"We are excited about the opportunities in business analytics and business intelligence to be offered to our clients," CFO Jan Siegmund said during the company's webcast of its earnings release for the third quarter ended March 31. Siegmund's comments were in response to an analyst's question about the possible use of payroll customer data to produce new products.
Siegmund did not discuss specific products are given more than a general insight into their nature. He talked about using payroll data in benchmarking and giving companies "deep insight into their own data." Siegmund said that the initiative would require client participation in such areas as standardizing data.
For the quarter itself, ADP reported a 7-percent increase in net income. The company had double-digit growth across most markets in the United States, but the total was pulled down by results in Europe. The company also said new business bookings were up 9 percent over last year. Net income was $482.7 million for the most recently ended period, compared to $452.4 million a year. Besides facing a weak economy in Europe, ADP also saw its results continued to be impacted by low interest rates which lowered earnings on invested client funds.
During the webcast, CEO Carlos Rodriguez expressed his pleasure in the pace at which ADP is converting clients from its old payroll products. "We are precisely executing against our conversion goals," Rodriguez said. The company stopped selling its old platform in all markets two years ago. In the small business market, ADP is converting its nearly 400,000 clients in the small business market to its Run platform. Rodriguez estimated that with client attrition helping the process, the conversion to Run will be completed in 24 to 26 months.Last modified on Thursday, 25 July 2013