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STATES</font></div>
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AND EXCHANGE COMMISSION</font></div>
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8-K</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">CURRENT
REPORT</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">PURSUANT
TO SECTION 13 OR 15(<font style="FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: normal">d</font>)
OF THE</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman; FONT-VARIANT: small-caps">SECURITIES
EXCHANGE ACT OF 1934</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date of
Report (Date of earliest event reported): <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">April 29,
2010</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
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Microsystems, Inc.</font></div>
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Name of Registrant as Specified in Charter)</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1875
Charleston Road, Mountain View, CA 94043</font></div>
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telephone number, including area code: (650)&#160;961-6676</font></div>
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appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: times new roman">
see</font>&#160;&#160;General Instruction A.2. below):</font></div>
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      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
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      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
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        <div>&#160;</div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Item&#160;2.02.</font></div>
            </td>
            <td align="left" valign="top" width="80%">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Results
      of Operations and Financial
Condition.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
information contained in this report and the exhibit attached hereto is
furnished solely pursuant to Item&#160;2.02 of Form 8-K and shall not be deemed
&#8220;filed&#8221; for purposes of Section&#160;18 of the Securities Exchange Act of 1934,
as amended, or otherwise subject to the liabilities of that section. The
information contained herein and the exhibit attached hereto shall not be
incorporated by reference into any filing with the Securities and Exchange
Commission made by NetLogic Microsystems, Inc., whether made before or after the
date hereof, except as shall be expressly set forth by specific reference in
such filing.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On April
29, 2010, we issued a press release announcing our financial results for the
three months ended March 31, 2010, which is included in this report as Exhibit
99.1. The press release should be read in conjunction with the statements
regarding forward-looking statements that are included in the text of the press
release.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Discussion
of Non-GAAP Financial Measures</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
addition to disclosing financial results calculated in accordance with U.S.
generally accepted accounting principles (GAAP), the Company also reports
certain non-GAAP financial measures.&#160;&#160;Non-GAAP financial measures
exclude the effects of stock-based compensation, changes in contingent earn-out
liability, amortization of acquired intangible assets, fair value adjustments of
acquired inventory, acquisition-related costs, and the effects of excluding
stock-based compensation on the number of diluted shares used in calculating
non-GAAP earnings per share.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
utilize a number of different financial measures, both GAAP and non-GAAP, in
analyzing and assessing the overall performance of our business, in making
operating decisions, forecasting and planning for future periods, and
determining payments under compensation programs. We consider the use of the
non-GAAP measures presented in our press release to be helpful in assessing the
performance of the operation of our core business which comprises the ongoing
revenue and expenses of our business excluding certain items that render
comparisons with prior periods or analysis of on-going operating trends more
difficult, such as non-cash expenses not directly related to the actual cash
costs of development, sale, delivery or support of our products, or expenses
that are reflected in periods unrelated to when the actual amounts were incurred
or paid. Consistent with this approach, we believe that disclosing non-GAAP
financial measures provides useful supplemental data that, while not a
substitute for financial measures prepared in accordance with GAAP, allows for
greater transparency in the review of our financial and operational performance.
