Xilinx Announces Second Quarter Fiscal 2007 Results; $0.27 EPS

New products: Virtex-5, Virtex-4, Spartan(TM)-3, Spartan-3E, and CoolRunner(TM)- II products

Mainstream products: Virtex-II Pro, Virtex-II, Spartan-IIE, Spartan-II, CoolRunner, Virtex-E products

Base products: Virtex, XC3000, XC3100, XC4000, XC4000XL, XC4000XLA, XC4000XV, XC4000E, XC4000EX, XC5200, XC9500, XC9500XL, XC9500XV and Spartan products

Support products: Configuration solutions, HardWire, Software & Support/Services

    Highlights - September quarter fiscal 2007:

    -- Xilinx continued to expand its leadership in 65nm technology and began
       shipments of Virtex-5 LXT FPGAs.  The LXT platform is the second of
       four Virtex-5 platforms that Xilinx has begun shipping and features the
       industry's lowest power 65nm transceivers. Xilinx's 8.2i Integrated
       Software Environment (ISE(TM)) offers full support for Virtex-5
       devices, including the Virtex-5 LX330 FPGA, the industry's highest
       density 65nm FPGA.  Xilinx remains the only PLD company to ship 65nm
       products.
    -- For the third consecutive year Xilinx earned the highest ranking for
       FPGA-level EDA vendor usage among respondents in the FPGA EDA tool
       vendor survey conducted by EE Times, part of CMP Technology LLC. In
       addition, Xilinx ranked number one in all the categories covering the
       "most important attributes in selecting an FPGA EDA tool vendor" and
       scored higher than any other FPGA vendor in user satisfaction. Xilinx
       top rating is strong testament to its excellence in design tools
       technology, support and services and the Company's total solutions
       approach to handling today's complex system designs.

    Business Outlook - December Quarter FY07

    -- Revenues expected to increase 2% to 5% sequentially.
    -- Gross margin expected to be 61% to 62%, including approximately
       $2 million of stock-based compensation charges.
    -- R&D and SG&A expenses are expected to be approximately flat
       sequentially, including approximately $20 million of stock-based
       compensation.
    -- Other income expected to be approximately $18 million.
    -- Tax rate is expected to be approximately 23% - 24%.
    -- Fully diluted share count expected to decrease to approximately
       340 million shares.

    Business Update - December Quarter FY07

The Company expects to issue a third quarter business update press release after the market closes on Thursday, December 7, 2006. Financial guidance to the investment community will be limited to the points mentioned in the business update document. Please sign up for a push email alert, which is available from our investor relations web site at http://www.investor.xilinx.com .

This release contains forward-looking statements and projections. Actual events and results may differ materially from those in the forward-looking statements and are subject to risks and uncertainties including the general health of global economies as well as of the semiconductor industry, the health of our end markets and our customers' customers, our ability to forecast end customer demand, customer acceptance of our new products, the ability of our customers to manage their inventories, a high dependence on turns business, higher-than-anticipated product delinquencies, more customer volume discounts than expected, greater product mix changes than anticipated, fluctuations in manufacturing yields, our ability to deliver product in a timely manner, our ability to secure meaningful wafer capacity from our suppliers, our ability to secure adequate test, packaging and assembly capacity from our suppliers, our ability to successfully manage production at multiple foundries, variability in wafer pricing, and other risk factors listed in our most recent Form 10-K.

About Xilinx

Xilinx, Inc. is the worldwide leader of programmable logic solutions. Additional information about Xilinx is available at http://www.xilinx.com .


#06105


    XILINX, INC.

