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Price Increases Help Paychex Results

Martin Mucci, PaychexPrice increases in payroll and human resource products helped Paychex grow revenue 4 percent for the first quarter ended August 31 while total revenue rose by 9 percent. CEO Marti Mucci said payroll price increases were in the 2-percent-to-4-percent range.

The same range applied to the HR changes, but Mucci said in the company's recent earnings webcast that while increases are applied across the payroll product line, Paychex in more selective in applying changes to HRS products.

The company also reported a 4-percent rise in net income which was $217.4 million in the most recently ended period, compared to $209.1 million the prior year. First-quarter revenue reached $785.5 million, up from $723 million in last year's corresponding period.

Payroll revenue was the most recently ended period was $450.9 million, an increase from $432.5 million a year earlier. Mucci said revenue increases reflected growth in all products lines. Among factors cited in performance, Mucci said, was the fact that, "Client retention has remained strong."

Also contributing was Advanced Partners, which Paychex purchased in December. That organization contribution 1-percentage point of the payroll revenue increases and 2 percent of the HR total.

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