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During this call, we will be mentioning non-GAAP financial measures, which we may refer to as results excluding special items. Today's earnings release describes the differences between our non-GAAP and GAAP reporting. You can find reconciliations of our non-GAAP financial measures to corresponding GAAP amounts on the Investor section of our website at www.lsi.com/webcast. At that site, you can also find a copy of the earnings release and a presentation highlighting the key points from today's call and providing an overview of our business. Also on the site, we have posted a full video replay of our March 14 Analyst Day event, along with slides, which provide an in-depth information about each of our businesses.Today's remarks will include forward-looking statements. Our actual results could differ materially from those suggested by the statements made today. Information about factors that could affect future results is contained in our Form 10-K for the year ended December 31, 2011, and today's earnings release. With that, it is now my pleasure to introduce Abhi Talwalkar. Abhijit Y. Talwalkar Thanks, Sujal. Good afternoon, and welcome. I would like to begin by providing some highlights for the first quarter. Our revenue of $ 622 million represented 19% sequential growth and over 30% year-over-year growth, driven by 3 main components: a snapback in HDD business, better-than-expected strength in our newly acquired SandForce flash business, and growth in networking investment areas. We are demonstrating strong operating margin expansion and attained over 16% non-GAAP operating margins in Q1, showing progress towards our new business model target of 20% to 22%. We also continue to increase momentum with leaders in the industry, with SandForce flash storage processor wins at Intel and SanDisk, PCIe flash adapter and software wins at Oracle and IBM, and Axxia multi-core processor wins at 2 top base station OEMs and 12-gig fast wins at 2 top server OEMs.
At our Analyst Day event last month, we talked about our company being a new LSI, with all ingredients now in place to drive the expanding shareholder value. This is an exciting time for our industry, and we have centered LSI within the key secular trends of data and traffic growth. We're effectively positioned and focused on large and exciting market segments, including data center cloud, mobile networks and flash.Our increasingly connected world is generating data and traffic faster than the current IT investments can keep up, which we believe will generate increased demand for our solutions. These data and traffic generators include social platforms, the growth of the mobile Internet with the rise of smartphones and tablets, rapid proliferation of video, collection and real-time analysis of massive amounts of data and growth of cloud services. LSI is well positioned to respond to these trends with a broad portfolio of storage and networking solutions that uniquely leverage intelligence to help accelerate access to data, improve application performance and enable highly efficient network utilization. As we move through 2012, we're excited by new product cycles, accumulated share gains and new opportunities that we have ahead of us across our businesses. Now I want to review additional business highlights for Q1. I will begin with our networking business, where our products address the wireless mobile network, data center and enterprise market segments, and where we expect revenue from new products to grow faster than market rates over the coming years as we gain share and displace competitors with designs we have won in the last few years. We continue to make progress to increase our content in base stations through a combination of our Axxia multi-core communications processor and our custom silicon capability. Specifically, our solutions address an estimated $2 billion in wireless SAN opportunity in 2015 that encompasses data plane, control plane switch, base band and digital front-end functions. LSI has already secured wins, which we expect will enable greater than 50% share of data plane, control plane functions and 40% share of base band functions.
LSI solutions are strongly differentiated with superior performance and low power consumption. The Axxia architecture integrates purpose-built acceleration engines for functions such as traffic management, packet classification and security, which off-load these functions from the main CPU, thereby boosting performance. In fact, one key customer demonstrated that Axxia has twice the performance per watt of a competing multi-core processor in wireless transport processing. Moving forward, we are excited with our partnership with ARM that will bring the benefit of multi-core ARM to our industry-leading Axxia architecture.Read the rest of this transcript for free on seekingalpha.com