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Paychex revenue rises 10%

December 19, 2014

Paychex Inc. (NASD: PAYX), a provider of payroll processing and professional employer organization services, reported revenue rose 10 percent to $676.3 million in its fiscal second quarter ended Nov. 30.

Human resource services revenue rose 21 percent year over year to $254.7 million in the quarter, bolstered by a new minimum premium plan health insurance offering for PEO clients and worksite employees. The plan accounted for approximately 7 percent of human resource services revenue in the second quarter. Human resource services revenue also reflected growth in clients and worksite employees within Paychex HR Services, which includes administrative services organization and PEO, according to the company.

“Our results for the second quarter reflected growth and progress against key initiatives,” said President and CEO Martin Mucci. “We have experienced strong demand for our comprehensive suite of human resource outsourcing services, while payroll services revenue continues to advance.”

The company’s largest segment is payroll services where revenue rose 4 percent to $411.2 million.

Second-quarter net income rose 9 percent to $173.0 million.

Paychex shares fell 3.00 percent in early afternoon trading to $46.32 and the company had a market cap of $16.80 billion, according to Yahoo!