In this letter, we show that all-optical network systems, offering intelligence in the optical layer, can be con- structed by functional integration of integrated all-optical logic gates and flip-flops. In this view, we show 10-Gb/s alloptical 2-bit label address recognized by interconnecting two optical gates that perform XOR operation on incoming optical labels. We also demonstrate 40-Gb/s all-optical wavelength-switching through an optically controlled wavelength converter, consisting of an inte- grated flip-flop prototype device driven by an integrated optical gate. The advantages of these all-optical systems combined with their realization with compact integrated devices, suggest that they are strong p a r ame t e r s for future packet/label switched optical networks.