NetLogic Grows in Q2

MOUNTAIN VIEW, Calif. -- Total revenue for the second quarter of 2004 was $11.9 million, an increase of 43.7% over the first quarter 2004, and an increase of 152.5% from the $4.7 million in the second quarter of 2003. The revenue increase was driven by increased customer demand for the Company's knowledge- based processors. Product revenue for the second quarter of 2004 was $11.3 million, an increase of 44.9% over the first quarter 2004, and an increase in product revenue of 562% from $1.7 million in the second quarter of 2003.

Net loss, computed in accordance with generally accepted accounting principles (GAAP) for the second quarter of 2004, was ($2.9) million or ($0.78) per share, as compared to a net loss of ($5.4) million or ($1.58) per share in the first quarter of 2004. Pro forma net loss, or net loss excluding amortization of stock-based compensation and note discounts in the second quarter of 2004, was ($0.7) million or ($0.20) per share, as compared to a pro forma net loss of ($3.2) million, or ($0.92) per share, in the first quarter of 2004.

The Company believes the additional non-GAAP measures provided are useful to investors for the performance of financial analysis, because it highlights the Company's operating activities. The Company's management uses this pro forma measure internally to evaluate its operation performance in planning for its future periods. However, pro forma measures are not a substitute for GAAP measures. For a full reconciliation of GAAP versus pro forma financial information on a quarterly basis, please see the attached schedule.

NetLogic Microsystems Inc.