Xilinx Inc. (NASDAQ:XLNX) Q2 2021 Earnings Conference Call - Final Transcript
Oct 21, 2020 • 05:00 pm ET
Fiscal Q2 revenues grew 5% sequentially and were $767 million, higher than the midpoint of our guidance. DCG performed better than expected and had a record quarter. Wired and Wireless revenues were slightly better than expectations. In the core businesses, AIT revenue grew sequentially. Our A&D business was strong as expected, but offset somewhat from lower than expected TME revenue due to some emulation revenue shifting into Q3. ABC performed significantly better than expected with the auto business showing signs of recovery. The advanced products category constituted 70% of total revenues. Zynq-based revenues increased 28% compared to the prior quarter and were 22% of the company revenues. Our Zynq SoC design momentum continues to strengthen across our target markets and we're confident that SoC revenue will be a much larger portion of our overall business in the future.
Now, I'll move on to business specific highlights starting with DCG. We saw strong growth in our DCG business during the quarter with revenues crossing the $100 million mark for the first time. Cloud service provider deployment of Alveo-based compute AI clusters and Solarflare NIC adapters contributed significantly to this growth. DCG customer traction continued to grow in Q2 including a marquee SmartNIC design win with a Tier 1 U.S. hyperscaler. This win is expected to realize well over $100 million in annual revenues by FY '24. Notably, we won against several of the other top market players mainly due to the unique value we deliver with our adaptive SmartNIC hardware and our stronger software capabilities from our Solarflare acquisition.
Turning to other customer engagements and design win activity, we see growing 100-gig SmartNIC engagements with hyperscalers and proof of concept activities for 200-gig solutions. In compute acceleration, there's great interest in an RT Video Server and we have multiple FinTech customers' engagements in banking and electronic trading exchanges. Finally, in storage, we saw the next-generation storage platform commitments from new customers.
With respect to our progress in our platform software and ecosystem development, we've had close to 43,000 downloads of Vitis since announcing it late last year. To date, we've trained over 15,000 developers and have over 1,000 software partners releasing a growing list of applications. We've also made progress with the AI developer community and have 50 AI application examples open sourced on the Xilinx GitHub account.
Moving to WWG, as expected, we saw a significant revenue contribution from one of our Tier 1 OEM customers that is ramping our RFSoC to production this quarter. These RFSoC deployments are for sub-6 gigahertz massive MIMO radio deployments in North America. Our design win pipeline for RFSoC continues to expand globally. We're also beginning to see revenues from a Tier 1 customer who is using our 7 nanometer Versal ACAP and we expect further revenue growth when deployment starts in 2021. As 5G deployments begins to ramp in more geographies, we are very well positioned to benefit from the significant increase in deployed radio units especially in massive MIMO configurations. Our product