All statements other than statements with historical facts are statements that can be deemed forward-looking statements, including any statements of expectations or beliefs and any statements of assumptions underlying any of the foregoing risks, uncertainties and assumptions including the risks that are described from time to time in the reports filed by Blue Coat with the Securities and Exchange Commission, including, but not limited to the risks described in Blue Coat's annual report on Form 10-K for the year ended April 30, 2011. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact it will have on the results of operations or financial condition of Blue Coat. Blue Coat assumes no obligation and does not intend to update these forward-looking statements except as required by applicable laws. Now I'd like to turn the call over to Gordy.Gordon C. Brooks Thank you, Jane. Good afternoon, everyone. I'm pleased to report that Blue Coat exceeded the second quarter financial guidance that we provided on our last conference call. Importantly, our product revenue performance is stronger than we had anticipated, which drove a solid improvement in profitability. Not only did we deliver better-than-expected results, we made progress on improving execution in key areas of our business, which Greg will discuss in a few minutes. Now turning to the results. Net revenue for fiscal Q2 was $114 million, an increase of 4% sequentially but a decrease of 6% compared with the same period a year ago. Product revenue for fiscal Q2 was $62 million, an increase of 6% from the prior quarter but a decrease of 15% compared with the same quarter a year ago. In Q2, the sequential strength in product revenue performance came from our Web security products and our federal vertical. Our Web security products, which currently include ProxySG, AV and Blue Coat WebFilter compose 77% of product revenue in Q2 compared with 69% in Q1 and 73% in Q2 of the prior fiscal year. Our acceleration products, which currently include PacketShaper, MACH5 and cash flow compose 23% of product revenue in Q2 compared with 31% in Q1 and 27% in Q2 of the prior fiscal year.
Going forward, we will be breaking out our product revenue results into 2 categories: Web security and acceleration, and we'll no longer be providing commentary on specific product revenue performance. Given the actions we are taking to improve our top line performance and the way we've realigned our organization, we believe these 2 product categories will more accurately measure the progress we are making and provide a better overall picture of our current business.Service revenue was $52 million, which was essentially flat sequentially and increased to 8% compared with the same quarter a year ago. Similar to fiscal Q1, the dollar amount of annual renewal support contract value closed in the quarter, which was [ph] the highest we have closed in fiscal Q2. We continue to be highly focused on this aspect of our revenue model by continuing to provide incremental value to our customers through software release upgrades. At the same time, we're also focusing on optimizing our support revenue stream by continuing to increase our service revenue contract renewal rate. On a geographic basis in Q2, net revenue in the Americas was $58 million and represented 51% of total net revenue. Net revenue in EMEA was $35 million and represented 31% of total net revenue. Net revenue in Asia Pacific was $21 million and represented 18% of total revenue. Net revenue in the Americas increased 20% sequentially and 1% compared with the same quarter a year ago. Net revenue in EMEA decreased 7% sequentially and 14% compared with the same quarter a year ago, and net revenue in Asia Pac decreased 10% sequentially and decreased 9% compared with the same quarter a year ago. Read the rest of this transcript for free on seekingalpha.com