Revenue can be impacted by the composition of bookings, including terms of duration, mix, signing of renewals, and whether the license is upfront or ratable. Bookings from renewals may not translate to incremental revenue until later periods.
Total revenue in the quarter was $1.107 billion, up 4% from the prior year, or flat on a constant currency basis.
The continued focus on professional services profitability worldwide and APJs transition to an indirect model will continue to impact revenue over the next couple of quarters. Benefiting revenue in the second half and while revenue growth increases is a continued roll-off of the fiscal year ''06 bookings which is being replaced by a stronger fiscal year ''09 book of business.
CA enters any given quarter with over 80% of the revenue rolling off from the balance sheet.
This highlights the resiliency and visibility of the subscription model, which is particularly valuable in the current economic climate. The ability to maintain but also grow the backlog in the current environment speaks to the sticky nature of the software and this revenue backlog grew 13% in the quarter, which bodes well for the growth in future fiscal years.
North American revenue in the quarter was up 3% over the prior year and international revenue increased 4% or down 4% on a constant currency basis.
Non-GAAP operating expenses for the quarter were $762 million down $70 million or 2% from the prior year or down approximately $60 million or about 8% when all impacts of currency are eliminated.
Non-GAAP operating income before interest and taxes for the quarter was $345 million up 20% from the prior year.
Non-GAAP operating margin for the quarter was 31% a year-over-year increase of four percentage points. Non-GAAP operating margin excluding stock-based compensation was 2 points higher or 33%.
The ongoing focus on optimizing the cost structure and driving further operating efficiencies continues to drive margin expansion.
These initiatives have resulted in annualized savings of about $300 million. Since CA is realizing the benefits faster than previously indicated, the company now expects full year non-GAAP operating margins between 29% and 30% or 3 to 4 points higher than last year. Non-GAAP income for the quarter was $219 and non-GAAP EPS was $0.41 increasing 27 and 28% from the prior year, respectively.
GAAP results include purchase software, intangible amortization, restructuring and other expenses and gains and losses on hedges of operating income relating to future periods. Including these items total expenses before interest and taxes for the quarter was $777 million, down 6% from the prior year.
GAAP income for the quarter was $209 million or $0.39 per diluted common share increasing $53 and 50% from the prior year respectively.
Cash flow from operations in the quarter was $218 million a year-over-year increase of $25 million. Cash flow strength in the quarter was driven by a decrease in disbursement primarily related to payroll. The company is also pleased that the cash collections were up slightly and in the current environment the company was able to achieve a year-over-year decline in DSO.
Cash collections from single and installments were flat in the quarter and down for the first half versus prior year periods. Down as a percentage of total product bookings for both the quarter and the first half versus prior year periods.
The company ended the quarter with $2.4 billion in cash and cash equivalents and $2.2 billion of total debt bringing the net cash position to $161 million.
In the subscription model there are two foundations for future financial performance. The first of these is the revenue backlog which this quarter grew by 13% from the prior year and exceeded $7 billion in the quarter. This revenue backlog combines with billings backlog growth of 19% and total expected future cash collections growth of 13%.
The company expects revenue growth to be at the lower end of guidance in constant currency at 2%.
At current foreign currency exchange rates this translates to reported revenue of about $4.3 billion which reflects the recent strengthening of the US dollar.
Total booking growth increases to 10 to 15% from the previous guidance of mid to high single digits, primarily resulting from the longer duration in the first half.
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