Microsoft has posted its latest quarterly results, revealing a record revenue of $17.37 billion, a 7% increase over the year-ago period and ahead of market expectations. Net income was $5.74 billion, up 6%. Redmond expects to close the present quarter with $28.6 to $29.2 billion in revenue, including its $8.5 billion Skype buyout.

Microsoft's Business division, which contains Office, contributed the most to last quarter's revenue, raking in $5.62 billion, up 8%. The Windows and Windows Live division was a close second with $4.87 billion in revenue, a 2% increase on-year. The Server and Tools segment followed, posting $4.25 billion in revenue, up 10% YoY.

The Online Services division lost $494 million in the quarter, but that's an improvement over the year-ago quarter's $558 million deficit. While it's no cash cow, Bing's organic US market share grew 350 basis points on-year to 14.7% while the search engine's US market share was ~27% -- huge strides for a two-year-old service.

Redmond's Entertainment and Devices division pulled in $1.96 billion, up roughly $168 million, though operating income fell $34 million. The Xbox has remained the top-selling console in the US for nine consecutive months, Gears of War 3 sold over three million copies in the first week, and Xbox Live will receive more TV services.

Microsoft's press release didn't talk much about Windows Phone, except to say that version 7.5 received favorable reviews and it's "excited about the holiday buying season" with products including its new mobile platform. It seems the company is gearing up for the holidays with a range of promotional events and giveaways planned.

Separately, Microsoft has announced plans to host events across the US allowing potential customers to experience upcoming Windows Phone devices, such as the HTC Titan, HTC Radar, Samsung Focus S and Samsung Focus Flash. The gatherings will include games, featured entertainment as well as free food from "top local chefs."

They're scheduled for NYC on November 7 and 8, Chicago on the 11 and 12, Dallas on the 16 and 17, Los Angeles on November 30 and December 1, and San Francisco on December 6 and 7. Admission is free, but there are a limited number of tickets available and you can reserve a seat through the Windows Phone Facebook page.

Along with those events, Neowin reports that Microsoft is giving 500 free Mango devices to users with enough "Klout." You can find out if you're eligible here, though we're not sure what handsets are involved. The company is also offering a free Windows Phone sans contract when you spend $499 or more at the Microsoft Store.