In addition, we have historically reported non-GAAP results to the investment
community and believe that continuing to do so provides investors with a useful
measure for comparing results over time. In assessing the overall health of our
business for the periods covered in our press release and, in particular, in
evaluating the non-GAAP financial line items presented in our press release, we
have excluded items in the following three general categories, each of which are
described below: Stock-Based Compensation Related Items, Acquisition Related
Expenses and Other Items. We also provide additional detail below regarding the
shares used to calculate our non-GAAP net income per share.</font></div>
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</font></div><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Non-GAAP
net income reflects net income adjusted for the following items:</font></div>
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            <td align="left" valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
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            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#8226;</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Stock-based Compensation and
      Related Payroll Taxes. </font>We provide non-GAAP information relative to
      our expense for stock-based compensation and related payroll tax. We began
      to include stock-based compensation expense in our GAAP financial measures
      in January 2006. Because of varying available valuation methodologies,
      subjective assumptions and the variety of award types, which affect the
      calculations of stock-based compensation, we believe that the exclusion of
      stock-based compensation allows for more accurate comparisons of our
      operating results to our peer companies. Stock-based compensation is very
      different from other forms of compensation that have a fixed and unvarying
      cash cost. In contrast, the expense associated with an award of an option
      for shares of our stock is unrelated to the amount of compensation
      ultimately received by the employee.&#160;&#160;Furthermore, the amount of
      expense that we record is based on a stock-based compensation valuation
      methodology and underlying assumptions that may vary over time and that do
      not reflect any cash expenditure. The expense associated with an award of
      options for shares of company stock in one quarter may have a very
      different expense than an award of an identical number of options in a
      different quarter. Finally, the expense we recognize for options may be
      very different than the expense that other companies recognize for
      awarding a comparable option, which can make it difficult to assess our
      operating performance relative to our competitors. Similar to stock-based
      compensation, payroll tax on stock option exercises is dependent on our
      stock price and the timing of employee exercises over which our management
      has little control, and as such does not correlate to the operation of our
      business. Because of these unique characteristics of stock-based
      compensation expense and the related payroll tax, management excludes
      these expenses when analyzing our business
  performance.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
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<tr>
            <td align="left" valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#8226;</font></div>
            </td>
            <td align="left" valign="top" width="84%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Acquisition-Related
      Expenses.</font> We exclude certain expense items resulting from
      acquisitions including the following, when applicable: (i) changes in RMI
      contingent earn-out liability; (ii) amortization of purchased intangible
      assets associated with our acquisitions; (iii) fair value adjustments of
      acquired inventory; and (iv) acquisition-related costs. We believe that
      providing non-GAAP information for acquisition-related expense items in
      addition to the corresponding GAAP information allows the users of our
      financial statements to better review and understand the historic and
      current results of our continuing operations, and also facilitates
      comparisons with less acquisitive peer
  companies.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div>
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<tr>
            <td align="left" valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(i)</font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Changes in RMI contingent
      earn-out liability. </font>In accordance with changes in GAAP requirements
      for business combination accounting of contingent earn-out consideration
      effective in 2009, an estimated fair value of contingent earn-out
      consideration is recorded at the close of an acquisition.&#160;&#160;As
      changes to the estimated fair value occur, which may be for a variety of
      reasons, including but not limited to, changes in our <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">probability
      estimates of achieving revenue targets and our </font>stock
      price,&#160;&#160;we are required to record the changes in the estimated
      liability through our operating results until the liability is
      fixed.&#160;&#160;Under the terms of the merger agreement with RMI, a
      substantial portion of the contingent earn-out consideration&#160;&#160;is
      payable in stock.&#160;&#160;We evaluate this contingent earn-out
      consideration as part of total purchase consideration of the business and
      do not consider changes in the total purchase consideration recorded in
      our operating results to meaningfully reflect the near-term performance of
      our business.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
            <td align="left" valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(ii)</font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Amortization of intangible
      assets.&#160;&#160;</font> The amortization of purchased intangible assets
      associated with our acquisitions results in recording expenses in our GAAP
      financial statements for which we have not expended cash. Moreover, had we
      developed the products acquired, the amortization of intangible assets,
      and the expenses of uncompleted research and development would have been
      expensed in prior periods. Accordingly, we analyze the performance of our
      operations in each period without regard to such
  expenses.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
            <td align="left" valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(iii)</font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Fair value adjustments of
