Total company gross margin was 47.4% which was 540 basis points higher than our guidance about half this difference was driven by lower than expected commodity and other costs about a quarter was due to stronger-than-expected revenue and product mix including 35 million iPhones and the remainder was due to some one-time items that we don't expect to recur in the June quarter.
Operating expenses were $3.2 billion and included $361 million in stock-based compensation expense. OI&E was $148 million. Turning to cash, our cash or short-term and long-term marketable securities totaled a $110.2 billion at the end of the March quarter compared to $97.6 billion at the end of the December quarter a sequential increase of $12.6 billion and about $74 billion of the cash was offshore at the end of the March quarter.
Cash flow from operations was $14 billion as we indicated last month subject to Board declaration, we expect to announce a dividend of $2.55 per share when we report our third quarter results in July and we will provide information on the record and payment date at that time.
As we move ahead into the June quarter I'd like to review our outlook which includes the types of forward-looking information that Nancy referred to at the beginning of the call. We expect revenue to be about $34 billion compared to $28.6 billion in the June quarter last year.
We expect gross margin to be about 41.5% reflecting approximately $70 million related to stock-based compensation expense. We expect OpEx to be about $3.3 billion, including about $385 million related to stock based compensation. We expect OI&E to be about $175 million, and we expect the tax rate to be about 25.25%. We are targeting EPS of about $8.68.
In closing, we are extremely pleased with our record March quarter performance with earnings nearly doubling year-over-year. The new iPad is off to a tremendous start and is our fastest iPad rollout ever. We are thrilled with the global success of the iPhone 4S which is now available in more than 100 countries including China. We remain very confident in our strategy and we are very excited about the fabulous new products in our pipeline.
With that, I'd like to open the call to questions.
Nancy Paxton - IR: Thank you, Peter, and we ask that you limit yourself to one question and one follow-up please. Operator, may we have the first question?