Maxim Integrated Products, Inc. reported record net revenues of $510.6 million for its fiscal fourth quarter ended June 24, 2006, a 6.8% increase over the previous quarter and a 27.5% increase over the same quarter of fiscal 2005. Net income for the fourth quarter of fiscal 2006 was $124.3 million including total stock based compensation or $0.37 diluted earnings per share. This compares to $120.3 million or $0.36 diluted earnings per share for the third quarter of fiscal 2006, and consistent with the $0.37 reported for the same period a year ago.
Non-GAAP net income, which excludes the impact of total stock based compensation expense, for the fourth quarter was $158.9 million or $0.48 per diluted share, a 6.7% increase in earnings per share over the previous quarter and 29.7% over the fourth quarter of fiscal 2005. The total amount of stock–based compensation recorded during the fourth quarter was $51.3 million on a pre-tax basis as compared to $42.1 million for the third quarter of fiscal 2006. Gross bookings for the fourth quarter were approximately $557 million, a 4% increase from the third quarter's level of $537 million.
Bookings increased in all geographic locations excluding the U.S. where bookings were down primarily due to the transfer of certain customer order placement activity from the U.S. to Asia and Europe. Fourth quarter ending backlog shippable within the next 12 months was approximately $429 million, including approximately $366 million requested for shipment in the first quarter of fiscal 2007. The company's third quarter ending backlog shippable within the next 12 months was approximately $401 million, including approximately $346 million that was requested for shipment in the fourth quarter of fiscal 2006. Gross margin was 66.3% for the fourth quarter. Non-GAAP gross margin percentage, which excludes $9.2 million of stock based compensation, was 68.1% for the fourth quarter.
Research and development expense was $127.2 million or 24.9% of net revenue. Non-GAAP research and development expense, which excludes $31.9 million of stock based compensation, was $95.3 million or 18.7% of net revenue. Selling, general and administrative expense was $37.9 million or 7.4% of net revenue. Non-GAAP selling, general and administrative expense, which excludes $10.2 million of stock based compensation, was $27.7 million or 5.4% of net revenue. Total operating expenses for the fourth quarter were $165.1 million or 32.3% of net revenues. Total non-GAAP operating expenses decreased 0.8 percentage points from 24.9% of net revenues in the third quarter to 24.1% of net revenues in the fourth quarter of fiscal 2006.
During the quarter, the company repurchased 2.4 million shares of its common stock for $76.7 million, paid dividends of $40.2 million, and acquired $120.8 million in capital equipment. Accounts receivable increased $32.7 million in the fourth quarter to $292.6 million and inventories for the fourth quarter increased $2.8 million to $207.4 million and includes $14.1 million of stock based compensation.
