Total revenue for the fourth quarter of 2022 was $33.4 million, a 2% decrease compared to $34.1 million reported for the fourth quarter of 2021. Fourth quarter 2022 licensing, non-recurring engineering (NRE) and related revenue was $22.5 million, an increase of 5% when compared to $21.3 million reported for the same quarter a year ago. Royalty revenue for the fourth quarter of 2022 was $10.9 million, a decrease of 14% when compared to $12.7 million reported for the fourth quarter of 2021.
Amir Panush, Chief Executive Officer of CEVA, stated: "We are pleased to finish a strong year with a solid fourth quarter in a challenging environment. Our licensing business underpinned the quarter, highlighted by multiple deals for each of our 5G, Wi-Fi 6 and Bluetooth technologies. We completed multiple important deals during the quarter, including a strategic agreement for our Ultra-Wideband IP with a global leader in automotive semiconductors and a licensing deal for our 3D spatial audio related software with one of the world's largest wearable audio brands. Royalty revenues reflect the broad consumer weakness and elevated inventory levels that affected demand for handsets and across IoT markets."
Mr. Panush continued: "After joining the company at the start of the year, I am encouraged by the strength of our business and its excellent long term growth prospects. Our IP portfolio is unique, addressing the pain points of the many companies that lack the wireless connectivity and smart sensing expertise required to address major growth markets in the semiconductor and consumer electronics industries. I am excited to unlock the untapped potential within CEVA to enhance value for all stakeholders and take us to the next level."
During the quarter, twenty-two IP license and NRE agreements were concluded, targeting a wide variety of end markets and applications, including 5G for smartphones and cellular IoT, smart audio for consumer devices, AI for in-memory computing, Ultra-Wideband for digital car keys, and Wi-Fi 6 and Bluetooth connectivity for a range of consumer and IoT markets. Six agreements were with first-time customers. Geographically, nine of the deals signed were in China, six in Europe, four in the U.S. and three in APAC.
GAAP gross margin for the fourth quarter of 2022 was 82%, as compared to GAAP gross margin of 83% for the same period in 2021. GAAP operating loss for the fourth quarter was $1.6 million, as compared to a GAAP operating income of $1.6 million for the same period in 2021. GAAP net income for the fourth quarter of 2022 was $1.9 million, as compared to a GAAP net income of $3.9 million reported for the same period in 2021. GAAP diluted earnings per share for the fourth quarter of 2022 was $0.08, as compared to a GAAP diluted earnings per share of $0.17 for the same period in 2021.
Non-GAAP gross margin for the fourth quarter of 2022 was 85%, as compared to non-GAAP gross margin of 87% for the same period in 2021. Non-GAAP operating income for the fourth quarter of 2022 was $5.3 million, as compared to $7.2 million reported for the fourth quarter of 2021. Non-GAAP net income and diluted earnings per share for the fourth quarter of 2022 were $5.6 million and $0.23, respectively, compared with $5.3 million and $0.22 reported for the fourth quarter of 2021.1
Chief Financial Officer, Yaniv Arieli explained, "Our record revenue in 2022 reflects the growing strength and demand for our diversified IP portfolio. Our annual licensing, NRE and related record revenues were up 23% year-over-year, an incredible achievement against the uncertain macroeconomic backdrop. In royalties, we are encouraged by our base station and IoT royalty category, which generated record revenue of $29.2 million from a record 1.4 billion CEVA-powered devices. The continued ramp down of 4G smartphone royalties attributed to a large Tier 1 OEM weighed on handset baseband royalties. Combined, we reached a record 1.7 billion shipments of CEVA-powered devices around the world. At the end of the year, our balance sheet remains very strong with no debt, which will allow us to pursue both organic and inorganic investments to drive long-term profitable growth."
