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Increases in services revenue resulted, in part, from our recent acquisitions, including Precision Software Limited and FBO Systems, Inc., which accounted for $2.5 million of the $8.0 million increase in this category from fiscal 2006, while ongoing customer renewal rates in the 90-plus percent range positively impacted maintenance and other revenue in fiscal 2007. This is testament to the high quality of our products and services, as well as our ability to provide our customers with the means to remove complexity and costs from their manufacturing process.
We again demonstrated our ability to win large, competitive transactions during fiscal 2007, closing 22 deals each greater than $1.0 million in size, of which seven were valued at $2.0 million or more.
Operating income of $8.1 million in fiscal 2007 was restrained somewhat by an aggressive research and development program aimed at further strengthening our enterprise solutions offering. We believe this investment advances QAD's position as a key enabler in helping the world’s leading manufacturers compete more effectively. Over the last several years we have expanded our research and development capabilities to better serve the global nature of our organization. A majority of our R&D efforts are now based outside of the U.S., primarily in China and India, where we’re focused on meeting the market’s requirements for on-demand software applications. Fiscal 2007 operating income was also impacted by the adoption of accounting standard FAS 123R, requiring the expensing of equity compensation. Net income was $7.6 million, or $0.23 per diluted share, and for the eighth consecutive year we generated positive annual cash flow from operations, with $18.9 million in operating cash flow in fiscal 2007.
We continued to return significant value to our shareholders in the form of stock repurchases and dividends. We purchased approximately 790,000 shares of QAD common stock for a total of $6.0 million during the year, reflecting our ongoing belief that our company’s stock represents a sound long-term investment, while returning an additional $3.2 million to shareholders through regular, quarterly dividend payments. We have always been committed to maximizing shareholder value and are continually identifying additional ways in which to further enhance that commitment.
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