These statements are based on the environment, as we currently see it, and are subject to risks and uncertainties. Please refer to the press release and the risk factors and documents filed with the Securities and Exchange Commission, including our most recent reports on Form 10-Q and Form 10-K for information on risks and uncertainties that may cause actual results to differ materially from those set forth in such statements.In addition, during today's call, we will discuss certain non-GAAP financial measures. These non-GAAP financial measures, which are used as measures of VMware's performance, should be considered in addition to, not as a substitute for or in isolation from GAAP measures. Our non-GAAP measures exclude the effect on our GAAP results of stock-based compensation, amortization of intangible assets, employer payroll tax on employee stock transactions, the net effect of amortization and capitalization of software and acquisition-related items. You can find additional disclosures regarding these non-GAAP measures, including reconciliations with comparable GAAP measures in the press release and on the Investor Relations page of our website. The webcast replay of this call will be available for the next 60 days on our company website under the Investor Relations link. Our second quarter quiet period begins at the close of business, June 15, 2012. Finally, unless otherwise stated, all financial comparisons in this call will be in reference to our results for the comparable period of 2011. With that, let me hand it over to Mark. Mark S. Peek Thanks, Mike, and good afternoon, everyone. The financial and business results of our first quarter 2012 were once again, strong. We achieved record non-GAAP operating margin and free cash flows driven by strength across our product offerings and record international revenues. Total first quarter revenues increased to 25%, and license revenues increased 15% compared to the same period last year. Our non-GAAP operating margin was 32.6% for the quarter. Trailing 12-month free cash flows were $2.1 billion, an increase of 53% from a year ago. Our balance sheet remains strong with cash and investments of $5.2 billion and unearned revenue of $2.8 billion.
Customers continue to move along the virtualization journey and migrate from virtualizing their test and development environments and simpler Tier 3 apps to more mission-critical applications, including databases, ERP systems, e-mail and collaboration systems. Global demand for vSphere continues to be strong, with the new release expected to be launched in the second half of the year. We were pleased to see so many customers utilizing our management and automation solutions as they build out their data centers into private clouds. During the quarter, we updated our Virtual Center Operations Suite, a comprehensive management portfolio designed to help customers deliver IT as a Service by simplifying and automating the operations of virtual and cloud environments. Demand for VCOps since its original release one year ago has been strong, and feedback from our most recent release has been encouraging.This month, we recognize the one year anniversary of our Cloud Foundry project. As an open Platform as a Service, Cloud Foundry is designed to run on a wide variety of environments, protecting developers from being locked into any one particular cloud provider. As of last week, we had over 75,000 downloads of the Cloud Foundry client and the Micro Cloud Foundry. This open-source project continues to see ecosystem adoption as signified by over 3,300 followers. The VMware Service Provider Program continues to grow, with over 8,000 partners across 150 countries and includes a cross-section of small, medium and large service providers working with us to provide hosted IT services based on VMware solutions. Most recently, we added AT&T to our list of cloud service partners utilizing VMware cloud solutions, joining Bluelock, Colt, CSC, Dell, Optus, SingTel, SOFTBANK and Verizon. 4 of the 5 leaders in Gartner's 2011 Magic Quadrant for Public Cloud Infrastructure as a Service offer cloud service based on VMware. This week, we rolled out My VMware, a new system that helps our partners and customer to manage their license and support entitlements. In development for over a year, My VMware is an integrated, self-service, account-based portal that is focused on simplifying and streamlining customer interactions with VMware. This is part of our ongoing effort to make it as easy as possible for our customers and partners to do business with us. Read the rest of this transcript for free on seekingalpha.com