CEVA Inc. announced unaudited consolidated financial results for the fourth quarter and year ended December 31, 2012. For the quarter, the company reported total revenues of $12.967 million against $15.952 million a year ago. Operating income was $2.418 million against $4.915 million a year ago. Income before taxes on income was $3.145 million against $5.788 million a year ago. Net income was $2.755 million or $0.12 per diluted share against $4.853 million or $0.20 per diluted share a year ago. Non-GAAP net income was $4.288 million or $0.19 per diluted share against $6.365 million or $0.26 per diluted share a year ago. During the fourth quarter, the company generated positive cash flow of approximately $5.6 million, offset by $3.5 million used for its buyback program.

For the year, the company reported total revenues of $53.677 million against $60.239 million a year ago. Operating income was $12.367 million against $18.561 million a year ago. Income before taxes on income was $15.747 million against $21.470 million a year ago. Net income was $13.685 million or $0.59 per diluted share against $18.562 million or $0.77 per diluted share a year ago. Non-GAAP net income was $18.356 million or $0.79 per diluted share against $23.516 million or $0.97 per diluted share a year ago.

The company provided earnings guidance for the first quarter of 2013. Revenue for the first quarter is expected to be in the range of $12 million to $13 million. Gross margin is expected to be 92% on GAAP basis and approximately 93% on non-GAAP basis, excluding 123R related expenses. Net interest income is expected to be about $700,000. Tax rate for the first quarter is expected to be approximately 17% on GAAP basis and 16% on non-GAAP basis. U.S. GAAP EPS will be in the range of $0.08 to $0.10 per share, and its non-GAAP EPS is forecasted to be in the range of $0.13 to $0.15 per share, excluding aggregate based compensation expenses, net of tax of $1.1 million.