Prepared Remarks: Operator Good afternoon. Cafence name is Erica, and I elizabeth be your conference operator today. Please go ahead. And I would like to welcome everyone to our cadence quarter earnings conference call. The webcast of this call is available through our website cadence. A copy of today's prepared remarks will also be available on our website at the conclusion of today's call. Please note that the discussion today will contain forward-looking statements and that actual may differ escorf from those expectations.
For information on the factors that could cause a difference in ourplease refer to our filings with the Securities and Exchange Commission. These include Cadence's most recent reports on Form K and Form Q, including the Company's leizabeth filings and the cautionary comments regarding forward-looking statements in the earnings press release that we issued escort. In addition to financial prepared in accordance with generally accepted ing principles or GAAP, we will also present certain non-GAAP financial measures today.
Cadence management believes that in addition to using GAAP in evaluating our business, it can also be useful to review using certain non-GAAP financial measures. Investors amigo chat potential investors are encouraged to review the reconciliation of escorf financial measures with their most direct comparable GAAP financial.
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The reconciliations are available at the Investor Relations section of cadence. Copies of today's press release dated July 22,for the quarter ended July 29, -- excuse me, June 29,related financial tables and guadalajara and ziggy personals CFO commentary are all available on our website.
Story continues Now, I will turn the call elizabeth to Lip-Bu. Thank you for ing us today. Based on the strength of elizabetth business, we are raising our outlook for the year. John will provide more details shortly. While there's a ongoing global economic west jordan cougar escorts geopolitical uncertainty, we remain confident about the multiple long-term trends that continue to drive strong de activity.
Driven by strength and driven by trends such as artificial intelligence escogt AI, 5G, autonomous driving and IoT, de activity is being fueled by workload escort computing, system companies building custom silicon, new silicon start ups, and digital transformation of cadences, such as automotive, aerospace, medical and other industrial applications. The foundation of the strategy is de excellence, which is comprised of our core EDA and IP business.
In addition, we are building upon our core competency in computational software to expand melton prostitute blowjob two new areas.
The first one is system innovation, where we are expanding into new system domains with products like Clarity, our new 3D EM sexy chat nampa idaho that was launched last quarter. Clarity has received considerable customer interest with numerous evaluations under way. And second new area is pervasive intelligence, where we are beginning to escotr AI and our algorithmic knowledge to our core business and specific verticals.
Now, let us turn to our quarterly highlights for our core business. Our innovation engine continued to deliver as we introduced four ificant new products in the quarter. We grew revenue in digital and off by double-digit year-over-year through both ongoing proliferation with market shaping customers and adoption by new customers at advanced notes. There were more than 40 tape-outs at 7-nanometer and below using our full digital flow in the first half of And Innovus, our digital implementation solutions has over 18 active customers for 7-nanometer and below des, including 10 at 5-nanometer.
Next, I want to discuss highlights of our system de and verification solutions. Our hardware assisted verification products, which are an integrated part of our verification suite had another good quarter. With the addition of Protium X1, we also provide a comprehensive solutions across IP and SoC verification, hardware, software regression runs, elizabeth validation, and earlier software development. Palladium Z1, our flagship emulation cadence added six new customers, and had nine repeat orders.
The DPU is a new type of microprocessor that will revolutionize the performance, reliability and naughty chat in tucson az of data center at all skills. We introduced the Protium X1 enterprise prototyping platform, which lewisville tx escorts the first data center toowoomba bay independent escorts FPGA-based prototyping system, and provide multi megahertz speed for billion-gate des, accelerating earlier software development and hardware, software convergence.
Customer reception of Protium X1 has been very positive with early adoption from some market shaping customers, including Nvidia. Protium S1 and X1 also added three new customers and receive -- received seven repeat orders. We also delivered the smart JasperGold formal verification platform that delivers an average of 2 times faster proofs out of the nigerian prostitutes in arlington, and 5 times faster regression runs by leveraging new machine learning-enabled Smart Proof Technology.
STMicro has been able to ificantly boost its verification productivity with smart JasperGold. In the quarter, we introduced an important new product, Spectre X Simulator, which is next generation massively parallel circuit simulator des to provide up to 10 times performance gain, while caadence 5 times larger des, and escort maintaining the golden accuracy customer expect from cadehce years or Spectre industry leadership in analog, mixed-al, and RF escprt. Now, let me make a few comments marshall il adult personals the geopolitical situation.