      acquired inventory and related tax effect.&#160;&#160;</font>As part of
      business combination accounting for acquired inventory, we increase the
      value of acquired inventory to effectively eliminate any accounting gross
      profit except for a portion attributed to any manufacturing effort to be
      completed post-acquisition and any incremental selling
      effort.&#160;&#160;Such adjustments do not reflect costs we would
      otherwise have expended to manufacture such inventory on our
      own.&#160;&#160;Therefore, we analyze the performance of our operations in
      each period without regard to such expenses.&#160;&#160;Similarly, we
      exclude the income tax effect of this item when evaluating our operating
      results.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; TEXT-INDENT: 0pt">
        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left">&#160;</div>
        <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
          <div id="FTR">
            <div id="GLFTR" style="WIDTH: 100%" align="left">
            </div>
          </div>
          <div id="PN" style="PAGE-BREAK-AFTER: always">
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
            </div>
            <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font>

              <div>
                <hr style="COLOR: gray" align="center" noshade size="3" width="100%">
              </div>
            </div>
          </div>
        </div>
      </div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">&#160;
</font></div>
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
            <td align="left" valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td valign="top" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(iv)</font></div>
            </td>
            <td align="left" valign="top" width="82%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Acquisition-related
      costs.&#160;&#160;</font>Acquisition-related costs include transaction
      costs and integration-related costs, including severance payments that
      were made by RMI prior to its acquisition by us, which severance payments
      might be construed to be undertaken for our benefit and therefore required
      to be recorded as our expense under GAAP.&#160;&#160;We consider these
      charges unrelated to our core operating performance. In addition,
      acquisitions result in non-continuing operating expenses, which would not
      otherwise have been incurred by us in the normal course of our business
      operations. For example, we have incurred deferred compensation charges
      related to assumed options and transition and integration costs such as
      retention bonuses and acquisition-related milestone payments to employees
      of the acquired entity.</font></div>
            </td>
          </tr></table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
            <td align="left" valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#8226;</font></div>
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            <td align="left" valign="top" width="84%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-STYLE: italic">Other Items.</font> We exclude
      certain other items that are the result of either unique or unplanned
      events including the following, when applicable: (i) deferred tax asset
      valuation allowance on a portion of the Company&#8217;s California research and
      development credit carryforward. The establishment of deferred tax asset
      valuation allowance on a portion of the Company&#8217;s California research and
      development credit carryforward arose as a result in a change in the
      law.&#160;&#160;We believe that providing financial information without
      these items, in addition to our GAAP operating results, provides our
      management and users of our financial statements with better clarity
      regarding the on-going performance and future liquidity of our
      business.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
calculation of non-GAAP net income per share is adjusted for the following
item:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
            <td align="left" valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#8226;</font></div>
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            <td align="left" valign="top" width="84%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Non-GAAP
      net income per share is calculated by dividing non-GAAP net income by
      non-GAAP diluted weighted average shares. For purposes of calculating
      non-GAAP net income per share, the GAAP anti-dilutive weighted average
      shares outstanding is included after adjustments to exclude&#160;the
      benefits of stock-based compensation costs attributable to future services
      and not yet recognized in the financial statements. Under the GAAP
      treasury stock method, these stock-based compensation costs are treated as
      proceeds assumed to be used to repurchase shares. Since our non-GAAP net
      income does not reflect the effects of stock-based compensation costs,
      management believes these amounts should not be applied to the repurchase
      of shares in calculating non-GAAP net income per
  share.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We expect
to continue to incur expenses similar to some of the non-GAAP adjustments
described above, and exclusion of these items from our non-GAAP financial
measures should not be construed as an inference that these costs are unusual,
infrequent or non-recurring.&#160;&#160;For example:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
            <td align="left" valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#8226;</font></div>
            </td>
            <td align="left" valign="top" width="84%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Non-GAAP
      financial measures do not account for stock-based compensation expense
      related to equity awards granted to our employees. Our stock incentive
      plans are an important component of our employee incentive compensation
      arrangements and are reflected as expense in our GAAP
    results.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
            <td align="left" valign="middle" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
            <td align="left" valign="top" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#8226;</font></div>
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            <td align="left" valign="top" width="84%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">While
      amortization of purchased intangible assets does not directly affect our
      current cash position, such expenses represent the estimated decline in
