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Forward-looking statements include financial guidance for the first quarter and full year of 2012, macro environment for the global chip market in 2012, market data from GSMA, iSuppli, Strategy Analytics and certain data of our customers incorporated herein; optimism about our customers’ product pipelines and market penetration, optimism about the performance of our products and competitive advantage including the CEVA-XC and CEVA MM3000, market potential for image signal processing, optimism about our ability to penetrate emerging markets and new markets beyond the cellular baseband markets, optimism about our ability to leverage trends and connectivity, as well as the positive impact on our business of these various factors.The risks, uncertainties and assumptions include the ability of the DSP cores and other technologies to continue to be strong growth drivers for CEVA, a success in penetrating new markets and maintaining our market position in existing markets, the ability of our products incorporating our technologies to achieve market acceptance, the effect of intense industry competition and consolidation, and global chip market trends; the possibility that markets for our technologies may not develop as expected or that products incorporating our technologies do not achieve market acceptance, our ability to timely and successfully introduce new technologies, and general market conditions and other risks relating to our business including but not limited to those that are described from time to time in our SEC filings. CEVA assumes no obligation to update any forward-looking statements or information, which speak as of their representative dates. With that said, I would now like to turn the call over to Gideon Wertheizer. Gideon Wertheizer Thank you, Rich and welcome everyone. CEVA executed very well in the fourth quarter with record high revenues and royalties. Revenues for the fourth quarter was $16 million, an all-time high for the company and above the high-end of our guidance range. It represents a 22% increase compared to the fourth quarter of 2010 and 7% sequential increase. Net revenue for the fourth quarter of 2011 was $10.2 million, an all-time high which represent 36% increase over the fourth quarter of 2010 and 16% sequential increase.
Other key financial metrics that further demonstrate our strong financial performance for the fourth quarter are non-GAAP operating margins 41% versus 33% for the same quarter of 2010 and a non-GAAP EPS $0.26, up 37% versus $0.19 for the fourth quarter of 2010. We have also generated approximately $9 million positive cash flow in the fourth quarter. Yaniv would elaborate more on the financial results shortly.During the fourth quarter, we concluded seven new license agreements. Four of the agreements were for our CEVA DSP cores, platforms, and software. Two for SATA/SAS technology, and one agreement was for Bluetooth. Geographically, two of the license agreements were in the U.S. and five were in Asia. Target application for the agreements concluded during the quarter are primarily TD-SCDMA baseband processor, smart TV for emerging markets, connectivity, and smartphones and solid state drives. At the beginning of 2011, we defined two main strategic goals that we believe would be key to our success in 2011 and beyond. The first was to drive strong shipment goals of our technologies in the cellular baseband market. The second was to extend our technology leadership in the DSP space. Clearly, we were able to meet both of these goals. Shipment of CEVA-powered baseband units grew 105% year-over-year to 927 million units. Our DSP are now deployed in every meaningful segment of the market, starting with the high volume, low cost GSM feature phone market, going through the 3G advanced smartphone market including the growing China mobile TD-SCDMA market and up to the cutting edge healthy smartphone market. The use of our DSP is also expanding in the mobile broadband segment, including 3G and 4G USB dongles, tablets, and in the machine-to-machine segment in particular smart grid, automotive and surveillance applications. Read the rest of this transcript for free on seekingalpha.com