Among the metrics that showed improvement was checks per client and CEO Martin Mucci said the company had double-digit growth in client bonus activity at the end of 2010.
Paychex Profit Up 17 Percent
Payroll services provider Paychex reported a 17-percent increase in net income on a 5-percent rise in revenue for the third quarter ended February 28. The company said improved economic conditions contributed to the improvements, although new company formation continues to lag. Paychex expects payroll revenue to rise from 1 percent to 2 percent and human resources revenue from 11 percent to 12 percent for the current fiscal year.
Net income for the most recently ended period was $130.6 million, up from $112 million a year earlier. Revenue rose to $519.6 million for the quarter, compared to $507.8 million for the corresponding period of fiscal 2010. Payroll revenue of $366.4 million represented a 2-percent increase over $358.3 million the prior year. The company noted that on February 8 it completed the acquisition of online payroll provider SurePayroll for about $155 million. SurePayroll had about $23 million in revenue for 2010.
