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Technology Stocks : Xilinx (XLNX) -- Ignore unavailable to you. Want to Upgrade?

To: A. Edwards who wrote (2462)	3/14/2000 7:58:00 PM
From: Maverick	Respond to of 3291

SSB:Raising XLNX Target from $65 to $100 Excerpts follow We are raising the targets on seven of the stocks in our coverage universe based on the strength of demand for communications components. The stocks include AMCC, PMC-Sierra, Altera, Xilinx, LSI Logic, Broadcom, and Vitesse Semiconductor. While the Internet IC stocks have been extraordinarily strong over the last few months, we believe investors' appetite for the group will continue to overwhelm valuation concerns. By any measure, few other areas possess the growth, upside potential, and profitability of the Internet IC area. For example, we believe companies such as AMCC, Broadcom, and PMC-Sierra could potentially double sales this year and next, wreaking havoc with traditional valuation screens. In general, we believe there remains very good upside potential to the current quarter and long-term EPS consensus estimates. Recent watershed events reinforce the impression that we are still in the early stages of the Internet infrastructure build-out, highlighting the sustainability of demand for Internet ICs. For example, Level 3's multi-billion deal suggests leading carriers may continue to have access to capital markets even in times of stock market stress. In addition, Monday's announcement that auto manufacturers plan to push a quarter trillion dollars worth of transactions across the Web suggests even Old Economy companies are moving from "bricks" to "clicks." On average, we have raised our price targets on the Internet IC companies five times over the last twelve months, and we would expect similar positive revisions this year. In other words, we would not use the nearness of a price target as a reason to sell one of these stocks. Nevertheless, valuation remains the biggest risk for the group, and the stocks are vulnerable to any potential NASDAQ sell-off. We are raising our Xilinx price target from $65 to $100.

To: A. Edwards who wrote (2462)	3/14/2000 8:06:00 PM
From: Maverick	Read Replies (1) \| Respond to of 3291

ML:XLNX Winning the Race to Copper; Raising Estimates Merrill Lynch's Excerpts follow: Investment Highlights: ú Our checks in the channel indicate that Xilinx will shortly be introducing the industry?s first programmable logic devices (PLDs) based on copper interconnect technology. We believe this introduction places the company six-to-twelve months ahead of the competition in deploying copper-based devices. ú Additionally, our checks indicate that the company is seeing a particularly strong Virtex-E product ramp, particularly at wireless network infrastructure suppliers. In fact, we believe Xilinx has gained superior product positioning over the competition at virtually all of the wireless infrastructure suppliers with its Virtex and Virtex-E devices. ú Given our belief that the company is in the very early stages of a strong new product cycle, its flawless execution in new product introductions, and strength in core networking and telecommunications end markets, we look for an acceleration in design wins and bookings moving forward. Accordingly, we are raising our F01 revenue and EPS estimates from $1.31 billion and $0.94 to $1.36 billion and $0.97 and our F02 estimates from $1.71 billion and $1.21 to $1.76 billion and $1.24. We reiterate our intermediate and long-term Buy ratings on XLNX. Fundamental Highlights: ú These 0.18 micron copper-interconnect devices ? extensions of the Virtex-E family ? raise the bar on performance and memory capability of Xilinx?s highest-density, highest-performance PLDs, making them ideal for bandwidth-critical networking applications. ú We believe these devices will be sampling soon and already are being designed in at major networking and telecommunications customers. We expect a formal product announcement early next quarter. ú This rollout of copper-based products continues Xilinx?s track record of flawless new product execution and pave the way for the company?s next generation of PLDs ? named Virtex-II ? that are slated to be produced on a 0.15 micron, copper-interconnect process and should be available in the second half of C00.

To: A. Edwards who wrote (2462)	3/14/2000 8:15:00 PM
From: Maverick	Respond to of 3291

CSFB:Raising Seq.Growth to 10%,ST Jan/Feb,ST BUY CREDIT SUISSE FIRST BOSTON CORPORATIONEquity ResearchAmericas U.S./Technology/SemiconductorsSTRONG BUYLARGE CAPUSD 74.6875Xilinx, Inc. (XLNX) Quarter Update: Raising Growth to 10%.Summary Yesterday, Xilinx gave its quarter update based on February sales. The company stated that February was another strong month, highlighted by better than expected sales from the company's advanced products. Based on the February results, the company increased its sequential revenue guidance to 10%, up from the original 7% guidance given on the conference call in January and the revised high single-digits guidance given on the update in the beginning of February. Based on this revision, we believe that Xilinx is on track to exceed our FQ4:00 revenue and EPS estimates of $283.8 million and $0.21, respectively. As a reminder, Xilinx stated on its conference call in January that it increased its internal inventory by 5 days (to the high end of its 70-90 day target at 88 days) in anticipation of increased activity from distributors and the ramp of Virtex. Based on the January and February data, we believe this action was well timed and will allow the company to meet or exceed the revised guidance for the quarter. Xilinx also stated that business from communications original equipment manufacturers continues to rebound and will be up for the quarter, driven by production orders for Virtex. All geographies were up sequentially for the month. A leader in FPGAs with a complete PLD solution offering, we believe Xilinx will outperform the overall semiconductor market and the PLD market forecasts in CY2000. Based on the revised guidance, we believe Xilinx is positioned to exceed our estimated revenue growth of 41.7% and 31.1% for CY2000 and CY2001, respectively. Accordingly, we reiterate our STRONG BUY rating.

To: A. Edwards who wrote (2462)	3/14/2000 8:19:00 PM
From: Maverick	Respond to of 3291

HQ:inits XLNX BUY,target $85 XLNX: Initiating Coverage with a Buy Rating & Price Target of $85, 2/28/00 * The Internet infrastructure buildout continues to fuel growth for the company's products in the areas of communications - telecom & networking (67% of total revenues last quarter), and data processing (19%). 86% of the company's revenues last quarter came from products targeted at fast growing applications enabling the continued buildout of the Internet such as routers, ATM switches, cellular base stations, wireless communications, and mass storage. * The company's new Virtex family (a total of 9 devices) that was introduced to the marketplace in late 1998 continues to be the fastest growing product family in the company's history. We believe that the Virtex family since its introduction has already generated revenues (mostly prototype) in excess of $100 million. We believe that the company is just starting to see in the current quarter the initial ramp up of production orders from its customers on Virtex. We expect Virtex to generate revenues in excess of $250 million in the company's next fiscal year, which starts next quarter. * Xilinx should be the first Programmable Logic company to post $1.0 billion in revenues after this quarter and its fiscal year ends. * We believe that the company saw a general sluggishness in the past Dec:99 quarter in terms of "new orders activity" slowing down during the quarter primarily due to Y2K related excess inventory accumulation in the channel. New order activity has picked up significantly again in the current quarter. We believe that the company is back in a growth mode again moving forward. * We are extremely bullish about the company's future in the next fiscal year, 2001, that starts next quarter and expect it to post another 50% y/y revenue growth rate. * We are initiating coverage with a BUY rating and price target of $85, or 65 times our fiscal year 2002 EPS estimate of $1.30.