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As expected, Cisco continued to post declines in its public sector business and its overall switching business during the fourth quarter. The public sector business, which accounts for 20 percent of Cisco's revenue, saw an 4 percent decline in the quarter overall, a 7 percent decline in the U.S. and an 18 percent decline specific to the federal space.
Switching revenues declined 4 percent, although total switching orders gained 6 percent in the quarter, according to Cisco.
Several of Cisco's fastest-growing businesses continues to gain during the fourth quarter. Revenue in its collaboration unit, for example, grew 11 percent year-over-year in the quarter, with TelePresence products in particular growing 24 percent by revenue.
Data center and virtualization product revenues also grew, at a rate of 32 percent. Cisco's Unified Computing System (UCS) has exceeded its $1.1 billion order run rate, Chambers said, and grew about 129 percent year-over-year in revenue. Cisco gained about 2,000 UCS customers in the quarter, and total UCS customers now number more than 7,400.
Video has also been a growth story, and Chambers noted that Tandberg is now fully integrated into Cisco, and all of Cisco's key routing and switching are now integrated for Medianet, Cisco's IP video architecture.
What's more, said Chambers, Cisco is seeing an impressive attach- and pull-through rate for its routing and switching products with sales of UCS and video, with that occurring on about 50 percent of UCS and video deals.
During the call, Cisco did not announce any other major changes to its product portfolio or market segment focuses as some observers had predicted, though Moore did mention Cisco's choice to de-emphasize investment in energy management devices.
Cisco will make a firm decision on the future of its Cisco Network Building Mediator product, which addresses utility usage in buildings, at a later date, he said.
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