Microsoft Corp. delivered a higher revenue quarter boosted by double-digit growth in its server software and an unexpected jump in online advertising in its MSN division.

Microsoft revenue grew 11% to $8.07 billion in its fiscal fourth quarter from $7.25 billion a year earlier. Net income jumped 25% to $1.92 billion, or 18 cents a share, up from $1.53 billion, or 14 cents, a year earlier.

Excluding a $750-million charge to settle a lawsuit filed by AOL Time Warner Inc. concerning its Netscape Web browser, Microsoft earned 23 cents a share. Estimates by analysts expected earnings of 24 cents a share.

For the year, Microsoft recorded sales of $32.2 billion, up from $28.4 billion in 2002. Profit of just under $10 billion in 2003 was up from $7.8 billion in 2002.