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Chambers Points to U.S. Strength, Acquisition for Q3 Sales Growth

Cisco Systems Tuesday said continued strength in its U.S. business and a strong contribution from its recently closed acquisition of Scientific-Atlanta helped fuel revenue growth of 18 percent for its third quarter.

Nevertheless, the company reported a slight dip in profits due to the impact of stock-based compensation expenses and costs related to the acquisition.

U.S. product orders grew some 20 percent year-over-year for the second quarter in a row, said John Chambers, president and CEO of Cisco, San Jose, Calif., during a conference call. “When your largest geography representing almost half your business is doing well, the results are obvious,” he said. U.S. enterprise orders grew about 20 percent, while commercial orders grew in the high teens, he said.

Cisco closed its acquisition of Scientific-Atlanta during the quarter, which included two months of financial results from the cable equipment and set-top box vendor.

“The feedback from many of our global customers continues to be very positive regarding the Scientific-Atlanta and Cisco combination, with many of these customers saying Cisco is very well positioned in data, voice, and mobility coverage, and now we bring the final piece of the quadruple play with video leadership,” Chambers said.

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