Xilinx Revenues Up 13% Sequentially; EPS $0.35 Excluding One-Time Charge; Common Shares to Split 2-For-1 - Company Financial Information

Edge: Work-Group Computing Report, Oct 25, 1999

Xilinx, Inc. (Nasdaq:XLNX) Tuesday announced results for the second quarter of fiscal 2000 ending October 2, 1999. Second quarter revenue was $238.8 million, an increase of 13% from the previous quarter, and an increase of 53% from the second quarter of last year. Operating income increased 14% sequentially, excluding a one-time charge of $4.6 million associated with the acquisition of Philip's CPLD business, as Xilinx continued to reduce operating expenses as a percentage of total revenues. Net income for the second quarter was $56.0 million, or $0.33 per share. Excluding the one-time charge, net income was $59.2 million, or $0.35 per share, an increase of 15% from the prior quarter, which is more than double the net income reported in the second fiscal quarter of last year. Xilinx's profit margin, excluding the one-time charge, was nearly 25%, setting a corporate record for the second quarter in a row.

"The September quarter exceeded our expectations," commented Wim Roelandts, Xilinx's chief executive officer. "Revenues from all geographies were up sequentially during the quarter. Most surprisingly, European revenues--which tend to be seasonally weak during the September quarter--were up nearly 22% sequentially as several customer programs commenced production." Roelandts continued, "While we experienced broad-based product demand during the quarter, I am particularly pleased with the growth of our new products. Since its introduction four quarters ago, cumulative revenues from the Virtex family have totaled approximately $50 million. Additionally, CPLD revenues now represent nearly 10% of total Xilinx revenues, up from 6% in the same quarter a year ago."

Xilinx also announced that its Board of Directors approved a 2-for-1 split of its common shares. The stock split is subject to the approval of Xilinx shareholders, who must approve an amendment to the Company's articles of incorporation to increase the Company's authorized common stock. Subject to such approval, shareholders of record as of December 17, 1999 would receive one additional common share for every share held, to be distributed on December 27, 1999. The numbers reported for the second quarter do not reflect the split.

* Turns bookings averaged approximately 51% for the quarter.

* Inventory days at Xilinx and at distribution were 83 days and 69 days, respectively.

* Capital expenditures and depreciation were $20.4 million and $8.1 million, respectively.

* Approximately 4% of Xilinx's work-in-progress inventory was damaged as a result of the Taiwan earthquake. As a result, the Company expects no material impact to future financial results.(1)

Revenue by Geography - Second Quarter FY'00:

Region            Q2 FY'00          Q1 FY'00           Q2 FY'99

North America       68%               69%                69%
Europe              20%               19%                21%
Japan                6%                7%                 6%
ROW                  6%                5%                 4%

Revenue by End Market - Second Quarter FY'00:

End Market         Q2 FY'00           Q1 FY'00           Q2 FY'99

Communications(2)   70%               65%                57%
Computing           18%               21%                25%
Other               12%               14%                18%

(2)  Includes networking & telecommunications

Revenue by Product Segment - Second Quarter FY'00:

Product Family      Q2 FY'00  Q1 FY'00  Q4 FY'99  Q3 FY'99 Q2 FY'99

Base (0.6 micron
 or greater)             12%       15%       17%       22%      23%
Mainstream (0.5
 micron & 0.35
 micron)                 54%        58%      64%       65%      63%
Advanced  (0.25
 micron or less)         25%        18%       8%        2%       1%
Support                   9%         9%      11%       11%      13%

Product Segments have been reclassified as of Q2 FY'00. All prior periods have been restated to reflect this change. The new product segments are defined as follows:

Base products (XC2000, XC3000, XC3100 and XC4000)

Mainstream products (XC4000E, XC4000EX, XC4000XL, XC5200, XC9500, XC9500XL, Spartan and CoolRunner)

Advanced products (XC4000XV, XC4000XLA, SpartanXL, and Virtex)

Support products (Serial PROMs, HardWire and Software)

Xilinx is the leading innovator of complete programmable logic solutions, including advanced integrated circuits, software design tools, predefined system functions delivered as 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, high-reliability/military, and consumer markets. For more information, visit the Xilinx web site at www.xilinx.com.

FMI: http://www.xilinx.com.