Xilinx Raises December Quarter Sales Guidance

SAN JOSE, Calif., Dec 07, 2005 -- Xilinx, Inc. (Nasdaq: XLNX) today released its business update for the December quarter of fiscal 2006.

• December quarter sales are now expected to increase 4% to 8% sequentially as a result of better than expected sales from customers in North America and Asia Pacific. This is up from prior guidance of up 1% to 5% sequentially.
• Gross margin guidance of 62% to 63% is unchanged.
• Pursuant to the provisions of the American Jobs Creation Act of 2004, the company has elected to repatriate $500 million of foreign earnings. As a consequence, the company will record a tax charge of approximately $27 million in the December quarter related to the extraordinary dividend.
• The effective tax rate for the year, excluding the repatriation, is expected to increase to 23%, up from previous guidance of 21% - 22%. This is due to greater forecasted profits in the United States than originally expected.