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Xilinx Announces Second Quarter Fiscal 2008 Results

PRNewswire-FirstCall
SAN JOSE, Calif.
Oct 18, 2007

Xilinx, Inc. (NASDAQ: XLNX) today announced net revenues of $444.9 million in the second quarter of fiscal 2008, flat sequentially with the prior quarter and down 5% compared to the same quarter a year ago. Second quarter net income was $89.7 million, or $0.30 per diluted share.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020822/XLNXLOGO)

The Xilinx Board of Directors declared a quarterly cash dividend of $0.12 per outstanding share of common stock, payable on December 5, 2007 to all stockholders of record at the close of business on November 14, 2007.

  Additional second quarter comparisons are represented in the chart below:


   GAAP Results
   (In millions, except EPS)
                                                             Growth Rates
                           Q2 FY      Q1 FY      Q2 FY       Q-T-Q   Y-T-Y
                            2008       2008       2007
  Net revenues            $444.9     $445.9     $467.2         0%     -5%
  Operating income         $94.4      $97.5      $93.2        -3%      1%
  Net income               $89.7      $84.3      $93.0         6%     -4%
  Diluted earnings per
   share                   $0.30      $0.28      $0.27         7%     11%


In spite of flat overall sales growth, sales from Asia Pacific reached record levels. Sales from Asia Pacific represented 30% of sales in the September quarter, up from 25% in the same quarter of the prior year and up from 13% in the same quarter five years ago. This growth is due to a combination of broad-based PLD adoption by customers within the region as well as the continuing trend by US and European companies to outsource manufacturing operations to the Asia Pacific region. Within Asia Pacific, sales from China and Korea recorded the strongest growth on a year-over-year basis driven primarily by increased activities in communications and consumer applications.

"I am pleased with our reduction in inventories as well as our continued operating expense control," said Wim Roelandts, Xilinx chief executive officer. "Combined inventory at Xilinx and distribution decreased by nine days to 92 days in the September quarter. This is lower than we had anticipated entering the quarter and the lowest level in nearly four years. Additionally, operating expenses were lower than forecast."

  Business Review - September Quarter Fiscal 2008
   *  Total inventory days at Xilinx and distribution were 92 days, down
      from 101 days last quarter.
   *  Accounts receivable days sales outstanding were 48, up from 43 in the
      prior quarter.
   *  Capital expenditures and depreciation were $13 million and
      $14 million, respectively.


   Net Revenues by Geography:
                                Percentages                  Growth Rates
                        Q2          Q1         Q2
                     FY 2008     FY 2008    FY 2007        Q-T-Q     Y-T-Y
  North America         38%         39%        40%          -2%       -9%
  Asia Pacific          30%         29%        25%           3%       14%
  Europe                22%         22%        23%          -2%       -9%
  Japan                 10%         10%        12%           2%      -19%


   Net Revenues by End Market:
                                  Percentages                 Growth Rates
                            Q2         Q1         Q2
                          FY 2008   FY 2008    FY 2007       Q-T-Q    Y-T-Y
  Communications            45%        45%        45%          1%      -6%
  Industrial & Other        30%        32%        29%         -5%       0%
  Consumer & Automotive     17%        15%        16%          8%       1%
  Data Processing            8%         8%        10%         -1%     -24%


   Net Revenues by Product*:
                                    Percentages                Growth Rates
                              Q2        Q1         Q2
                           FY 2008   FY 2008    FY 2007      Q-T-Q     Y-T-Y
  New                         30%       28%        22%         6%       29%
  Mainstream                  49%       50%        54%        -1%      -14%
  Base                        15%       16%        18%       -10%      -20%
  Support                      6%        6%         6%         4%       -2%

   *Products are classified as follows:

    New Products: Virtex™-5, Virtex-4, Spartan™-3, and
      CoolRunner™- II products
    Mainstream Products: Virtex-II, Spartan-II, CoolRunner and Virtex-E
      products
    Base Products: Virtex, Spartan, XC4000 and XC9500 products
    Support Products: Configuration solutions, HardWire, Software &
     Support/Services