      value of technology and other intangible assets we have acquired over
      their respective expected economic lives.&#160;&#160;We have excluded the
      expense associated with this decline in value from non-GAAP financial
      measures, and therefore the non-GAAP financial measures do not reflect the
      costs of acquired intangible assets that supplement our research and
      development efforts.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
            <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
              <div id="FTR">
                <div id="GLFTR" style="WIDTH: 100%" align="left">
                </div>
              </div>
              <div id="PN" style="PAGE-BREAK-AFTER: always">
                <div style="WIDTH: 100%; TEXT-ALIGN: center">
                </div>
                <div style="WIDTH: 100%; TEXT-ALIGN: center">
                </div>
              </div>
              <div id="HDR">
                <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font>

                  <div>
                    <hr style="COLOR: gray" align="center" noshade size="3" width="100%">
                  </div>
                </div>
              </div>
            </div>
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          <div>&#160;</div>
          <div>
            <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
                  <td align="left" valign="top" width="7%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Item&#160;9.01.</font></div>
                  </td>
                  <td align="left" valign="top" width="80%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Financial
      Statements and Exhibits.</font></div>
                  </td>
                </tr></table>
          </div>
          <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)
Exhibits.</font></div>
          <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
following exhibit is furnished with this document:</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
          <div>
            <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
                  <td align="left" valign="middle" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="middle" width="92%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                </tr><tr>
                  <td valign="bottom" width="5%" style="BORDER-BOTTOM: black 1pt solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Exhibits</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;&#160;</font></div>
                  </td>
                  <td align="left" valign="bottom" width="92%" style="BORDER-BOTTOM: black 1pt solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Description</font></div>
                  </td>
                </tr><tr>
                  <td align="left" valign="middle" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" colspan="2" valign="middle" width="95%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                </tr><tr>
                  <td valign="top" width="5%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">99.1</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;&#160;</font></div>
                  </td>
                  <td align="left" valign="top" width="92%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Press
      Release dated April 29, 2010</font></div>
                    </div>
                  </td>
                </tr></table>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left">&#160;</div>
          <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
            <div id="FTR">
              <div id="GLFTR" style="WIDTH: 100%" align="left">
              </div>
            </div>
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              <div style="WIDTH: 100%; TEXT-ALIGN: center">
              </div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
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            </div>
            <div id="HDR">
              <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font>

                <div>
                  <hr style="COLOR: gray" align="center" noshade size="3" width="100%">
                </div>
              </div>
            </div>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURE</font></div>
          <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</font></div>
            </div>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
          <div>
            <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
                  <td align="left" valign="middle" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="middle" width="34%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="middle" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="middle" width="34%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                </tr><tr>
                  <td align="left" colspan="3" valign="top" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" colspan="3" valign="top" width="39%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">NetLogic
      Microsystems, Inc.</font></div>
                  </td>
                </tr><tr>
                  <td align="left" colspan="3" valign="middle" width="40%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" colspan="2" valign="middle" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" colspan="2" valign="middle" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" colspan="2" valign="middle" width="36%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                </tr><tr>
                  <td align="left" colspan="3" valign="top" width="40%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Date:
      April 29, 2010</font></div>
                    </div>
                  </td>
                  <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="top" width="4%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">By:</font></div>
                  </td>
                  <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: black 1pt solid"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="top" width="34%" style="BORDER-BOTTOM: black 1pt solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">/s/
      Michael T. Tate</font></div>
                  </td>
                </tr><tr>
                  <td align="left" valign="top" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="top" width="34%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="top" width="4%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="2%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="34%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Michael
      T. Tate</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Vice
      President and Chief Financial
Officer</font></div>
                  </td>
                </tr></table>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left">&#160;</div>
