STOCKREPORTS

Xilinx, Inc.

Nasdaq Symbol XLNX In S&P MidCap 400

Recent Price 46.88 52 Wk Range 57.50 - 31.25

Yield Nil 12-Mo. P/E 33.7

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) 4- Fair Value 61.20 Risk HIGH Earn/Div Rank B+
Technical Evaluation: BULLISH since 09/96 Rel. Strength Rank (1 Lowest - 99 Highest) 16 Insider Activity UnFavorable

Overview 14-MAY-97

Due to the surprising strength of the company's most recent earnings, we have raised our revenue and EPS estimates for FY 98 (Mar.). Revenues are expected to advance approximately 25% to 30%, with growth returning to historical norms, as the industry-wide inventory correction that restricted results in FY 97 has been completed. Gains will accelerate in the second half of the year, led by the company's flagship XC 4000 line of programmable integrated circuits. We are encouraged by the record number of software seats sold in the fourth quarter of FY 97. XLNX's software is used to program the company's chips. The high-level of software purchases alleviates recent fears that XLNX would continue to lose market share to Altera Corp. Despite recent price cuts, gross margins should remain in the 60% to 62% range; XLNX is basically passing production cost savings to customers. Well controlled SG&A expenses will also aid profitability. Overall, we see EPS advancing to $1.80 in FY 98.

Valuation 14-MAY-97

Despite our higher EPS estimate, we don't recommend investors add to their positions at this time. The shares are trading at over 30X our FY 98 estimate, representing the high-end of the company's historical P/E range. We believe that the strong earnings gains expected in FY 98 are already reflected in the price of the stock. Xilinx remains a good holding for long-term investors seeking above average capital gains, and willing to tolerate volatile price swings. The company will benefit from strong demand for field programmable gate arrays (FPGAs) and complex programmable logic devices (CPLDs), which are expected to grow 25% to 30% annually.

Key Stock Statistics

Fiscal Year Ending Mar. 31

Dividend Data: No cash dividends have been paid, and Xilinx does not expect to pay any in the foreseeable future. A three-for-one stock split was effected in August 1995.

Business Summary 14-MAY-97

Xilinx, Inc. is the leading supplier of field programmable gate arrays (FPGAs) and related development system software. Xilinx products are standard integrated circuits that are programmed by Xilinx customers to perform desired logic operations. These products provide high levels of integration and significant time and cost savings for electronic equipment manufacturers in the computer peripherals, telecommunications, industrial control and instrumentation and military markets.

FPGAs accounted for 97% and 96% of total revenues in FY 96 (Mar.) and FY 95, respectively. Development and system software sales made up the remaining revenues. Non-U.S. revenues were 35% of total revenues in FY 96, up from 31% in FY 95.

The company's FPGAs are proprietary integrated circuits designed by Xilinx; they provide a unique combination of the high logic density usually associated with custom gate arrays, the time-to-market advantages of programmable logic and the availability of a standard product. The company offers several families of FPGAs, ranging from 500 to 28,000 usable gates. The new XC4000EX family will offer densities up to 125,000 usable gates.

To implement the FPGA solution, system designers use proprietary Xilinx development system software, together with industry standard CAE software, to develop FPGA applications. At the end of FY 96, Xilinx had shipped approximately 26,700 development systems, as compared to 21,000 at the end of FY 95. The company's product line was expanded in April 1995 with the $35 million acquisition of NeoCAD, a private concern offering FPGA software design tools for programmable electronic technologies.

Xilinx is actively pursuing a strategy of broadening the markets it serves through the enhancement of software development tools, the introduction of architectures offering new functionality, and the reduction of semiconductor prices through continuous advancements in the manufacturing process.

Important Developments

Apr. '97 In reporting results for the fourth quarter of FY 97, XLNX stated that while backlog was increasing, it is still dependent on orders received and shipped in the same quarter to achieve revenue growth. Furthermore, XLNX said FY 98 will see the return of the traditional seasonality in the business, with a relatively weak second quarter, and strong third and fourth quarters.

Capitalization

Long Term Debt: $250,000,000 of conv. sub. debs. (3/97).

Curr. Ratio	6.2	5.2	3.4	3.8	3.8	3.7	4.1	3.0	2.7	NA
% LT Debt of Cap.	33.3	40.4	0.4	1.3	3.1	4.4	4.4	8.0	10.7	17.5
% Net Inc.of Revs.	19.4	18.1	16.7	16.0	15.3	15.7	16.3	12.2	9.6	NM
% Ret. on Assets	14.0	19.5	21.5	21.0	17.6	16.4	10.8	21.2	16.9	NM
% Ret. on Equity	25.6	33.1	28.2	27.0	23.5	22.0	30.1	33.2	29.2	NM

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--2100 Logic Dr., San Jose, CA 95124. Tel--(408) 559-7778. Fax--(408) 559-7114. Website--http://www.xilinx.com Chrmn--B. V. Vonderschmitt. CEO--W. P. Roelandts. SVP-Fin & CFO--G. M. Steel. Secy--R. C. Hinckley. Investor Contact--Maria Quillard (408-879-4988). Dirs--J. L. Doyle, P. T. Gianos, W. G. Howard Jr., W. P. Roelandts, B. V. Vonderschmitt. Transfer Agent & Registrar--First National Bank of Boston. Incorporated--in Delaware in 1990. Empl-- 1,201. S&P Analyst: Stephen T. Madonna, CFA

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