estimates (Policies)

3 Months Ended

Oct. 31, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business

Public Offerings

Basis of Presentation

Use of Estimates

Fair Value of Financial Instruments

Level I—Unadjusted quoted prices in active markets for identical assets or liabilities;

Level III—Unobservable inputs that are supported by little or no market activity, which requires the Company to develop its own assumptions.

Concentration of Credit Risk

Revenue Recognition

Revenues are derived from three sources:


(i)	License fees, related to term (or time-based) and perpetual software license revenue;


(ii)	Maintenance fees, related to email and phone support, bug fixes and unspecified software updates and upgrades released when, and if available during the maintenance term; and


(iii)	Services fees, related to professional services related to implementation of our software, reimbursable travel and training.

Revenues are recognized when all of the following criteria are met:


•	Persuasive evidence of an arrangement exists. Evidence of an arrangement consists of a written contract signed by both the customer and management prior to the end of the period.


•	Delivery or performance has occurred. The Company’s software is delivered electronically to the customer. Delivery is considered to have occurred when the Company provides the customer access to the software along with login credentials.

•

Deferred Revenues

Income Taxes

The Company records interest and penalties related to unrecognized tax benefits as income tax expense in its condensed consolidated statement of income.

Stock-Based Compensation

Net Income per Share

Fair Value of Financial Instruments (Tables)

3 Months Ended

Oct. 31, 2012

Fair Value Disclosures [Abstract]

Company's financial instruments measured at fair value on a recurring basis

The following table summarizes the Company’s financial instruments measured at fair value on a recurring basis:



	October 31, 2012		July 31, 2012
	(in thousands)
Money market funds	$	105,143	$	105,107
Certificates of deposit	2,121		3,726
Total	$	107,264	$	108,833

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

Balance Sheet Components (Tables)

3 Months Ended

Oct. 31, 2012

Balance Sheet Related Disclosures [Abstract]

Prepaid expenses and other current assets

Prepaid expenses and other current assets consist of the following:



	October 31, 2012		July 31, 2012
	(in thousands)
Prepaid income taxes	$	1,568	$	1,437
Other prepaid expenses	2,162		2,623
Other current assets	2,545		3,206
Total	$	6,275	$	7,266

Property and equipment

Property and equipment consist of the following:



	October 31, 2012			July 31, 2012
	(in thousands)
Computer hardware	$	7,510		$	8,125
Software	3,722			3,599
Furniture and fixtures	2,013			1,854
Leasehold improvements	5,680			5,600
Total property and equipment	18,925			19,178
Less accumulated depreciation and amortization	(7,390		)	(7,254		)
Property and equipment, net	$	11,535		$	11,924

Accrued Employee Compensation

Accrued employee compensation consists of the following:



	October 31, 2012		July 31, 2012
	(in thousands)
Accrued bonuses	$	2,831	$	12,718
Accrued commission	1,788		4,068
Accrued vacation	6,047		5,684
Payroll accruals	4,029		4,032
Total	$	14,695	$	26,502

Net Income per Share (Tables)

3 Months Ended

Oct. 31, 2012

Earnings Per Share [Abstract]

Company's basic and diluted net income (loss) per share

The following table sets forth the computation of the Company’s basic and diluted net income per share for the three months ended October 31, 2012 and 2011:



	Three Months Ended October 31,
	2012		2011
	(in thousands, except share and per share amounts)
Numerator:
Net income	$	447	$	4,812
Non-cumulative dividends to preferred stockholders	—		(823		)
Undistributed earnings allocated to preferred stockholders	—		(2,534		)
Net income, basic	447		1,455
Adjustments to net income for dilutive options and restricted stock options	—		358
Net income, diluted	$	447	$	1,813
Net income per share:
Basic	$	0.01	$	0.10
Diluted	$	0.01	$	0.09
Denominator:
Weighted average shares used in computing net income per share:
Basic	54,814,044		14,554,428
Weighted average effect of diluted stock options	4,247,804		3,630,168
Weighted average effect of dilutive restricted stock units	2,123,422		2,937,891
Weighted average effect of dilutive stock warrants (1)	—		30,953
Diluted	61,185,270		21,153,440


(1)	Series C convertible preferred stock warrants were automatically converted to equivalent common stock warrants upon the Company’s IPO on January 24, 2012 and were converted or cancelled as of April 30, 2012.

