Bruised by declines in checks per client and services revenue, payroll and benefits outsourcing concern Paychex Inc. saw third-quarter profits drop 8 percent, to $130.8 million, versus the year-ago results.
Third-quarter revenue for the company, headquartered here, was flat at $528.6 million for the period ended Feb. 28, while operating income declined 6 percent, to $197.4 million.
Paychex’s retirement services revenue dropped by $3 million due to the decline in market values.
“Our financial results continue to be challenged by weakening economic conditions in the third quarter, as many of our key indicators were weaker than on a year-to-date basis. The most significant change was in the area of checks per client, which declined 4.3 percent for the third quarter,” said Paychex president and chief executive Jonathan J. Judge.
The core payroll service revenue increased 2 percent, to $381.2 million for the third quarter from the same period last year, which the company attributed primarily to price increases and growth in the use of ancillary payroll services.
