PR Newswire
Oct 16, 2003 16:20 ET

Xilinx Reports Second Quarter FY04 Results; Margins at Highest Levels Since September Quarter of CY2000

SAN JOSE, Calif., Oct. 16 /PRNewswire-FirstCall/ -- Xilinx, Inc. (NASDAQ:XLNX) today announced results for the second quarter of fiscal 2004. For the quarter, Xilinx recorded revenues of $315.5 million and a net income of $56.4 million, or $0.16 per diluted share. This compares to revenues of $313.3 million and a net income of $46.2 million or $0.13 per share in the first quarter of fiscal 2004, which included a pre-tax $6.4 million charge relating to litigation.

Xilinx's operating results improved significantly during the quarter. Gross margin of 61% was better than expected and up from 60% in the prior quarter. Firm expense controls resulted in operating margin improving to 22%, up from 18% in the prior quarter. Similarly, net profit margin was 18%, up from 15% in the prior quarter. Both operating margin and profit margin were at their highest levels since the September quarter of CY2000. "Much of this improvement has been driven by the shift to 300mm wafer production, which enables significant cost reductions. In the September quarter, over 50% of our wafers were produced using 300mm wafers, up from approximately 40% in the prior quarter. Our early and aggressive move to 300mm technology is not only paying off, but providing Xilinx with a significant competitive cost advantage," said Wim Roelandts, President and Chief Executive Officer.

"I am also pleased with the growth of our new products, which increased 22% during the quarter," continued Roelandts. "While sales from all products in this category increased sequentially, Virtex-II Pro(TM) and Spartan(TM)-IIE FPGA sales were the strongest. I am also encouraged by the rapid customer adoption of our new Spartan-3(TM) FPGA family." New product sales represented 32% of revenues, up from 26% last quarter and up from 21% in the same quarter a year ago.

Website: http://www.xilinx.com/