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Despite losses, Xilinx Ireland to expand 
Friday, October 19 2001
by Andrew McLindon


Multinational semiconductor manufacturer Xilinx, which has an Irish presence, has
posted a pro-forma net loss of USD43.7 million in the latest quarter.

Xilinx said that pro-forma revenues for the quarter ended September 2001, (which
it calls Q2, 2002) were USD224.6 million down 22 percent from the previous
quarter and 44 percent below revenues for the same period last year. On a GAAP
basis (which includes exceptional items) its operating loss for the quarter was
USD115 million, net loss was USD176 million and USD0.53 per share. Xilinx said
that both pro-forma and GAAP results included a "sizeable" inventory
write-down. 

 

According to the maker of programmable logic devices (PLD), sales in its two
major markets, Europe and North America, fell sharply during the quarter. Sales
to European customers decreased by 48 percent sequentially and now represent just
19 percent of its total sales, and sales in North America dropped by 16 percent
sequentially, with that market accounting for just over 50 percent of total
revenues. 

 

This would seem to be bad news for the company's Irish operation, which is
regarded as an international flagship facility. However, a Xilinx spokesperson
said that it had no intention of laying-off any of its 360 employees in Ireland.
"We have always said that we will do everything to avoid letting staff go as
these people will be needed when the market turns around," the spokesperson told
ElectricNews.Net.

 

Indeed, Xilinx has previously said that it intends to recruit an additional 500
staff in Ireland. The company's spokesperson did admit though that while it was
still going to bring in this level of extra employees, it would take longer than
originally planned. "Our recruitment plans remain in place, but in the current
climate it is prudent to plan such expansion carefully."

 

Most of the 500 new recruits will be housed in Xilinx's IEP41 million expansion
at its Citywest facility. The extension is due to be completed in mid 2002 and
the spokesperson confirmed that plans for the facility's construction remain on
track. Xilinx established its facility in Ireland in 1995 and it houses advanced
research and development as well as engineering operations. 

 

Xilinx's president and chief executive officer, Wim Roelandts, said that the
latest quarter was another difficult one for the company and the semiconductor
industry. However, Roelandts commented that the business has seen growth in sales
in "non-traditional" applications such as digital video technology and home
networking. 



The PLD maker's stock dropped USD1.04 to USD26.44 on the Nasdaq before it results
were released on Thursday, and the firm's shares have fallen more than 40 percent
this year as the tech sector continues to feel the effects of the slowdown. 



Xilinx can be found at http://www.xilinx.com.