SAN JOSE, Calif.
Jun 26, 2001
Xilinx, Inc. (NASDAQ: XLNX) stated today that, due to decreased turns business in the first three weeks of June, it now expects revenues for the first quarter to decline by approximately 32% sequentially. The Company noted that in the current business environment, a greater percentage of its revenues have been generated by turns business, which the Company believes reflects a change in customer spending practices due to the overall industry downturn. Turns business is customer orders that are booked and shipped within the same quarter. Xilinx also stated that it expects gross margins to approximate 52% in the first quarter. The gross margin decline is primarily due to lower-than-expected sales and a mix shift to higher density devices primarily within the Virtex™-E family of FPGAs. Currently, high-density Virtex-E devices and the recently introduced Virtex-II FPGA family, which shipped primarily in June, have lower average gross margins than our mainstream products.
Xilinx quarterly results for the first quarter of fiscal 2002 will be released on July 19th, 2001, after the close of the market. The Company will host its earnings release conference call later that afternoon. During the earnings release conference call, Xilinx expects to provide additional guidance for the second fiscal quarter.
Xilinx is the leading supplier of complete programmable logic solutions, including advanced integrated circuits, software design tools, predefined system functions delivered as intellectual property cores, and unparalleled field engineering support. Founded in 1984 and headquartered in San Jose, Calif., Xilinx invented the field programmable gate array (FPGA) and fulfills more than half of the world demand for these devices today. Xilinx solutions enable customers to reduce significantly the time required to develop products for the computer, peripheral, telecommunications, networking, industrial control, instrumentation, aerospace, defense, and consumer markets. For more information, visit the Xilinx web site at http://www.xilinx.com/.
This release contains forward-looking statements and projections. Actual events and results may differ materially from those in the forward-looking statements and are subject to risks and uncertainties including the general health of global economies, the health of our end markets and our customers' customers, end customer demand, excessive inventory levels held by Xilinx, dependence on product selection by our customers, distributors and the Electronic Manufacturing Service companies, ability to manage fixed costs, high dependency on turns bookings and the customer acceptance of our advanced products including product mix shifts relating to decline in our mature products.
SOURCE: Xilinx, Inc.
Contact: Investor Relations, Lori Owen of Xilinx, Inc., 408-879-6911, or