Xilinx Inc. (NASDAQ:XLNX) Q2 2021 Earnings Conference Call - Final Transcript
Oct 21, 2020 • 05:00 pm ET
[Operator Instructions] And your first question comes from the line of Ross Seymore from Deutsche Bank. Your line is open.
Hi, guys. Thanks for letting me ask a question. I just wanted to ask about some of the surprises in the quarter and what it means going forward. On one side, it looked like the AIT side didn't grow nearly as strongly, but it looks like it's going to rebound in the out quarter in December because of the emulation side of things. So any color on why that keeps getting pushed out? And then similarly, on the data center side, it was a great quarter by any measure in September, but your guidance for December sounds like some of that goodness was a pull-in due to the trade restrictions. So any sort of color about that would be helpful.
Yeah, Ross. Let me take that. So look on the emulation prototyping as you said, some revenue just moved over, but there is nothing fundamentally different about what we're doing there. As I said in the prepared remarks, we really have maintained leadership with the VU19P and we've established that for several years now. It's just a situation with a particular customer, I wouldn't read anything into it beyond that.
Regarding the data center, yeah, we are saying that we saw some pull-in because of the most recent restrictions, but you can think about that really as on order of one quarter pull-in. This is not a big thing and again, I guess what I would say is that I think that it's still an indication that we're getting really good traction in data center. Of course, kind of, we said even without perturbations like new trade restrictions, things are generally lumpy right now in the data center as we're still scaling the business and in general also, it's a pretty consolidated business, so it would have some natural lumpiness and it is just causing some more perturbations on a quarter-to-quarter basis, but overall we're still tracking to good growth and so we're still very confident about what's going on in data center.
Your next question comes from the line of Aaron Rakers from Wells Fargo. Your line is open.
Yeah, thanks for taking the question. Just on the topic of 5G, we saw Verizon announce this morning that I think they deployed more base stations on 5G in the last two months than they did of all of 2019. So in that context, as we see the pace of this start to accelerate, can you just revisit how you guys see the content expansion in 5G and just in general where and how we should think about the progression of that cycle and what it means for Xilinx. Thank you.
Yeah, it's a good question, Aaron. As you said, one of the things we're really pleased about is we're starting to see our RFSoC being deployed in sub-6 band in North America and we also see more deployments