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These statements are subject to numerous important factors, risks and uncertainties, which could cause actual results to differ from the results implied by these or any other forward-looking statements. Cautionary statements relative to these forward-looking statements and BMC's operating results are described in today's earnings press release and in our annual report on Form 10-K. All of these documents are available on our website. These forward-looking statements are made as of today based on certain expectations, and we undertake no obligation to update these forward-looking statements.I would also like to point out that the company's use of non-GAAP financial measures is explained in today's earnings press release, and a full reconciliation between non-GAAP measures and the corresponding GAAP measure is provided in the tables accompanying the press release and in our GAAP to non-GAAP reconciliations found on our website at investors.bmc.com. At this time, I'll turn the call over to Bob. Robert Beauchamp Thanks, Derrick. Good afternoon, and thank you for joining us on today's call. I'm very pleased to say that BMC Software is starting out fiscal 2011 with robust year-over-year growth and a solid overall performance. We grew total bookings by 14%. We had the highest percentage increase in total license bookings in the past six quarters. We grew ESM license bookings by 40%, the highest percentage increase in the past six quarters, a strong leading indicator of customer adoption and market growth. MSM total annualized bookings for the trailing 12 months increased 8%. Cash flow from operations was $167 million, an increase of 8%. Total revenue for the quarter was $461 million, up 2%. Non-GAAP operating margin was 34%, up one percentage point. And non-GAAP diluted EPS increased 5% to $0.62 per share. Our financial position remains strong as evidenced by our solid balance sheet. We had $1.5 billion in cash and investments and $1.8 billion in deferred revenue at the end of the quarter. That's a snapshot of our overall performance. Given our solid first quarter results and our current outlook, we are on track to achieve our fiscal 2011 expectations.
Let me turn next to discuss key developments in our ESM and MSM business units during the quarter. First and foremost, ESM license bookings increased 40% from the year-ago quarter. We continue to see momentum in ESM license bookings, which over the past nine months have grown 13% over the respective period of a year ago.We had a number of significant wins during the quarter that demonstrated our continued strength in selling the BSM platform. In fact, we had 14 ESM license transactions with over $1 million in bookings, up from 11 license transactions a year ago. We had a number of large ESM platform wins, including Computer Sciences Corporation, Sanofi-Aventis Group, Servicio de Administracion Tributaria of Mexico and Tata Consulting Services. We saw multiple wins in the U.S. federal sector. These include the Marine Corps Systems Command, the Defense Threat Reduction Agency and the United States Central Command. It's not only the growth in large deals, but the mix of our ESM wins that underscores our momentum. The number of ESM license transactions between $500,000 and $1 million increased by over 50% compared to a year ago. That's the fourth straight quarter in which we have seen deals in this range increase by double-digit percentage. And we also saw our average selling price continue to grow. Looking at our global performance, we generated solid double-digit ESM license bookings growth in all major geographies. Not only did we have strong geographic performance, but we also had strong double-digit license bookings growth across all of our product disciplines within the ESM business. Six of the top 10 license deals were multi-disciplined license transactions, while five of those included all product disciplines. This reflects the success of our ongoing realignment of our ESM sales team. Read the rest of this transcript for free on seekingalpha.com