NetLogic posts better-than-expected 4Q results

MOUNTAIN VIEW, Calif. - NetLogic Microsystems Inc. reported a much narrower fourth-quarter loss on Tuesday, and its adjusted profit topped Wall Street expectations, sending the chip designer's shares up sharply in late trading.

NetLogic, whose processors are used in routers and other networking gear, said a shift to a new chip-making method helped boost profit margins, as did a nearly 7 percent drop in operating costs.

The stock gained $2.22, or nearly 11 percent, in extended electronic trading after the results were reported. Shares had gained 3 cents to close the regular session at $20.58.

The Mountain View, Calif.-based company posted a quarterly loss of $886,000, or 4 cents per share, compared with a year-ago loss of $4.8 million, or 23 cents per share. Stripping out one-time costs, NetLogic earned 30 cents per share.

Revenue slipped to $30.9 million from $32.3 million a year earlier.

Analysts polled by Thomson Reuters had expected earnings excluding items of just 23 cents per share on sales of $31 million.

For all of 2008, NetLogic earned $3.8 million, up 48 percent over a year earlier, as sales climbed 28 percent to $139.9 million.

NetLogic's CEO, Ron Jankov, cited the company's upgrade to 55-nanometer manufacturing technology as helping improve the performance and cost of making each chip.

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