STOCKREPORTS

Xicor, Inc.

NASDAQ Symbol XICO

Recent Price 6.19 52 Wk Range 12.00 - 5.50

Yield Nil 12-Mo. P/E 9.5

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) 1- Fair Value 3.95 Risk HIGH Earn/Div Rank B-
Technical Evaluation: NA since NA Rel. Strength Rank (1 Lowest - 99 Highest) 12 Insider Activity NA

Business Profile 29-MAY-97

A fall in the price of Xicor shares reflected a reduction in orders in the latter part of the 1996 fourth quarter; this limited sales and hurt net income in the fourth quarter of 1996 and the first quarter of 1997. In order to improve sales and combat shrinking margins, the company boosted R&D by 33% year to year in the 1997 first quarter. Xicor has already introduced several products in 1997, and anticipates that 1997 product introductions will be at a higher rate than in 1996. The company has also said that it has improved its wafer fabrication operations, resulting in higher employee productivity, more efficient utilization of equipment, shortened cycle time, higher yields, and increased output. Xicor believes that these efficiencies, which reduced chip cost, compensate for continuing price pressure and increased costs associated with upgrading equipment and increasing the work force in the company's wafer fabrication facility.

Operation Review 29-MAY-97

Net sales in the 1997 first quarter rose 3.0%, year to year, driven primarily by new product introductions. Gross margins widened, as cost of sales decreased slightly. After a jump in R&D costs, related to new products, and higher interest expense, pretax income dropped 29%. After taxes at 5.0%, versus 4.0%, net income fell 30%, to $2,010,000 ($0.10 a share), from $2,879,000 ($0.15).

Stock Performance 20-JUN-97n

In the past 30 trading days, XICO's shares have declined 6%, compared to a 9% rise in the S&P 500. Average trading volume for the past five days was 68,360 shares, compared with the 40-day moving average of 105,938 shares.

Key Stock Statistics

Fiscal Year Ending Dec. 31

Dividend Data: No cash dividends have been paid.

Business Summary 29-MAY-97

Xicor designs, develops, makes and markets proprietary nonvolatile semiconductor devices that can be reprogrammed repeatedly by the user and that retain their memory content when electrical power is turned off or lost. The company sells its products worldwide for a broad range of applications, including telecommunications, consumer, computer, industrial, automotive and military applications.

Xicor's product line consists of more than 50 types of E2PROMs (electrically erasable programmable read-only memories), SerialFlash memory devices, NOVRAMs (Nonvolatile Random Access Memories) and E2POT electronically controlled potentiometers, all of which are nonvolatile, are reprogrammable using only a 5-volt or lower power supply, and eliminate the need for external control and timing circuits by integrating such circuits "on-chip." The products, which operate over a wide speed and temperature range, are sold in package options that include plastic, ceramic and surface mount.

In 1992, all wafer fabrication was consolidated into the company's advanced six-inch line, and an older, more labor-intensive four-inch line was shut down. Fabricated wafers are shipped for assembly to a dedicated subcontract line in Taiwan and to independent subcontractors in South Korea, Thailand and the Philippines, where they are separated into individual chips.

In 1996, 45% of sales were to foreign customers, versus 47% in 1995. In 1996, one distributor accounted for 14% of revenues. R&D expenses were equal to 12% of 1996 sales, versus 13% in 1995 and 14% in 1994.

Xicor believes that product price, which has been steadily declining, is a very important competitive factor in the semiconductor industry. Many companies sell products competitive with Xicor's. Customers are extremely price sensitive, and competitors often lower prices in an effort to gain market share, provoking reductions by other makers, including the company, and leading to reduced profitability or losses.

Important Developments

May '97 The company announced the industry's first EEPROM family that uses the Micro Port Saver interface. Xicor believes that the new devices give engineers an easy way to connect nonvolative memory to standard microprocessors and microcontrollers while saving on I/O pins and board space.
Apr. '97 Xicor announced a new EEPROM family with what it said was the industry's best combination of high performance and lockable memory blocks at 1.8 volts. It said that the devices offer designers faster speed at lower voltage, and higher density with memory segmentation into Read Only and Read/Write blocks.

Capitalization

Options: To buy 1,953,100 shs. at $0.69 to $11.50 ea.
Long Term Obligations: $15,157,000 (3/97).

Curr. Ratio	2.0	2.0	1.7	1.3	1.2	1.9	2.3	2.7	3.2	2.9
% LT Debt of Cap.	18.9	10.8	11.8	12.3	16.4	9.5	4.9	2.0	3.4	10.7
% Net Inc.of Revs.	11.2	8.8	2.2	NM	NM	NM	NM	0.5	15.5	7.1
% Ret. on Assets	14.7	14.1	3.7	NM	NM	NM	NM	0.3	11.9	5.6
% Ret. on Equity	27.4	27.0	7.6	NM	NM	NM	NM	0.4	16.4	9.6

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--1511 Buckeye Dr., Milpitas, CA 95035. Tel--(408) 432-8888. Website--http://www.xicor.com Chrmn, Pres & CEO--R. Klein. VP-Fin & CFO--K. G. Hendig. Secy & Investor Contact--Julius Blank. Dirs--J. Blank, H. G. Dill, A. W. Elder, R. Klein, S. A. Kline. Transfer Agent & Registrar--American Stock Transfer & Trust Co., NYC. Incorporated--in California in 1978; reincorporation in Delaware pending. Empl-- 750. S&P Analyst: J. Robert Cho

This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997