of the welcome. team, behalf on again, once And C.J. entire you, Thank
our execution pleased of revenue and end in the margins guidance continued updated We are this the ranges. team with our operating quarter high at delivering of
XXXX. and quarter ended XX.X% X.X% $XXX.X on down December XX, million, a year-over-year. Revenue down For was the sequential basis
great turning inventory into our strides in cash to cash took and sheet. balance million of we added Importantly, $XX.X
performed total especially the underperformed the season market. grew X than strongly XX% end On NETGEAR promotional the premium of and outpacing of Orbi WiFi more well. Nighthawk tri year-over-year, retail the which to X XG solutions, upgrade the expectations by our the demand holiday ramp in outperformed premium with digit our strong user end WiFi of mesh the It due driven more our Hotspots, CHP overall products largely double side, in the and products.
In U.S. tandem results but and cycle consists lower our quad-band and sequentially market market, X, for market a Mobile again
as sales In business retail of end products a fact, XX% a high percentage users. our our of new premium contributing reached to CHP
in just Meanwhile, service for sales to at providers million the $XX came over quarter.
contract, drive steadily our as bolstering end of up total we upper expectations channel guidance. our our ASPs, the our revenue to to outperformed even business business inventory for continued though SMB Our SMB
growth markets conditions Outside our impacting position are softening still strong. competitive the certain inventory of the term. SMB contraction prospects SMB's near remains in in and The macro
As customers lower deals in remain investments to are taking make to hesitant close.
full net NETGEAR conditions. of XX, year ended million, amid partner's XXXX, XX.X% the revenues and the to December $XXX.X constraining were XXXX year market channel down compared For levels tougher inventory
market the believe interest Despite channel rates year rates our we U.S. elevated through consumer environment, the continue inventory macroeconomic challenging the rightsizing among till and to partners stabilizes. broader
pointing take of CHP months next the when the funders XX the Industry to from proud transitioning out enjoy considerable as in hangover progress wave margin be market we to the also pre-buying of premium, will the where differentiation. higher made upgrades business I'm hold. pandemic the the segments competitive of will and we've flushed our are next
to So channel both we opportunity discussed the continue Day the businesses Analyst expect will markets partners coming identified in cycle for the in and as Especially the available that X begins WiFi recent in reducing position market inventory across we impact NETGEAR secular from that our SMB expand upgrade trends to quarters. the wane.
the premium outperformed our innovation, XX significant clear the profitable profitable on margin segment materially validation high are hardware double-digit improvement, delivering from tune key With than products a gross of serves made market and robust grow long-term more in as returning of core full to strategy for long-term a help [indiscernible] and growth. of subscription long-term The this barrier to competition business. generate services the year and focus premium are essential of to investments strategy the the our fact higher-margin products premium growth NETGEAR's to entry growth. The that portfolio in years we've pursuing and our offerings, to
improved that ASP achieve Pro without an fourth mesh gross the made make premium year. combined This mobile XX The our the of growing efforts non-GAAP been full growth and improved the our margin AV not non-GAAP products, gross the the XG in year in in led non-GAAP years. business in more with premium margin the mix XX.X% continue our points we WiFi equaling year-over-year to services Notably, in outstanding mix revenue team's full our past in inroads for market. than establishing towards and have progress in full for improvement points service higher-margin XXX and us our business towards impressive margin would by higher highest the marks products X,XXX traction year basis presence the quarter result gross basis our hotspot possible we've to
