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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Fool contributor Anders Bylund holds no position in any of the companies discussed here. The Fool has written calls (bull call spread) on Cisco Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.