Paul and John will be referring to non-GAAP measures during the presentation unless otherwise noted. Pursuant to the requirements of Regulation G, the company has provided reconciliations of GAAP to non-GAAP measures, and a discussion of management's use of non-GAAP measures in the Supplemental Materials section of the earnings presentation slides.Regarding our upcoming dividend schedule, Lexmark anticipates that the record date of the second quarter 2012 dividend will be June 1, with an anticipated payment date of June 15. Please note that future quarterly dividend payment are subject to board approval. We have also included our anticipated dividend schedule for 2012 and 2013 in the Supplemental section of our earnings presentation. Also, Lexmark will be participating at 3 investor conferences in the second quarter including JP Morgan Global Technology Media and Telecom Conference, Barclays Capital Global Technology Media and Telecommunications Conference, and Sanford C. Bernstein & Co.'s Strategic Decisions Conference. More details can be found on our Investor Relations website. Following the conclusion of this conference call, a complete replay will be made available on our IR website. As a reminder, any of today's remarks that are not statements of historical fact are forward-looking statements and involve certain risks and uncertainties that are disclosed in the Safe Harbor section of our earnings releases and SEC filings. Actual results may differ materially from such statements and Lexmark undertakes no obligation to update any forward-looking statements. With that, I'll turn it over to Paul. Paul A. Rooke Well thank you, John, and good morning, everyone. As John said, we'll be using a presentation slide deck and we'll refer to the slide numbers as we go to keep everyone on the same page. So let's begin. Starting with Slide 4, our first quarter financial results reflected revenue and earnings per share performance, in line with our guidance range, along with a strong gross profit margin performance, a first quarter record, and free cash flow of $44 million roughly consistent with of last year. We also saw a continued revenue growth in our strategic focus areas. We achieved double-digit growth in Managed Print Services and Perceptive Software, both outperforming the market, along with growth in large work group hardware and core supplies. The overall revenue was dampened by the ongoing but diminishing Legacy headwind.
We also strengthened our high-value offerings in our Core portfolio. On the hardware side, we recently announced new smart devices for the mid-range color laser market. And on the software side, we recently announced the acquisition of 3 software companies, giving us additional technologies to provide even more advanced end-to-end solutions growth.We remain focused on delivering value for our shareholders. Our imaging talent resources are squarely focused on business, customers and were aggressively growing our solutions business. At the same time, we are focused on returning more than a 50% of our free cash flow to shareholders through dividends and share repurchases. On Slide 5, using non-GAAP numbers, you can see the first quarter financial highlights. Revenue for the first quarter was $993 million, down 4% year-to-year. Underneath this, we saw a continued revenue growth in our strategic focus areas, this will provide double-digit growth in Managed Print Services, along with growth in large work group hardware and core supplies. Perceptive software revenue grew 41% for the quarter, an 18%, excluding the 4 recent acquisitions. And our Core revenue growth as mentioned before was more than offset by the continuing -- a diminishing headwind from our Legacy consumer business. Our operating income margin was 11% for the first quarter. Record of first quarter gross profit margin was offset primarily by the increased operating expense investment in Perceptive Software and additional acquisitions through our future grow. Earnings per share were $1.05 for the first quarter in line with our guidance, and we generated $44 million of free cash flow. As we stated before, our strategic focus is to build a more productive, higher value installed base, in terms of pages and Supplies revenue. Here on Slide 6, you'll see the percentage of our Supplies revenue split between now, which is driven from our Core installed base, the red bars, fed from the large and small work group of product sales; and from our Legacy inkjet installed base. The gray bars representing the Supplies revenue still flowing from our Legacy consumer inkjet installed base.
Now the percentages on the bars represents the year-over-year growth rates of the Core, and the Legacy Supplies revenue. As you can see, the Core Supplies revenue grew 4% driven primarily by our lasers but also getting contribution from our small work group Inkjets. We also believe there was contribution from an increase in supplies channel inventory, in advance of our early April price action. The Legacy Supplies revenue continued to decline in the first quarter, representing a 15% of our total Supplies revenue. So overall in the first quarter, we had growth in Core Supplies revenue, that was more than offset by the decline in the Legacy inkjet Supplies revenue, resulting in a year-to-year Supplies revenue decline of 4% overall.Read the rest of this transcript for free on seekingalpha.com