We'd like to caution you that our statements are based on current expectations, and involve risks and uncertainties that could cause actual results to differ materially. We refer you to the risk factors and cautionary language contained in today's press release announcing our fiscal Q1 2011 results, as well as to our reports filed with the Securities and Exchange Commission from time to time, including our most recent 10-K filed on June 11, 2010.Such reports contain and identify important factors that could cause actual results to differ materially from those contained in our forward-looking statements. All such risk factors are identified in our press release and in our filings with the SEC are incorporated by reference into today's discussion. We undertake no obligation to update these forward-looking statements in the future. With that, I'll turn the call over to Jon Gacek. Jon Gacek Thanks Shawn. Good afternoon and thank you for joining us, as we report our first quarter of fiscal 2011 quarter results. I'm going to walk through our results for the quarterly period ended June 30, 2010, and comment on significant accomplishments and challenges from the quarter as we continue to focus on becoming a growing and more profitable storage systems company. In the first quarter revenue was $163.2 million compared to $160.3 million in the comparable quarter of fiscal 2010. Non-GAAP gross margin was 45%, an increase of 300 basis points over the same quarter in fiscal 2010 when we reported gross margin of 42%. Non-GAAP operating profit was $15.9 million in Q1 of 2011 and $14.4 million in the comparable period in 2010. Non-GAAP EPS for the quarter was $0.04 in both Q1 of fiscal 2011 and 2010. Clearly our revenue performance was less than we anticipated and given that one of our key goals for this year is to grow revenue my comments will be more in depth than usual about what went on in Q1. In addition, Rick will also talk about the actions we are taking to address the revenue gaps that we currently see.
On the positive side of our revenue results we had very strong growth in our branded disk systems revenue. It increased 23% sequentially and 125% year-over-year. In addition, we had a very strong quarter in acquiring new Enterprise tape customers. On a geographic basis we performed significantly above our sales plan in Asia-Pacific and in two of our four sales areas in North America.With regard to revenue challenges, we were at 60% of our sales plan in EMEA, which we believe was a result of economic uncertainty. Also in one of our North America sales areas where have historically seen a number of significantly large deals we were at 30% of our sales plan. Overall, EMEA accounted for about two-thirds of our Q1 revenue shortfall plan, while the North America area, I mentioned, was responsible for the remaining third. The key takeaways is that we are seeing very good growth in our branded DXi products as a whole and we are performing very well in growing in the majority of our geographies. So we recognize we have to make improvements in a couple of our geos to hit our sales plan. As I mentioned last quarter, when we evaluate our financial performance, there are several key measures that are important to both our midterm and our long-term business strategy. These include the branded versus OEM revenue mix, non-GAAP gross margin, disk systems and software revenue growth, non-GAAP operating profit, and finally cash generation and EBITDA. I will comment on each of these. For the first quarter, our branded business represented 73% of our non-royalty revenue, compared to 71% in the same period a year ago. On a year-over-year basis, our first quarter branded product revenue grew 6% and for the remainder of fiscal 2011, we expect our branded business to continue to grow for tape, disk systems and software products. Read the rest of this transcript for free on seekingalpha.com