Turning now to our first quarter financial results and business strategy. There are 3 primary takeaways for our call today. First, we've seen a significant improvement of profitability. Gross profit margin increased to 12.6% of revenue, a significant increase from the same quarter last year reaching the highest level we've seen in nearly 2 years. The improvement compared to the same period last year was supported by a more favorable revenue mix that was driven by higher revenue in our Asia operations, as well as the effects of cost-reduction actions. These factors also contributed to reporting our first operating profit in 6 quarters.
Second, revenue in the first quarter was lower year-over-year as expected and seasonally higher compared to the fourth quarter of fiscal 2011. Our planned investments that we discussed in detail last quarter are specifically aimed at overcoming the pressures in the market and putting ModusLink on a path for sustainable revenue growth and improved profitability.
Third, we're making significant progress executing our cost-reduction plan, which we are phasing in as quickly as possible during fiscal 2012. We're pleased with the progress our management team and all employees are making executing our plan.
I will be talking in greater detail about this progress in all areas, including the appointment of a new leader of our sales and marketing team and several new client wins later in the call. But first, Steve will give you a more complete financial overview of our first quarter fiscal 2012 results.Read the rest of this transcript for free on seekingalpha.com
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