Schedule of Antidilutive Securities excluded from EPS



	Three Months Ended October 31,
	2012	2011
Stock options to purchase common stock	199,368	510,288
Restricted stock units	195,552	—

Stockholders' Equity and Stock-based Compensation (Tables)

3 Months Ended

Oct. 31, 2012

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-based compensation expense

Stock-based compensation expenses related to all employee and non-employee stock-based awards was as follows:



	Three Months Ended October 31,
	2012		2011
Stock-based compensation expenses:	(in thousands)
Cost of maintenance revenues	$	261	$	72
Cost of services revenues	2,616		686
Research and development	2,042		845
Marketing and sales	1,651		497
General and administrative	3,214		1,212
Total stock-based compensation expenses	$	9,784	$	3,312

Unrecognized compensation cost, adjusted for estimated forfeitures

As of October 31, 2012, total unrecognized compensation cost, adjusted for estimated forfeitures, was as follows:



	As of October 31, 2012
	Unrecognized Expense		Average Expected Recognition Period
	(in thousands)		(in years)
Restricted stock units	$	42,162	1.5
Stock options	4,630		1.2
	$	46,792

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

RSUs

RSU activity under the Company's equity incentive plans for the period presented is as follows:



	RSUs Outstanding
	Number of RSUs Outstanding		Weighted Average Grant Date Fair Value
Balance as of July 31, 2012	3,992,177		$	8.00
Granted	1,154,101		32.25
Released	(362,698	)	6.10
Cancelled	(53,375	)	14.97
Balance as of October 31, 2012	4,730,205		$	13.98

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

Stock Options



	Stock Options Outstanding
	Number of Stock Options Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value⁽¹⁾
					(in years)	(in thousands)
Balance as of July 31, 2012	6,486,641		$	3.74	6.1	$	142,321
Granted	298,360		32.25
Exercised	(1,212,775	)	2.61
Cancelled	(1,875	)	4.50
Balance as of October 31, 2012	5,570,351		$	5.51	6.2	$	140,507
Vested and expected to vest as of October 31, 2012	5,463,490		$	5.33	6.2	$	138,788
Exercisable as of October 31, 2012	5,160,027		$	3.93	6.0	$	137,813


⁽¹⁾	Aggregate intrinsic value represents the difference between the Company's closing stock price of $30.64 and $25.66 on October 31, 2012 and July 31, 2012, respectively, against the exercise price of outstanding, in-the-money options.

Black-Scholes valuation assumptions

The per share fair value of each stock option was determined on the date of grant using the Black-Scholes option pricing model and the following assumptions:



	Three Months Ended October 31,
	2012	2011
Expected life (in years)	5.1 - 6.0	5.9 - 6.0
Risk-free interest rate	0.6% - 0.8%	1.1% - 1.2%
Expected volatility	45.1% - 48.7%	44.5%
Expected dividend yield	—%	—%

Common Stock Reserved for Issuance

As of October 31, 2012 and July 31, 2012, the Company had reserved shares of common stock, on an as-if-converted basis, for issuance as follows:



	October 31, 2012	July 31, 2012
Exercise of stock options to purchase common stock	5,570,351	6,486,641
Vesting of restricted stock units	4,730,205	3,992,177
Issuances of shares available under stock plans	6,384,954	7,655,332
Total common stock reserved for issuance	16,685,510	18,134,150

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

Segment Information (Tables)

3 Months Ended

Oct. 31, 2012

Segment Reporting [Abstract]

Revenues by country

The following table sets forth revenues by country based on the billing address of the customer:



	Three Months Ended October 31,
	2012		2011
	(in thousands)
United States	$	35,387	$	32,399
Canada	10,081		4,616
Australia	4,039		6,666
United Kingdom	5,371		3,231
Other	8,423		5,468
Total revenues	$	63,301	$	52,380