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
    (In thousands, except per share amounts)

                                  Three Months Ended       Six Months Ended
                            Sept. 30,   Oct. 1,   Jul. 1,  Sept. 30,  Oct. 1,
                               2006      2005      2006      2006      2005
    Net revenues             $467,180  $398,929  $481,362  $948,542  $804,308
    Cost of revenues          180,580   153,968   192,059   372,639   312,450
    Gross margin              286,600   244,961   289,303   575,903   491,858

    Operating expenses:
       Research and
        development            95,951    79,953    97,582   193,533   158,657
       Selling, general and
        administrative         95,462    77,744    94,418   189,880   153,731
       Amortization of
        acquisition-related
        intangibles             2,031     1,755     2,031     4,062     3,511
       Stock-based
        compensation related
        to prior years             --        --     2,209     2,209        --
       Litigation
        settlements and
        contingencies              --     3,165        --        --     3,165
         Total operating
          expenses            193,444   162,617   196,240   389,684   319,064

    Operating income           93,156    82,344    93,063   186,219   172,794
    Impairment loss on
     investments                   --        --      (437)     (437)       --
    Interest income and
     other, net                26,132    15,910    14,841    40,973    25,253

    Income before income
     taxes                       119,288        98,254      107,467      226,755      198,047
        Provision  for  income
          taxes                                          26,242        12,656        24,976        51,218        35,608

        Net  income                                $93,046      $85,598      $82,491    $175,537    $162,439

        Basic  net  income  per
          common  share                              $0.27          $0.25          $0.24          $0.52          $0.46
        Diluted  net  income  per
          common  share                              $0.27          $0.24          $0.24          $0.51          $0.45
        Cash  dividends  declared
          per  common  share                      $0.09          $0.07          $0.09          $0.18          $0.14

        Common  and  equivalent
          shares  used  in
          computing  net  income
          per  share  amounts:
            Basic                                      339,431      349,254      341,853      340,845      350,165
            Diluted                                  343,192      356,360      348,988      346,734      357,384


        XILINX,  INC.

        CONDENSED  CONSOLIDATED  BALANCE  SHEETS
        (In  thousands)
                                                                                                Sept.  30,                        Apr.  1,
                                                                                                      2006                              2006
                                                                                              (Unaudited)                          (1)

        ASSETS

        Current  assets

        Cash,  cash  equivalents  and  short-term
          investments                                                                $1,227,352                    $984,917
        Investment  in  United  Microelectronics
          Corporation,  current  portion                                      11,506                        37,285
        Accounts  receivable,  net                                              186,224                      194,205
        Inventories                                                                        198,958                      201,029
        Deferred  tax  assets  and  other  current
          assets                                                                                242,758                      230,812

        Total  current  assets                                                  1,866,798                  1,648,248

        Net  property,  plant  and  equipment                            359,736                      358,257
        Long-term  investments                                                    552,260                      616,296
        Investment  in  United  Microelectronics
          Corporation,  net  of  current  portion                        65,164                      239,209
        Other  assets                                                                      290,380                      311,537

        Total  Assets                                                                $3,134,338                $3,173,547

        LIABILITIES  AND  STOCKHOLDERS'  EQUITY

        Current  liabilities

        Accounts  payable  and  accrued
          liabilities                                                                    $237,757                    $218,466
        Deferred  income  on  shipments  to
          distributors                                                                    109,775                      126,558

        Total  current  liabilities                                            347,532                      345,024

        Deferred  tax  liabilities                                                83,596                        92,153
        Other  long-term  liabilities                                            5,043                          7,485

        Stockholders'  equity                                                  2,698,167                  2,728,885

        Total  Liabilities  and  Stockholders'
          Equity                                                                          $3,134,338                $3,173,547

            (1)  Derived  from  audited  financial  statements


                                                                  Xilinx,  Inc.
                                  RECONCILIATIONS  OF  GAAP  TO  NON-GAAP  RESULTS
                                                                  (Unaudited)
                                      (In  thousands,  except  per  share  amounts)

                                                                                                                                    Six  Months
                                                                                          Three  Months  Ended            Ended
                                                                                        Sept.  30,        July  1,        Sept.  30,
                                                                                              2006              2006                2006


        GAAP  OPERATING  INCOME                                        $93,156          $93,063        $186,219
        Adjustment  for  stock-based
          compensation  within:
              Cost  of  revenues                                                2,426              3,642              6,068
              Research  and  development                                9,810            12,364            22,174
              Selling,  general  and
                administrative                                                  9,670            10,802            20,472
              Stock-based  compensation  related
                to  prior  years                                                        --              2,209              2,209
        NON-GAAP  OPERATING  INCOME                              $115,062        $122,080        $237,142

