Xilinx Revenues Increase 4% Sequentially; Strong New Product Growth

SAN JOSE, Calif., July 21 -- Xilinx, Inc. (Nasdaq: XLNX) today announced net revenues of $405 million in the first quarter of fiscal 2006, up 4% sequentially from the prior quarter and down 4% from the same quarter a year ago. Net income was $77 million or $0.21 per diluted share, up 14% from $67 million or $0.19 per diluted share in the prior quarter. Net income for the first quarter of fiscal 2006 was down 19% from $95 million, or $0.26 per diluted share, as reported in the first quarter of fiscal 2005.

Xilinx also announced that the Company's Board of Directors declared a quarterly cash dividend of $0.07 per outstanding share of common stock, payable on September 7, 2005 to all stockholders of record at the close of business on August 17, 2005.

Additional fiscal first quarter comparisons are represented in the chart below.

Quarterly Information (In millions, except EPS)

	Q1 FY 2006	Q4 FY 2005	Q1 FY 2005	Growth Rates
	Q1 FY 2006	Q4 FY 2005	Q1 FY 2005	Q-T-Q	Y-T-Y
Net revenues	$405.4	$391.0	$423.6	4%	-4%
Operating income	$90.5	$83.1	$118.3	9%	-24%
Net income	$76.8	$67.2	$95.3	14%	-19%
Net income per share	$0.21	$0.19	$0.26	14%	-17%

New product sales were strong during the quarter increasing 22% sequentially with all products in this category posting growth. Sales of Xilinx's 90nm products, Spartan(TM)-3and Virtex(TM)-4, were exceptionally strong during the quarter, increasing nearly 90% sequentially as a result of robust design win activity across a broad base of end market segments. "Design win momentum is rapidly shifting to 90nm technology. With a substantial revenue lead over the competition and capacity from two of the world's leading foundries, Xilinx has a substantial competitive lead in this process technology," said Wim Roelandts, Chairman and CEO.

Continued expense controls and a decline in mask costs resulted in June quarter operating margin increasing to 22% of revenues, up from 21% last quarter. Inventory days decreased six days during the quarter to 105 days.

Business Review - June Quarter FY06

Total inventory days at Xilinx and distribution were 132 days, down from 139 days last quarter.
Accounts receivables days sales outstanding were 44, down from 50 in the prior quarter.
Capital expenditures and depreciation were $15 million and $13 million, respectively.

Net revenues by Geography:

	Percentages			Growth Rates
	Q1 FY 2006	Q4 FY 2005	Q1 FY 2005	Q-T-Q	Y-T-Y
North America	41%	40%	42%	6%	-7%
Europe	20%	21%	20%	-4%	-4%
Japan	14%	14%	14%	8%	-4%
Asia Pacific/ROW	25%	25%	24%	5%	1%

Net revenues by End Market*:

	Percentages			Growth Rates
	Q1 FY 2006	Q4 FY 2005	Q1 FY 2005	Q-T-Q	Y-T-Y
Communications	51%	47%	53%	12%	-8%
Storage & Servers	13%	17%	11%	-21%	14%
Consumer & Automotive	14%	14%	---	3%	N/M**
Industrial & Other	22%	22%	36%	5%	N/M

* As of Q3 FY05, Xilinx split the category formerly called "Consumer, Industrial & Other" into two components: "Consumer & Automotive" and "Industrial & Other". Historical comparisons are not available for these two categories.

** N/M = Not meaningful
Net revenues by Product*:

	Percentages			Growth Rates
	Q1 FY 2006	Q4 FY 2005	Q1 FY 2005	Q-T-Q	Y-T-Y
New	27%	22%	11%	22%	120%
Mainstream	51%	54%	63%	-1%	-22%
Base	16%	17%	20%	-3%	-22%
Support	6%	7%	6%	-2%	-4%

*Products are classified as follows:

New products: Virtex-4, Virtex-II Pro, Spartan-IIE, Spartan-3, Spartan-3E, Easypath(TM) and CoolRunner(R)- II products
Mainstream products: Virtex-II, Spartan-II, SpartanXL, CoolRunner, Virtex-E and Virtex products
Base products: XC3000, XC3100, XC4000, XC4000XL, XC4000XLA, XC4000XV, XC4000E, XC4000EX, XC5200, XC9500, XC9500XL, XC9500XV and Spartan products
Support products: Configuration solutions, HardWire, Software & Support/Services

Highlights - June Quarter FY06:

-- Xilinx's Spartan FPGAs now represent a record 23% of total revenues, up from 22% last quarter and up from 20% in the same quarter a year ago. The high-volume, low-cost Spartan-3 solution continues to experience strong design-win adoption, especially in the consumer market. All eight Spartan-3 FPGA products are currently in production on 90nm, 300mm wafers. Additionally, two members of the logic-intensive Spartan-3E family are currently sampling and the entire family is on schedule for production release this calendar year.

-- The Virtex-4 family continues to demonstrate significant advantages in performance, power consumption and signal integrity. Fourteen members of this family are currently shipping including all members of the LX and SX families.

Business Outlook - September Quarter FY06

-- Revenues expected to be up 0% - 4% sequentially.
-- Gross margin expected to be approximately 61% - 62%.
-- Operating expenses expected to be up 4% sequentially.
-- Other income expected to be approximately $9 million.
-- Tax rate expected to be approximately 24%.
-- Fully diluted share count expected to approximate 358 million shares.

Business Update - September Quarter FY06

A second quarter business update will be issued in the form of a press release after the market closes on Wednesday, September 7, 2005. 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, 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 successfully manage production at multiple foundries, currency fluctuations and their respective impact to customer purchasing power, variability in wafer pricing, and other risk factors listed in our most recent Form 10-K.

Financial Tables

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About Xilinx

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

Xilinx Revenues Increase 4% Sequentially; Strong New Product Growth

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