Total revenue was $80.2 million for the first quarter of fiscal 2011, up 19% compared to the year-ago quarter, and up 4% sequentially.

Net income was $3.7 million, or $0.07 per share, for the first quarter of fiscal 2011, compared to $6.4 million, or $0.12 per share, for the year-ago quarter. The first quarter of fiscal 2011 includes approximately $4.6 million of interest expense resulting from the convertible debt issued in the third quarter of fiscal 2010.

Non-GAAP pre-tax income was $16.2 million, or $0.30 per share, for the first quarter of fiscal 2011, compared to $15.7 million, or $0.30 per share, for the year-ago quarter. Non-GAAP net income was $12.1 million, or $0.22 per share, for the first quarter of fiscal 2011, compared to $9.9 million, or $0.19 per share, for the year-ago quarter. Please refer to “About Concur’s Non-GAAP Financial Measures” below for an explanation of our non-GAAP financial measures used in this press release.

Non-GAAP operating margin was 22% for the first quarter of fiscal 2011, down from 23% for the year-ago quarter.

Cash flows from operations were ahead of expectations at $10.9 million for the first quarter of fiscal 2011.

Concur acquired privately held TripIt – the market leader in mobile trip management. In addition to helping travelers easily organize and share travel plans no matter where they book, TripIt’s open platform taps into a vast reservoir of third-party innovation, integrating applications from over 700 partners to provide compelling value for the business traveler while they are on the road. This acquisition fundamentally supports and extends the Concur Connect Platform strategy of creating new sources of value for our ecosystem partners along with new revenue streams for Concur beyond our traditional subscription revenue model.

Concur signed a definitive agreement to establish a new joint venture in Tokyo, Japan, known as Concur Japan. With investment from SunBridge Corporation, the firm responsible for the Salesforce.com Japan joint venture, and Marc Benioff, acting as a minority direct investor, this joint venture positions Concur to meet the demands of the increasing number of corporations in Japan and throughout Asia that are turning to cloud computing and mobile solutions to help them control expenses.

Concur chairman and CEO Steve Singh and Concur GM and EVP Gregg Brockway were both named to Business Travel Magazine’s annual list of the 25 Most Influential Executives in the business travel industry for 2011. This is the seventh consecutive year that Mr. Singh has been recognized by this prestigious industry list.

Concur will host more than 1,300 attendees at Fusion – the company’s premier client event – February 15-18, 2011 in Las Vegas, Nevada. Due to overwhelming demand, the conference is sold out.

Concur expects revenue for the second quarter of fiscal 2011 to grow approximately 15.5% year-over-year from the second quarter of fiscal 2010, and expects the fiscal 2011 revenue growth rate to be above the fiscal 2010 revenue growth rate.

For the second quarter of fiscal 2011, Concur expects non-GAAP pre-tax income per share to be $0.24. Non-GAAP pre-tax income excludes the effects of non-cash related items such as stock-based compensation expenses, amortization of intangible assets, and the accretion of the discount on our senior convertible notes. It also excludes the non-cash accounting implications and cash fees and expenses of acquisitions and other related strategic activity in which the Company may deploy capital.

With the acquisition of TripIt, Concur expects fiscal 2011 non-GAAP operating margin to be 21.5% or more for the year as a whole.

Concur expects cash flows from operations in fiscal 2011 to be between $84 million and $87 million, excluding one-time acquisition and other related costs, and capital expenditures to be between $25 million and $27 million.

Revenues

Expenses (1):

Cost of operations

Sales and marketing

Systems development and programming

General and administrative

Amortization of intangible assets

Total expenses

Operating income

Other income (expense):

Interest income

Interest expense

Other, net

Total other (expense) income, net

Income before income tax

Income tax expense

Net income

Net income per share available to common stockholders:

Basic

Diluted

Weighted average shares used in computing net income per share:

Basic

Diluted

(1)     Includes share-based compensation as follows:

Cost of operations

Sales and marketing

Systems development and programming

General and administrative

Total share-based compensation

Assets

Current assets:

Cash and cash equivalents

Short-term investments

Restricted cash

Accounts receivable, net of allowance of $2,015 and $2,374

Deferred tax assets

Deferred costs and other assets

Total current assets

Non-current assets:

Property and equipment, net

Investments

Deferred costs and other assets

Intangible assets, net

Deferred tax assets

Goodwill

Total assets

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

Customer funding liabilities

Accrued compensation

Other accrued expenses and liabilities

Deferred revenues

Total current liabilities

Non-current liabilities:

Senior convertible notes, net

Deferred rent

Deferred revenues

Tax liabilities

Total liabilities

Commitments and contingencies

Stockholders’ equity:

Convertible preferred stock, par value $0.001 per share

Authorized shares: 5,000; No shares issued or outstanding

Common stock, $0.001 par value per share

Authorized shares: 195,000

Shares issued and outstanding: 52,555 and 52,379

Additional paid-in capital

Accumulated deficit

Accumulated other comprehensive loss

Total stockholders’ equity

Total liabilities and stockholders’ equity

Operating activities:

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Amortization of intangible assets

Depreciation

Accretion of discount and issuance costs on notes

Net change in sales allowances

Share-based compensation

Deferred income taxes

Excess tax benefits from share-based compensation

Changes in operating assets and liabilities:

