This conference call contains forward-looking statements that involve risks and uncertainties, including statements regarding the company's expectations regarding its financial performance, strategies, growth of customer demand, development of new products, customer acceptance of the company's products, customer buying patterns, spending patterns, and overall trends in the economic conditions in the company's markets.Actual results could differ materially from these projected and in the forward-looking statements as a result of certain risk factors, including, but not limited to, a challenging macroeconomic environment worldwide; fluctuations in demand for the company's products and services; a highly competitive business environment for network switching equipment; the company's effectiveness in controlling expenses, including the company's cost restructuring efforts; the possibility that the company might experience delays in the development of new technologies and products; customer response to its new technologies and products; the timing of any recovery in the global economy; risks related to pending or future of litigation; and the dependency on third parties for certain components and for the manufacturing of the company's products. The company undertakes no obligation to update this information. More information about potential factors that affect our business and financial results is included in the company's filings with the Securities and Exchange Commission. Throughout the conference call, the company will reference some financial metrics that were derived in accordance with Generally Accepted Accounting Principles or GAAP, while other metrics are not in accordance with GAAP. This approach is consistent with how management measures the company's results internally. However, non-GAAP results are not in accordance with GAAP and may not be comparable to non-GAAP information provided by other companies. Non-GAAP information should be considered a supplement to, and not a substitute for, financial statements prepared in accordance with GAAP. A reconciliation of the non-GAAP information to the corresponding GAAP measures is in the slide presentation under the Investor Relations tab on our website and accompanying our press release.
Non-GAAP results exclude stock-based compensation, restructuring charges and litigation settlements.After I review our fiscal Q4 financial results, I will turn the call over to Oscar for an update on the business and our strategy. We will then open up the call for Q&A. Q4 fiscal 2012 revenue was $87.6 million, which was up $14.3 million or 19% sequentially from Q3, and within the guidance provided early in the quarter of $82 million to $90 million. Product revenue was $72.5 million, an increase of $14.5 million sequentially, and service revenue was $15.1 million, a decrease of $0.3 million sequentially. The Americas revenue was $38.2 million and is down 10% from Q4 FY '11. Sequentially, The Americas increased 29%, more than making back the decline in Q3 from Q2. The Americas were our strongest performing region this fiscal year despite customer delays in some North American opportunities. EMEA revenue was $36.9 million, which grew 13% over Q4 FY '11. On a quarter-over-quarter basis, EMEA increased by 17%. Asia Pacific revenue was $12.5 million and decreased by 16% compared to the year-ago quarter. Asia Pacific revenue increased sequentially from Q3 FY '12 by 3%. During the quarter, we added new sales leadership in our Asia Pacific team, and we are hiring new account managers and sales engineers in various locations in the region and are already seeing increased quoting activity. Overall GAAP and non-GAAP gross margins were 56%, a slight decline from the third fiscal quarter of 56.4%. Product gross margin percentage dropped slightly sequentially, primarily due to a higher mix of campus edge products in a one-off strategic deal. We believe our new products for the data center and supply chain cost reductions will positively impact gross margins moving forward. GAAP operating expenses increased by $4.8 million in Q4 from Q3, and non-GAAP operating expenses increased in Q4 by $4.6 million from Q3 FY '12 to $41.9 million. The 2 primary areas that contributed to this increase in expenses were: Higher sales commissions expense in that sales area related to increased revenue; and higher R&D program expense related to the release of some of our new products that Oscar will talk about in a few minutes. Read the rest of this transcript for free on seekingalpha.com