Microsoft reported a 6 percent increase in profits on record revenue for its first fiscal quarter of 2012, bolstered by strong sales from its business division.

Microsoft reported a 6 percent increase in profits on record revenue for its first fiscal quarter of 2012, bolstered by strong sales from its business division.

Microsoft reported $5.74 billion in net income, up 6 percent from the same period a year ago. The company also reported record revenue of $17.37 billion, up 7 percent from the prior year.

Both Microsoft's business division and its Server and Tools businesses stood out. And although Microsoft continued to lose money online, revenues increased while the unit's operating loss diminished.

"We saw customer demand across the breadth of our products, resulting in record first-quarter revenue and another quarter of solid EPS growth," said Peter Klein, chief financial officer at Microsoft, in a statement. "Our product portfolio is performing well, and we've got an impressive pipeline of products and services that positions us well for future growth."

Tuesday night, Microsoft chief executive at the Web 2.0 Summit in San Francisco, slamming Android while defending its social strategy.

Microsoft's business division, as it has previously, pulled in the most revenue, at $5.62 billion, and demonstrated 8 percent revenue growth over 2010. The units also increased its operating income from $3.47 billion to $3.66 billion. While consumer revenue climbed 7 percent and business revenue was up 3 percent, the real driver appeared to be Lync and SharePoint,up 25 percent and 17 percent, respectively.

Close behind it came Microsoft's Windows Live and Windows Division, which recorded a slight $35 million drop in operating income to $3.25 billion. Revenue increased from $4.79 billion to $4.87 billion. According to Microsoft, PCs grew between 1 percent and 3 percent for the quarter, with OEM licenses up 4 percent year over year. Consumer licenses were up 14 percent, Microsoft said.

Microsoft's Server and Tools division recorded a slight increase in operating income, up $57 million to $1.597 billion in operating income. Revenue jumped from $3.86 billion to $4.25 billion.

Although the Microsoft Xbox game console remained the leading console in the U.S for nine straight months, operating income in the Entertainment division sank from $386 million to $352 million, while revenue rose from $1.795 billion to $1.96 billion.

And Microsoft still continued to lose money online, although the loss shrank from $558 million to $494 million. Microsoft made $625 million in the unit, up from $527 million a year ago. Bing's market share now stands at 14.7 percent, a market share increase of 3.5 percentage points since last year.

Going forward, Microsoft's revenue will include figures for Skype, a deal which .