Property and equipment, net by geographic region

The following table sets forth the Company’s property and equipment, net by geographic region:



	October 31, 2012		July 31, 2012
	(in thousands)
North America	$	11,158	$	11,522
Europe	364		388
Asia Pacific	13		14
Total net property and equipment	$	11,535	$	11,924

The Company and Summary of Significant Accounting Policies and Estimates (Details Textual) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended
	Apr. 30, 2012 USD ($) shares	Jan. 31, 2012 USD ($) shares	Oct. 31, 2012 USD ($) customer	Oct. 31, 2011 USD ($) customer	Jul. 31, 2012 customer	Apr. 24, 2012 USD ($) $ / shares	Jan. 30, 2012 USD ($) $ / shares $ / convertible_preferred_share shares
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Percentage of Revenue			10.00%	13.00%
Number of Customers Concentration of Credit Risk Receivables \| customer			1		0
Number of Customers Concentration Of Credit Risk \| customer			0	1
Percentage of accounts receivable			16.00%		10.00%
Adjustment for license revenues \| $			$ 3.2	$ 0.0
Adjustment for service revenues \| $			$ 1.7	$ 0.0
Restricted Stock Units (RSUs)
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Period of RSUs time based Vesting			4 years
Period which satisfies performance based condition required for vesting of RSUs after our IPO			180 days
Period of expiration for share based payment awards			10 years
IPO
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Issuance of common stock under public offering (in shares) \| shares		10,177,500
Issuance of common stock under initial public offering to underwriters (in shares) \| shares		1,327,500
Price of common stock under public offerings \| $ / shares							$ 13.00
Proceeds from issuance of common stock in connection with stock offerings, net of underwriting discounts and commission \| $		$ 123.0
Offering expenses related to public offering \| $		$ 3.5
Capitalized costs related public offering expense \| $							$ 2.8
Conversion of convertible preferred stock (in shares) \| shares							25,357,721
IPO \| Common Stock [Member]
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Outstanding warrants (in shares) \| shares							69,529
Warrant purchase price \| $ / convertible_preferred_share							5.03
IPO \| Preferred Stock
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Outstanding warrants (in shares) \| shares							69,529
Warrant purchase price \| $ / convertible_preferred_share							5.03
Minimum
Finite-Lived Intangible Assets [Line Items]
Range of General Payment Terms			30 days
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Range of General Payment Terms			90 days
Follow-on Public Offerings
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Issuance of common stock under public offering (in shares) \| shares	750,000
Stock sold during period secondary offerings by selling stockholders' shares (in shares) \| shares	8,450,000
Stock issued during period secondary offering shares (in shares) \| shares	9,200,000
Price of common stock under public offerings \| $ / shares						$ 28.25
Proceeds from issuance of common stock in connection with stock offerings, net of underwriting discounts and commission \| $	$ 20.4
Offering expenses related to public offering \| $	$ 1.0
Capitalized costs related public offering expense \| $						$ 0.7
Licensing Agreements [Member] \| Minimum
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Period of standard license agreement term			3 years
Licensing Agreements [Member] \| Maximum [Member]
Company and Summary of Significant Accounting Policies and Estimates (Textual) [Abstract]
Period of standard license agreement term			7 years

Fair Value of Financial Instruments (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Oct. 31, 2012	Jul. 31, 2012
Company's financial instruments measured at fair value on a recurring basis
Fair Value of Financial Instruments	$ 107,264	$ 108,833
Money Market Funds
Company's financial instruments measured at fair value on a recurring basis
Fair Value of Financial Instruments	105,143	105,107
Certificates of Deposit
Company's financial instruments measured at fair value on a recurring basis
Fair Value of Financial Instruments	$ 2,121	$ 3,726

