Xilinx Announces First Quarter Fiscal 2009 Results; Sales Increase 3% Sequentially

• Record sales of $488.2 million in fiscal Q1
• Gross margin of 63.8%
• Industrial and Other sales reach record level

SAN JOSE, Calif. -- July 16, 2008 -- Xilinx, Inc. (Nasdaq: XLNX) today announced record net revenues of $488.2 million in the first quarter of fiscal 2009, up 3% sequentially from the prior quarter and up 9% compared to the same quarter a year ago. First quarter net income was $83.9 million, or $0.30 per diluted share, including previously announced pre-tax restructuring charges of $19.5 million as well as a pre-tax charge of $4.6 million related to impairment losses on equity investments. Collectively these charges totaled $24.1 million, or approximately $0.07 per diluted share.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.14 per outstanding share of common stock, payable on August 27, 2008 to all stockholders of record at the close of business on August 6, 2008.

Additional first quarter comparisons are represented in the charts below:

GAAP Results
(In millions, except EPS)

	Q1 FY 2009	Q4 FY 2008	Q1 FY 2008	Growth Rates
				Q-T-Q	Y-T-Y
Net revenues	$488.2	$475.8	$445.9	3%	9%
Operating income	$107.0	$117.0	$97.5	-9%	10%
Net income	$83.9	$96.5	$84.3	-13%	0%
Diluted earnings per share	$0.30	$0.34	$0.28	-12%	7%

Sales from New Products increased 15% sequentially in the June quarter representing 42% of total sales, up from 28% in the same quarter a year ago. Virtex(R)-4 FPGA sales were particularly strong during the quarter driven by applications in the communications, defense and medical end markets.

Sales from the Asia Pacific region increased 15% sequentially in the June quarter reaching a record 32% of total sales, up from 29% in the same quarter a year ago. Strong sales growth was driven primarily by communications customers within the region as well as US-based communications customers with manufacturing operations in Asia Pacific.

"We reported a solid quarter in spite of macroeconomic headwinds," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "In addition to achieving record sales in the June quarter, our gross margin continued to improve due to disciplined efforts in the areas of yield improvement and cost reduction. Gross margin in the June quarter was 63.8%, up from 63.4% in the prior quarter and up from 62.2% in the same quarter a year ago."

Net Revenues by Geography:

	Percentages			Growth Rates
	Q1 FY 2009	Q4 FY 2008	Q1 FY 2008	Q-T-Q	Y-T-Y
North America	35%	38%	39%	-4%	-1%
Asia Pacific	32%	28%	29%	15%	21%
Europe	23%	23%	22%	1%	14%
Japan	10%	11%	10%	-3%	9%

Net Revenues by End Market:

	Percentages			Growth Rates
	Q1 FY 2009	Q4 FY 2008	Q1FY 2008	Q-T-Q	Y-T-Y
Communications	42%	42%	45%	3%	2%
Industrial & Other	33%	33%	32%	5%	16%
Consumer & Automotive	16%	17%	15%	-2%	13%
Data Processing	9%	8%	8%	3%	17%

Net Revenues by Product*:

	Percentages			Growth Rates
	Q1 FY 2009	Q4 FY 2008	Q1 FY 2008	Q-T-Q	Y-T-Y
New	42%	38%	28%	15%	64%
Mainstream	40%	42%	50%	-2%	-12%
Base	12%	14%	16%	-14%	-19%
Support	6%	6%	6%	-5%	8%

* Products are classified as follows:

• New Products: Virtex-5, Virtex-4, Spartan(R)-3, and CoolRunner(TM)-II products
• Mainstream Products: Virtex-II, Spartan-II, CoolRunner and Virtex-E products
• Base Products: Virtex, Spartan, XC4000 and XC9500 products
• Support Products: Configuration solutions, HardWire, Software & Support/Services

Highlights -- June Quarter Fiscal 2009

• Sales from products manufactured using 90nm and 65nm process technologies reached record levels in the June quarter exceeding 40% of total sales, up from 26% in the same quarter a year ago. Xilinx's successful introduction of the Virtex-5 family in May 2006 has enabled the Company to achieve significant 65nm sales leadership over PLD competitors. Xilinx estimates that it currently supplies approximately 90% of the PLD industry's 65nm sales. Virtex-5 devices continue to generate strong design win momentum across a broad range of end markets.

• Industrial and Other sales reached record levels in the June quarter driven by growth from the defense, industrial, scientific and medical applications. Xilinx FPGAs are ideally suited for many of the applications in this space due to their high DSP performance, embedded processing functionality and integration capabilities. Sales from Industrial and Other applications represented 33% of total sales in the June quarter, up from 22% three years ago.

Key Statistics:

	Q1 FY 2009	Q4 FY 2008	Q1 FY 2008
Annual Return on Equity (%)*	20	22	18
Operating Cash Flow ($M)	158	102	126
Depreciation Expense ($M)	15	14	12
Capital Expenditures ($M)	10	6	16
Combined Inventory Days	93	92	101
Revenue Turns (%)	59	60	57

*Return on equity calculation: Annualized net income/average stockholders' equity

Business Outlook -- September Quarter Fiscal 2009

• Revenues are expected to be between up 1% to down 3% sequentially.
• Gross margin is expected to be in the range of 63% to 64%.
• Operating expenses are expected to be approximately $180 million including $1 million to $2 million of previously announced  restructuring charges.
• Other income including interest expense is expected to be approximately  $5 million.
• Tax rate is expected to be approximately 22%.
• Fully diluted share count is expected to be approximately 277 million shares.

Financial Tables

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About Xilinx

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