CEO Martin Mucci said in a prepared statement that the company continues to see positive trends in checks per clients. He noted the company is cautiously optimistic about the rest of fiscal 2011 despite the lack of strong new business formation.
Paychex Net Rises 13 Percent
Still bucking an economy in which sluggish business formation is a drag on results, Paychex reported a 13-percent increase in net income on a 9-percent increase in revenue for the first quarter ended August 31. Payroll services revenue was up 6 percent while the smaller human resource services segment saw its income increase by 17 percent.
Net income for the most recently ended period was $148.9 million, compared to $131.9 million a year earlier. Total revenue rose to $563.1 million from $518.3 million in last year's corresponding period. Payroll revenue of $382.3 million in the first quarter compared to $360.7 million a year ago. The inclusion of revenue from SurePayroll and ePlan Services, both purchased in the second half of fiscal 2011, were cited as contributing to the increases.