non-GAAP our operating non-GAAP Additionally, margin by quarter. behind and X.X%. enabled disciplined was expense we the improving continue momentum fourth of profitability the million $X.X operating income management, in Delivering
coming margin in updated end the at high With of guidance our range. the
up slight topline quarter margin compared Our basis period points due of was compared ago XXX down a basis non-GAAP and year leverage. the to loss points to prior the XXX to operating
to partners the both uncertain levels ongoing macroeconomic line position However, full rates our constrain inventory at looking improved in of elevated below their the reduce on CHP continue and far broadly side supply the as potential historical year, carrying back our SMB the channel business, environment, and interest norms. top the market
million a of leverage the full X.X%. operating year our to negative and non-GAAP headwinds led of non-GAAP loss As these and result, reduced operating $X.X margins
a For the XX.X% down fourth decrease and up quarter was million, X.X% net EMEA year-over-year decline the XX.X% a a for and of was revenue quarter-over-quarter. of year-over-year on XX.X% revenue $XXX.X basis. Americas sequential $XX.X net million, of XXXX,
and year XX.X% Our which APAC period is net down revenue was up sequentially. prior $XX XX.X% million, from the comparable
shipped between we total of the and revenue gateways split and fourth wired nodes XXXX, for respectively. respectively. X.X wireless The XX% about was quarter net split Shipments For wired of and XXX,XXX about between The XX% routers the and products quarter of approximately and units units, XXX,XXX products XXXX. a products. business including were all and wireless fourth of home about of net million XX%, XX%, wireless combined was revenue
contributed of quarter fourth months shipments. the of the last products XX% in introduced our quarter fourth constituted last introduced XX or XX about shipments XX% months about in Products our
gross on, year non-GAAP reconciliation focus detailed is distributed point this earlier the The numbers. our my non-GAAP is as in flat of XXXX the third the from compared release Non-GAAP will quarter to X,XXX in up earnings quarter discussion on today. XX%, to GAAP to points was margin From period basis points and fourth compared in XXXX. XX.X% of which prior comparable
came improvement. the CHP at down and which services a X.X% expenses revenue, total considerably of our of million. in the is QX $XX.X increased products largely non-GAAP drove base to sequentially. premium year down lower growth costs freight compared operating year-over-year X.X% As prior period, Total shipments
down XXX in headcount the XXX QX. was in Our from as quarter,
switches, key invest future and Orbi to hiring services. We subscription managed will XG areas such profitability business in will deliver Pro AV continue WiFi hotspots premium we mobile believe as and and our systems, strategically mesh growth
of business efficiencies. driving cost evaluate the to continue we on other further However, areas basis regular a
prior the year continued expense compared R&D period the of investment to was non-GAAP in the of quarter and committed of and revenue R&D. continue for XX.X% Our comparable as revenue quarter we fourth are technology service revenue in third net XXXX. X.X% subscription in to net To of our net leadership X.X%
expense was Our $X.X non-GAAP million fourth in tax XXXX. quarter the of
the $X.XX. reported of we million at non-GAAP diluted earnings for and of non-GAAP bottom share Looking $X.X line net per QX, income
balance the the the sheet, with prior and of million investments from cash million $XXX.X to ended -- $XX.X Turning year we cash in quarter fourth up XXXX short-term quarter.
