SCIENCE

NetLogic Microsystems has announced financial results for its third quarter ended September 30, 2010.

Revenue for the third quarter of 2010 was $100.1 million, a 5.3% sequential increase from $95.0 million for the second quarter of 2010 and a 136% increase from $42.3 million for the third quarter of 2009.

Third quarter 2010 net income, determined in accordance with generally accepted accounting principles (GAAP), was $5.2 million or $0.08 per diluted share. By comparison, GAAP net loss was $3.9 million or $0.09 per diluted share for the third quarter of 2009. GAAP net income for third quarter 2010 included stock-based compensation and related payroll taxes, changes in contingent earn-out liability, and amortization of intangible assets. Excluding these items, non-GAAP net income for the third quarter of 2010 was $27.9 million or $0.40 per diluted share, compared with $0.22 per diluted share for the third quarter of 2009.

Management Qualitative Comments

"We recently marked another significant milestone in our technology roadmap with the transition of our product portfolio of multi-core processing, knowledge-based processing and physical layer solutions to TSMC's advanced 40 nanometer process node," said Ron Jankov, president and CEO. "This is a considerable achievement given the size and complexity of our solutions and further highlights the tremendous execution and expertise of our team. This accomplishment comes at a great time when the performance capability of our advanced portfolio is ideally suited for multiple market windows that are opening up this year and that will provide tremendous growth opportunity for many years to come. It also underscores our commitment to technology leadership and demonstrates our ability to consistently deliver an ambitious roadmap that keeps pace with the rigorous demands of next-generation networking and communications."

Recent Highlights

NetLogic Microsystems announced the availability of the XLP Multi-Core Processor Development Kit that includes comprehensive hardware and software tools, libraries, drivers and reference solutions to help accelerate time-to-market and reduce development effort for Tier One OEMs who are developing next-generation systems using the industry-leading XLP multi-core, multi-threaded processor. The company also announced the availability of its innovative NL10k knowledge-based processors, which are designed in the advanced 40nm process node, to further expand the IPv6 processing portfolio for next-generation switches and routers. The NL10k knowledge-based processors deliver 1.6 billion decisions per second of IPv6 processing while maintaining compatibility to previous generations of knowledge-based processors. H3C Technologies, a subsidiary of Hewlett-Packard Company and a leading global provider of IP-based products and solutions, selected NetLogic Microsystems' AEL2020 dual-channel 10 Gigabit Ethernet (10GE) PHY device for both its S12500 and S9500E series core switches. The H3C S12500 is a series of core switches designed for use in next-generation data centers. The H3C S9500E is a series of new-generation core routing switches developed for use in the core layer of campus networks and data centers. Advantech, a global manufacturer of telecom computing blades and multi-core network platforms, and NetLogic Microsystems announced their collaboration to deliver the industry's most advanced 40-Gbps AdvancedTCA (ATCA) platform using NetLogic Microsystems' XLP multi-core, multi-threaded processors with 64 NXCPUs(TM), knowledge-based processors, and 10GE PHY solutions. Continuous Computing, the global provider of integrated platform solutions that address the mobile broadband capacity challenge, and NetLogic Microsystems announced their collaboration to deliver the industry's highest performance 40G AdvancedTCA (ATCA) packet processing platforms using NetLogic Microsystems' XLP multi-core, multi-threaded processors with 64 NXCPUs, the NL11k knowledge-based processors and 10GE PHY solutions. NetLogic Microsystems' market-leading multi-core, multi-threaded processors and knowledge-based processors powered best-in-class TD-LTE equipment from Motorola and Continuous Computing to provide TD-LTE coverage at the Shanghai World Expo 2010.

Conference Call

NetLogic Microsystems will hold its third quarter 2010 financial results conference call today at 1:30 p.m. Pacific time. To listen to the conference call, dial (866) 783-2137 ten minutes prior to the start of the call, using the passcode 14139643. International callers, dial (857) 350-1596. A taped replay will be made available approximately two hours after the conclusion of the call and will remain available for one week. To access the replay, dial (888) 286-8010 and enter passcode 65493307. International callers dial (617) 801-6888.