  Highlights - September Quarter Fiscal 2008:
   *  For the second consecutive quarter, Xilinx experienced strong sales
      from the domain optimized Virtex-4 FX family, which includes embedded
      transceiver and processing functionality.  Sales from this family
      increased 170% in the second quarter versus the same quarter a year
      ago representing over 30% of the overall Virtex-4 family, up from 15%
      in the same quarter last year.
   *  Xilinx demonstrated its commitment to serving the high growth Asia
      Pacific market at the recent opening ceremonies for its new regional
      headquarters in Singapore.  The headquarters provides infrastructure
      and support for all of Xilinx's activities in the region and includes
      facilities for research and development, marketing, manufacturing and
      testing, logistics warehousing and regional business operations.
      Xilinx is currently the largest PLD vendor in Asia Pacific, with 48%
      market segment share in CY2006.
   *  Xilinx received the Cisco Excellence in Delivery and Flexibility
      supplier appreciation award during the quarter.  Xilinx was among an
      exclusive group of suppliers honored at Cisco's recent 16th annual
      supplier appreciation day and received the award based on its support
      of Cisco's flexibility and lead-time requirements.

  Business Outlook - December Quarter Fiscal 2008
   *  Revenues are expected to be up 2% to 6% sequentially.
   *  Gross margin is expected to be between 62% and 63%.
   *  Operating expenses are expected to be approximately flat sequentially.
   *  Other income including interest expense is expected to be
      approximately $12 million.
   *  Tax rate is expected to be approximately 21%.
   *  Fully diluted share count is expected to be approximately 297 million
      shares.

  Business Update - December Quarter Fiscal 2008

The Company expects to issue a third quarter business update press release after the market closes on Wednesday, December 5, 2007. Financial guidance to the investment community will be limited to the points mentioned in the business update document. Please sign up for a push email alert, which is available from our investor relations web site at http://www.investor.xilinx.com/.

This release contains forward-looking statements and projections. Forward- looking statements and projections can often be identified by the use of forward-looking words such as "may," "will," "could," "should," "expect," "believe," "anticipate," "estimate," "continue," "plan," "intend," "project" or other similar words. Undue reliance should not be placed on such forward- looking statements and projections, which speak only as of the date they are made. 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 as well as of the semiconductor industry, the health of our end markets and our customers' customers, our ability to forecast end customer demand, customer acceptance of our new products, the ability of our customers to manage their inventories, a high dependence on turns business, more customer volume discounts than expected, greater product mix changes than anticipated, fluctuations in manufacturing yields, our ability to deliver product in a timely manner, our ability to successfully manage production at multiple foundries, variability in wafer pricing, and other risk factors listed in our most recent Form 10-K.

About Xilinx

Xilinx, Inc. (NASDAQ: XLNX) is the worldwide leader of programmable logic solutions. Additional information about Xilinx is available at http://www.xilinx.com/.

   Investor Relations Contact:
   Lori Owen
   Xilinx, Inc.
   (408) 879-6911
   ir@xilinx.com



   XILINX, INC.
   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
   (Unaudited)
   (In thousands, except per share amounts)
                                Three Months Ended        Six Months Ended
                        Sept. 29,  Sept. 30,  June 30,  Sept. 29,  Sept. 30,
                          2007       2006      2007       2007       2006
  Net revenues          $444,894   $467,180  $445,912   $890,806   $948,542
  Cost of revenues       170,122    180,580   168,478    338,600    372,639
  Gross margin           274,772    286,600   277,434    552,206    575,903
  Operating expenses:
     Research and
      development         88,294     95,951    87,870    176,164    193,533
     Selling, general and
      administrative      90,204     95,462    90,199    180,403    189,880
     Amortization of
      acquisition-related
      intangibles          1,897      2,031     1,897      3,794      4,062
     Stock-based
      compensation related
      to prior years          --         --        --         --      2,209
    Total operating
     expenses            180,395    193,444   179,966    360,361    389,684

  Operating income        94,377     93,156    97,468    191,845    186,219
  Impairment loss on
   investments                --         --        --         --       (437)
  Interest and other, net 19,504     26,132    13,533     33,037     40,973

