Xilinx 1999 Annual Report --- Letter to Shareholders

	The PLD Market
	New Applications in High-end Markets
	Virtex Series of FPGAs
	Internet Reconfigurable Logic (IRL) Technology
	New Access To High-Volume Markets
	-- Spartan FPGAs -- XC9500 CPLDs
	Xilinx Everywhere

Financial Results

We have already begun to realize tangible financial results from our strategy. Fiscal 1999 marked a year of financial accomplishments for Xilinx.

XLNX FY 1999 data

revenues : $ 662.0 million : 8% increase over fy98

net income* : $ 131.8 million : 4% increase over fy98

R&D investment : $ 90.9 million : 13% increase over fy98

* excludes cumulative impact of change in accounting principle and
$3.6 million one-time charge.

Revenues totaled a record $662.0 million, an increase of 8% from the prior year. While modest, our growth rate outpaced the industry growth rate and we exited the year with 30% share of the PLD market, up from 28% last year. Additionally, our joint venture with United Microelectronics Company, a wafer fabrication facility in Taiwan, became profitable at year-end. Finally, the fiscal year culminated with Xilinx successfully redeeming $250 million of convertible debt, making the company debt-free.