Gross margin for the quarter before amortization of acquired technology was 72% compared to 73.3% in the same period last year. The decrease is primarily related to the initial write-down at the maintenance revenue of $2 million due to the acquisitions of the Metastorm and Global 360. Our pretax adjusted operating margin before interest expense without compensation was $73 million this quarter compared to $62 million in Q1 last year. Adjusted net income increased 18% to $59 million this quarter from $50 million in the same quarter last year. Adjusted earnings per share was $1.01 on a diluted basis, up 17% from $0.86 per share for the same period a year ago. The sequential effect of foreign currency movement on adjusted earnings per share for Q1 was a positive $0.02.
Adjusted tax rate for the quarter is 14%, the same as it was last fiscal year. Net income for the first quarter in accordance with GAAP were $35 million or $0.60 per share on a diluted basis compared to $22 million or $0.37 per share on a diluted basis for the same period a year ago. There are approximately 58.6 million shares outstanding on a fully diluted basis for the first quarter.
Operating cash flow was $45 million compared to $49 million in the same quarter last year. The overall decline in cash flow is primarily due to the impact of slightly higher DSO of 45 days in the current quarter versus 43 in the same period a year ago, as well as onetime cash payments due to costs related to acquisitions in this quarter.
On the balance sheet at September 30, 2011, deferred revenue was $261 million compared to $266 million as of June 30, 2011. And accounts receivable was $144 million compared to $155 million at the end of last fiscal year. Days sales outstanding were 45 days as of September 30, 2011, compared to 49 days at June 30, 2011, and 43 days at the end of Q1 of fiscal 2011.Read the rest of this transcript for free on seekingalpha.com