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Paychex revenue up 4%

September 28, 2010

Paychex Inc. (NASD: PAYX), a Rochester NY-based payroll processing firm that also provides PEO and other services, reported Monday that revenue rose 3.6% year-over-year to $518.3 million in its 2011 fiscal first quarter ended Aug. 31.

First-quarter revenue rose 10.1% year-over-year in its human resource services segment -- which includes PEO and other revenue -- to $145.5 million.

Paychex reports PEO revenue net of direct costs, including wages, taxes, benefit premiums and claims of PEO worksite employees. Paychex reported directs costs of $950.9 million for its fiscal 2011 first quarter and $708.4 million for its fiscal 2010 first quarter, according to its 10-Q filing.

First-quarter net income rose 6.7% to $131.9 million from $123.6 million in the same period last year.