SAN JOSE, CA, JANUARY 20, 1998 -- Xilinx, Inc. (NASDAQ:XLNX) today announced the results for its third fiscal quarter ended December 27, 1997. Revenues for the quarter totaled $148.7 million, up nearly 10% from $135.6 million in the third fiscal quarter of the prior fiscal year, but down 1% from $150.3 million in the prior fiscal quarter. Net income was $31.6 million, or $0.40/share (diluted)*, up 21% from $26.2 million, or $0.33/share, in the third quarter of the prior fiscal year and up 2% from $31.0 million, or $0.38/share, in the prior fiscal quarter. During the December quarter, Xilinx recognized $2.6 million in joint venture income from United Silicon Incorporated (USIC), the Company's wafer fabrication joint venture in Taiwan. This amount resulted primarily from foreign exchange gains incurred by USIC relating to its US dollar denominated investments. 

Combined revenues from the Xilinx's new products, the XC4000X family and the XC9500 ISP CPLD family increased 37% sequentially, representing 13% of total Company revenues. Last quarter, revenues from these two products represented 9% of total revenues. 

"Xilinx reached a key milestone this quarter," commented Wim Roelandts, Xilinx Chief Executive Officer. "For the first time, revenues from our CPLD product families exceeded 5% of total Company revenues. This was driven largely by the success of our XC9500 ISP CPLD family, whose revenues more than doubled sequentially. Additionally, during the quarter, we sold over 4,000 software seats. This surpasses last quarter's record of approximately 2,200, and represents a sequential increase of over 80%." 

On a geographic basis, sales from Europe gained momentum through the December quarter and were up 3% sequentially, representing 22% of total revenues. Despite the economic turmoil in Asia, combined sales to Japan and the Rest of the World (ROW), which includes Southeast Asia, represented approximately 16% of total sales - essentially flat from the previous quarter. 

Recently, Xilinx made three key announcements: 

First to deliver programmable logic using 0.25 micron technology. On October 27, 1997, Xilinx announced the first FPGA built with 0.25 micron process technology. The initial device, the XC40125XV, incorporates 25 million transistors in a single piece of silicon. 

The VIRTEX series of FPGAs. Announced on November 24, 1997, the VIRTEX series is Xilinx's next generation product offering and will provide customers up to a million system gates optimized for use with intellectual property cores. 

The SPARTAN series of FPGAs. Announced on January 12, 1998, SPARTAN devices are available in volume shipments today and offer customers a low-cost, high-volume ASIC solution with on-chip RAM. 

"Our clear technology leadership, our newly introduced SPARTAN family of devices and the next generation's VIRTEX series of FPGAs cement our position as programmable logic's industry leader and position us to enter high-growth markets and capture incremental business. I continue to be encouraged by our new product momentum"**, commented Roelandts. 

Fiscal '98 Q3 Business Review 

• Backlog was up from the prior quarter 
• Net bookings were up from the prior quarter 
• Turns bookings averaged slightly greater than 50% 
• Inventory days at Xilinx and at distribution were consistent with the prior quarter 
• Capital expenditures and depreciation were approximately $7 million and $9 million, respectively 

Revenue by Geography: 

Region	Q3 FY'98	Q2 FY'98	Q3 FY'97
North America	62%	63%	62%
Europe	22%	21%	21%
Japan	10%	11%	12%
ROW	6%	5%	5%

  

Revenue by End Market - North America: 

End Market	Q3 FY'98	Q2 FY'98	Q3 FY'97
Communications	39%	41%	37%
Data Processing	28%	29%	33%
Industrial	19%	15%	14%
Networking	10%	10%	11%
High Reliability	2%	4%	3%
Other	2%	1%	2%

 

Copies of financial literature, including this release, are available via fax or voice recording by dialing Xilinx's shareholder service line at 1-800-836-4002. Investor information is also available on the Investor Relations Web site at http://www.xilinx.com/finance/irpage.htm.  

Founded in 1984, Xilinx is the world's largest supplier of programmable logic solutions comprising industry leading device architectures and world-class design software. Headquartered in San Jose, Calif., the company pioneered the market for field programmable gate array (FPGA) semiconductor devices that provide high integration and quick time-to-market for electronic equipment manufacturers in the computer, peripherals, telecommunications, networking, industrial control, consumer, instrumentation, and high-reliability/military markets. 

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For more information on Xilinx, access our World Wide Web site at http://www.xilinx.com. Xilinx is a registered trademark of Xilinx, Inc. All XC-prefix product designations, Spartan, Virtex, & HardWire, are trademarks of Xilinx, Inc. Other brands or product names are trademarks or registered trademarks of their respective owners. 

*The reported amount of diluted earnings per share is consistent with the amount of primary earnings per share reported in prior quarters. 

**This is a forward-looking statement involving risks and uncertainties including: timely availability and acceptance of new products, the lack of visibility into our customers' programmable logic inventory levels, dependence on third party wafer suppliers, the impact of competitive products and pricing, the growth of the programmable logic market, and other risks that are described in the company's SEC filings, including the Form 10-Q for the quarter ended September 27, 1997. 

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