SYSTEMS

NetLogic Microsystems has announced financial results for its second quarter ended June 30, 2010.

Revenue for the second quarter of 2010 was $95.0 million, a 10.2 percent sequential increase from $86.3 million for the first quarter of 2010 and a 192 percent increase from $32.5 million for the second quarter of 2009.

Second quarter 2010 net loss, determined in accordance with generally accepted accounting principles (GAAP), was $4.8 million or $0.08 per diluted share. By comparison, GAAP net loss was $2.2 million or $0.05 per diluted share for the second quarter of 2009. GAAP net loss for second quarter 2010 included stock-based compensation and related payroll taxes, changes in contingent earn-out liability, amortization of intangible assets, fair value inventory adjustments and related taxes, and lease termination costs. Excluding these items, non-GAAP net income for the second quarter of 2010 was $26.5 million or $0.38 per diluted share, compared with $0.17 per diluted share for the second quarter of 2009.

As of June 30, 2010, our cash, cash equivalents and short-term investments totaled $201.1 million.

Management Qualitative Comments

"This is a very exciting time for us," said Ron Jankov, president and CEO. "When we announced the merger with RMI last June, we were committed to not only executing on both companies' highly ambitious technology roadmaps, but also to leveraging each company's best-in-class technologies to offer our customers highly valuable and unique system-level solutions for communications networking. On every front, our combined company is executing to the highest level -- from our engineering team developing ground-breaking multi-core processors, knowledge-based processors and physical layer products, to our operations team bringing these products to market under unified and efficient manufacturing flows, to our sales team's effectively leveraging our entire combined customer base and opening up new opportunities to proliferate our full product portfolio. I could not be more proud of the way our organization has come together and delivered on the vision that we outlined only a year ago."

Recent Highlights

·        NetLogic Microsystems announced the innovative XLP8128S multi-core communications processor solution that integrates 128 NXCPUs and over 160 programmable processing engines to deliver an unprecedented 160Gbps throughput and 240 million packets-per-second of intelligent application performance for next-generation 3G/4G mobile wireless infrastructure, enterprise, storage, security, metro Ethernet, edge and core infrastructure network applications.

·        NetLogic Microsystems announced the industry's first fully deterministic intelligent networking solution capable of concurrently processing advanced Layers 2 - 7 functions at 40Gbps wire-speed. Incorporating, best-in-class multi-core processing and knowledge-based processing technologies from NetLogic Microsystems, the new NLX321103A solution enables the simultaneous and deterministic processing of complex networking functions such as deep packet content inspection, application-aware switching and routing, intrusion prevention, anti-virus/malware, network service management, IPv6/IPv4 forwarding, classification, IPSec/SSL encryption, ACL security, compression/de-compression and quality-of-service (QoS) at 40Gbps wire-speed.

·        NetLogic Microsystems announced the availability of the industry's lowest power 10/40/100 Gigabit Ethernet PHY for next-generation data center applications. The new NLP1342 PHY is a quad-port device that integrates best-in-class receive equalization and transmit pre-emphasis technologies with ultra low latency to address new datacenter opportunities.

·        NetLogic Microsystems' market-leading families of multi-core, multi-threaded processors have been designed into multiple equipment, from eNodeB base stations to gateways that are being deployed in NTT DOCOMO's commercial LTE mobile network in Japan.

·        NetLogic Microsystems announced two new members of its Au1300 Ultra Low-Power Alchemy processor family with the introduction of the high-performance Au1384 and the cost-effective Au1310 devices. These processors deliver the powerful processing performance, robust media acceleration and ultra low-power functionality required for intelligent next-generation connected automotive infotainment, audio/video navigation, heads-up display and telematics systems. The Au1384 processor has been selected to power Fine Digital's next generation automotive infotainment system and the Au1310 processor has been selected by Thinkware Systems Corporation for its newly introduced "I-Navi AE" navigation system.

Conference Call

NetLogic Microsystems will hold its second quarter 2010 financial results conference call today at 1:30 p.m. Pacific time. To listen to the conference call, dial (866) 804-6926 ten minutes prior to the start of the call, using the passcode 52693395. International callers, dial (857) 350-1672. 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 79634876. International callers dial (617) 801-6888.

The conference call will be available via a live webcast on the investor relations section of NetLogic Microsystems' web site at http://www.netlogicmicro.com. Access the web site 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the web site for three months.