Paychex Q4 Profits Rise 12 Percent

Propelled by revenue increases in its payroll and human resources units, payroll and benefits outsourcing provider Paychex Inc. posted a 12 percent climb in fourth-quarter profits, to $137.2 million, versus the year-ago period. For the year, the company, headquartered here, said net income rose 14 percent, to about $532 million, compared with its 2006 fiscal year end. Fourth-quarter revenues spiked 11 percent to $487.3 million, while year-end revenues grew 13 percent, to $1.9 billion. The company reported that over the year, payroll service revenue rose 9 percent to $1.4 billion, while revenue from its Human Resource Services arm grew 22 percent to $396.2 million. The company also recorded an expense of $13 million related to a licensing dispute.