XLNX ( sell to $40) sees 1Q rev falling 32% Comments on Guidance for June Quarter
SAN JOSE, Calif., Jun 26, 2001 /PRNewswire via COMTEX/ -- Xilinx, Inc. (Nasdaq:
XLNX) stated today that, due to decreased turns business in the first three
weeks of June, it now expects revenues for the first quarter to decline by
approximately 32% sequentially. The Company noted that in the current business
environment, a greater percentage of its revenues have been generated by turns
business, which the Company believes reflects a change in customer spending
practices due to the overall industry downturn. Turns business is customer
orders that are booked and shipped within the same quarter. Xilinx also stated
that it expects gross margins to approximate 52% in the first quarter. The gross
margin decline is primarily due to lower-than-expected sales and a mix shift to
higher density devices primarily within the Virtex(TM)-E family of FPGAs.
Currently, high-density Virtex-E devices and the recently introduced Virtex-II
FPGA family, which shipped primarily in June, have lower average gross margins
than our mainstream products.
Xilinx quarterly results for the first quarter of fiscal 2002 will be released
on July 19th, 2001, after the close of the market. The Company will host its
earnings release conference call later that afternoon. During the earnings
release conference call, Xilinx expects to provide additional guidance for the
second fiscal quarter.
About Xilinx
Xilinx is the leading supplier of complete programmable logic solutions,
including advanced integrated circuits, software design tools, predefined system
functions delivered as intellectual property cores, and unparalleled field
engineering support. Founded in 1984 and headquartered in San Jose, Calif.,
Xilinx invented the field programmable gate array (FPGA) and fulfills more than
half of the world demand for these devices today. Xilinx solutions enable
customers to reduce significantly the time required to develop products for the
computer, peripheral, telecommunications, networking, industrial control,
instrumentation, aerospace, defense, and consumer markets. For more information,
visit the Xilinx web site at 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, the health of our end markets and our customers' customers,
end customer demand, excessive inventory levels held by Xilinx, dependence on
product selection by our customers, distributors and the Electronic
Manufacturing Service companies, ability to manage fixed costs, high dependency
on turns bookings and the customer acceptance of our advanced products including
product mix shifts relating to decline in our mature products.
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SOURCE Xilinx, Inc.
CONTACT: Investor Relations, Lori Owen of Xilinx, Inc., 408-879-6911,
r
ir@xilinx.com
URL: xilinx.com
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Copyright (C) 2001 PR Newswire. All rights reserved.
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