Balance Sheet Components (Details) - USD ($) $ in Thousands	Oct. 31, 2012	Jul. 31, 2012
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid income taxes	$ 1,568	$ 1,437
Other prepaid expenses	2,162	2,623
Other current assets	2,545	3,206
Total prepaid expense and other assets, current	6,275	7,266
Property and Equipment [Abstract]
Computer hardware	7,510	8,125
Software	3,722	3,599
Furniture and fixtures	2,013	1,854
Leasehold improvements	5,680	5,600
Total property and equipment	18,925	19,178
Less accumulated depreciation and amortization	(7,390)	(7,254)
Property and equipment, net	11,535	11,924
Accrued Employee Compensation [Abstract]
Accrued Bonuses, Current	2,831	12,718
Accrued Sales Commission, Current	1,788	4,068
Accrued Vacation, Current	6,047	5,684
Other Payroll Accruals Current	4,029	4,032
Employee-related Liabilities, Current	$ 14,695	$ 26,502

Balance Sheet Components (Details Textual) - USD ($)	Oct. 31, 2012	Jul. 31, 2012
Balance Sheet Related Disclosures [Abstract]
Property and equipment pledged as collateral	$ 0	$ 0

Net Income per Share (Details 1) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

Oct. 31, 2012

Oct. 31, 2011

Numerator:

Net income

$ 447

$ 4,812

Non-cumulative dividends to preferred stockholders

(823)

Undistributed earnings allocated to preferred stockholders

(2,534)

Net income, basic

447

1,455

Adjustments to net income for dilutive options and restricted stock options

358

Net income, diluted

$ 447

$ 1,813

Net Income Per Share:

Basic (in dollars per share)

$ 0.01

$ 0.10

Diluted (in dollars per share)

$ 0.01

$ 0.09

Weighted average shares used in computing net income per share:

Basic (in shares)

54,814,044

14,554,428

Weighted average effect of dilutive stock options

4,247,804

3,630,168

Weighted average effect of dilutive restricted stock units

2,123,422

2,937,891

Weighted average effect of dilutive preferred stock warrants

^[1]

30,953

Diluted (in shares)

61,185,270

21,153,440

[1]	Series C convertible preferred stock warrants were automatically converted to equivalent common stock warrants upon the Company’s IPO on January 24, 2012 and were converted or cancelled as of April 30, 2012.

Net Income per Share (Details 2) - shares	3 Months Ended
Net Income per Share (Details 2) - shares	Oct. 31, 2012	Oct. 31, 2011
Stock options to purchase common stock [Member]
Net Income (Loss) Per Share (Textual) [Abstract]
Schedule of antidilutive securities excluded from EPS	199,368	510,288
Restricted stock units [Member]
Net Income (Loss) Per Share (Textual) [Abstract]
Schedule of antidilutive securities excluded from EPS	195,552	0

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Commitments and Contingencies (Details Textual) zł in Millions, $ in Millions	3 Months Ended
	Oct. 31, 2012 USD ($)	Oct. 31, 2011 USD ($)	Oct. 31, 2012 PLN (zł) letter_of_credit	Oct. 31, 2012 USD ($) letter_of_credit	Jul. 31, 2012 letter_of_credit	Aug. 08, 2008 ft²
Line of Credit Facility [Line Items]
Duration of lease for a facility to serve as its corporate headquarters	7 years
Rentable area of current corporate headquarters \| ft²						97,674
Lease expense for all worldwide facilities and equipment	$ 1.2	$ 0.9
Sublease Income		$ 0.3
Number of Letter of Credit Agreements Outstanding \| letter_of_credit			2	2	3
Payment in connection with settlement	10.0
Additional payment in case of successful appeal	20.0
Payment required to discharge potential obligation prior to initial determination by court	$ 15.0
Unsecured Line of Credit Associated with Customer Agreement [Domain]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			zł 10.0	$ 3.1
Line of Credit Associated With Operating Lease [Domain]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity				$ 1.2

