These statements are subject to various risks and uncertainties and actual results could differ materially from the company's current expectations. These risks and uncertainties are discussed in the company's SEC filings, including our most recent Form 10-K filed on November 10, 2011.During the course of this call, we will reference historical non-GAAP financial measures. Management reviews non-GAAP financial information in evaluating Ariba's historical and projected financial performance and believes that it may assist investors in assessing its ongoing operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. For a reconciliation of historical non-GAAP to GAAP financial measures, please see the earnings press release and supplemental analysis on the Investor Relations section of our website at www.ariba.com or our Form 8-K filed this afternoon. In addition, we will reference certain forward-looking non-GAAP financial information, including fiscal year 2011 revenues, expenses and net income. We are unable to reconcile this forward-looking non-GAAP financial information to corresponding forward-looking GAAP measures because we are unable to estimate without unreasonable efforts certain forward-looking GAAP revenue, expense and other income items. At this time, I would like to turn the call over to Ahmed Rubaie to review the financial highlights for the quarter. Ahmed Rubaie Thanks John, good afternoon everyone and thank you for joining us today to review Ariba’s first quarter, which was highlighted by solid performance across all matrix. Our revenue was near the top end of our expectations with rapid growth in our network revenue and visible strength in our total subscription revenues. The strong revenue combined with our commitment to managing expenses and improving operating margins helped us exceed the high end of our non-GAAP EPS guidance. In addition, our annualized Subscription Software backlog as well as our trailing 12 month network volumes in participation all rose strongly in the quarter. So we are very pleased with the company’s execution and strong financial performance in the first quarter particularly in light of the continued macro volatility. The expanded global region increase capabilities of the Ariba network provides us with a highly differentiated value proposition that is driving our growth and reinforcing Ariba as the clear market leader.
As adoption and spend levels continue to increase we are benefiting from a powerful network effect and our trading community is becoming increasingly vital to the way in which our customers collaborate and conduct commerce with their trading partners. We are at a very exciting point in Ariba’s history we have successfully evolved to a network company with an applications business. And we believe that we are still only in the first inning as it relates to monetizing our market opportunity.In addition, and as I will detail out in a moment we are reiterating our expectation for strong revenue growth in fiscal 2012 despite currency headwinds, we are raising our profitability guidance for the full fiscal year, delivering on our commitment to improve operating margins while continuing to invest for tomorrow.
Now let me walk you through the highlights for the first quarter, please turn to slide three, we had another solid bookings quarter and annualized Subscription Software backlog increased to $210 million, up 27% year-over-year and up 21% organically. Our trailing 12 month network volume is approximately $219 billion up 22% organically before adding on $81 billion from b-process for a total of $300 billion. Less than four years ago we were pleased when we crossed the $100 billion milestone and now we have hit $300 billion. Of course while the level and growth of spend on our network is tremendous we believe that we have barely scratched the surface on the trillions in addressable spend opportunity. We continue to increase penetration in our chargeable relationships rose 7000 sequentially to approximately 94,800 in the quarter, 3800 of which came from the acquisition of b-process. Read the rest of this transcript for free on seekingalpha.com