Shares of NetLogic Microsystems (NASDAQ: NETL)rallied Monday as the semiconductor company raised its first quarter revenue outlook and said that its chief financial officer will be stepping down.

The firm said that it expects first quarter revenue will increase 11 to 11.5 percent from the fourth quarter of 2006, which is higher than its previous guidance issued on Jan. 24. Previously, the company gave guidance of 8 to 10 percent sequential revenue growth for the first quarter, which ended March 31.

The processor designer and developer also said that its vice president and CFO Don Witmer will step down from his position for medical reasons.

We are very grateful to Don for his contributions over the past 3 years, said CEO Ron Jankov. He has built a strong financial infrastructure, and has been an invaluable member of our executive management team through a period of significant growth and development, including our transition to becoming a public company.

NetLogic says it is searching for a replacement. In the meantime, the company’s corporate controller, Shig Hamatsu will take the role of interim CFO.

The firm will report its full financial results on Thurs., April 26th.

Shares of the company rose $2.63, or 10 percent to $28.98 in afternoon trading on the Nasdaq Stock Market.