The company’s processors use an advanced architecture and a database containing network and network user information to make decisions about individual packets of information traveling through the network.

This enables original equipment manufacturers to offer network-aware processing functions, such as access control for network security, prioritization of traffic flow to maintain quality of service, and statistical measurement of internet traffic for transaction billing.

The Mountain View, California-based company has been in operation since 1995, and launched its knowledge-based processor in the second quarter of 2002. Sales only became significant in the third quarter of 2003.

Revenue of $2.89m in 2002 leapt to $13.5m in 2003 when the company made a net loss of $31.9m. In the first quarter of this year, it made a net loss of $5.4m on revenue of $8.3m.

Apart from a brief history of rapidly growing revenue, Netlogic is highly dependent on a few customers. Cisco Systems accounted for 64% of its revenue in the first quarter of this year. Other significant OEM customers including Alcatel, Extreme Networks, Fujitsu, Hitachi, Juniper Networks, and Nortel Networks.

This article is based on material originally published by ComputerWire