A difficult economy and an expense charge of $18.7 million at payroll and benefits outsourcing provider Paychex Inc. forced an 11 percent plunge in its fiscal 2010 profits to $477 million for the year ended May 31.
The Rochester, N.Y.-based company said that overall revenue dipped 4 percent to $2 billion versus fiscal 2009, while its core payroll service revenue fell 5 percent to $1.4 billion versus the prior year results.
Paychex said the expense charge was to increase the company's litigation reserve.
The companys chief executive, Jonathan Judge, said Paychex suffered a 3.2 percent dip in its client base and a near 5 percent drop in new client sales.
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