Stockholders' Equity and Stock-based Compensation (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2012	Oct. 31, 2011
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Unrecognized compensation cost, adjusted for estimated forfeitures	$ 46,792
Stock-based compensation expense
Stock-based compensation expenses	9,784	$ 3,312
Cost of Maintenance Revenues [Member]
Stock-based compensation expense
Stock-based compensation expenses	261	72
Cost of Services Revenues [Member]
Stock-based compensation expense
Stock-based compensation expenses	2,616	686
Research and development [Member]
Stock-based compensation expense
Stock-based compensation expenses	2,042	845
Sales and marketing [Member]
Stock-based compensation expense
Stock-based compensation expenses	1,651	497
General and administrative [Member]
Stock-based compensation expense
Stock-based compensation expenses	3,214	$ 1,212
Restricted Stock Units (RSUs)
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Unrecognized compensation cost, adjusted for estimated forfeitures	$ 42,162
Average Expected Recognition Period (in years)	1 year 6 months
Stock Options [Member]
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Unrecognized compensation cost, adjusted for estimated forfeitures	$ 4,630
Average Expected Recognition Period (in years)	1 year 2 months 11 days

Stockholders' Equity and Stock-based Compensation (Details 2) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Oct. 31, 2012

Jul. 31, 2012

Stock Option activity under the company's equity incentive plans

Options Outstanding, Number of Stock Options Outstanding Beginning balance

6,486,641

Number of Stock Options Outstanding, Granted in Period

298,360

Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price

$ 32.25

Number of Stock Options Outstanding, Exercises in Period

(1,212,775)

Number of Stock Options Outstanding, Cancelled in Period

(1,875)

Options Outstanding, Number of Stock Options Outstanding Ending balance

5,570,351

6,486,641

Number of Stock Options Outstanding, Exercisable

5,160,027

Weighted-Average Exercise Price, Exercises in Period

$ 2.61

Weighted-Average Exercise Price Ending balance

5.51

$ 3.74

Weighted-Average Exercise Price, Exercisable

$ 3.93

Weighted-Average Remaining Contractual Life (Years), Beginning balance

6 years 2 months 12 days

6 years 1 month 13 days

SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2

6 years 2 months 12 days

6 years 1 month 13 days

Weighted-Average Remaining Contractual Life, Vested and Expected to Vest

6 years 2 months 12 days

Weighted-Average Remaining Contractual Life, Exercisable

6 years

Aggregate Intrinsic Value Beginning balance

^[1]

$ 142,321

Aggregate Intrinsic Value Ending balance

^[1]

140,507

$ 142,321

Aggregate Intrinsic Value, Vested and Expected to Vest

^[1]

138,788

Aggregate Intrinsic Value, Exercisable

^[1]

$ 137,813

Share Price

$ 30.64

$ 25.66

Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price

$ 4.50

Restricted Stock Units (RSUs)

RSU activity

RSUs Outstanding, Beginning Balance

3,992,177

RSUs Outstanding, Granted

1,154,101

RSUs Outstanding, Released

(362,698)

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value

$ 6.10

RSUs Outstanding, Cancelled

(53,375)

RSUs Outstanding,Ending Balance

4,730,205

3,992,177

Stock Option activity under the company's equity incentive plans

Weighted-Average Exercise Price Beginning balance

$ 8.00

Weighted-Average Exercise Price Granted in Period

32.25

Weighted-Average Exercise Price, Cancelled in Period

$ 14.97

[1]	Aggregate intrinsic value represents the difference between the Company's closing stock price of $30.64 and $25.66 on October 31, 2012 and July 31, 2012, respectively, against the exercise price of outstanding, in-the-money options.

Stockholders' Equity and Stock-based Compensation (Details 3)	3 Months Ended
	Oct. 31, 2012	Oct. 31, 2011
Summary of assumptions for fair value of employee stock option estimates
Expected dividend yield	0.00%	0.00%
Minimum
Summary of assumptions for fair value of employee stock option estimates
Expected life (in years)	5 years 1 month 13 days	5 years 10 months 22 days
Risk-free interest rate, minimum	0.60%	1.10%
Expected volatility, minimum	45.10%	44.50%
Maximum
Summary of assumptions for fair value of employee stock option estimates
Expected life (in years)	6 years 7 days	6 years
Risk-free interest rate, maximum	0.80%	1.20%
Expected volatility, maximum	48.70%	44.50%