          <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
            <div id="FTR">
              <div id="GLFTR" style="WIDTH: 100%" align="left">
              </div>
            </div>
            <div id="PN" style="PAGE-BREAK-AFTER: always">
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
              </div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
              </div>
            </div>
            <div id="HDR">
              <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font>

                <div>
                  <hr style="COLOR: gray" align="center" noshade size="3" width="100%">
                </div>
              </div>
            </div>
          </div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EXHIBIT
INDEX</font></div>
          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
          <div>
            <table cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
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      </font></td>
                  <td align="left" valign="bottom" width="3%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" colspan="3" valign="middle" width="92%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                </tr><tr>
                  <td valign="bottom" width="5%" style="BORDER-BOTTOM: black 1pt solid">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Exhibits</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;&#160;</font></div>
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                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 8pt; FONT-FAMILY: times new roman">Description</font></div>
                  </td>
                </tr><tr>
                  <td align="left" valign="middle" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" colspan="4" valign="middle" width="95%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                </tr><tr>
                  <td valign="top" width="5%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">99.1</font></div>
                  </td>
                  <td align="left" valign="bottom" width="3%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;&#160;</font></div>
                  </td>
                  <td align="left" colspan="3" valign="top" width="92%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Press
      Release dated April 29, 2010</font></div>
                  </td>
                </tr><tr>
                  <td align="left" colspan="3" valign="middle" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="12%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="middle" width="47%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                </tr><tr>
                  <td align="left" colspan="3" valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                  <td align="left" valign="bottom" width="12%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;&#160;</font></div>
                  </td>
                  <td align="right" valign="top" width="47%"><font style="DISPLAY: inline; FONT-SIZE: 7pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
                </tr></table>
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n8k.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(
d
)
OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of
Report (Date of earliest event reported):
April 29,
2010
NetLogic
Microsystems, Inc.
(Exact
Name of Registrant as Specified in Charter)
Delaware
000-50838
77-0455244
(State
      or Other Jurisdiction of Incorporation)
(Commission
      File Number)
(I.R.S.
      Employer Identification Number)
1875
Charleston Road, Mountain View, CA 94043
(Address
of Principal Executive Offices) (Zip Code)
Registrant's
telephone number, including area code: (650) 961-6676
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (
see
General Instruction A.2. below):
¨
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
¨
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
¨
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
¨
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
Item 2.02.
Results
      of Operations and Financial
Condition.
The
information contained in this report and the exhibit attached hereto is
furnished solely pursuant to Item 2.02 of Form 8-K and shall not be deemed
"filed" for purposes of Section 18 of the Securities Exchange Act of 1934,
as amended, or otherwise subject to the liabilities of that section. The
information contained herein and the exhibit attached hereto shall not be
incorporated by reference into any filing with the Securities and Exchange
Commission made by NetLogic Microsystems, Inc., whether made before or after the
date hereof, except as shall be expressly set forth by specific reference in
such filing.
On April
29, 2010, we issued a press release announcing our financial results for the
three months ended March 31, 2010, which is included in this report as Exhibit
99.1. The press release should be read in conjunction with the statements
regarding forward-looking statements that are included in the text of the press
release.
Discussion
of Non-GAAP Financial Measures
In
addition to disclosing financial results calculated in accordance with U.S.
generally accepted accounting principles (GAAP), the Company also reports
certain non-GAAP financial measures.  Non-GAAP financial measures
exclude the effects of stock-based compensation, changes in contingent earn-out
liability, amortization of acquired intangible assets, fair value adjustments of
acquired inventory, acquisition-related costs, and the effects of excluding
stock-based compensation on the number of diluted shares used in calculating
non-GAAP earnings per share.
We
utilize a number of different financial measures, both GAAP and non-GAAP, in
analyzing and assessing the overall performance of our business, in making
operating decisions, forecasting and planning for future periods, and
determining payments under compensation programs. We consider the use of the
non-GAAP measures presented in our press release to be helpful in assessing the
performance of the operation of our core business which comprises the ongoing
revenue and expenses of our business excluding certain items that render
comparisons with prior periods or analysis of on-going operating trends more
difficult, such as non-cash expenses not directly related to the actual cash
costs of development, sale, delivery or support of our products, or expenses
that are reflected in periods unrelated to when the actual amounts were incurred
or paid. Consistent with this approach, we believe that disclosing non-GAAP
financial measures provides useful supplemental data that, while not a
substitute for financial measures prepared in accordance with GAAP, allows for
greater transparency in the review of our financial and operational performance.