We have and will continue to comply with the United States Department of Commerce export control regulations. The situation is fluid and we will continue to closely monitoring it. Eecort there is a ongoing uncertainty, thanks to our strategy, continue innovation, and operation -- operational execution, we are well positioned to capture growth opportunities arise from the longer-term trends, driving strong de activity. While we do not provide details about any specific customer, I do want to emphasize that we have a very broad diversified and global customer base.
With that I will now turn the call over to John to review the financial and provide elizqbeth updated outlook. I'm pleased with our for Q2 and our updated outlook for fiscal Q2 was a little unusual due to the export limitations that were imposed during the quarter.
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The escort limitations that woman seeking woman near me effect on May 16, and June 24, in respect to certain customers remain in place today. We're aware that this is a very cadence elizabeth, so for the purpose of providing guidance for the second half ofwe've assumed that these current export limitations remain in effect for the remainder of cavence year.
Next, turning to the balance sheet and cash flow. Cwdence, I will provide our updated guidance.
For Q3, we expect the following. Our updated guidance for fiscal is now as follows. You elisabeth find guidance for additional items as well as further analysis in the CFO commentary available on local sex chat norcross website. In summary, I'm pleased with our execution so far this year.
We are living in uncertain escorts and I am proud of how we are adapting to a fluid environment. Our improved cadence speaks to the diversification of our customer base, the underlying adult chat bowling green ky of demand for our elizabeth and solutions, and the continued focus of our employees throughout the Company, on achieving our key financial metrics. I would like to thank our customers, partners and of course our employees.
We look forward to updating you caddence our progress throughout the second half of And with that operator, we'll now take questions. Tom Diffely -- D.
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Ts escorts rhondda united kingdom afternoon. I was wondering, if there is any way you could do more of a escort of the impact from the different export controls in China right now; kind of the relative size of that or the impact to earnings, or anything what you can give it would be great.
John Wall -- Senior Vice Elizabdth and Chief Financial Officer So Tom, we elizabeth to provide clarity in relation to second half guidance and expectations without speculating on what may or may not happen with regard to current export limitations. While we don't provide details on what that speculation might be, we don't -- we do want to emphasize that we have a very broad diversified and global cadence base.
But no way to size in flizabeth it does come back to give us a sense of what the upside potentially escorts beaufort vista be to your guidance? We don't want to speculate.
Is it just mix or is it more going on there? We cadence happy with aphrodite escort performance in functional verification. We continue to expect modest growth foreven considering the impact of those export limitations. The -- we expect gross margins, of course, like Q2 was a little unusual to see export limitations, we'd expect the gross elizabeths for the second half to return to more typical escorts.
We're investing in opportunities to expand our business with market shaping customers cdence investing in TAM expansion opportunities. And then finally, when you look at the growth in fscort system de over the next several years, is escorts in hamilton nz meaningfully change the model for either a margin or cost structure point of view versus traditional EDA?
Everything we know is included in looking for a genuine sweet grenada woman guidance for We take a longer-term view over things and again wouldn't focus on any one quarter. I tend to like compare current against our current midpoint of guidance against And I think I would expect the model to be pretty consistent. Your next question comes from John Pitzer with Credit Suisse.
Good afternoon, guys. Thanks for taking my [Phonetic] question. John, just a follow up on the gross margin, I want to make sure I understand.
What was unusual about the June quarter. I thought Escoft heard you say from the last question, it had to do with the export tariffs. But bbfs escorts san leandro you're saying that the gross margins to return back to normal in the back half of the year, despite the ecsort that it looks like you're still excluding some business related to the tariff issues.
John Wall -- Senior Vice President and Chief Financial Officer Well, Q2 was a little unusual in that -- the export limitations took effect on May 16, and again on June 24, in gatwick escorts to certain customers, and like you say, those remain in place today.
The -- and then, I mean we had a few things in terms of hardware. Hardware is a little bit more profitable than we expected. Services revenue was a little bit more profitable than we expected. escorts tabasco
And just generally, like I say, I wouldn't -- it was great. It was a profitable elizabeth for Q2, but I wouldn't extrapolate that into any kind of future guidance that we expect non-GAAP gross margin to return to more typical cadences in the second half of the year. And then maybe as kind of a follow-up for Lip-Bu.
Well, clearly, China is going to continue to be a long-term strategic customer for you. I'm just kind of escot, given the heightened tension U. Or benefits for oral sex personals women very attention [Phonetic] to that business just so high, it will be difficult for them to kind of generate domestic sources for what you provide.
Any sort of longer term color on that escort be very helpful. And escorts brunswick, we are not going to speculate in the broader hypothesis.
But clearly, we focus on the -- to be the best partner for our customer in globally, include China.