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Now, let me hand it over to Ken.Ken McBride Today we announced another great quarter where we had strong financial performance and again we had record performance in multiple areas of the business. We achieved a record sequential quarterly increase in our paid customers which were up 28,000 to a new record level of 413,000. We achieved a record for small business due to customer acquisition at 86,000, total gross customers acquired, an increase of 28% year over year. We achieved a record growth rate for total postage printed by our customer base which was up to 53% to a new record high level of $222 million. And our 27% core PC Postage revenue year-over-year growth rated matched our previous record high growth rate set during the fourth quarter. The strength across our business lines drove earnings, strong earnings in the first quarter with non-GAAP operating income of $5.7 million which was up 70% year over year. Non-GAAP net income of $5.8 million which was up 66%. And non-GAAP earnings per share of $0.34 a share, up 42% year over year. The record highs in our business were particularly significant in light of the fact that the small business economic environment continues to struggle relative to previous session levels. On the call today we will talk more in detail about our PC Postage metrics and business, our financial results and our business outlook. Now to begin with a more detailed discussion of the PC Postage business. Customer metrics we discussed on the call are only for the core PC Postage business this excludes all enhanced promotion channel activities. For more detailed definition of how we calculate each of our metrics, you may refer to our quarterly investor metric spreadsheet at investor.stamps.com. Core PC Postage revenue including small business enterprise and high-volume shipping customer segments was 26.2 million in the first quarter which was up 27% versus the first quarter of 2011. For the past seven quarters, our core PC Postage revenue year-over-year growth rates have shown strong acceleration from 8% to 11% to 14% to 23% to 25% to 27% and again 27% this quarter.
This was our highest quarterly revenue level and matched the highest growth rate we have ever experienced in our core PC Postage business. The increase in our core PC Postage revenue was attributable to continuous strength in our small business area and in our enterprise and high volume shipping customer segments which are now contributing to our core business revenue, growth in a more material way. During the first quarter, we acquired at 86,000 gross small business customers that was up 28% versus the first quarter of 2011.Our cost per new small business customers acquired or CPA was $110 in Q1 and that was down 5% versus the first quarter of 2011. This was our highest customer acquisition for any quarter in history of the company. We were able to significantly increase our customer acquisition spend which is up 22% versus the first quarter last year. And still achieve the lower CPA which is a great result and show that our marketing spend continues to scale efficiently. Our monthly churn rate during the first quarter was 3.0% matching the 3.0% churn seen in the first quarter of 2011. We are pleased to see that churn consistent with last year particularly considering our large growth and customer acquisition and paid customers over the past year. The churn we are experiencing is consistent with the range we experienced before the recession began. Overall we believe that our churn rates are benefiting from lower churn in our enterprise and high volume shipping customer segments, new product features which are driving increased usage of our service making our service stickier and continued success in our ongoing customer retention efforts. Read the rest of this transcript for free on seekingalpha.com