Xilinx Announces Fourth Quarter and Fiscal Year End Results

- Fiscal 2008 annual return on equity 22%, up from 16% in prior year

SAN JOSE, Calif., April 23 /PRNewswire-FirstCall/ -- Xilinx, Inc. (NASDAQ: XLNX) today announced net revenues of $475.8 million in the fourth quarter of fiscal 2008, flat sequentially from the prior quarter and up 7% compared to the same quarter a year ago. Fourth quarter net income was $96.5 million, or $0.34 per diluted share, which included pre-tax charges of $4.7 million for a capital loss on a stock sale and $2.9 million related to impairment losses on equity investments, or approximately a $0.02 per diluted share reduction after tax.

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

Net revenues of $1.84 billion in fiscal 2008 were flat with the prior fiscal year. Fiscal 2008 net income was $374.0 million, up 7% from $350.7 million. Fiscal 2008 earnings per diluted share were $1.25, up 23% from $1.02 per diluted share in the prior fiscal year.

As previously announced on February 25, 2008, the Xilinx Board of Directors increased the quarterly cash dividend to $0.14 from $0.12 per common share, payable on May 28, 2008 to all stockholders of record at the close of business on May 7, 2008.

    Additional fourth quarter comparisons are represented in the charts below:

    GAAP Results
    (In millions, except EPS)
                                                                Growth Rates
                       Q4 FY 2008   Q3 FY 2008   Q4 FY 2007    Q-T-Q     Y-T-Y

    Net revenues           $475.8       $474.8       $443.5      0%        7%
    Operating income       $117.0       $115.3        $79.4      1%       47%
    Net income              $96.5       $103.6        $87.6     -7%       10%
    Diluted earnings
     per share              $0.34        $0.35        $0.27     -3%       26%

Sales from New Products, led by strength from the Virtex(R)-5 FPGA family, increased 10% sequentially and represented 38% of total sales, up from 35% in the prior quarter and up from 24% in the same quarter a year ago.

"We remain keenly focused on increasing operating efficiencies and I am pleased with our progress in this area," said Moshe Gavrielov, President and Chief Executive Officer. "Gross margin in the March quarter was 63.4% -- the highest we have reported in nearly four years. Operating margin was 24.6% in the March quarter, up from 17.9% in the same quarter a year ago primarily due to improved gross margin coupled with continued expense controls."

    Net Revenues by Geography:
                           Percentages                      Growth Rates
                     Q4        Q3        Q4
                   FY 2008   FY 2008   FY 2007           Q-T-Q       Y-T-Y

    North America    38%       41%       39%              -7%          4%
    Asia Pacific     28%       27%       26%               5%         18%
    Europe           23%       22%       24%               7%          5%
    Japan            11%       10%       11%               3%         -1%

    Net Revenues by End Market:
                                Percentages                  Growth Rates
                          Q4        Q3        Q4
                        FY 2008   FY 2008   FY 2007      Q-T-Q       Y-T-Y

    Communications         42%       41%       44%         2%          2%
    Industrial & Other     33%       33%       30%         0%         17%
    Consumer & Automotive  17%       17%       16%        -2%         10%
    Data Processing         8%        9%       10%        -2%         -6%

    Net Revenues by Product*:
                           Percentages                   Growth Rates
                     Q4        Q3        Q4
                   FY 2008   FY 2008   FY 2007       Q-T-Q       Y-T-Y

    New                            38%              35%              24%                  10%                  67%
        Mainstream                42%              45%              52%                  -7%                -15%
        Base                            14%              14%              18%                  -1%                -12%
        Support                        6%                6%                6%                    1%                  14%

        *  Products  are  classified  as  follows:

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

        Fiscal  2008  Highlights:

        --  Ongoing  efforts  to  improve  operating  margin  and  capital  structure  paid
              off  in  fiscal  2008.    Operating  margin  was  23%  in  fiscal  2008,  up  from
              19%  in  the  prior  fiscal  year  as  a  result  of  gross  margin  expansion
              coupled  with  expense  reduction  efforts.    Annual  return  on  equity  was
              22%  in  fiscal  2008,  up  from  16%  in  the  prior  fiscal  year,  primarily  due
              to  improved  operating  efficiency  and  capital  structure.    During  the
              fiscal  year,  Xilinx  repurchased  24  million  shares  of  common  stock  and
              announced  an  increase  in  its  dividend  to  $0.14  per  diluted  share,
              resulting  in  a  dividend  yield  of  2.4%,  higher  than  the  dividend  yield
              of  the  S&P  500.
        --  Xilinx  improved  its  65nm  sales  leadership  with  strong  growth  from  its
              Virtex-5  FPGA  family.    Shipping  over  a  year  before  competing  products,
              sales  from  the  Virtex-5  family  increased  more  than  70%  sequentially  in
              the  March  quarter.    Recently,  Xilinx  introduced  Virtex-5  FXT  devices
              which  deliver  in  system  integration  for  designs  that  demand
              high-performance  processing  and  high-speed  serial  I/Os,  enabling
              designers  to  reduce  system  costs,  board  space  and  component  count.
              Xilinx  estimates  that  it  currently  supplies  over  90%  of  the  PLD
              industry's  65nm  sales.
        --  Xilinx  delivered  the  ISE(R)  Design  Suite  10.1,  a  single  unified  release
              providing  FPGA  logic,  embedded  and  DSP  designers  with  immediate  access
              to  the  Company's  entire  line  of  design  tools  with  full
              interoperability.  The  ISE  Design  Suite  offers  significantly  faster
              implementations  with  an  average  of  2X  faster  run-times  and  up  to
              38%  faster  performance.
        --  Xilinx  realized  record  sales  in  the  Consumer  &  Automotive  and
              Industrial  and  Other  end  markets  in  fiscal  2008.    These  combined
              categories  represented  49%  of  sales  in  fiscal  2008,  up  from  45%  in  the
              prior  fiscal  year  and  up  from  36%  three  years  ago.    Growth  in  these  end
              markets  was  primarily  driven  by  strength  in  defense  and  automotive
              applications  and  validates  the  Company's  focused  end  market
              diversification  efforts.

        Key  Statistics:
                                                                          Q4                          Q3                      Q4
                                                                      FY  2008                FY  2008            FY  2007

        Annual  Return  on  Equity  (%)*          22                          21                      16
        Operating  Cash  Flow  ($M)                102                        208                    106
        Depreciation  Expense  ($M)                14                          13                      18
        Capital  Expenditures  ($M)                  6                          11                      63
        Combined  Inventory  Days                    92                          91                    120
        Revenue  Turns  (%)                                60                          59                      59

        *  Return  on  equity  calculation:  Annualized  net  income/average
            stockholders'  equity

        Business  Outlook  --  June  Quarter  Fiscal  2009

        --  Revenues  are  expected  to  be  up  3%  to  down  1%  sequentially.
        --  Gross  margin  is  expected  to  be  approximately  63%  to  64%.
        --  Operating  expenses  are  expected  to  be  approximately  flat  sequentially.
        --  Other  income  including  interest  expense  is  expected  to  be  approximately
              $6  million.
        --  Tax  rate  is  expected  to  be  approximately  21%.
        --  Fully  diluted  share  count  is  expected  to  be  approximately  280  million


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