Microsoft raises fiscal 2008 outlook for divisions

LOS ANGELES, Jan 24 (Reuters) - Microsoft Corp (MSFT.O) on Thursday raised its fiscal 2008 forecasts for each of its business divisions.

For the fiscal year ending June, the world's biggest software maker said it sees Windows client division revenue growing 13 percent to 14 percent, compared with its prior forecast of 12 percent to 13 percent growth.

It raised the low end of its server and tools division forecast to call for revenue growth of 17 percent to 18 percent. That compares with its earlier call for 16 percent to 18 percent growth in the division.

For online services, it sees revenue growth of 37 percent to 40 percent, up from 33 percent to 37 percent previously.

Microsoft now expects its office business division revenue to grow 16 percent to 17 percent, up from its prior call for growth of 14 percent to 15 percent.

Finally, it sees entertainment and device revenue rising 21 percent to 24 percent versus its prior call for growth of 15 percent to 20 percent.

Microsoft also said unearned revenue reached $12.2 billion in the second quarter. (Reporting by Lisa Baertlein; Editing by Braden Reddall)