NetLogic Microsystems (NETL)

We have a history of operating losses, may incur significant operating losses in the future and may not be able to sustain profitability.

We reported net income of $7.4 million during the nine months ended September 30, 2007. For the year ended December 31, 2006, we reported net income of $0.6 million. At September 30, 2007, we have an accumulated deficit of approximately $74.7 million. To sustain profitability, we will have to continue to generate greater total revenue and control costs and expenses. We cannot assure you that we will be able to generate greater total revenue, or limit our costs and expenses, sufficiently to sustain profitability on a quarterly or annual basis.

We have a history of operating losses, may incur significant operating losses in the future and may not be able to sustain profitability.

We reported net income of $4.0 million during the six months ended June 30, 2007. For the year ended December 31, 2006, we reported net income of $0.6 million. At June 30, 2007, we have an accumulated deficit of approximately $78.2 million. To sustain profitability, we will have to continue to generate greater total revenue and control costs and expenses. We cannot assure you that we will be able to generate greater total revenue, or limit our costs and expenses, sufficiently to sustain profitability on a quarterly or annual basis.

We have a history of operating losses, may incur significant operating losses in the future and may not be able to sustain profitability.

We reported net income of $1.6 million during the three months ended March 31, 2007. For the year ended December 31, 2006, we reported net income of $0.6 million. At March 31, 2007, we have an accumulated deficit of approximately $80.5 million. To sustain profitability, we will have to continue to generate greater total revenue and control costs and expenses. We cannot assure you that we will be able to generate greater total revenue, or limit our costs and expenses, sufficiently to sustain profitability on a quarterly or annual basis.

We have a history of operating losses, may incur significant operating losses in the future and may not be able to sustain profitability.

We reported a net loss of $0.9 million during the nine months ended September 30, 2006, primarily as a result of recording a charge of $10.7 million for in-process research and developments costs associated with the acquisition of Cypress Semiconductor’s network search engine products. For the year ended December 31, 2005, we reported net income of $16.4 million. At September 30, 2006, we had an accumulated deficit of approximately $83.7 million. To operate profitably on a consistent basis, we will have to continue to generate greater total revenue and control costs and expenses. We cannot assure you that we will be able to generate greater total revenue, or limit our costs and expenses, sufficiently to sustain profitability on a quarterly or annual basis.

We have a history of operating losses, may incur significant operating losses in the future and may not be able to sustain profitability.

We reported a net loss of $4.4 million during the six months ended June 30, 2006, primarily as a result of the recording of $10.7 million in-process research and developments costs associated with the acquisition of Cypress Semiconductor’s network search engine products. For the year ended December 31, 2005, we reported net income of $16.4 million. At June 30, 2006, we have an accumulated deficit of approximately $87.1 million. To operate profitably on a consistent basis, we will have to continue to generate greater total revenue and control costs and expenses. We cannot assure you that we will be able to generate greater total revenue, or limit our costs and expenses, sufficiently to sustain profitability on a quarterly or annual basis.

We have a history of operating losses, may incur significant operating losses in the future and may not be able to sustain profitability.

We reported net loss of $7.3 million during the three months ended March 31, 2006, primarily as a result of the adoption of SFAS No. 123(R) and the recording of $10.7 million in-process research and developments costs associated with the acquisition of Cypress Semiconductor’s network search engine products. For the year ended December 31, 2005, we reported net income of $16.4 million. At March 31, 2006, we have an accumulated deficit of approximately $90.1 million. To sustain profitability, we will have to continue to generate greater total revenue and control costs and expenses. We cannot assure you that we will be able to generate greater total revenue, or limit our costs and expenses, sufficiently to sustain profitability on a quarterly or annual basis.

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We have a history of operating losses, may incur significant operating losses in the future and may not be able to sustain profitability.

Although we reported net income of $11.5 million during the nine months ended September 30, 2005, we reported operating losses in each year since our inception in 1995. At September 30, 2005, we had an accumulated deficit of approximately $87.7 million. To sustain profitability, we will have to continue to generate greater total revenue and control costs and expenses. We cannot assure you that we will be able to generate greater total revenue, or limit our costs and expenses, sufficiently to sustain profitability on a quarterly or annual basis.

We have a history of operating losses, may incur significant operating losses in the future and may not be able to sustain profitability.

Although we reported net income of $7.8 million during the six months ended June 30, 2005, we reported operating losses in each year since our inception in 1995. At June 30, 2005, we had an accumulated deficit of approximately $91.3 million. To sustain profitability, we will have to continue to generate greater total revenue and control costs and expenses. We cannot assure you that we will be able to generate greater total revenue, or limit our costs and expenses, sufficiently to sustain profitability on a quarterly or annual basis.

We have a history of operating losses, may incur significant operating losses in the future and may not be able to sustain profitability.

Although we reported net income of $5.4 million during the three months ended March 31, 2005, we reported operating losses in each year since our inception in 1995. At March 31, 2005, we had an accumulated deficit of approximately $93.8 million. To sustain profitability, we will have to continue to generate greater total revenue and control costs and expenses. We cannot assure you that we will be able to generate greater total revenue, or limit our costs and expenses, sufficiently to sustain profitability on a quarterly or annual basis.

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We have a history of operating losses, may incur significant operating losses in the future and may not be able to achieve or sustain profitability.

We have recorded operating losses in each year since our inception in 1995. At December 31, 2004, we had an accumulated deficit of approximately $99.2 million. To become profitable, we will have to generate greater total revenue and control costs and expenses. We cannot assure you that we will be able to generate greater total revenue, or limit our costs and expenses, sufficiently to achieve profitability. Even if we become profitable, we may not be able to sustain or increase profitability on a quarterly or annual basis.