SAN JOSE, CA, JULY 16, 1998 -- Xilinx, Inc. (NASDAQ:XLNX) today announced the results for its first fiscal quarter ended June 27, 1998.  Revenues for the quarter totaled $151.6 million, down 1.4% from $153.8 million in the prior fiscal quarter, and down 5.7% from $160.8 million in the first fiscal quarter last year. 

Operating income for the quarter was $42.5 million, slightly higher than the prior fiscal quarter and down approximately 10% from $47.3 million in the first fiscal quarter of last year. Operating profit for the quarter was 28.1%, compared to 27.6% in the prior quarter. 

Net income for the quarter was impacted by a $2.6 million start-up loss associated with Xilinx's equity investment in a UMC wafer fabrication facility.  This resulted in net income of $27.0 million, or $0.35 per diluted share, down 11.6% from $30.6 million, or $0.39 per diluted share, reported in the prior fiscal quarter and down 19.2% from $33.4 million, or $0.41 per diluted share, reported in the first fiscal quarter of the prior fiscal year.  Excluding the start-up loss, earnings per diluted share for the quarter were $0.39, flat from the prior quarter. 
"Xilinx's new products met our internal objectives by growing to nearly $40 million in revenues," remarked Wim Roelandts, Xilinx's chief executive officer.   "New products, which include the XC4000X, XC9500 and Spartan families, accounted for approximately 26% of total revenues, up from approximately 19% in the previous quarter.  These products represent the principal drivers of future Xilinx revenues."* 

Q1FY'99 Business Review 

• Turns bookings averaged 63% for the quarter 
• During the quarter, Xilinx purchased approximately 1.3 million Xilinx shares in the open market.
• Capital expenditures and depreciation were approximately $7.8 million and $7 million, respectively.

Q1FY'99 Revenue by End Market - North America 
 

End Market	Q1 FY'99	Q4 FY'98
Communications	35%	37%
Data Processing	24%	23%
Industrial	15%	20%
Networking	19%	14%
High Reliability	6%	4%
Other	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 www.xilinx.com/finance/irpage.htm. 

Xilinx is the leading innovator of complete programmable logic solutions, including advanced integrated circuits, software design tools, predefined system functions delivered as cores, and field engineering support. Founded in 1984 and headquartered in San Jose, Calif., Xilinx invented the field programmable gate array (FPGA) and commands more than half of the world market 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, high-reliability/military, and consumer markets. For more information, visit the Xilinx web site at www.xilinx.com. 

Xilinx is a registered trademark of Xilinx, Inc. All XC-prefix product designations, Spartan, Virtex, & HardWire, LogiCORE, AllianceCORE, CORE Generator, Foundation and Alliance are trademarks of Xilinx, Inc. Other brands or product names are trademarks or registered trademarks of their respective owners. 

*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, dependency on wafer suppliers, the impact of competitive products an dpricing, the growth of the programmable logic market, and other risks that are described in the company's SEC filings, including the Form 10-K for the year ended March 28, 1998 

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