I would now like to turn the call over to John Jumper, our CEO.
John P. Jumper
Thank you, Paul, and good afternoon, everyone. During today's call, I'll start by covering some of our quarterly performance, discuss market conditions, make some comments about my first 90 days in the seat. After that, I'll turn it over to our COO, Stu Shea, who will talk about business development results and project progress in our strategic growth areas, and he'll be followed by Mark Sopp who'll go into the financial details.
As reflected in our earnings release today, our performance reflects the dynamics of our marketplace, plus the impact of steps we are taking to prepare for the future. Even with market pressures, we are able to report revenue growth of 3%, of which 2% is internal growth. As we get deeper into these challenging times, our ability to leverage our strategic growth areas, while optimizing the performance and stress segments of our portfolio to generate internal growth, is a positive sign, especially when compared with our peer group. Our team's ability to leverage our wide range of technical capabilities across more and more of our client base is paying off. Our strategic growth areas of intelligence, surveillance reconnaissance, cybersecurity, energy, environment and infrastructure, logistics, readiness and sustainment and health grew internally by 7% in aggregate, with the remainder of our business contracting about 3%.In these last few years, we've become adept at managing market uncertainties. We have a wide-ranging access to many contract -- wide-ranging business and access to many contract vehicles in a large and diverse customer base. We believe we can react to market pressures with greater agility than our competition, especially those with ties to specific platforms. As we face government fiscal year '13 and the looming potential of some form of sequestration, we'll be prepared to take timely and appropriate action to deal with the situation. With regard to sequestration, it's my personal view that it’s hard to imagine that our government will allow an automatic trigger to impose policy decisions deserving of the most profound public debate. In my discussions with many officials in the executive and legislative branches, they have all expressed the need to avoid sequestration, yet it's not clear how this is to be done. Despite the budget decisions ahead, there will remain a large National Security marketplace available to SAIC to compete, and we expect to be in good position to do so.
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