Automatic Data Processing eked out a less than 1-percent increase in net income for the first quarter ended September 30, on a 5-percent increase in revenue. The net was dented by several factors that countered what was pictured as good performance in areas such as payroll services.Net income rose to $305.3 million in the most recently ended period from $302.7 million. Revenue for the quarter was $2.64 billion from $2.51 billion in last year's corresponding period.
CEO Carlos Rodriquez said that there was 15-percent increase in new business in both the payroll and PEO services. However, results were dented by unfavorable currency exchanges along with lower average yields in high-margin interest revenue from funds held for clients.
Meanwhile, ADP sold TaxWare, the sales tax business it acquired from First Data in 2006 for $125 million, to Vista Equity Partners. Terms were not disclosed for the latest sale. ADP reported that for the three months ended September 30, TaxWare had $12.9 million in revenue, compared to $11.6 million a year earlier. Net earnings for the most recently ended period was $2.8 million, up from $2.3 million.