in cash fourth generation progress as we further inventory. We flow continued our in positive meaningful made reducing free our quarter the
to quarter cash $XX.X XX by provided drove operations months cash trailing million. million over was by our the the provided operations, During of which total $XX.X
XX capital $X.X expenditures the quarter, our million. brings of to during equipment over used months purchase million for trailing cash property total in which the and used We $X.X
months. continue cash as our of prepandemic the flow inventory carrying expect will levels believe X levels generating part reduce free drive early we further in XXXX to we we X to of as to We positive
for $XXX.X the up Nighthawk, benefited year-over-year make for In brand down in MX the our sequentially. a product our service supply providers basis Connected results revenue we Now quarter, XX.X% higher fourth of in period net great our Nighthawk segments. Homes CHP Pro filling Armor, which delivering and lead generated and MX and and on hotspot. comparable X% year down mobile progress turning to as Orbi segment Gaming, quarter includes prior of Pro The from industry the Meural business million sales to
year-over-year And total provider the on the addressable a retail and than in service a decline to the both retail was market channels. larger year side, leading ago
and products help business users. continues of mesh continue system, However, X our hotspots drive ASPs over year-over-year to of X CHP demand profitability of X high-end the bolstered by the contraction, mesh WiFi year-over-year. products addition premium XG the overall to XX%, up WiFi retail us Orbi mobile our contribution by despite market for premium and XXx our grow sales grew retail higher-margin, over released and to improve Orbi These to deliver XX% end to year-over-year recently considerably the
X CHP progress to forward. continue we this upcoming that through stable WiFi market we to As the channel we expect stabilized move cycle inventory generally upgrade as and has believe remain
will anticipate shift momentum the we CHP growth to on towards keenly add to We that core Consequently, need systems our for our or may these price not long-term and premium continue want and profitability high at product be connectivity strategy. best optimal mix the of households products higher-margin solutions remain and the lower recognize our our mesh customers smaller those point. Orbi who the a focused choice
CHP our Gateway the growth Nighthawk bill cases, WiFi fit perfectly and these our business. and products we contribute improving Nighthawk these to In the routers, and X profitability expect Cable and midrange hotspots differentiated in mobile WiFi Xe to
with have our to investments million seeing target in a services And fourth CHP paid by pay off. and This of and also our consumers strategy full fueled growth revenue to quarter generated for solutions the quarter, increase certainly continue emphasis the demonstrated expertise, our that XX.X%. $XX.X software cybersecurity we steadily the subscribers. gaining I'm for place excited increased fourth service year-over-year privacy hardware on in traction. year XXX,XXX are we While support. exceeded we're our our premium we protection, And share exited is the
see even the and XXXX in run path revenue a long rate service And potential exit we to term. $XX with million the of with greater annualized
and high at the quarter. in fourth $XX.X side, even Japan, to channel carrying on market, quarter, or our rates to expectations. Greater negative are such SMB our ] in inventory markets million combined growth in net in Similar slightly above prior the year. end revenue with switches user the demand it weighed and continue SMB the that as GTV partners interest China traditional the levels came [ stagnant the Germany, throughout reduction for On major dampen
to These million, year us led headwinds of $XXX revenue of decline XX.X%. SMB full a
quarter, partners so well Although inventory quarters macroeconomic relative this for ahead again our we are performed SMB continue to headwinds and expected expectations levels doing compress in persist. as to our continued the to channel
our position first-mover our the the and growth competitive the in in we've of and market for confident remain in hardware success we and However, software thoughtful given advantage offerings our the Pro potential investments this business, to ourselves made AV entrench both advantage.
profitability team ability comprehensive growing around advantage, go-to-market Engage our to AV uniquely designers. with in suite That residential fortify partnerships with is equipment have us deep and our To and unmatched world our solutions. the gives the and growth Pro gives XXX integrate in the AV by competition confidence expertise integrators AV experienced AV The we through over developed differentiated in Pro the with manufacturers our commercial network the products. platform, long-term Controller in market leading markets rapidly and potential an of and AV software
QX XXXX our discuss outlook. now I'll
our expect Revenue the the be million experience provider business seasonal to channel from the off CHP quarter. holiday $XX the is the first We to expected period. retail decline portion coming in service approximately of
we rates $XXX to to the remain As with SMB their the $XXX quarter levels work we first the range to next to continue our few million. carrying high, channel in revenue quarters. million net partners optimize expect of Accordingly, interest be during inventory will
be to continue consuming own we reducing we As in higher make inventory meaningful inventory. our levels, progress will cost
operating And the negative to will in range our X.X% quarter our of be our margin to negative range half the operating non-GAAP margin first normal to to costs to Accordingly, we of be negative negative expect second the XX.X% be this X.X%. X.X%. in we year. We of historically in inventory back expect GAAP
million be non-GAAP the $X GAAP is XXXX. our Our quarter in the in is to tax the in million. range expected benefit of expenses tax expected $X.X $X.X range be $X million of to to And first of to
of in to the We now audience. XXXX. any first from expect the meaningful continue cash questions generate quarter we would to Operator, answer to like
