Product revenue of $240.9 million in the first quarter was up 10% year-over-year, down 6% sequentially and accounted for 52% of total revenue. Service revenue of $221.9 million grew 18% year-over-year, 6% sequentially and represented 48% of total revenue. Accounting for 56% of the total, revenue from the Americas was up 14% from the first quarter of fiscal 2014. EMEA which represented 25% of revenue grew 20% from the first quarter of last year. APAC accounted for 14% of revenue and grew 9% year-over-year and Japan revenue representing 5% of total`, 3% from a year ago. Sales to enterprise customers represented 63% of total sales during the quarter. Service providers accounted for 23% and government sales were 13% including 5% of total sales from US Federal. In Q1 we have four greater than 10% distributors. Westcon, which represented 17.5% of total revenue, Ingram Micro which accounted for 16.7%, Avnet at 13.9% and Aero which accounted for 11.4%. Our GAAP gross margin in Q1 was 82.9%. Our non-GAAP gross margin was 84.1%. GAAP operating expenses of $251.1 million were within our target range of $245 million to $253 million. Non-GAAP operating expenses were $222.9 million. GAAP operating margin was 28.6%. Our non-GAAP operating margin was 35.9%. Reflecting the one-time benefit from the retroactive reinstatement of the Federal R&D tax credit for 2014, our GAAP effective tax rate for Q1 was 34% and our non-GAAP effective tax rate was 32.3%.
Turning to the balance sheet. Cash flow from operations was $186.4 million. In Q1 we repurchased just under 1.2 million shares of our common stock at an average of $128.70 for a total of $150 million, ending the quarter with approximately $1.17 billion in cash and investments. With the addition of $750 million authorized by the board for stock buyback at our most recent board meeting, approximately $931 million remains authorized into the share repurchase program. DSO at the end of Q1 was 50 days. Inventories were $27.6 million. Capital expenditures for the quarter were $10.3 million. Deferred revenue increased 20% year-over-year to $680.3 million. We ended the quarter with approximately 3,945 employees an increase of 110 from the prior quarter. Moving on to Q2 outlook. Based on the strength of our current pipeline including the return in the number of large deal opportunities and continued momentum from our key drivers, we anticipate sequential and year-over-year growth in the second quarter of fiscal 2015. Our revenue target for the quarter is $465 million to $475 million. GAAP gross margin is anticipated to be in the 82% to 82.5% range including approximately $3.5 million of stock-based compensation expense and $2.7 million in amortization of purchased intangible assets. Non-GAAP gross margin is expected to be in the 83.5% to 84% range.
As outlined in during our Q1 earnings call, we anticipate an increase in stock compensation in Q2 related to the timing of our employee grand. As such, for Q2 we anticipate GAAP operating expenses in the range of $255 million to $264 million including approximately $34 million of stock-based compensation expense and $0.5 million in amortization of purchased intangible assets. For Q2, we are forecasting a GAAP effective tax rate of 38.5% and a non-GAAP effective tax rate of 35.5%. These rates assume no reinstatement of the Federal R&D tax credit for 2015. Our GAAP EPS target is $1.07 to $1.10 per share. Our non-GAAP EPS target is $1.48 to $1.51 per share. We plan to increase our headcount in excess of 100 employees in the current quarter and we believe our cash flow from operations will be at or around $110 million reflecting the impact of two federal tax payments that we normally incurred during our fiscal second quarter. With that I will turn the call over to John McAdam.