In addition, we have historically reported non-GAAP results to the investment
community and believe that continuing to do so provides investors with a useful
measure for comparing results over time. In assessing the overall health of our
business for the periods covered in our press release and, in particular, in
evaluating the non-GAAP financial line items presented in our press release, we
have excluded items in the following three general categories, each of which are
described below: Stock-Based Compensation Related Items, Acquisition Related
Expenses and Other Items. We also provide additional detail below regarding the
shares used to calculate our non-GAAP net income per share.
Non-GAAP
net income reflects net income adjusted for the following items:
•
Stock-based Compensation and
      Related Payroll Taxes.
We provide non-GAAP information relative to
      our expense for stock-based compensation and related payroll tax. We began
      to include stock-based compensation expense in our GAAP financial measures
      in January 2006. Because of varying available valuation methodologies,
      subjective assumptions and the variety of award types, which affect the
      calculations of stock-based compensation, we believe that the exclusion of
      stock-based compensation allows for more accurate comparisons of our
      operating results to our peer companies. Stock-based compensation is very
      different from other forms of compensation that have a fixed and unvarying
      cash cost. In contrast, the expense associated with an award of an option
      for shares of our stock is unrelated to the amount of compensation
      ultimately received by the employee.  Furthermore, the amount of
      expense that we record is based on a stock-based compensation valuation
      methodology and underlying assumptions that may vary over time and that do
      not reflect any cash expenditure. The expense associated with an award of
      options for shares of company stock in one quarter may have a very
      different expense than an award of an identical number of options in a
      different quarter. Finally, the expense we recognize for options may be
      very different than the expense that other companies recognize for
      awarding a comparable option, which can make it difficult to assess our
      operating performance relative to our competitors. Similar to stock-based
      compensation, payroll tax on stock option exercises is dependent on our
      stock price and the timing of employee exercises over which our management
      has little control, and as such does not correlate to the operation of our
      business. Because of these unique characteristics of stock-based
      compensation expense and the related payroll tax, management excludes
      these expenses when analyzing our business
  performance.
•
Acquisition-Related
      Expenses.
We exclude certain expense items resulting from
      acquisitions including the following, when applicable: (i) changes in RMI
      contingent earn-out liability; (ii) amortization of purchased intangible
      assets associated with our acquisitions; (iii) fair value adjustments of
      acquired inventory; and (iv) acquisition-related costs. We believe that
      providing non-GAAP information for acquisition-related expense items in
      addition to the corresponding GAAP information allows the users of our
      financial statements to better review and understand the historic and
      current results of our continuing operations, and also facilitates
      comparisons with less acquisitive peer
  companies.
(i)
Changes in RMI contingent
      earn-out liability.
In accordance with changes in GAAP requirements
      for business combination accounting of contingent earn-out consideration
      effective in 2009, an estimated fair value of contingent earn-out
      consideration is recorded at the close of an acquisition.  As
      changes to the estimated fair value occur, which may be for a variety of
      reasons, including but not limited to, changes in our
probability
      estimates of achieving revenue targets and our
stock
      price,  we are required to record the changes in the estimated
      liability through our operating results until the liability is
      fixed.  Under the terms of the merger agreement with RMI, a
      substantial portion of the contingent earn-out consideration  is
      payable in stock.  We evaluate this contingent earn-out
      consideration as part of total purchase consideration of the business and
      do not consider changes in the total purchase consideration recorded in
      our operating results to meaningfully reflect the near-term performance of
      our business.
(ii)
Amortization of intangible
      assets.
The amortization of purchased intangible assets
      associated with our acquisitions results in recording expenses in our GAAP
      financial statements for which we have not expended cash. Moreover, had we
      developed the products acquired, the amortization of intangible assets,
      and the expenses of uncompleted research and development would have been
      expensed in prior periods. Accordingly, we analyze the performance of our
      operations in each period without regard to such
  expenses.
