NetLogic Microsystems

NetLogic Microsystems, Inc.

Company type	Public
Industry	Semiconductor
Founded	1995 (1995)
Founder	Norman Godinho, Varad Srinivasan
Defunct	2012 (2012)
Fate	Acquired by Broadcom Corporation
Headquarters	Santa Clara , United States
Key people	Ronald Jankov (CEO)
Products	Knowledge-based processors, multi-core processors, content processors, network search engines, high-speed 10 and 40 Gigabit Ethernet PHYs, digital front-end PHYs for wireless base stations, energy-efficient embedded processors
Revenue	$405.4 million (FY 2012)
Number of employees	800 (2012)
Parent	Broadcom Corporation

NetLogic Microsystems, Inc. operated as a fabless semiconductor firm focused on delivering advanced solutions for data center, enterprise, wireless, and wireline infrastructure networks. Established in 1995 by Norman Godinho and Varad Srinivasan, the company went public on NASDAQ (symbol: NETL) under the leadership of CEO Ronald Jankov in July 2004. In February 2012, Broadcom Corporation completed its acquisition of NetLogic for $3.7 billion.

Products

The company’s product lineup included knowledge-based processors, multi-core processors, content processors, network search engines, high-speed 10 and 40 Gigabit Ethernet PHYs, digital front-end PHYs for wireless base stations, and energy-efficient embedded processors. Its clientele spanned global technology leaders such as Alcatel-Lucent, Cisco Systems, Dell, Ericsson, Google, Hewlett-Packard, Huawei Technologies, Juniper Networks, and Nokia-Siemens.

History

In October 2007, NetLogic expanded its capabilities by acquiring Aeluros, a specialist in low-power 10-Gigabit interface technology. By December 2010, the company integrated Magma Design Automation’s software to develop its next generation of 28-nanometer chips. The acquisition of Optichron for $22 million was completed in 2011.

Between its initial public offering in 2004 and 2011, NetLogic achieved an annual growth rate of 39%, significantly surpassing semiconductor sector averages by a factor of four to five. The business sustained robust profitability with gross margins exceeding 70% and net income above 25% in 2011. Holding over 800 granted patents, NetLogic earned recognition as the Most Respected Emerging Public Semiconductor Company from the Global Semiconductor Alliance for three consecutive years (2009–2011).

Broadcom’s $3.7 billion purchase of NetLogic in September 2011 represented a premium of 57% over the prevailing stock price and marked Broadcom’s largest acquisition to date as well as its first purchase of a publicly traded company. The transaction was finalized in February 2012, strengthening Broadcom’s chipset portfolio.

Based in Santa Clara, California, NetLogic employed around 800 staff worldwide and generated $405.4 million in revenue during fiscal year 2012.