  Income before income
   taxes                 113,881    119,288   111,001    224,882    226,755
  Provision for income
   taxes                  24,183     26,242    26,723     50,906     51,218
  Net income             $89,698    $93,046   $84,278   $173,976   $175,537

  Net income per common
   share:
    Basic                  $0.30      $0.27     $0.28      $0.58      $0.52
    Diluted                $0.30      $0.27     $0.28      $0.57      $0.51
    Cash dividends
     declared per common
     share                 $0.12      $0.09     $0.12      $0.24      $0.18

  Shares used in per share
   calculations:
    Basic                298,008    339,431   297,720    297,863    340,845
    Diluted              302,226    343,192   303,198    302,604    346,734



   XILINX, INC.
   CONDENSED CONSOLIDATED BALANCE SHEETS
   (In thousands)
                                               Sept. 29,         March 31,
                                                 2007              2007
                                              (Unaudited)           (1)
  ASSETS
  Current assets
  Cash, cash equivalents and short-term
   investments                                $1,221,288        $1,137,915
  Accounts receivable, net                       236,600           182,295
  Inventories                                    128,954           174,572
  Deferred tax assets and other current
   assets                                        185,296           205,320
  Total current assets                         1,772,138         1,700,102
  Net property, plant and equipment              414,827           413,036
  Long-term investments                          687,358           675,713
  Investment in United Microelectronics
   Corporation                                    67,070            67,050
  Other assets                                   327,065           323,454
  Total Assets                                $3,268,458        $3,179,355

  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities
  Accounts payable and accrued
   liabilities                                  $193,661          $214,317
  Deferred income on shipments to
   distributors                                  101,943            89,052
  Total current liabilities                      295,604           303,369
  Convertible debentures                         999,119           999,597
  Deferred tax liabilities                        90,175           102,329
  Other long-term liabilities                     41,504             1,320
  Stockholders' equity                         1,842,056         1,772,740
  Total Liabilities and Stockholders'
   Equity                                     $3,268,458        $3,179,355

    (1) Derived from audited financial statements



   XILINX, INC.
   SUPPLEMENTAL FINANCIAL INFORMATION
   (Unaudited)
   (In thousands)
                              Three Months Ended         Six Months Ended
                        Sept. 29,  Sept. 30,  June 30,  Sept. 29,  Sept. 30,
                          2007       2006      2007       2007       2006
  SELECTED CASH FLOW
   INFORMATION:
    Depreciation        $14,380    $12,825    $12,446    $26,826    $25,509
    Amortization          4,604      4,467      4,605      9,209      8,953
    Stock-based
     compensation        15,753     21,906     16,521     32,274     48,714
    Net cash provided
     by operating
     activities         145,066    119,497    126,324    271,390    272,762
    Purchases of
     property, plant
     and equipment      (13,019)   (14,031)   (15,599)   (28,618)   (26,989)
    Payment of
     dividends to
     stockholders       (35,683)   (30,331)   (35,718)   (71,401)   (61,161)
    Repurchases of
     common stock      (150,000)  (125,000)        --   (150,000)  (250,000)
    Proceeds from
     issuance of
     common stock to
     employees and
     excess tax
     benefit             30,738     31,137     48,046     78,784     68,699

  STOCK-BASED COMPENSATION
   INCLUDED IN:
     Cost of revenues    $1,677     $2,426     $2,171     $3,848     $6,068
     Research and
      development         7,247      9,810      7,301     14,548     22,174
     Selling, general
      and administrative  6,829      9,670      7,048     13,877     20,472


#07120F

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Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020822/XLNXLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

SOURCE: Xilinx, Inc.

CONTACT: Investor Relations, Lori Owen of Xilinx, Inc., +1-408-879-6911,
ir@xilinx.com

Web site: http://www.xilinx.com/
http://www.investor.xilinx.com/


Worldwide Media Contacts

Silvia E. Gianelli
Phone: 408-626-4328
Email: silvia.gianelli@xilinx.com

 

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