(iii)
Fair value adjustments of
      acquired inventory and related tax effect.
As part of
      business combination accounting for acquired inventory, we increase the
      value of acquired inventory to effectively eliminate any accounting gross
      profit except for a portion attributed to any manufacturing effort to be
      completed post-acquisition and any incremental selling
      effort.  Such adjustments do not reflect costs we would
      otherwise have expended to manufacture such inventory on our
      own.  Therefore, we analyze the performance of our operations in
      each period without regard to such expenses.  Similarly, we
      exclude the income tax effect of this item when evaluating our operating
      results.
(iv)
Acquisition-related
      costs.
Acquisition-related costs include transaction
      costs and integration-related costs, including severance payments that
      were made by RMI prior to its acquisition by us, which severance payments
      might be construed to be undertaken for our benefit and therefore required
      to be recorded as our expense under GAAP.  We consider these
      charges unrelated to our core operating performance. In addition,
      acquisitions result in non-continuing operating expenses, which would not
      otherwise have been incurred by us in the normal course of our business
      operations. For example, we have incurred deferred compensation charges
      related to assumed options and transition and integration costs such as
      retention bonuses and acquisition-related milestone payments to employees
      of the acquired entity.
•
Other Items.
We exclude
      certain other items that are the result of either unique or unplanned
      events including the following, when applicable: (i) deferred tax asset
      valuation allowance on a portion of the Company's California research and
      development credit carryforward. The establishment of deferred tax asset
      valuation allowance on a portion of the Company's California research and
      development credit carryforward arose as a result in a change in the
      law.  We believe that providing financial information without
      these items, in addition to our GAAP operating results, provides our
      management and users of our financial statements with better clarity
      regarding the on-going performance and future liquidity of our
      business.
The
calculation of non-GAAP net income per share is adjusted for the following
item:
•
Non-GAAP
      net income per share is calculated by dividing non-GAAP net income by
      non-GAAP diluted weighted average shares. For purposes of calculating
      non-GAAP net income per share, the GAAP anti-dilutive weighted average
      shares outstanding is included after adjustments to exclude the
      benefits of stock-based compensation costs attributable to future services
      and not yet recognized in the financial statements. Under the GAAP
      treasury stock method, these stock-based compensation costs are treated as
      proceeds assumed to be used to repurchase shares. Since our non-GAAP net
      income does not reflect the effects of stock-based compensation costs,
      management believes these amounts should not be applied to the repurchase
      of shares in calculating non-GAAP net income per
  share.
We expect
to continue to incur expenses similar to some of the non-GAAP adjustments
described above, and exclusion of these items from our non-GAAP financial
measures should not be construed as an inference that these costs are unusual,
infrequent or non-recurring.  For example:
•
Non-GAAP
      financial measures do not account for stock-based compensation expense
      related to equity awards granted to our employees. Our stock incentive
      plans are an important component of our employee incentive compensation
      arrangements and are reflected as expense in our GAAP
    results.
•
While
      amortization of purchased intangible assets does not directly affect our
      current cash position, such expenses represent the estimated decline in
      value of technology and other intangible assets we have acquired over
      their respective expected economic lives.  We have excluded the
      expense associated with this decline in value from non-GAAP financial
      measures, and therefore the non-GAAP financial measures do not reflect the
      costs of acquired intangible assets that supplement our research and
      development efforts.
Item 9.01.
Financial
      Statements and Exhibits.
(d)
Exhibits.
The
following exhibit is furnished with this document:
Exhibits
Description
99.1
Press
      Release dated April 29, 2010
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
NetLogic
      Microsystems, Inc.
Date:
      April 29, 2010
By:
/s/
      Michael T. Tate
Michael
      T. Tate
Vice
      President and Chief Financial
Officer
EXHIBIT
INDEX
Exhibits
Description
99.1
Press
      Release dated April 29, 2010