Product and Financial Highlights

• Building upon Virtex-5 success, Xilinx today announced that its Virtex-6 family has achieved full production qualification and is commencing volume shipments.  Xilinx also recently announced first shipments and availability of the industry's largest FPGA, the 40-nm LX760, which is ideal for use in advanced prototyping platforms and the ASIC emulation market.  
• On October 19, 2009, Xilinx and ARM announced they are collaborating to enable ARM processor and interconnect technology on Xilinx FPGA products.  This agreement is expected to allow programmable solutions to penetrate even deeper into existing markets and expand into new market spaces by leveraging ARM's processor strengths and ecosystem.    
• On December 8, 2009, Xilinx announced six new Targeted Design Platform development kits for the Virtex-6 and Spartan-6 product families.  The new kits increase productivity and innovation for electronic designers in the areas of target embedded processing, DSP and high speed serial connectivity.  
• December quarter operating margin was 27%, up from 20% in the prior quarter and the highest reported by the Company in four years.  Improved customer demand and continued spending discipline contributed to the operating margin increase.  

Business Outlook – March Quarter Fiscal 2010

• Sales are expected to be up 3% sequentially to down 1% sequentially.
• Gross margin is expected to be approximately 64% to 65%.
• Operating expenses are expected to be approximately $180 million, including $3 million in previously announced restructuring charges.
• Other income and expense is expected to be a net expense of approximately $2 million.
• Fully diluted share count is expected to be approximately 275 million.
• March quarter tax rate is expected to be approximately 20%.

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the quarter's results and management's outlook for the March quarter. The webcast and subsequent replay will be available in the investor relations section of the company's web site at www.investor.xilinx.com .  A telephonic replay of the call may be accessed later in the day by calling (800) 642-1687 and referencing confirmation code 47787165. The telephonic replay will be available for two weeks following the live call.