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The information shared on this call is effective as of today ’s date and will not be updated. All content is the property of CA Technologies and is protected by U.S. and International Copyright Law and may not be reproduced or transcribed in any way without the expressed written consent of CA Technologies. We consider your continued participation in this call as consent to our recording.During this call, non-GAAP financial measures will be discussed. Please note as we told on the last earnings call, all non-GAAP operating measures will be reported excluding share based compensation expense on an ongoing basis. Prior period non-GAAP metrics also reflect this change for comparative purposes. Reconciliation to the most directly comparable GAAP financial metrics are included in the earnings release which was filed on form 8-K earlier today as well as in our supplemental earnings materials, all of which were available on our website at investor.ca.com. Today ’s discussion will include forward-looking statements subject to risks and uncertainties and actual results could differ materially from these forward-looking statements. Please refer to our SEC filings for a detailed discussion of potential risks. So with that, let me turn the call over to Bill. Bill McCracken Thanks Kelsey and good afternoon, everyone. Thank you for joining us. June 30th marked the end of my first full quarter as CEO of CA Technologies and I am pleased that we met our revenue, operating margin, earnings per share and cash flow plan for the quarter. During the quarter, we focused on execution to unlock value, accelerate growth and establish our company as the industry leader in I.T. management and security for virtualization and cloud. We also continued to invest in our core strengths in managing and securing main frame and distributed environments. We are making progress and we believe we will meet our update of financial expectations for the full year.
During the first quarter, we re-aligned our organization to make our business even more customer-centric and focused, brought in new senior talents to complement our management team, divested non-strategic I.T. governor ’s products from the portfolio.Started the process and re-branded the company, began realizing value from our newly acquired technologies and announced more than 20 new products to more than 5,000 customers and attendees at our successful user conference CA World. From a financial prospective, revenue grew 3% in constant currency which is right where we thought we would be. Operating margins were down as expected. This was a result of expenses related to CA World and acquisitions closed last fiscal year. Non-GAAP EPS was down 1% in constant currency and finally cash flow was in line with our expectations although down for the quarter. This was primarily a result of a decrease in upfront single installment payments. We achieved these results even though our renewal portfolio was approximately half of what it was last year. Renewal yields were in the low 90% range. These results combined with continued growth in the current portion of the revenue backlog on a constant currency basis are why we are confident in our full year outlook. However, we also realized there was more we can do especially when we look at new product sales performance during the quarter. We saw growth in the dollar value of stand alone sales of new products meaning sales not attached to renewal. Year-over-year, stand alone sales were up more than 30% and contributed to the more than 50% constant currency growth in our software fees and other revenue line. This quarter, standalone deals improved our front revenue and underscored the value of our product portfolio. However, improvements in standalone sales were not enough to offset the negative impact, the lighter inventory renewals had on our ability to drive new product sales.
Quarters with lighter renewal inventories generally result in lower new production sales as renewals are an important opportunity to sell new products. As a result, new product sales excluding mainframe capacity were down mid teens year-over-year.Read the rest of this transcript for free on seekingalpha.com