Accounts receivable

Deferred costs and other assets

Accounts payable

Accrued liabilities

Deferred revenues

Net cash provided by operating activities

Investing activities:

Purchases of investments

Maturities of investments

Decrease in customer funding liabilities, net of changes in restricted cash

Investment in unconsolidated affiliate

Purchases of property and equipment

Payments for acquisitions, net of cash acquired

Net cash provided used in investing activities

Financing activities:

Net proceeds from share-based equity award activity

Proceeds from employee stock purchase plan activity

Excess tax benefits from share-based compensation

Repayments of debt and capital leases

Net cash provided by financing activities

Effect of foreign currency exchange rate changes on cash and cash equivalents

Net decrease in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Operating income:

Operating income

Income from operations as a % of total revenue (Operating Margin)

Add back:

Share-based compensation

Acquisition and other related costs

Amortization of intangible assets

Non-GAAP operating income

Non-GAAP operating income as a % of total revenue (Non-GAAP Operating Margin)

Net income:

Net income

Add back:

Share-based compensation

Acquisition and other related costs

Amortization of intangible assets

Accretion of discount on senior convertible notes

Income tax expense

Non-GAAP pre-tax income

Income tax expense (1)

Non-GAAP net income

Diluted net income per share:

Diluted net income per share

Add back:

Share-based compensation

Acquisition and other related costs

Amortization of intangible assets

Accretion of discount on senior convertible notes

Income tax expense

Non-GAAP diluted pre-tax income per share

Income tax expense (1)

Non-GAAP diluted net income per share

Shares used in calculation of diluted non-GAAP income per share:

(1)     The effective tax rate used for the period:

Share-based compensation. Concur’s non-GAAP financial measures exclude share-based compensation, which consist of expenses for stock options and restricted stock units (“RSU”). Concur excludes these expenses from its non-GAAP financial measures primarily because they are non-cash expenses that it does not consider part of ongoing operating results when assessing the performance of our business, and the exclusion of these expenses facilitates the comparison of results and business outlook for future periods with results for prior periods.

Acquisition and other related costs. New authoritative guidance on business combinations requires us to record in the income statement, certain items that at the time of an acquisition would have been recorded to goodwill under the old authoritative guidance. We have excluded the effect of acquisition-related expenses from certain non-GAAP financial measures in order to facilitate the comparison of our business outlook for future periods with results from prior periods when such expenses were recorded to Goodwill. We also believe it is useful for investors to understand the effects of these items on our operations. Acquisition and other related costs include transaction fees, due diligence costs, travel expenses, and other one-time direct costs associated with strategic activity in which we may deploy capital.

Amortization of intangible assets. In accordance with GAAP, operating expenses include amortization of software and other technology assets, other purchased intangible assets such as customer lists and covenants not to compete. Concur excludes these items from its non-GAAP financial measures because they are non-cash expenses that Concur does not consider part of ongoing operating results when assessing the performance of our business, and Concur believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry, which have their own unique acquisition histories.

Accretion of discount on senior convertible notes. In accordance with GAAP, interest expense on the senior convertible notes includes the accretion of the discount, which is a non-cash expense that Concur does not consider part of ongoing operating results when assessing the performance of our business.

Income tax expense. Concur excludes this expense from certain non-GAAP financial measures primarily because it is largely a non-cash expense that Concur does not consider a meaningful component of our operating results when assessing the performance of our business, and the exclusion of this expense facilitates the comparison of our business outlook for future periods with results for prior periods, which did not include income tax expense.

Concur’s management uses non-GAAP operating income (including the derived non-GAAP operating margin), non-GAAP pre-tax income, non-GAAP net income, non-GAAP diluted pre-tax income per share and non-GAAP diluted net income per share in internal reports used by management in monitoring and making decisions regarding Concur’s business. For example, these measures are used in monthly financial reports prepared for management, and in quarterly reports to Concur’s Board of Directors. Concur also uses non-GAAP pre-tax diluted income per share as a measure to determine executive cash incentive compensation.

Because share-based compensation, amortization of intangible assets, accretion of discount on senior convertible notes and income tax expense are largely non-cash in nature, Concur believes that non-GAAP operating income, non-GAAP pre-tax income, non-GAAP net income, non-GAAP diluted pre-tax income per share and non-GAAP diluted net income per share provide a more focused view of the operations of its business. In particular, share-based compensation amounts are difficult to forecast, because the magnitude of the charges depends upon the volume and timing of stock option and RSU grants – which are unpredictable and can vary dramatically from period to period – and external factors such as interest rates and the trading price and volatility of Concur’s common stock. Excluding these amounts improves comparability of the performance of the business across periods.

The principal limitation of Concur’s non-GAAP financial measures is that they exclude significant expenses that are required by GAAP to be recorded. In addition, non-GAAP financial measures are subject to inherent limitations because they reflect the exercise of judgments by management about which charges are excluded from the non-GAAP financial measures.

To mitigate this limitation, Concur presents its non-GAAP financial measures in connection with its GAAP results, and recommends that investors do not give undue weight to its non-GAAP financial measures. Concur notes that the dilutive effect of outstanding stock options is reflected in fully-diluted shares outstanding used in calculating GAAP net income per share, non-GAAP diluted pre-tax income per share and non-GAAP diluted net income per share.