Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of fabless chip designer NetLogic Microsystems (Nasdaq: NETL) briefly dipped 10% below last night's closing price in early trading today, before recovering to a more modest 4.5% fall.

So what: NetLogic's largest customer is networking giant Cisco Systems (Nasdaq: CSCO) and its network of contract manufacturers. Hence, when Cisco guided to slow sales in the coming quarters, NetLogic was caught in the blast as a not-so-innocent bystander because fewer Cisco systems sold would mean fewer systems built around NetLogic chips.

Now what: So the drop makes sense to some degree, but NetLogic is working on diversifying its customer list these days. Unfortunately, that didn't help at all this time as second-largest customer Alcatel-Lucent (NYSE: ALU) also got dragged down by the Cisco announcement despite reporting some good customer news of its own yesterday. Sometimes you just can't win when the big elephants are dancing up a storm.

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