During this call, non-GAAP financial measures will be discussed. Reconciliation to the most directly comparable GAAP financial measures are included in our earnings release, which was filed on Form 8-K earlier today, as well as in our supplemental earnings materials, all of which are available on our website at ca.com/invest.Today's discussion will include forward-looking statements subject to risks and uncertainties, and actual results could differ materially from these forward-looking statements. Please refer to our SEC filings for a detailed discussion of potential risks. Please also note that our second quarter quiet period begins at the close of business on September 14, 2012. Before I turn the call over, I'd like to highlight that for modeling purposes, our year-over-year currency headwind on revenue guidance is expected to be roughly 2.5 points for the full year. It is forecasted to peak at 4 points in our September quarter. So with that, let me turn the call over to Bill. William E. McCracken Thanks, Kelsey, and good afternoon to everyone. Thank you for joining us. I'd like to start this afternoon by reviewing our first fiscal quarter and the drivers behind our updated guidance. I will discuss the challenges we faced, the progress we made and our execution-related initiatives. I'll then turn the call over to Rich for more detailed review of the financials and guidance before we open the call for questions. By now, I hope you've had a chance to read our press release. We are adjusting revenue guidance from 2% to 4% constant currency growth to 1% to 2%. This reflects both the slow start we had to the year and the macroeconomic environment. We increased our expectation for non-GAAP operating margin for the year to 36%. The 36% margin reflects the benefit from an IP transaction closed during the quarter, which provided an incremental $35 million operating income, as well as driving more profitability from the organic business. In addition, we updated our original outlook on non-GAAP earnings per share growth from 9% to 12% to 10% to 12% in constant currency. And we reaffirmed our outlook on cash flow growth of 4% to 6% in constant currency.
Despite the headwinds to top line growth we experienced during the quarter, we are committed to delivering the earnings per share and cash flow growth we provided at the beginning of the year.Now let me provide some comments on the market and our performance in the first quarter. Our revenue grew 1% in constant currency -- some growth but short of our expectations. Non-GAAP operating margin was 38%, including 3 points of contribution from our IP transaction. Our non-GAAP earnings per share and cash flow from operations were up 16% and 10%, respectively in constant currency, both also improved by the IP transaction. We had new product sales decline in North America and EMEA, growth in APJ and continued strong momentum in Latin America. Growth economies continue to reward our investments. Clearly, I'm not satisfied with the top line performance in the first quarter. Because of CA Technologies' highly ratable model, it is important for us to get a strong start and we didn't. We knew heading into the year that the renewal portfolio would be down. In fact, we shared this with you at Analyst Day last July and again in the Q4 fiscal 2012 earnings call. We also highlighted that first quarter was a trough for the portfolio for the year, with the portfolio coming in approximately 40% lower year-over-year. To give you a sense of this portfolio dynamic, the number of large renewals worth more than $10 million that closed during the quarter was 1/2 that of last year, 4 compared to 8. As a result, the value of large contracts signed during the quarter decreased by approximately $200 million. Read the rest of this transcript for free on seekingalpha.com