In a network system, an application receiving packets can consume one or more packets in two or more stages, where the second and the later stages can selectively consume some but not all of the packets consumed by the preceding stage. Packets are transferred between two consecutive stages, called producer and consumer, via a fixed-size storage. Both the producer and the consumer can access the storage without locking it and, to facilitate selective consumption of the packets by the consumer, the consumer can transition between awake and sleep modes, where the packets are consumed in the awake mode only. The producer may also switch between awake and sleep modes. Lockless access is made possible by controlling the operation of the storage by the producer and the consumer both according to the mode of the consumer, which is communicated via a shared memory location.