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Earnings: Paychex Inc.

June 25, 2010

Paychex Inc. (NASD: PAYX), a Rochester NY-based payroll processing firm that also provides PEO services, reported earlier this week that revenue rose 6.2% year-over-year in its human resource services segment to $141.2 million during its fiscal fourth quarter that ended May 31.

Paychex's human resources service segment includes professional employer organization revenue as well as revenue from other services.

Total fourth-quarter revenue at the company was $496.2 million, basically flat compared to revenue of $495.9 million in the fourth quarter of the previous year.

Fourth-quarter net income rose 1.5% to $115.5 million.

Revenue for the full fiscal year ended May 31 fell 3.9% to $2.00 billion from $2.08 billion in the previous year, and net income fell 10.6% to $477.0 million.

Human resource services revenue for the full year rose 3.3% to $540.9 million.

Paychex reports PEO revenue net of direct costs, including wages, taxes, benefit premiums and claims of PEO worksite employees. Paychex reported direct costs of $3.1 billion for fiscal 2009 and $2.6 billion for fiscal 2008.

The company expects human resource services revenue to rise 10% to 13% in fiscal 2010.