As a reminder, we include non-GAAP financial measures in our disclosures. These non-GAAP financial results are not meant to be considered in isolation or as a substitute for results prepared on a GAAP basis. Please refer to the tables entitled, Reconciliation of Selected Continuing Operations: GAAP Measures to Non-GAAP Measures in our earnings release, which is filed with the SEC on a Form 8-K and available on our website for a reconciliation of GAAP to non-GAAP financial measures.I have one more thing to note. Advent is hosting an Investor Day on the morning of Friday, May 11, at the NASDAQ market site in Midtown Manhattan. We'll be updating you on the Advent's strategy, initiatives and points of interest. We hope to see you there. I'll now turn the call over to Stephanie. Stephanie G. DiMarco Thanks, Heidi, and welcome, everyone. Thank you for joining us. I'm pleased to report that Advent had another record first quarter. Revenues were $87 million, a 15% increase and we saw 45% increase in bookings over the same period last year. Later in the call, I'll talk more about our accomplishments and highlights. But first, let me turn the call over to Jim who will provide further details on the numbers. James S. Cox Thanks, Stephanie. Advent had a great start to the year, with our best-ever first quarter performance for bookings, operating cash flow and operating profits. We also set a record for quarterly revenue at $86.9 million. Bookings, which we call annual contract value, or ACV, for new contracts signed during the first quarter, were $7.4 million, 45% increase over the first quarter of 2011. These results reflect solid performance across all of our products, region and markets. Turning to renewals. Our initially reported renewal rate, which is based on cash collections and therefore reported 1 quarter in arrears, was 95% in the fourth quarter, which is all the better because the fourth quarter is our most active renewals quarter. When all the cash is collected for the fourth quarter renewals, we expect the initially disclosed rate of 95% to increase by our typical 2 to 4 points.
Our third quarter 2011 renewal rate increased from our initially reported 93% to an updated 94%, as we received subsequent collections.Turning to the financials. Net revenue in the first quarter was up 15% over the first quarter of 2011 and recurring revenue increased 1.2 points from the first quarter last year to 91% of total revenue, our highest percentage ever for recurring revenue. As a percentage of total revenue, international was 17%, which is consistent with the first quarter of last year but down sequentially from 18% in the fourth quarter of last year because certain of our large international clients report their AUA fees to us annually in the fourth quarter. Turning to expenses and profitability. Cost of revenue for the first quarter was $29.1 million, up $5.6 million or 24% over the same period last year, resulting in a decline in gross margin for the quarter of just over 2 points to 66.5%. The decrease in gross margin was driven by lower professional services billable utilization and higher amortization of intangibles from our 2011 acquisitions. Total first quarter operating expense was $46 million compared to $40.3 million in the same period last year, an increase of $5.7 million or 14%. Read the rest of this transcript for free on seekingalpha.com