Stockholders' Equity and Stock-based Compensation (Details 4) - shares	Oct. 31, 2012	Jul. 31, 2012
Common Stock Reserved for Issuance
Exercise of stock options to purchase common stock	5,570,351	6,486,641
Total Common Stock Reserved for Issuance	16,685,510	18,134,150
Stock Options [Member]
Common Stock Reserved for Issuance
Issuances of shares available under stock plans	6,384,954	7,655,332
Restricted Stock Units (RSUs)
Common Stock Reserved for Issuance
Vesting of restricted stock units	4,730,205	3,992,177

Stockholders' Equity and Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Oct. 31, 2012	Oct. 31, 2011	Sep. 14, 2011
Class of Stock [Line Items]
Total intrinsic value of options exercised	$ 32.9	$ 1.7
Stockholders Equity and Stock Based Compensation (Additional Textual) [Abstract]
Common stock, shares authorized	500,000,000
Common stock, par value	$ 0.0001
Restricted Stock Units (RSUs) [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value	$ 11.0
Stock Plan 2006 [Member]
Stockholders Equity and Stock Based Compensation (Textual) [Abstract]
Shares reserved for issuance under stock compensation plan	14,102,510
Stock Plan 2009 [Member]
Stockholders Equity and Stock Based Compensation (Textual) [Abstract]
Shares reserved for issuance under stock compensation plan	31,000
Stock Plan 2010 [Member]
Stockholders Equity and Stock Based Compensation (Textual) [Abstract]
Shares reserved for issuance under stock compensation plan	4,436,579
Stock Plan 2011 [Member]
Stockholders Equity and Stock Based Compensation (Textual) [Abstract]
Shares reserved for issuance under stock compensation plan	8,245,548		7,500,000
Maximum increase in percentage of outstanding number of shares of the Company's common stock	5.00%
Period for award grant	10 years

Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Thousands	Oct. 31, 2012	Oct. 31, 2011
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ (278)	$ 3,044
Percentage of Statutory federal income tax rate	35.00%
Effective Income Tax Rate, Continuing Operations	(164.50%)
Undistributed earnings from certain foreign subsidiaries	$ 10,400
Unrecognized deferred tax liability	1,300
Unrecognized tax benefits	$ 1,600

- Definition

Amount of deferred tax liability attributable to taxable temporary differences from undistributed earnings of subsidiaries and other recognized entities not within the country of domicile of the entity.

+ References + Details

Segment Information (Details 1) - USD ($) $ in Thousands	3 Months Ended
Segment Information (Details 1) - USD ($) $ in Thousands	Oct. 31, 2012	Oct. 31, 2011
Revenues:
Total	$ 63,301	$ 52,380
United States [Member]
Revenues:
Total	35,387	32,399
Canada [Member]
Revenues:
Total	10,081	4,616
Australia [Member]
Revenues:
Total	4,039	6,666
United Kingdom [Member]
Revenues:
Total	5,371	3,231
Other [Member]
Revenues:
Total	$ 8,423	$ 5,468

Segment Information (Details 2) - USD ($) $ in Thousands	Oct. 31, 2012	Jul. 31, 2012
Property and equipment, net by geographic region
Total	$ 11,535	$ 11,924
North America [Member]
Property and equipment, net by geographic region
Total	11,158	11,522
Europe [Member]
Property and equipment, net by geographic region
Total	364	388
Asia Pacific [Member]
Property and equipment, net by geographic region
Total	$ 13	$ 14

Label	Element	Value
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber	5,463,490
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice	$ 5.33
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsNonvestedWeightedAverageGrantDateFairValue	$ 13.98

- Definition

The weighted average fair value of nonvested awards on equity-based plans excluding option plans (for example, phantom stock or unit plan, stock or unit appreciation rights plan, revenue or profit achievement stock award plan) for which the employer is contingently obligated to issue equity instruments or transfer assets to an employee who has not yet satisfied service or performance criteria necessary to gain title to proceeds from the sale of the award or underlying shares or units.

+ References + Details