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During the Tuesday call, Cisco's Chambers also highlighted the gains made in the company's services business, which has been an area of focus for Cisco partners this year behind Cisco's new Services Partner Program (CSPP).
Cisco services revenue has seen a compound annual growth rate (CAGR) of 12 percent over the past decade, according to the company, which Cisco CFO Frank Calderoni said will continue to invest in services automation and considers the services business -- particularly advanced services -- a strategic asset.
In Cisco's breakdown by geographic region, total worldwide year-over-year product orders were flat. Americas was up 2 percent with gains of 13 percent in U.S. service provider, 9 percent in U.S. enterprise and 5 percent in U.S. commercial/SMB, but it posted a decline of 15 percent in U.S. federal government.
Cisco guided to revenue gains of between 3.5 to 5.5 percent for its fiscal second quarter, roughly in line with a 4.7-percent analyst expectation. Cisco closed the first quarter with 72,360 in total headcount, slightly less than the previous quarter.
Calderoni added that Cisco's traditionally brisk pace of M&A is back. Cisco closed a blockbuster acquisition of NDS during the first quarter, and grabbed smaller companies like vCider and ThinkSmart. Watch for Cisco to be active with acquisitions, Calderoni said, particularly smaller, tuck-in-style deals.