Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Brian Cho Goldman Sachs.
Brian Cho Goldman Sachs
Two questions. First of all, how much of your revenue in next quarter's outlook is driven by your expectation of competitive or company specific issues compared to over a macro spending trend? Second question is you guys delivered very strong gross margin for this quarter, about 260 basis points quarteroverquarter. How much of that is driven by manufacturing efficiency, how much of that is driven by royalty revenue, and how much of that is driven by product mix?
H. K. Desai
If you look for the guidance for the December quarter, it's all based on the macro level. We believe that we are in a strong position for the competitive birth positioning and executions. We have no issue at all about the competitive considerations. It's all based on the macro uncertainty.
Simon Biddiscombe
We provided the commentary in the prepared remarks where we pointed out that when the market share numbers were published partway through the quarter by Dell’Oro, they had us at 53% and with a 15point lead over our biggest competitor. We don't think that has changed in the September quarter. Although it's clearly too soon to know for sure. None of what we're implying in our guidance is related to share, it's all associated with macro environment. With regards to the gross margin question, we're not going to bring up every component of what drove the improvement the gross margin on the yearoveryear basis. Suffice to say they were in order when we read them, manufacturing efficiencies, royalty, and then product mix. I will tell you that the benefit associated with the royalty was approximately 0.6%, so it was just over half a point in benefit to the gross margin associated with the royalty, a onetime royalty, absolutely.
Operator
Our next question come from Kaushik Roy Pacific Growth.
Kaushik Roy Pacific Growth
We take out the $3.5 million out of the onetime royalty, total revenues were $168 million, which is kind of on the low end of your guidance. Can you comment where was it below your expectations, whether it was HBAs or HCAs or switches or silicon?
H. K. Desai
I think it's generally what we saw was that second half of September we saw slowdown in the business. Probably have less with the silicon because it's a long lead time, so it's booked previously. I think it's more coming from the Host and the Network Products. I think it's a mix of both.
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