        GAAP  NET  INCOME                                                    $93,046          $82,491        $175,537
        Adjustment  for  stock-based
          compensation  within:
              Cost  of  revenues                                                2,426              3,642              6,068
              Research  and  development                                9,810            12,364            22,174
              Selling,  general  and
                administrative                                                  9,670            10,802            20,472
              Stock-based  compensation  related
                to  prior  years                                                        --              2,209              2,209
              Provision  for  income  taxes                          (5,016)          (5,986)        (11,002)
        NON-GAAP  NET  INCOME                                          $109,936        $105,522        $215,458

        GAAP  DILUTED  NET  INCOME  PER  COMMON
          SHARE                                                                          $0.27              $0.24              $0.51
        Adjustment  for  stock-based
          compensation                                                              0.05                0.06                0.11
        NON-GAAP  DILUTED  NET  INCOME  PER
          COMMON  SHARE                                                            $0.32              $0.30              $0.62


        GAAP  DILUTED  SHARES                                            343,192          348,988          346,734
          Adjustment  for  stock-based
            compensation                                                            (739)          (2,340)          (1,855)
        NON-GAAP  DILUTED  SHARES                                    342,453          346,648          344,879


        GAAP  GROSS  MARGIN  PERCENTAGE                              61.3%              60.1%              60.7%
        Adjustment  for  stock-based
          compensation                                                              0.6%                0.8%                0.7%
        NON-GAAP  GROSS  MARGIN  PERCENTAGE                      61.9%              60.9%              61.4%

        GAAP  OPERATING  MARGIN  PERCENTAGE                      19.9%              19.3%              19.6%
        Adjustment  for  stock-based
          compensation                                                              4.7%                6.1%                5.4%
        NON-GAAP  OPERATING  MARGIN  PERCENTAGE              24.6%              25.4%              25.0%

        GAAP  NET  MARGIN  PERCENTAGE                                  19.9%              17.1%              18.5%
        Adjustment  for  stock-based
          compensation                                                              3.6%                4.8%                4.2%
        NON-GAAP  NET  MARGIN  PERCENTAGE                          23.5%              21.9%              22.7%


          In  addition  to  disclosing  financial  results  calculated  in  accordance  with
          U.S.  generally  accepted  accounting  principles  (GAAP),  the  Company's
          earnings  release  contains  non-GAAP  financial  measures  that  exclude  the
          effects  of  stock-based  compensation  and  the  requirements  of  Statement  of
          Financial  Accounting  Standards  No.  123(  R  ),  "Share-based  Payment"
          (SFAS  123(  R  )).  The  non-GAAP  financial  measures  used  by  management  and
          disclosed  by  the  Company  exclude  the  statement  of  income  effects  of  all
          forms  of  stock-based  compensation  and  the  effects  of  SFAS  123(  R  )  upon
          the  number  of  diluted  shares  used  in  calculating  non-GAAP  net  income  per
          share.    These  non-GAAP  financial  measures  are  not  in  accordance  with  or
          an  alternative  for  GAAP  measures  and  may  be  different  from,  and  therefore
          not  comparable  to,  non-GAAP  measures  used  by  other  companies.  The  Company
          has  provided  reconciliations  of  the  non-GAAP  measures  to  the  most
          directly  comparable  GAAP  measures.  Xilinx  believes  that  the  presentation
          of  these  non-GAAP  measures,  when  shown  in  conjunction  with  the
          corresponding  GAAP  measures  and  our  reconciliations,  provides  useful
          information  to  management  and  investors  regarding  financial  and  business
          trends  relating  to  Xilinx's  financial  condition  and  results  of
          operations.    For  additional  information  regarding  these  non-GAAP
          financial  measures  and  their  use  by  Company  management,  see  the  Form  8-K
          dated  October  19,  2006  that  Xilinx  has  filed  with  the  SEC.
 

Web site: http://www.xilinx.com/



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