Xilinx Fourth Quarter FY04 Revenues Increase 10% Sequentially

-- Xilinx, Inc. (Nasdaq: XLNX) today announced revenues of $1.40 billion in fiscal 2004, an increase of 21% from $1.16 billion in the prior fiscal year. Fiscal 2004 net income was $303.0 million or $0.85 per diluted share, up 141% from $125.7 million, or $0.36 in fiscal 2003. Fiscal 2004 net income was positively impacted by a $34.4 million reduction in taxes recognized in the March quarter associated with the recent IRS tax settlement and also included a $7.0 million pre-tax charge in connection with the acquisition of Triscend Corporation in March 2004.

Revenues for the fourth quarter of fiscal 2004 were $403.4 million, up 10% sequentially and up 32% from the same quarter a year ago. Net income for the fourth quarter was $130.9 million, or $0.36 per diluted share, up 165% from $49.4 million, or $0.14 per diluted share, in the fourth quarter of fiscal 2003. Net income for the March quarter was impacted by the benefit from the tax settlement and the acquisition related charge mentioned above. Additional fiscal fourth quarter comparisons are represented in the chart below.

Quarterly Information (In millions, except EPS)
              

"The March quarter was an excellent quarter. For the second consecutive quarter, Xilinx revenues grew double digits sequentially with increased sales from all geographies and product families," said Wim Roelandts, Xilinx's chairman and chief executive officer.

"New products continued to gain significant momentum in the marketplace during the March quarter, with sales increasing 24% sequentially and representing 36% of total revenues, up from 23% a year ago. The Virtex(R)-II series, which includes Virtex-II and Virtex-II Pro(TM) FPGAs, increased nearly 25% sequentially, with Virtex-II-Pro sales more than doubling in the quarter. Additionally, Spartan-3 sales approached $2 million during the quarter, exceeding our expectations and extending the acceptance of programmable solutions in a broad range of digital consumer applications," said Roelandts.

In the March quarter, gross margin increased 290 basis points sequentially to 64.7%, up from 60.0% in the same quarter of the prior year and the highest gross margin the Company has reported in eight years. The Company's decision to rapidly migrate to 300mm wafers coupled with improved yields and product mix all contributed to the increased gross margin.

Business Review - March Quarter FY04

• Xilinx generated $79 million in cash flow from operations.
• Total inventory days at Xilinx and distribution were 104 days, up from 90 days last quarter.
• Accounts receivables days sales outstanding were 56, up from 42 in  the prior quarter.
• Capital expenditures and depreciation were $11 million and $12  million, respectively.