Microsoft has posted a 24% increase in profits for the first quarter ended 30 September, fuelled by strong growth in the PC and server market.
Microsoft said profits jumped from $2.53bn (£1.48bn) to $3.14bn (£1.85bn) in the quarter.
Sales for the first quarter increased from $9.19bn to $9.74bn. For the full year, Microsoft said it expected to generate sales of up to $44.5bn for the full year ending June.
At Microsoft Business Solutions, which supplies enterprise products, revenue hit $181m. The division recorded 18% growth in software revenue with 21% growth in licenses and 16% growth in enhancement revenue.
Microsoft said it expected to take a 2% hit on full-year earnings as a result of the recently announced multi-million dollar settlement with RealNetworks, over the anti-trust case brought by the media player maker.
Last year, Microsoft took a charge on earnings following its anti-trust settlement with Novell.