The ripple effect of the economy, coupled with fewer and weaker business starts across the country, resulted in a 10 percent drop in second-quarter profits for payroll and benefits outsourcing provider Paychex Inc.
For the period ended November 30, Paychex posted net income of $126 million versus the year-ago period and a 9 percent decline in operating revenue, to $193.1 million. Total system-wide revenue fell 5 percent to $497 million compared to the second quarter of last year.
The companys core payroll service revenue fell 7 percent to $351 million compared to the year-ago results.
Meanwhile, human resource services revenue grew 3 percent, to $132.2 million for the second quarter.
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